License to operate certified BA 342 Study Guide Exam 2 Give back 50 uses Sustainability 25 uses CSR Social environmental responsibility Responsibility Ability to do the right thing Responsible Leadership Decisions made thinking of stakeholders workers clients environment community future Walmart Largest company 470b yr 1 4m workers in US Sustainability Drives Walmart Downtown decline Consumerism buy more workforce issues bribery scandal What characterizes good citizenship corporation Make world a better place Respect others Open minded Environment care Responsibility Production Pay tax Obey law Corporate Citizenship Responsibility Performance Responsiveness Not Problem Solving Corporate Social Responsibility Accountable Responsiveness Action Outcome Performance Big 6 Reasons Innovation New Business Cost Savings Customer Retention Brand Differentiation Better SH Relation LT Thinking Attract Employee Customer Engagement Decrease cost Employee Engagement Reputation investment media relations Firm s response to CSR Pressure Defensive Garments Cost Benefit DuPont Innovation Tesla Strategic Siemens IBM Study on CSR 60 More important 34 same 6 less important Corporate Performance Hershey s CSR Report 1 Good Business Environment Workplace Responsible Sourcing Integrity Governance 2 Better Life Global Giving Community Engagement Volunteerism 3 Bright Future education and nutrition Prior CSR Model Marketplace environment community workplace Adam Smith Moral philosopher economic thinker Economic 1800 Legal 1970 Social Stakeholder CSR History Past to Present CSR Today Top to Bottom Philanthropic citizenship Ethical Legal Economic profit 1 Stakeholder Values Stakeholder Model 5 Stakeholder Corporation KEY STAKEHODLERS 4 Employees Consumers Government Non Gov t and Community 1 Governing Philosophy 2 Values Statement 3 Measure System IRON LAW OF RESPONSIBIILTY will lose in the long run if not responsible Stockholder owners Stakeholder interest CSR Shareholder Accountability Stakeholder Performance System Ex CNH Business Responsibility Tractor Company shut down Train workers lose jobs customer stakeholders companies closing chemical harm local suppliers Book Community Gov t Employee Consumer Owner 1 Descriptive business government politics 2 Instrumental profitability growth 3 Normative how stakeholders should be treated Stages of Citizenship Development Fig 2 11 Stage 1 Elementary credibility 2 Engaged Capacity 3 Innovative Coherence 4 Integrated Commitment 5 Transforming Who Stakes Opportunities challenges Responsibilities Strategies Actions Personal HR Human Capital ex Apple iFactory US 23 41hr week CHINA 2 60 hr week Worker want higher pay US Employee Social Contract p491 OLD NEW Stable Job Security Decline Job Security Job changes Lifetime employer Employer Responsibility Personal Responsibility Individual Team Moral Mgmt Employees human resource treat with dignity ex Alta Gracia message from workers Living wage needed to support family Immoral Mgmt Employee factors of production exploit for personal gain ex Child Labor UN 200m impacted 2014 must develop global guidelines on employment Amoral Mgmt Employees law requires Investment Bank First Years work 85 110hr weeks 130k Second Year work 55 105hr weeks 250k Employee has Legal and Moral rights Fig 3 5 Stakeholder Questions Social Contract 2 Legal Statutory discrimination Collective unions Contractural CEO Employment HR Moral Fired with cause shared Due Process Fair Treatment Freedom of Speech Respect Privacy Safety Health Basic Right 1 Fired for Cause Good Cause Employment at will doctrine AKA fair standard Exceptions Public Policy Implied Contract Good Faith Principle Discrimination Law Must 1 be fair 2 consistent 3 business related 4 documentation Out low performer risk mgrs increase hiring less jobs flexibility high rehire cost US only moral respect arbitrary nature trust broken culture broken low claims Basic Right 2 Due Process Right to receive impartial review of one s complaint and dealt with fairly ADR resolving without litigation 4 1b spent on litigation 800b on US tort system 1 Open Door most 2 Arbitration meditation 50 3 Ombudsman 16 4 Peer Review 13 with Compliance and Ethics Officers IOA International Ombudsman Asso Coke s independent 3rd party to hear complaints Confidential impartial independence Basic Right 3 Freedom of Speech to express without censorship responsibility 41 witness 63 reported 21 retaliation 60 by mgrs 24 by sr mgrs Present focus on Top 1 3 mgr s ethics Whistle Bloawing employee disclosing improper actions by organization to effect change 1 Whistle Blower 2 Party reported to 3 Complaint 4 Org Accused 43 Fraud uncovered False claims act SOX Dodd Frank IRS Traditional Approach Employee to corporation loyalty obedience confidentiality Emerging Approach Employee to corporate and public whistle blow to balance duty ex ADM the informant Whitacre SOX ex UBS 104m award vs 780m fine US total 5b fine Incentive to whistle blower Employee Stakeholder has expectations of PRIVACY SAFETY HEALTH Personal Safety uis always 1 issue for mgrs ex Yik Yak security safety community culture media privacy brand equity Privacy right to keep personal to oneself and to know how your information is being used ex Employer asking for profiles to get hired Employee privacy bill of rights 1 informed consent before info 3 Control on info access 2 Disclose surveillance 4 limit use of health data 6 Respect work home 5 Cause before drug test Google Freedom of Speech vs Right to be forgotten Workplace 4000 died 2m injuries transportation violence objects substance fires falls Most dangerous job Commercial fisher logger pilorts Occupational Safety Health OSHA 1970 14k died in war 14k died in work Workplace Violence 2 1m to 572k now deaths 1000 to 500 now False Claims Act 3 Drug Testing Dismissing with care Monitoring Employees Health Initiatives end of chapter 18 Collection Use of Employee Information Book Fire privately mindful of logistics dignity notify in advance No Friday no finishing downsizing no email no platitude no rush Privacy Act of 1974 control on gov t to collect use personal data relaxed by US Patriot Act EEOC conducted genetics test on those filed syndrome Controlled Substance Act canot preempt state laws Due process privacy invasion issue 66 employers monitor employee s web site visits 43 monitors emails Electronic Communication Privacy Act of 1986 Invasion of privacy low morale and job insecurity Family and Medical Leave Act