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Ethics and Law in Business and Society Lecture Series
SEAN D. JASSO, PHD © 2019 UCR - FALL 2019
OUR OVERARCHING AIM HELPING YOU NAVIGATE THE COMPLEXITIES
OF A DYNAMIC ENVIRONMENT QUESTION….
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ARE YOU GOOD?
A Dynamic Environment
Government
Business
Society
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First – Government
• political philosophy • politics • rule of law • democracy • tyranny • political economic systems • the social contract
The Social Contract
voluntary agreement among individuals, by which society organizes itself and its resources to ensure mutual protection and welfare and to regulate the relations among its citizens
Hobbes: 1588-1679 Locke: 1632-1704 Rousseau: 1712-1778 Jefferson: 1743-1826 Madison: 1751-1836
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Federalist 51 1788 – Feb 6, 1788
“IF MEN WERE ANGELS, NO GOVERNMENT WOULD BE NECESSARY. IF ANGELS WERE TO GOVERN MEN, NEITHER EXTERNAL NOR INTERNAL CONTROLS WOULD BE NECESSARY”
Second – Society
• pluralistic • society’s needs – universal principles • governments views of society’s needs differ • society is ‘best’ when it is free • Western, American, Industrial, Developed • “society” – look to markets for prosperity and value – under the rule of law
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Third – Business
• Foundations • economics, political economic systems • the business enterprise – solutions, jobs, products, services,
innovations, progress
• Markets • competitive, global, strategic • require guidelines, boundaries, regulations
• hence, “ethics and law”
Guiding Questions
• what is the nature of the corporation • what does society want from the corporation • what is the responsibility of the corporation • what is the morality of the firm • what is the morality of the market • where is your moral development • what are the rules of the game
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ON ETHICS & MORALS
IDEAS BY WHICH WE LIVE
ETHICS – TYPES
Descriptive / Positive – what is right?
Normative / Natural Law / what ought to be right?
Conventional / Principled / what is your character?
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TOWARD THE ETHICAL LIFE
A JOURNEY OF MORAL DEVELOPMENT
ETHICS GREEK FOR ETHOS – ONE’S MORAL CHARACTER
IN ESSENCE – HOW WE ACT
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MORALITY LATIN FOR MORALIS – ONE’S CUSTOM OR
MANNER (VERY SIMILAR)
IN ESSENCE – HOW GOOD OUR CONDUCT IS AND OUR STANDARDS ABOUT CONDUCT IN
GENERAL
ETHICS, THEREFORE, IS THE FORMAL STUDY OF THOSE STANDARDS OR CONDUCT BY WAY OF
CODES, RULES, PRINCIPLES, POLICIES – AND IN THE END, OUR HABITS
MORALS THE MOTIVATION BASED ON IDEAS OF RIGHT AND WRONG – MORALS ARE FAR MORE ABOUT GOOD AND BAD THAN OTHER VALUES
WE MIGHT JUDGE OTHERS MORE STRONGLY ON THEIR MORALS THAN ON THEIR VALUES
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MORALS AND ETHICS
Conscience – one’s inner sense of right and wrong - for believers – God’s presence in man
Consider MORALS as within your conscience
Consider ETHICS as the rules to support your conscience
VALUES ONE’S PRINCIPLES OR STANDARDS OF
RIGHT BEHAVIOR – ONE'S JUDGMENT OF WHAT IS IMPORTANT AND RIGHT IN LIFE
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ON VALUES
Values are our fundamental beliefs. They are the principles we use to define that which is right, good and just. Values provide guidance as we determine the right versus the wrong, the good versus the bad. They are our standards. Consider the word “evaluate”. When we evaluate something we compare it to a standard. We determine whether it meets that standard or falls short, comes close or far exceeds. To evaluate is to determine the merit of a thing or an action as compared to a standard.
