Ch. 4: Corporate Social Responsibility

Corporate Social Responsibility

• Managerial obligation to take action that protects and improves the welfare of society and the org’s. interest

• Meeting goals and helping orgs’s. community

Davis Model of Corporate Social Responsibility

• Arises from social power

• Two way open system

  • Open receipts of inputs from society and open disclosures to the public

• Social costs and benefits and deciding to proceed with it

• Corps. Have the the responsibility to be involved

Ethics

• Principles by which people distinguish what is morally right

• Some believe profitability should be overriding

• Orgs. Have to behave properly

Benefits of Ethical Behaviour

• Ensure org’s. long term health

• Improves relations with community

• Tends to reduce public pressure for govt. regulation

Challenges of Ethical Behaviour

• New situations looks for new ways for people to cheat

• Can’t always monitor behaviour

• : Accurate timekeeping, review and approval, privacy concerns

Code of Ethics

• An org’s. written statement of its values
  and rules for ethical behaviour

• Can vary

  • Doing business where corruption is expected

  • Differences where both cultures terms are acceptable

UN Global Compact

• Voluntary to sign

• Including principles of global citizenship, fighting against extortion or bribery

Ethical Behaviour of Supervisors

• Expected to be loyal to the org., managers and subs

• Playing fair

  • Favourites

  • Nepo

• Remaining honest

  • Using org. Resources for personal

Ways to Promote Ethical Decision Making

• Involving others in the process

• Employees respond to higher levels

Steps to take when an Employee is Suspected of Unethical Behaviour

• Gather evidence

• Confront the employee with evidence

• Follow org’s. disciplinary procedure

• Look for and correct conditions that led to the problem

Whistle Blowers

• People who expose a violation of ethics or law

• Protected by federal laws, but often suffer for going public

• Many orgs. Protect by having hotlines to make reporting and resolving easier

Sarbanes-Oxley Act

• Forbids employers from retailing in against an employees

• Reports possible accounting, auditing, or misdeeds that deceive investors

Civil War Era

Report on orgs. That were cheating the govt. receives 30% of whatever the org. Pays as the penalty

Sustainability

• Ability to meet its present needs without compromising the ability of future gens. To meet their needs

• : Economy, environment, and society

• Experts believe that improving this tends to increase productivity and innovation

Steps Toward Sustainability

• Setting goals

• Hire people with those skills

• Rewards contributions

• Track progress