Choose a company to research and analyze its Corporate Social Responsibility efforts and Ethics.

MGT 360

Management and Organizational Behavior

Ethics and Corporate Social Responsiblity

Week Three

Dr. Diane Flannery

No in-person class next week

B-Corporation - follow up from last week

Ethics

Corporate Social Responsibility

Written Assignment One Example

Reminders

Topics

https://bcorporation.net

B Corps currently receive no specific tax benefits over traditionally incorporated businesses.

B Lab Nonprofit Organization that oversees

B Corps

Ethics is an area of study that deals with ideas about what is good and bad behavior

A branch of philosophy dealing with what is morally right or wrong Ethics is about our actions and decisions

ETHICS – The moral principles, values and beliefs that govern group or individual behavior according to what is right or wrong and what contributes to the balanced good of all stakeholders.

F O U R V I E W S O F E T H I C A L B E H A V I O R

Public Ethic what do you claim or express publicly to others about your underlying values, intentions and motivations in a particular situation.

Private Ethic what are your true values, intentions and motivations in the situation. Public and Private ethics may be the same (transparent) or they may be different (deceptive)

ETHICAL DILEMMA  A situation in which no choice is entirely right

Ethical mistake Not intentional, a lack of experience in making value-based decisions •lack of comprehension regarding the consequences of their actions on society, on our organization, on colleagues, and an inability to articulate and act on our own values  and ethics in a leadership role  

What Ethical Issues did Lance Armstrong face?

Discuss Lance Armstrong’s public and private ethics?

Did Lance Armstrong make an ethical mistake, or did he act unethical?

WELLS FARGO BANK

C R O S S - S E L L I N G M E A N S G E T T I N G C U S T O M E R S W H O U S E O N E S E R V I C E , S U C H A S C H E C K I N G , T O U S E O T H E R S E R V I C E S , S U C H A S S A V I N G S O R C R E D I T C A R D S . T H E R E I S N O T H I N G W R O N G W I T H C R O S S - S E L L I N G - A L L B A N K S D O I T . I N O R D E R T O E N C O U R A G E E M P L O Y E E S T O S U P P O R T T H E P R O G R A M , W E L L S F A R G O P R O V I D E D I N C E N T I V E S T O E M P L O Y E E S W H O S U C C E E D E D A T C R O S S - S E L L I N G . E M P L O Y E E S M A N U F A C T U R E D F A K E A C C O U N T S I N T H E N A M E S O F E X I S T I N G W E L L F A R G O C U S T O M E R S . I N A T T E M P T I N G T O C O R R E C T T H E P R O B L E M T H E C O M P A N Y F I R E D 5 , 3 0 0 E M P L O Y E E S A N D L O S T I T S H I G H L Y R E S P E C T E D C E O , J O H N   S T U M P F . W R O N G A T A M A S S I V E S C A L E . I N T H E F A C E O F P R E S S U R E A T W O R K P E O P L E C A N B E C O M E L E S S C O N C E R N E D W I T H E T H I C S .

ETHICAL FADING

The process by which individuals are unable to see the ethical dimensions of a situation due to overriding factors

The human trait of self-deception

Overlook a behavior when the results are good

Look at a decision as strictly a business decision, not an ethical decision

Happens in decision-making when we focus so much on other aspects of the decision that we forget about the ethical implications, as if they were fading from our view

Ethical fading helps address the fact that unethical behavior is not limited to unethical people

CSUN Student  

Core Values Statement & Ethical Conduct

Pledge College Of Business and EconomicsCalifornia State University, Northridge The College of Business and Economics at California State University, Northridge prepares students to be ethical decision makers.  The college maintains high standards of ethical conduct that students are expected to maintain throughout their academic and professional careers.  Students in the College of Business and Economics have identified the values of respect, honesty, integrity, commitment, and responsibility as their guiding principles.  The following statement describes these core values.

Student Core Values:  Respect Treat our classmates, professors, staff, and administrators with respect.  We respect diversity and do not discriminate on the basis ofrace, color, ethnicity, religion, gender, disability, sexual orientation, age, or other characteristics. We respect different points of view that add to our knowledge.  We respect our learning opportunities by behaving professionally in the classroom, andmaking academic achievement an important priority.     Honesty Communicate truthfully with our classmates, professors, staff, and administrators in all academic matters while remaining respectful.  We observe university policies on academic dishonesty in completing all academic work.  In seeking employment, internships, and other opportunities we represent ourselves truthfully, understanding that misrepresentation may not only harm our own reputation but that of our classmates and the college.  Integrity

Maintain integrity.  Because we zealously integrate these core values into our academic work and preparation for our profession, our integrity enables us to reach our goals, overcome obstacles, and successfully resolve ethical dilemmas.   Commitment

Strive for success as students, professionals, and citizens.  We keep our promises, andadhere to our core values in all our activities both as students and alumni. We are committed to acting honestly, respectfully, and responsibly in our effort to achieve our goals. We understand that commitment to our core values benefits both students and the community now and in the future.   Responsibility

Embrace the responsibility we have to ourselves and to each other to maintain high ethical standards. With each task at hand comes the responsibility to uphold the core values that unite us.  We support each other in our adherence to these standards. We recognize that reporting unethical conduct is a responsibility we all share.  