ON MORALS
Morals are values which we attribute to a system of beliefs, typically a religious system, but it could be a political system of some other set of beliefs. These values get their authority from something outside the individual- a higher being or higher authority. Many of us find our values are strongly influenced by our sense of morality - right as defined by a higher authority. Yet we refrain from citing that authority because doing so may seem less rational and more emotional to others who do not share our belief system.
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ON ETHICS
Ethics is about our actions and decisions. When one acts in ways which are consistent with our beliefs (whether secular or derived from a moral authority) we will characterize that as acting ethically. When one’s actions are not congruent with our values - our sense of right, good and just - we will view that as acting unethically.
Defining what is ethical is not an individual exercise however. If it were then one could have argued that what Hitler did was ethical since his actions conformed to his definition of right, fair and good. The ethics of our decisions and actions is defined societally, not individually.
PRINCIPAL RESPONSIBILITIES OF VALUES
1. Religious Values – profession of faith 2. Cultural Values – cultural norms 3. Legal Values – judicial systems 4. Professional Values – business etiquette 5. Philosophical Values – general wisdom
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On Moral Reasoning
Lawrence Kohlberg (1927-1987) Thesis – moral reasoning is the foundation of one’s ethical behavior Approach to moral development – psychology
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ON BEING GOOD ‘HOW AND WHY’
The Ethics Checklist
1. Is the outcome moral – is it right 2. Is the behavior ethical – is it good 3. What ethic is being tested 4. Is it legal 5. Does it fit the culture of the nation/organization 6. Will it negatively impact your stakeholders 7. Will it negatively impact your reputation 8. Will it look bad in the media 9. Can you sleep at night 10. Can you live with it – how’s your conscience? 11. How will it impact your spouse and children
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ON THE GOOD
It is no easy task to be good. For in everything it is no easy task to find the middle ... any one can get angry --that is easy-- or give or spend money; but to do this to the right person, to the right extent, at the right time, with the right aim, and in the right way, that is not for every one, nor is it easy; that is why goodness is both rare and laudable and noble.
Aristotle
WHY BE GOOD?
Elevate the Absolute Knowledge of the Good Excellence of Character
Preeminence of Achievement Sustain the Right The Life Well Led
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HOW TO BE GOOD?
RIGOROUS PRACTICE OF VIRTUE KNOWLEDGE OF THE GOOD WE ARE WHAT WE REMEMBER
On VIRTUE
A trait of human character that is valued as being good in and of itself –
or universally understood to be a value of goodness
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ARISTOTLE’S VIRTUES – in between excess and deficiency
1. Courage 2. Justice 3. Generosity 4. Pride 5. Temperance
6. Truthfulness 7. Wittiness 8. Friendliness 9. Modesty 10. Righteous Indignation
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Where does good come from?
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Where does being good take us?
Forthcoming
Toward the Philosophy of the State Virtue, Duty, Utility, Justice
Toward Governance Introduction to Corporate Governance Introduction to Corporate ‘Social’ Responsibility
Introduction to the Rationale for Public Policy Market Failure – in brief
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Greatest Contribution to Moral Philosophy – System of the Categorical Imperative Great Work – Critique of Practical Reason, 1788 Stanford's Great Source on Philosophy - Kant
Immanuel Kant 1724-1804 Kaliningrad, Prussia
Kant’s Central Lessons Our purpose – to will
decisive action or choice toward the good reason – our intellect to govern our free will – in essence, we
know the good Our destination – moral law –
what makes goodness is one’s possession of a will determined by a universal, moral law
a good will must be good in of itself & not in virtue with any thing else – even one’s happiness
Our method – categorical imperative – the unconditional command of conscience in essence, we must be willed to be good Imperative – because it is a command to exercise our wills
toward action Categorical - absolute in virtue applying to us unconditionally
driven by our reason/rationality to do right by duty Kantian Ethic – Duty
what is singular about motivation by duty is that it consists of bare respect for lawfulness – Kant’s ‘ethics checklist’ or ‘categorical imperative’
Act only according to that maxim by which you can at the same time will that it would become a universal law.
