Corporate Social Responsibility course name
Shilpareddy
Instructor_PPtPresentation_081219.pdf
DBA BUS 745: Corporate Social
Responsibility
Week # 7
August 12, 2019 – 6:30-10:00 PM
Westcliff University
Dr. Ziade
Activities to Complete ACTIVITIES TO COMPLETE THIS WEEK:
Reading
The Social Domain in CSR and Sustainability: A Critical Study of Social Responsibility among
Government, Local Communities, and Corporations
Chapter 5: Social Domain Strategies
DQs:
• Post 1 answer to each DQ by Thursday at 11:59 pm • Post 1 Peer response for each DQ by Sunday at 11:59 pm
See Grading Criteria and Rubrics in syllabus for CLA1, Discussion Question and Peer
Response expectations.
Week 7 - Discussion Questions Discussion Question 7
Common good in the social domain is well known and
understood.
Define the limits of the principle of commonality in
regards to individuals, government, and corporations.
Also, provide a rationale for your answer.
Each student is required to review the “Video-of-the-Week”, listed in GAP for this current week. The video(s)
selection is directly related to at least one of the Course Learning Outcomes (CLOs), and presents a solution(s) to a
business problem.
Using your textbook, LIRN-based research, JSTOR.org, the Internet, or any other electronic journal database,
research at least one stated claim, aspect, challenge, solution, opinion, etc., in the video.
Subsequently, you will include in your CLA2 assignment paper, a separate and distinct heading
titled “Topic Video Critical Thinking & Reasoning”. You are to critically think about the solution
presented and that you researched and applied critical thinking and reasoning skills to present the
following (include every item in the bullet list below to potentially receive full credit):
State a course CLO that the video relates to and how it relates to the CLO
Discuss your initial thoughts about the solution/challenge/aspect presented in the video
Present what you would do different in terms of the solution presented in the video
Include the industry example demonstrating the application of your researched video
Approximately 250 to 350 words in length (minimum of 2 paragraphs)
Include the in-text citation in APA format to properly reference your article
ALA (T) – Topic Video
Expectations
Read chapters
Understand the questions
Deliver on time
APA format
APA – Owl Purdue
Please check the Purdue Writing Lab (OWL) site- see link below - to help you learn how to cite and list your references in APA format.
https://owl.purdue.edu/owl/research_and_citation/resources.html
Writing Center
APA Style 6th edition
References MUST correspond with text citation.
E.g., “… activities” (Thiel, 2013, p. 10).
According to Thiel (2015),…
Reference
Thiel, M. (2015). The Social Domain in CSR and Sustainability: A Critical Study of Social Responsibility among Governments, Local Communities and Corporations. New York: McGraw-Hill Higher Education
.
6
Paper Template Running head: CAPITALS
Headers are in Bold except title and Reference section
Block quoting for quotes greater than 40 words
Times New Roman 12-point
Numbers under 10 are spelled out unless they represent a measurement or scale.
Left aligned format – NOT JUSTIFIED FORMAT
… program (Thiel, 2015).
… program” (Thiel, 2015, p. 10).
Jinan Ziade, Ph.D. or Dr. Jinan Ziade
References
Thiel, M. (2015). The social domain in CSR and sustainability: A critical study of social
responsibility among governments, local communities and corporations. New York:
McGraw-Hill Higher Education
7
Third Person
In APA, avoid the first and second person in your
writing unless instructed to do so.
In APA, one should avoid using terms like “I,”
“me,” “my,” in the first person, and “you,”
“your,” and “yours” in the second person.
Be objective: E.g., “one,” “one’s,” “his or her,”
and so forth.
