Business SHSM Unit 2

Social Responsibility

The ethical obligation of organizations to contribute positively to society, taking into account the impacts of their operations on various stakeholders, including employees, customers, communities, and the environment.

Arguments for social responsibility

Social responsibility enhances business performance by boosting sales, fostering customer loyalty, reducing overall operating costs, improving access to capital through investor appeal, and cultivating a stronger, more engaged labor force.

Obstructionist Strategy

A minimal approach to social responsibility where an organization only fulfills its economic obligations without addressing societal needs or concerns, often leading to criticism and reputational harm.

Defensive Strategy

A middle-ground approach to social responsibility where organizations comply with economic and legal obligations but may not actively seek to create positive impact or engage in ethical practices.

Accommodative Strategy

An approach to social responsibility that goes beyond legal requirements by addressing ethical standards and societal expectations while still focusing on economic performance.

Proactive Strategy

A comprehensive approach to social responsibility where organizations actively seek to exceed all legal, ethical, and discretionary obligations, thereby promoting societal good and fostering sustainable business practices.

Internal Stakeholders

Individuals or groups directly involved with the organization, including employees at all levels, management, and owners, who have vested interests in the company's performance and outreach.

External Stakeholders

Entities outside the organization, such as customers, suppliers, community members, and regulators, whose interests and welfare can be significantly affected by the company’s operations and policies.

Corporate Governance

The system by which companies are directed and controlled, typically involving a board of directors that oversees management decisions and company actions to ensure accountability and transparency.

Integrity

The adherence to moral and ethical principles in all business dealings, including honesty, reliability, and consistency in actions and communications.

Ethics

A framework of moral values and principles that guide individual and organizational behavior, defining standards of what is considered right and wrong, fair and unfair.

Whistleblower

An individual, often an employee, who reports illegal or unethical behavior within an organization, bringing light to misconduct that may harm the organization or its stakeholders.

Job Analysis

A systematic process that involves gathering information about the tasks, responsibilities, and skills required for a particular job, aiming to improve organization and employee performance.

Job Descriptions

Comprehensive summaries outlining the duties, responsibilities, and requirements of a particular job position, serving as a guide for recruitment and performance evaluation.

Recruitment

The strategic process of identifying, attracting, and selecting qualified candidates for a job vacancy, utilizing various methods to find the right fit for the organization. Internal and External

Compensation and Benefits

The entire package of financial remuneration and additional perks provided to employees in exchange for their work, including salaries, bonuses, health benefits, retirement plans, and other incentives.

360 Degree Evaluation

A holistic approach to performance appraisal where feedback is gathered from various sources—including managers, peers, subordinates, and sometimes clients or customers—to provide a comprehensive review of an employee's performance.

Exit Interviews

Conversations conducted with employees who are leaving the organization to gain insights about their experience, reasons for departure, and suggestions for workplace improvements.

SMART Goals

A goal-setting framework emphasizing that objectives should be Specific, Measurable, Achievable, Relevant, and Time-bound to enhance clarity and focus on outcomes.

SWOT Analysis

A strategic planning tool that evaluates an organization’s internal Strengths and Weaknesses against external Opportunities and Threats to inform decision-making and strategic direction.

PEST Analysis

An analytical tool assessing the external environment of an organization by examining Political, Economic, Social, and Technological factors that could impact its operations and strategy.

Porter's 5 Forces

A strategic model that identifies five competitive forces affecting an industry—threat of new entrants, bargaining power of suppliers, threat of substitutes, bargaining power of customers, and industry rivalry—to analyze a company's competitive environment.

Dilemma of CSR

The challenge businesses face in balancing the pursuit of profit with the need to act responsibly towards society, leading to potential conflicts between stakeholder expectations and shareholder interests.

Corporate Social Responsibility (CSR)

The practice of companies integrating social and environmental concerns into their business operations and interactions with stakeholders, reflecting a commitment to ethical behavior.

Stakeholder Theory

A concept asserting that a business has obligations not only to its shareholders but also to all groups affected by its actions, including employees, customers, suppliers, and the community.

Triple Bottom Line

A framework for evaluating a company's commitment to the three pillars of sustainability: social responsibility, environmental stewardship, and economic viability, encouraging a balanced approach to business success.

Sustainable Business Practices

Business methods that prioritize ecological health, social equity, and economic longevity, minimizing negative impacts on the environment while promoting positive social outcomes.

Social License to Operate

The ongoing acceptance and approval of a company’s operations by its stakeholders, which is essential for achieving long-term sustainability and community trust.

Corporate Philanthropy

The voluntary donation of resources or profits by a corporation to charitable organizations and social causes, demonstrating a commitment to community support and social good.

Ethical Culture

The shared values, beliefs, and practices that define how ethical issues are handled within an organization, fostering an environment that encourages ethical behavior and accountability.

Environmental Stewardship

The responsible management and protection of the natural environment through sustainable practices, conservation efforts, and community engagement to ensure resources are available for future generations.

Consumer Activism

Efforts by consumers to influence corporate behavior through advocacy, awareness campaigns, boycotts, and strategic purchasing choices aimed at promoting ethical business practices.

Social Audit

An assessment process evaluating a company’s social performance, analyzing its practices, impacts, and stakeholder relationships to ensure accountability and continuous improvement.