Act in such a way that you always treat humanity, whether in your own person or in the person of any other, never simply as a means, but always at the same time as an end.
So act as though you were, through your maxims, a law making member of a kingdom of ends.
Kant’s Burning Questions – • What makes a person good • What is moral law • How do we achieve the highest
good • What is good will
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Aristotle 384 BC – 322 BC Athens, Greece
Stanford's Great Source on Philosophy - Aristotle
Aristotle’s Central Lessons
Our purpose – eudaimonia – happiness through flourishing
Our destination - aretê –excellence of intellect and character
Our method – ethics – or, the knowledge, aim and enduring habituation toward the highest good
Aristotelian Ethic – virtue a life of virtue yields aretê
Greatest Contribution to Moral Philosophy – Ethics is not theoretical, but a life of
practice Great works –
Nicomochean Ethics The Politics Oikonomos – The Management of the
Household
Aristotle’s Burning Questions – • What is happiness • What is a life lived well • What character traits are needed • What is the essential nature of an
activity • What excellences are worthy of honor
and recognition • Why study ethics
John Stuart Mill 1806-1873 London, England
Mill’s Central Lessons Our Purpose – universal liberty - from
egoism (self interest) to utility (collective welfare)
Our Destination – aggregate happiness Our Method – utility
Proportionality Doctrine – duty and right action is defined in terms of universal promotion of happiness
Millian Ethic – utilitarianism driver of modern public policy
Greatest Contribution to Moral Philosophy Advances modern liberalism
Great Work – On Liberty, 1859, Utilitarianism, 1863
Mill’s Burning Questions – • What is the role of the individual in
society
• What is the role of the state upon individual liberty
• How does society achieve universal happiness
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John Rawls 1921-2002 United States
Rawls’ Central Lessons Our Purpose – social cooperation – the
tenet of liberal thought Our Destination – social justice –
cooperative policy should be free and fair Our Method – Justice as Fairness – by way of
the veil of ignorance free and equal citizens achieve cooperation Principle One – equal basic liberties to all Principle Two – fair equality of opportunity to all
for political & economic leadership Rawlsian Ethic – social justice
to achieve social justice, redistributive public policy aims to level opportunity
Greatest Contribution to Moral Philosophy Liberal Public Policy Great Work – A Theory of Justice, 1971
Rawls’ Burning Questions –
• How can society achieve collective happiness
• What is the nature of justice • What is ultimately fair
Enduring Questions
Can you have equality at the expense of excellence? Does economic redistribution minimize prosperity? Does aggregate happiness curtail individualism? Is society generally good?
Why do ‘good’ people do bad things? Who are your moral heroes What is the right thing to do?
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So…… SO, WHAT IS THE RIGHT THING TO DO?