8
Academic Integrity Policy
The direct links are: Part 1 = https://gap.westcliff.edu/mod/page/view.php?id=145343 Part 2 = https://gap.westcliff.edu/mod/page/view.php?id=145344
Academic Integrity Policy
The direct links are: Part 1 = https://gap.westcliff.edu/mod/page/view.php?id=145343 Part 2 = https://gap.westcliff.edu/mod/page/view.php?id=145344
Academic Integrity Policy
The direct links are: Part 1 = https://gap.westcliff.edu/mod/page/view.php?id=145343 Part 2 = https://gap.westcliff.edu/mod/page/view.php?id=145344
Late Policy
The University Late Policy is stipulated in the course
syllabus. For the first three days past the assignment
due date, deductions of 10%, 5% and 5% of total points
will be taken. The assignment should not be accepted
after 3 days past the due date and receive 0 grade
points. Please see the syllabus for complete details
regarding the late policy.
Textbook Information
The Social Domain in CSR and Sustainability A Critical Study of Social Responsibility among
Governments, Local Communities and Corporations.
Available through VitalSource or Amazon to rent or purchase
Note: This is also the correct way to reference the textbook
Thiel, M. (2015). The Social Domain in CSR and Sustainability: A Critical
Study of Social Responsibility among Governments, Local Communities
and Corporations. New York: McGraw-Hill Higher Education.
Happy and healthy at work:
Employee retention reduces costs associated with advertising for
and training new staff.
Increased employee safety leads to reduced amounts of lost time
and productivity due to injuries.
employee share-ownership scheme ’ managers,’ and owners’
interests are more closely aligned
The benefit of motivating
Employees:
Whole Foods, the organic supermarket that is
consistently ranked as one of Fortune Magazine’s
100 Best Companies to Work For
Costco’s willingness to invest in their employees.
Employees
Assets vs. Cost
Employees use flexible schedules to take paid time off for projects in
the community, or even work in teams with their managers on a
volunteer effort during business hours.
Accenture—Loans employees to non-profits at discount rates.
Cisco Systems—Places employees with education-related organizations
for a year, at full salary.
Bain & Co.—Supports employees who volunteer with local organizations,
and pays for their time on full-time consulting projects.
Pfizer—Pairs employees with health-related organizations to help with
research and training.
Wells Fargo—Pays employees to work with a school for as many as four
months.
Employee-Volunteer Programs
Timberland’s commitment to community is genuine and not a
public relations vehicle.”
CEO, Jeffrey Swartz, inspired the volunteer program.
Workers … choose their own volunteer activities.
Homeless shelter to coaching a Little League baseball team.
It’s effective: more than 90 percent of Timberland workers take
part in the Path of Service.
Community Engagement employee
volunteer program
Over to You… What are some of the benefits to companies that operate a volunteer employee
program stated in the case study? Do you agree that these benefits are likely to
come from a volunteer program?
What would your reaction be if a firm you worked for had a volunteer program?
Would you consider participating? Would it change your feelings about working for
the firm?
How can companies encourage employees to participate in volunteer programs and
avoid having employees feel that “by volunteering, they are potentially derailing
their chances for a promotion because of the time they’ll spend out of the office”?
Go to Timberland’s main Web site (http://www.timberland.com/) and also the
company’s volunteer Web site
(http://www.timberland.com/corp/index.jsp?page=csr_civic_engagement). Do you
get the sense that Timberland is genuine in its commitment to CSR? Does that
create a good impression of the company or not make much difference in your
perception of it?
Find another employee benefit program to compare to Timberland’s. Which is
better? Why?
Henry Ford drew no distinction between his employees and his
customers.
Best way to maximize profits
Ford’s black Model T as “America’s Everyman car
$5-a-day minimum wage for all his workers
How his employees would be able to afford one of his cars
Ford in Action -
virtuous circle
In Australia, where McDonald’s staff work for A$10.61 (US$5.60) per hour, it
costs A$3.00 (US$1.58) to purchase a Big Mac.
In Pakistan, however, where the company’s staff work for PR13 (US$0.22) per
hour, a Big Mac costs PR185 (US$3.08).
The difference between wage rates and the cost of a Big Mac produces the
difference in purchase parity.
The countries covered in the report included Australia, China, Hong Kong,
India, Malaysia, New Zealand, Pakistan, Philippines, South Korea, Sri Lanka,
and Thailand. Significant differences were identified. Wage rates ranged from
a staff member who works for IRs5.60 (US$0.11) per hour in India to the
higher wages paid to McDonald’s Australian employees: A$10.61 (US$5.60) per
hour.