Arguments against social responsibility

Reduced business profit, higher business cost, dilution of business purpose, Too much social power for business, and Lack of public accountability

Benchmarks of good CSR

Company is focused on meeting the needs of its employees and other stakeholders

commitment to CSR integrated throughout business operations

create a strategy that will be the core element of the company’s commitment to CSR

Maintenance of the CSR program

corporate resources allotted to manage the program

CSR program is evaluated regularly for impact and effectiveness

7 principles of corporate governance

Integrity: perform duties honestly and in accordance with moral principles

Transparency: Make goals and methods of achieving them visible to all affected by the business

Reliance: seek guidance from management, counsel and other trusted advisors

Legal Compliance: follow rules and regulations to remain within the law and demonstrate social responsibility

Equity: Treat all stakeholders fairly and equitably

Independence: Minimize conflict and conflict of interest

Security: keep nonpublic information secure and confidential

Sustainability

Development that meets the needs of the present without compromising the ability of future generations to meet their own needs. 

Reasons for sustainability: Cost reduction, resource preservation, Legislative compliance, reputation, right initiative.

Strategic Management:

The management of an organization's resources to achieve its major goals and objectives

Mission Statement

The mission is the organization’s reason for existence in society. The value we create for our stakeholders.

Mission Statement Must Include

• The customers we intend to serve 

• The product or service we intend to provide 

• Were we will operate 

• The underlying philosophy (core values) that will guide us in these operation

Operation Objectives

• specific results that organisations try to accomplish. they direct activities toward key and specific performance results. 

• all objectives should have clear means-end linkages to the mission and purpose. 

• this can include: profitability, market share, human talent, financial health, cost efficiency, product quality, innovation, social responsibility

Strategies

• A general plan of attack to meet the objectives set out 

• must be achievable 

• is company specific (ie. makes sense in your environment) 

• provides a plan for allocating and using resources to meet objectives 

Job Description

Details the duties and responsibilities of a job holder

Job Specifications:

Lists the qualifications required for the job holder ie. education, prior experience, and skills requirements

Selection

means placing the right candidate in a particular position

Activities in the selection process

• Interviewing & checking qualifications

• verifying references 

• administrating skill/experience tests 

• sometimes criminal background checks or credit checks 

• sometimes personality test

Behavioral Interviews

• Ask job applicants about past behaviours

Situational Interviews

Ask job applicants how they would react in specific situations

Training

• Developing a skill, competency or knowledge that is required by the job. Learning things like; 

  • Company procedures and standards 

  • Job Specific 

  • Safety Training ie. WHMIS

Orientation

• Part of training, the time when new employees tour the workplace, meet other co-workers, employees may also receive training on equipment and be introduced to new technology and software

• HR during orientation will go over compensation policies, work hours, benefits, rules of behaviour, dress code, health and safety procedures  

Top Down Assessment

Evaluation by the employee’s direct supervisor

360 Degree Evaluation

The employee is evaluated by four parties not only by their direct supervisor, evaluation by the direct supervisor, subordinates, co-workers and customers

Matrix Evaluation

The type of evaluation, the employee is evaluated by different managers 

Self Assessment

Employee rates themself on the same criteria used by the direct supervisor to evaluate him/her and then the two evaluations are compared

Developpements and Benefits

A long process of upgrading an employee’s performance over time, focuses on the person rather than the task, it focuses on career building and progression 

Corrective Interviews

During a corrective interview employers would discuss work problems with employees. Employees then improve or face dismissal, layoffs can occur due to financial cutbacks. Severance packages may be provided, or outplacement counseling offers to help one find a new job.

Ethical Behaviour

Characterized by honesty, fairness and equity in interpersonal professional and academic relationships, respecting the dignity, diversity, and rights of individuals and groups of people 

Values

The underlying beliefs and attitudes that help determine individual behaviour, values vary among people, there are different interpretations of what behaviour is ethical or unethical in a given situation

The Glass Ceiling

Obstacles to advancement within the workplace due to gender or race/cultural background

Code of Ethics

• Official written guidelines on how to behave in situations susceptible to the creation of ethical dilemmas 

• Covered in these codes are things like workforce diversity, bribes and kickbacks, political contributions, honesty of books or records, customer/supplier relationships, confidentiality of corporate information

Ethical Dilemmas

Occurs when a situation offers two or more choices/decisions that may be right and you are not sure what to do

CSR Principles

●Donating to charity

●Work Environment

●Fair Labour Laws

●Truthful Advertising

●Environmental Protection

4 Components of Strategic Management Success

• Sustainable competitive advantage (the ability to outperform competitors) 

  • through, cost/quality, knowledge,speed, barriers to entry, financial resources, technology. 

• Earn above average return 

• crafted from: insightful understanding of the competitive environment and knowledge of organization 

• Implemented with commitment and resolution 

Purpose of a Mission Statement

Describe, in a sentence, what makes your organization distinct and different from its competitors, and define your organization's guiding principles and unite employees around a common purpose

The Goal of Human Resource Management

• Build organizational performance capacity through people

• To ensure that highly capable and enthusiastic people are always in the right positions

• That employees receive the support they need to be successful 

The Strategic Human Resource Planning

The process of analyzing an organization’s staffing needs based on the organizational mission, objectives and strategies and determining how to best fill them this involves:

• Identifying staffing needs

• Assessing the existing workforce

• Forecasting what is required for the future

4 Key Elements of a Persuasive Presentation

• statistics 

• logical appeal 

• testimonials 

• emotional appeal 

Proper Elements of a cover letter

• Employer Contact Information/ also knowns as the inside address 

• First Paragraph the purpose of you writing the letter

• Middle Paragraph what you have to offer the employer that is unique 

• Middle Paragraph explains how you match with the job based on the needs for the job what skills and qualifications you have that are outlined in the job 

• Final Paragraph concludes your cover letter by thanking the employer for considering you for the position. Include information on how you will follow-up. 

• Complimentary Close

• Respectfully yours, 

• Signature Block (leave 3-5 spaces between the complimentary close and the signature block) (your first and last name and usually includes contact information)