Toward the Philosophy of the State
SOCIAL CONTRACT THEORY - FORTHCOMING
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ON GOVERNANCE TOWARD GOOD GOVERNANCE
Jasso’s Governance Framework
Good Governance
Ethical Covenant
Moral Charter
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Governance
What is it… “the system that defines the distribution of rights
and responsibilities among different participants in the corporation, such as the board, managers, shareholders, and other stakeholders, and spells out the rules and procedures for making decisions of corporate affairs”
Governing What
Purpose of the Corporation Created by individuals and a legal entity of the state Limited liability Harness resources – maximize scale and scope Maximize wealth creation for itself by providing
competitive value for its stakeholders
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On Corporate Purpose
“PROPERLY DEFINED, CORPORATE PURPOSE SHOULD RARELY, IF EVER CHANGE”
– RICHARD ELLSWORTH
Structure of Governance
Board of Directors Council of “elders” Set Moral Framework Legally required Set corporate mission, vision Hire / fire CEO and senior executives Control top management Represent shareholder interests … stakeholder Review use of major resources Sarbanes Oxley Compliance
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The Importance of The Board of Directors
ON BOARDS, CEOS AND STRATEGY
BOD’s Responsibilities Governance is not Management
1. CEO Selection 2. Oversight, Compliance, and Risk Management 3. Strategy Development 4. Responding to External Pressures and Unforeseen Events 5. Maintaining High Performance of the Board Itself
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The Board’s Central Responsibilities
CEO Selection External Selection – Alan Mulally, CEO Ford, 2006- present
Ford Annual Report Internal Selection – Michael Duke, CEO Walmart, 2009 – present,
joined 1995 Walmart Annual Report
Oversight, Compliance and Risk Management Sarbanes Oxley Act of 2002
The Board’s Central Responsibilities Strategy Development – How Board’s Should Engage
Fundamental Approach Setting ultimate direction of the
corporation Reviewing and approving strategic
initiatives and directions Assessing the risks that define and drive
long-tern corporate performance
Framework for Strategic Activity Strategic Thinking Strategic Decision Making Strategic Planning Strategy Execution
Strategic Choice Process Agreeing in the company
vision Viewing the opportunity space Assessing the company’s
business design and internal capabilities
Determining the company’s future strategic intent (affirming initiatives)
Developing Business Design Prototypes (business model audit)
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The Board’s Central Responsibilities
CEO Performance Evaluation and Executive Compensation Generic CEO Evaluation Criteria
Bottom-line impact
Operational impact
Leadership Effectiveness
Best Practices
Think strategically about executive compensation
Integrate compensation decisions with succession planning
Competitive benchmarking is limiting – performance is key
Understand how executives view compensation
Communicate with major shareholders
Carefully select, monitor and evaluate board advisers – NYSE required board self-evaluation process
The Board’s Central Responsibilities
Responding to External Pressures and Unforeseen Events Demands for CSR and Shareholder Accountability
Globalization Loss of trust Civil society activism Institutional interest in CSR – perception is reality
Movement toward “socially responsible investing”
Other Pressures Hostile Takeovers Crisis management
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The Board’s Central Responsibilities
Creating a High-Performance Board Seven practices to ensure value growth
1. Effective boards set the moral framework 2. Effective boards own the strategy 3. Effective boards built the top executive team 4. Effective boards link reward to performance 5. Effective boards focus on financial viability 6. Effective boards match risk with return 7. Effective boards manage corporate reputation 8. Effective boards manage themselves
ON CORPORATE RESPONSIBILITY
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Guiding Questions
WHAT IS THE RESPONSIBILITY OF THE CORPORATION? TO WHOM OR WHAT IS THE CORPORATION ACCOUNTABLE? WHO IS THE BENEFICIARY OF CORPORATE SUCCESS?
RESPONSIBILITY BEING IN CHARGE OF OR OWNING A TASK - EXPLANATIONS NOT ALWAYS OWED
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ACCOUNTABILITY IN ETHICS AND GOVERNANCE, ACCOUNTABILITY IS ANSWERABILITY, BLAMEWORTHINESS, LIABILITY, AND THE EXPECTATION OF GIVING EXPLANATION FOR YOUR ACTIONS
ACCOUNTABLE, BUT NOT RESPONSIBLE ….
CEOS MAY CLAIM ACCOUNTABILITY FOR THE DOWNFALL OF THE FIRM, BUT THEY ARE NOT DIRECTLY RESPONSIBLE FOR THE FRAUDULENT BEHAVIOR OF THEIR SUBORDINATES
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Drucker’s three dimensions of the corporation -
1. an economic institution 2. a human organization 3. an embodiment of values
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THE CONTEMPORARY PERSPECTIVE OF RESPONSIBILITY
SHAREHOLDER – STAKEHOLDER – CONSTITUENT
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Core Values
RESPECT: We treat others as we would like to be treated ourselves. We do not tolerate abusive or disrespectful treatment. Ruthlessness, callousness, and arrogance don't belong here.