In terms of the cost of burgers, Big Mac prices ranged from MR4.30 (US$1.13)
in Malaysia, to NZ$3.95 (US$1.72) in New Zealand.
McDonald’s
Over to You… Is any job (at any wage) better than no job?
Does your answer change if you apply the question to a worker in
a developing, rather than developed country?
Is there a maximum absolute amount that a CEO should earn? Is
$1 million a year OK? What about $10 million? $100 million?
Is it OK to pay a CEO any amount, as long as the net benefit the
CEO brings to the organization exceeds her or his compensation?
Where would you rather shop—Walmart/Sam’s Club or Costco?
If you answered Walmart based on the price of its products,
would you be willing to pay a higher price if you knew that the
extra money would go directly to the firm’s employees?
Think of some of the jobs you have done—would you work harder
if your pay had been higher?
Self-Interest
CSR Plan
CSR Plan
Law /
Regulation
Standards: ISO, GRI, etc.
Government
People
Planet
Profit
Planning
Management Action
Customer
Supplier
Government
Financial Institutes
Stakeholder
Measurement of
Sustainability
Report
Public Information
Plan
Process
Disclosure process
People
Barriers
Conflicts
Achievements
Success
Recommendations
Strategic objective
Domain (Social, Environmental, Economic)
Is CSR a good thing for business to do?
CSR Action Plan
Stakeholder View
Business Principles
CSR
CSR Projects
Key Performan
ce Indicators
Guidelines: interact with stakeholders
Measure and compare
performance Projects that offer added value for society and other stakeholders
The specific factors that determine a
corporation’s role in managing CSR?
Step 1: Make your CSR believable.
How? Create and Leverage Social Capital through your employees.
Step 2: Stop preaching the CSR message; start attracting CSR followers. How? Use CSR as a social media platform, rather than a marketing tool.
Step 3: Make your CSR effective. How? Integrate your strategy with key business objectives, and measure the outcomes.
Everything is CSR; While CSR may be a department in a business, it is not a part of any business. Everything a company does, including everyone the company does business with is CSR. The process is the product.
CSR Management:
Plan, Do, Check, Act method
Plan
• Consult stakeholders
• Establish code of conduct
• Set targets
Do
• Establish management systems
and personnel
• Promote code compliance
Check
• Measure progress
• Audit
• Report
Act
• Corrective action
• Reform of systems
The Strategic Lens: Vision, Mission,
Strategy, and Tactics
The vision answers why the organization exists. It identifies the needs the firm aspires to solve for others.
The mission states what the organization is going to do to achieve its vision. It addresses the types of activities performed for others.
The strategy determines how the organization is going to undertake its mission. It sets forth the ways it will negotiate its competitive environment.
The tactics determine who, when, and where the strategy will be implemented. They are the actions necessary for success.
Case Study - Federalization
Issues of corporate governance in the United States are currently regulated under state rather than federal law. Those
who support this system argue that it encourages competition between states (to entice corporations to incorporate
within their state) and, therefore, produces effective and efficient legislation. Critics of this system, however, rebut the
benefits of interstate competition because the result is a race to the bottom as states bend over backward to craft
legislation that appeases corporations. States want firms to incorporate within their jurisdiction because of the lucrative
fees they receive for each company that registers there, wherever the company is actually headquartered:
Corporations don’t have to incorporate where a firm is headquartered, or even where it employs the most people.
Managers can go jurisdiction-shopping, looking for the most advantageous set of laws, since getting a corporate charter
is easier than getting a driver’s license. As a result, some 60 percent of the Fortune 500 is incorporated in Delaware,
which is most protective of managerial interests.