INTEGRITY: We work with customers and prospects openly, honestly and sincerely. When we say we will do something, we will do it; when we say we cannot or will not do something, we won't do it.
COMMUNICATION: We have an obligation to communicate. Here, we take the time to talk with one another...and to listen. We believe that information is meant to move and that information moves people.
EXCELLENCE: We are satisfied with nothing less than the very best in everything we do. We will continue to raise the bar for everyone. The great fun here will be for all of us to discover just how good we can really be.
CSR - perspectives
CSR – self regulation within the business enterprise
CS Responsibility – obligation, accountability
CS Responsiveness – action, activity
CS Performance – outcomes, results
Corporate Citizenship – stakeholder impact Proactive measures upon society, environment and general public interest
triple bottom line – ecological, social, financial
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The American Corporation
• the company town – mid 1800s • the corporate giants – Carnegie, Rockefeller • the corporation as investment – 1920s • the corporation as victim – 1930s • the corporation as war machine – 1940s • the corporation as the new economy – 1950s-1970s • the corporation as social advocate – 1980s • the corporation as innovator – 1990s • the corporation as leviathan – 2000s
Critics of CSR
Milton Friedman – 1962 Profits
Peter Drucker – 1971 Social impact
Archie Carroll – 1980s Four levels
Economic, legal, ethical, philanthropic
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The Social Responsibility of Business is to Increase its Profits by Milton Friedman The New York Times Magazine, September 13, 1970. Copyright @ 1970 by The New York Times Company.
When I hear businessmen speak eloquently about the "social responsibilities of business in a free-enterprise system," I am reminded of the wonderful line about the Frenchman who discovered at the age of 70 that he had been speaking prose all his life. The businessmen believe that they are defending free enterprise when they declaim that business is not concerned "merely" with profit but also with promoting desirable "social" ends; that business has a "social conscience" and takes seriously its responsibilities for providing em- ployment, eliminating discrimination, avoiding pollution and whatever else may be the catchwords of the contemporary crop of reformers. In fact they are–or would be if they or anyone else took them seriously–preaching pure and unadulterated socialism. Busi- nessmen who talk this way are unwitting puppets of the intellectual forces that have been undermining the basis of a free society these past decades.
The discussions of the "social responsibilities of business" are notable for their analytical looseness and lack of rigor. What does it mean to say that "business" has responsibilities? Only people can have responsibilities. A corporation is an artificial person and in this sense may have artificial responsibilities, but "business" as a whole cannot be said to have responsibilities, even in this vague sense. The first step toward clarity in examining the doctrine of the social responsibility of business is to ask precisely what it implies for whom.
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Carroll’s Pyramid of Corporate Social Responsibilities
ECONOMIC Required
Be profitable. The Foundation on which all others rest
LEGAL Required
Obey the law. Law is society’s codification of right and wrong.
ETHICAL Expected
Obligation to do what is right and fair. Avoid doing harm.
PHILANTHROPIC Desired
Be good corporate citizens.
Stakeholder View of the Firm
BUSINESS
GOVERNMENT
COMMUNITY
EMPLOYEES
OWNERS
CONSUMERS
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Stages of Corporate Citizenship Mirvis and Googins
Business Ethics Journal Stage One - Elementary
Stage Two - Engaged
Stage Three - Innovative
Stage Four - Integrated
Stage Five - Transforming
Citizen Concept Jobs, Profits, Taxes Philanthropic Stakeholder Management Sustainability Change the Game
Strategic Intent Legal Compliance Licence to Operate Business Case Value Proposition Market Creation/Social Chg
Leadership Lip Service, Out of
Touch Supporter, In the
Loop Steward, On Top of It Champion, In Front of
It Visionary, Ahead of It
Structure Marginal: Staff Driven Functional Ownership
Cross-Functional Coord. Org. Alilgnment
Mainstream: Business Driven
Issues Management Defensive Reactive Policies Responsive, Programs Pro-Active Systems Defining
Stakeholder Relations Unilateral Interactive Mutual Influence Partnership Alliance Multi-Organization
McDonald’s Doing Good
RONALD MCDONALD'S HOUSE
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Fred Hill, a player for the Philadelphia Eagles, had a daughter suffering from leukaemia, which prompted the team to raise in excess of $100,000 dollars to support the hospital. This was met with much gratitude from Dr Evans and her team but also with a request for another $32,000 to fund a house in which the families of the children in the hospital could get proper rest, away from the ward.
In turn this request was met by Ed Rensi, an area manager for McDonald's. The company was using the Eagles' players as part of an advertising campaign and offered to donate the proceeds from their 'shamrock shake' to the cause. In return Ed asked that the house be known as the Ronald McDonald House. So it was, that on 15 October 1974, the first Ronald McDonald House opened its doors. In the intervening years Ronald McDonald House Charities has spread across the world, forming new and independent branches in over 50 regions and countries.
The fortune 500 forces of good
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Walmart (Founded in 1962)
Revenue = 500.343 billion USD Total Operating Expenses = 478.094 billion USD
Total Net Income 9.862 billion USD (2018)01
2.2 Million Associates Around the World Number of Employees02
Stock Price = $94.80 Dividends = $0.52 per share (Quarterly)
Stocks/Dividends03
1.08 billion USD Charitable Contribution04
Retail Industry
U.S. donations went to organizations including the National Teacher of the Year program, hospital aid group Children’s Miracle Network, the Salvation Army, United
Way and food bank America’s Second Harvest.
Charitable Contributions
Walmart to offer employees a college education for $1 a day. Walmart, the country's largest private employer, announced that
it will pay for its workers to go back to school — as long as they get degrees in business or supply-chain management.
Impact on Education
About 75% of our store management teams started as hourly associates, and they earn between $50,000 and $170,000 a year.
Walmart is investing $2.7 billion over two years in higher wages, education and training.
Other Interesting Facts
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Exxon Mobil (Founded in 1999)
Revenue = 238.883 billion USD Total Operating Expenses = 223.584 billion USD
Total Net Income 19.71 billion USD (2018)01
69,600 employees worldwide Number of Employees02
Stock Price = $72.29 Dividends = $0.82 per share (Quarterly)
Stocks/Dividends03
268 million USD Charitable Contribution04
Energy Industry
ExxonMobil gives to charities in 9 different causes: arts ands culture, civic and community, health and environment, higher education, pre-college education,
women’s economic opportunity, workforce development, and united appeals and workplace giving.
Charitable Contributions
In 2017, ExxonMobil provided $41.5 million worldwide to colleges, universities and other organizations that support higher education.
ExxonMobil’s higher education initiatives focus on supporting programs that improve teaching and learning in STEM fields.
Impact on Education
When Ebola broke out in Nigeria the company helped fight the outbreak. It provided assistance to the Nigerian government in terms
of equipment, vehicles and personal protective equipment. It also sent across medical personnel and a specialist team from the Baylor
College Of Medicine to educate Nigerian officials.
Other Interesting Facts
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Berkshire Hathaway (Founded in 1839)
Revenue = 239.289 billion USD Total Operating Expenses = 213.395 billion USD
Total Net Income 44.940 million USD (2018)01
367,700 employees worldwide Number of Employees02
Stock Price = $309,180.00 Dividends = None
Stocks/Dividends03
3.4 billion USD Charitable Contribution04
Multiple Industries
Since 2006, Buffett has donated over $30 billion to charity, of which $24.5 billion went to the Gates Foundation. When Buffett explained his decision to donate much of his
wealth to his family’s foundations and Gates in 2007, he told shareholders that he believes in giving his excess wealth to people who are “energized, working hard at it,
smart.”