Delaware is perceived as having the most advantageous system of regulation for companies, which translates as having
the least regulation. The state, “whose more than 600,000 registered companies compare with an estimated 865,000
inhabitants,” also advertises additional benefits:
Delaware company agents advertise the state as allowing even greater secrecy than offshore tax havens. In terms of
oversight, liability, responsibility, and regulation, Delaware has “long been reluctant to disturb the decisions of corporate
boards.”12 As such, other states feel compelled to reproduce Delaware’s lax environment, simply to keep companies
currently headquartered there from moving to Delaware:
If another state wants to be more aggressive in fighting corporate crime or protecting shareholders, employees, or
communities, it runs the risk that its companies will simply re-incorporate in Delaware. So most states end up mimicking
Delaware law.
Case Study - Federalization There is a growing belief that meaningful reform in the area of governing corporations can take place only if the federal government takes
control of the process. This would allow either Congress or the Securities and Exchange Commission (SEC) to raise the bar for all
corporations without having to worry that companies would simply flee in protest to the state with the weakest rules, although here the risk
would be that firms would incorporate overseas in such places as Bermuda, for example, with its favorable tax treatment.
A starting point for the federal government would be a law stating that corporations have to incorporate where they have the largest
presence—that is, where their true headquarters are, where they employ the most people, or where they have the greatest percentage of
operations. This would make corporations more directly accountable for their actions to the community within which they actually operate. By
introducing these changes, the government would also go a long way toward closing the loophole in the tax code that allows corporations to
incorporate offshore (again, irrespective of where their headquarters are) to avoid paying the higher rates of corporation tax levied in the
United States.
As a first step in this campaign toward federalization, various attempts have been made to introduce a Code for Corporate Responsibility at
the state level, which would reform the law with regard to directors’ duties:.
For public corporations, the corporate purpose of maximizing returns for shareholders is now held in place by the state law of director’s duties,
which in all states say that directors must act in the best interests of the corporation and its shareholders. Attorney Robert Hinkley has drafted
a model Code for Corporate Responsibility which would change this to say, in effect, directors may not pursue shareholder gain at the
expense of employees, the community, and the environment. If these parties can demonstrate harm, they would have a right to sue under the
proposed law.
The potential impact of this simple but far-reaching change to the law would be significant. The entire purpose of the corporation would
necessarily shift and the new law would give stakeholders a tool with which to hold corporations accountable for their actions and policies.
Forcing this multiconstituency approach would result in U.S. firms increasingly acting like European ones, as well as firms in Asian countries
such as Japan, which tend to define their stakeholders more broadly and actively. Groups in both Minnesota and California have begun to
campaign for this change, with states such as Maine and Massachusetts also showing interest.16 Legislation has been introduced in
California to put the new code into effect:
Case Study - Federalization In California—where the state legislature is controlled by Democrats—corporate purpose legislation was introduced … by Senate
Majority Whip Richard Alarcon (D-San Fernando Valley). While current law says directors must maximize profits for shareholders,
Alarcon’s Good Corporate Citizen bill (SB 917) says companies may not do so at the expense of the environment, human rights, the
public health, the community, or the dignity of employees. The attorney general could bring civil action against violators. Under certain
conditions, directors would be personally liable.
In February 2009, Minnesota Senator John Marty and Representative Bill Hilty introduced a Bill for Socially Responsible Corporations
into the Senate19 and House,20 respectively. According to the Citizens for Corporate Redesign Web site:
The bill creates a new section of law for an alternative kind of corporation, the SR (socially responsible) corporation:
1- Directors will have an affirmative duty to all stakeholders,
2- Employees and representatives of the public interest will be on the Board of Directors,
3- Directors will be protected from shareholder suits when they choose to consider other stakeholders and the public interest,
4- Socially Responsible investors and consumers will know where to invest their money, and
5- Socially Responsible Companies will be protected from hostile takeover.
There are legitimate issues relating to the implementation of these proposed laws. For example, “What happens if a company moves a
plant to a more environmentally friendly facility, thereby helping the environment but harming the employees and community of the
previous locality?” What would be the consequences if investors sell their stock under these anti-investor policies in favor of firms in
more investor-friendly countries? Also, what would be the proposed penalties for directors that fail the new test? Would they be
individually liable? Nevertheless, the idea that modern corporations should be compelled to register a public purpose that reflects a
broader set of social responsibilities is receiving growing support.
Thank You