Charitable Contributions
Berkshire Hathaway does not directly work with Universities or provide funding for any; however, their charitable donations to
the Gates Foundation is indirectly supporting a global initiative to make education more accessible for everyone.
Impact on Education
Berkshire Hathaway is a very big supporter of wind power. In fact, Berkshire Hathaway’s MidAmerican Energy was the number one
owner of wind-generated power among US entities which are rate- regulated.
Other Interesting Facts
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Apple (Founded in1976)
Revenue = 265.595 billion USD Total Operating Expenses = 194.697 billion USD
Total Net Income 59.531 billion USD (2018)01
132,000 employees worldwide Number of Employees02
Stock Price = $165.52 Dividends = $0.73 per share (Quarterly)
Stocks/Dividends03
100 million USD Charitable Contribution04
Tech Industry
Apple donated $5 million to Hand in Hand to help Hurricane Harvey and Hurricane Irma victims. Additionally, Apple donated $5 million to the American Red Cross,
including $3 million from the company and ongoing contributions from employees and Apple customers donating through iTunes and the App Store, according to CNN
Money.
Charitable Contributions
Apple University is a training facility of Apple Inc., located in Cupertino, California. This corporate university is designed to
instruct personnel employed by Apple in the various aspects of Apple's technology and corporate culture. It is mainly a training
facility of Apple Inc.
Impact on Education
Apple became the first American public company to surpass $1 trillion in value.
Other Interesting Facts
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UnitedHealth Group (Founded in 1977)
Revenue = 226.247 billion USD Total Operating Expenses = 208.903 billion USD
Total Net Income 11.986 billion USD (2018)01
270,000 employees worldwide Number of Employees02
Stock Price = $270.37 Dividends = $0.90 per stock (Quarterly)
Stocks/Dividends03
Specific Value Unknown Charitable Contribution04
Healthcare Industry
UnitedHealthcare and Optum businesses are donating $500,000 to help residents of California recover and rebuild from the devastating fires in Butte, Ventura and Los
Angeles counties.
Charitable Contributions
The Diverse Scholars Initiative works to create a more relevant health workforce, particularly in underserved communities, by
increasing the number of primary care health providers ready to meet future health care needs.
Impact on Education
In 2018 alone, UnitedHealth Group employees volunteered over two million hours to help build healthier communities. Since 2005, our
giving program has donated $308 million.
Other Interesting Facts
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McKesson (Founded in 1833)
Revenue = 208.357 billion USD Total Operating Expenses = 205.436 billion USD
Total Net Income 67 million USD (2018)01
78,000 employees worldwide Number of Employees02
Stock Price = $124.97 Dividends = $0.39 per share (Quarterly)
Stocks/Dividends03
1.2 million USD Charitable Contribution04
Medical Supplies Industry
McKesson pledged $100 million to create a new foundation that will combat drug abuse and addiction. The company said the money will be used for educating
patients, caregivers, and providers; addressing policy issues; and increasing access to opioid-overdose medications.
Charitable Contributions
McKesson does not have a foundation directed towards higher education; however, over 80 CE courses, meet-ups and
workshops, are offered at McKesson ideaShare event where attendees uncover various topics in healthcare.
Impact on Education
More than 200,000 physicians utilize McKesson's technology and services, and 76 percent of hospitals with more than 200 beds are
McKesson customers.
Other Interesting Facts
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CVS Health (Founded in 1963)
Revenue = 184.765 billion USD Total Operating Expenses = 174.718 billion USD
Total Net Income 6.622 billion USD (2018)01
203,000 employees worldwide Number of Employees02
Stock Price = $65.96 Dividends = $0.50 per share (Quarterly)
Stocks/Dividends03
Specific Value Unknown Charitable Contribution04
Retail Healthcare Industry
For more than a decade, CVS’s Project Health events have provided more than $6.40- million worth of free health services to patients in underserved communities around the
country.
Charitable Contributions
CVS has four fully operational store and pharmacy training locations that support the development of colleagues and
partnering community agencies.
Impact on Education
CVS Health is well-known as a pharmacy business. But in recent years, it has moved to rebrand itself as a health care company,
including expanding its MinuteClinic brand to over 1,100 locations and nixing tobacco products from its stores.
Other Interesting Facts
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Amazon.com (Founded in 1994)
Revenue = 177.866 billion USD Total Operating Expenses = 173.760 billion USD
Total Net Income 3.033 billion USD (2018)01
613,300 employees worldwide Number of Employees02
Stock Price = $1,670.43 Dividends = None
Stocks/Dividends03
100 million USD Charitable Contribution04
Retail Industry
Amazon has made a $2 billion philanthropic commitment to two areas: funding existing nonprofits that help homeless families and creating a network of nonprofit
preschools in underserved communities.
Charitable Contributions
Once employees have been with Amazon for a year, they only need to cover 5 percent of tuition and fees. Amazon covers the
rest and also reimburses 95 percent of textbook costs. Full-time employees are eligible for $3,000 in tuition assistance a year.
Impact on Education
AmazonSmile allows its users to support charities of their choice when they shop at smile.amazon.com. The AmazonSmile
Foundation donates 0.5% of the purchase price of products eligible for AmazonSmile purchases.
Other Interesting Facts
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AT&T (Founded in 1983)
Revenue = 160.546 billion USD Expenses = 136.683 billion USD
Total Net Income 29.450 billion USD (2018)01
273,210 employees worldwide Number of Employees02
Stock Price = $29.37 Dividends = $0.50 per share (Quarterly)
Stocks/Dividends03
35 million USD Charitable Contribution04
Telecommunications Industry
The company’s key philanthropic program is AT&T Aspire, a $350M commitment to education, helping students succeed in school, the workforce and in
life.
Charitable Contributions
2020 Goal: We will invest resources, develop initiatives and collaborate with stakeholders with the goal of increasing the U.S.
high school graduation rate to 90% by 2020.
2025 Goal: We will invest resources, develop initiatives and collaborate with stakeholders to close the skills gap by increasing
the number of Americans with high-quality post-secondary degrees or credentials to 60% by 2025.
Impact on Education
2025 Goal: AT&T will enable carbon savings 10 times the footprint of our operations by enhancing the efficiency of our network and
delivering sustainable customer solutions.
Other Interesting Facts
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General Motors (Founded in 1908)
Revenue = 145.588 billion USD Total Operating Expenses = 134.885 billion USD Discontinued Operation = -4.212 billion USD
Total Net Income -3.864 billion USD (2018)01
180,000 employees worldwide Number of Employees02
Stock Price = $39.09 Dividends = $0.38 per share (Quarterly)
Stocks/Dividends03
31 million USD Charitable Contribution04
Automotive Industry
GM pledged to give $30 million in annual donations to focus on global development and education in science, technology, engineering and math.
Charitable Contributions
GM has partnered and helped four new programs in their college initiative: code.org, black girls code, institute of play, and digital
promise.
Impact on Education
General Motor is the only company in the top 10 of the Fortune 500 with a female CEO.
Other Interesting Facts
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See a theme…… VOLUNTEERING – YOUR COMPETITIVE ADVANTAGE – A LIFE IN SERVICE
So what and now what… Advancing your competitiveness
Preparing For the Leader of Tomorrow First - Are you good? Now – Do you serve? Does Your Volunteer Resume Match Your Professional Resume? How Many Service Hours Did You Give Last Year? Did You Give to Your Most Important Organizations –
Time/Money/Resources What’s Your Plan – What’s Your Pledge Results – Stronger Firms, Stronger Communities, Stronger Souls.
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Ethics and Law in Business and Society Lecture Series
SEAN D. JASSO, PHD © 2019 UCR - FALL 2019