My Pledge: I pledge to join my classmates in upholding these core values.  

(Print Name)                                                          (Signature)                                                            (Date)

Is it ETHICAL to mandate employees to be vaccinated for COVID-19?

YES NO

Relationship Between Ethics and Corporate Social Responsibility

The main meaning of social responsibility is that it’s more of an obligation or a duty towards the people that the business affects. Ethics is about right and wrong behavior. What is good for the society is sometimes not good for the business, and what is good for the business is sometimes not good for the society.

Corporate Social Responsibility (CSR)   Business practices that involve accessing and taking responsibility for the company’s effects on the environment and social issues

Generally applies to corporate efforts that go beyond what might be required by regulations

More of a proactive approach

Programs that coordinate the company’s efforts to address societal and community challenges as they emerge

People– invest in the well-being of employees and provide interesting and rewarding jobs that offer the opportunity to be productive

Planet– protect and support the environment, causes, and communities

Profit– ensure that the company is financially healthy

How Do Managers Make a Difference?

Managers’ bottom line defined by the “3 P’s” Triple bottom line

“There is one and only one social responsibility of business — to use its resources and engage in activities

designed to increase its profits.”

Milton Friedman American Economist

1962

Detracts from the fundamental economic role of business

Just superficial window-dressing

Pre-empts the role of governments as the watchdog over powerful multinational corporations

Criticism of CSR

Is it socially responsible to mandate employees to be vaccinated

for COVID-19?

YES NO

Bisha Mines (video) Patagonia Tom’s Shoes Apple Computer

B I S H A M I N E S A S M A R A , E R I T R E A , E A S T

A F R I C A .

PATAGONIA'S MISSION STATEMENT

Our values reflect those of a business started by a band of climbers and surfers, and the minimalist style they promoted. The approach we take towards product design demonstrates a bias for simplicity and utility. Our mission is to build the best product, cause no unnecessary harm, use business to inspire and implement solutions to the environmental crisis

Record-breaking Black Friday Sales to Benefit the Planet“100 percent of our global retail and online Black Friday sales directly to grassroots nonprofits working on the frontlines to protect our air, water and soil for future generations, we heard from many of our customers calling it a “fundraiser for the earth.

Economic Social Environmental

“How can a company that is this extraordinary in other respects be missing in action on corporate social responsibility?”

Forbes Magazine

More than 90 percent of Apple’s products – including the iPhone, iPad and Mac computer are assembled in China

Labor practices and working and living conditions at factory-owned dorms came under scrutiny after more than a dozen workers committed suicide starting in 2010

Average worker salary $1.78 per hour

•iPhone 7 (2016) Labor costs about $5.00 per phone

3,000 student interns were “forced” to work at Foxconn in order to graduate from their high school

Factory hires students every year during the busy season between August and December. Such hiring increases the number of employees from 100,000 to more than 300,000 workers

Produce up to 20,000 iPhones a day•One person can assemble 1,200 iPhone cameras per day

Apple X iPhone

Financial Times, Yuan Yang in Zhengzhou, NOVEMBER 21, 2017

Comprises 71% of earth

60% of the adult body

Humans can live without water for only about 3 days

Water

What are the 3 things most of the people in the world cannot do?

Water business grosses $600 billion annually

O W N S 7 0 O F T H E B O T T L E D W A T E R C O M P A N I E S

A T O N E S I T E I N M I C H I G A N T H E Y P U M P 4 5 0 G A L L O N S P E R M I N U T E

N E S T L E D O E S N O T P A Y F O R T H I S W A T E R

E S T I M A T E D P R O F I T S F R O M T H I S P U M P I N G S I T E I S $ 1 . 8 M I L L I O N P E R D A Y

Nestle Tim Brown, Nestle North America CEO

"If I stop bottling water tomorrow, people would buy a different brand of bottled water. We see this everyday," Brown told KPCC. "In fact, if I could increase [bottling], I would.”Brown claims the company has complied with all regulatory agencies

Bottling water still takes 30% to 50% more water than turning on the taps

How many gallons of water does it take to make one pair of

blue jeans?

Is water a basic human right or a commodity*?

*Commodity is a raw material or primary agricultural product that can be bought and sold, such as copper or coffee

President Biden, appoint a fashion czar! The fashion industry is responsible for 10% of the world’s carbon

emissions. It needs to be regulated like other big sectors.

"The fashion industry is a $2.5 trillion beast with tentacles in every corner of the world, and yet it operates with little oversight or regulation. It employs more than 75 million people, the majority of whom are poorly paid women, who are vulnerable to abuse."

FAST Company

H&M is one of fashion’s biggest polluters. Now its foundation is on a $100 million quest to save the planetCan the brand that pioneered fast fashion undo the environmental devastation its business model has caused?

"The world is drowning in clothes. While curbside recycling programs have existed for half a century, there’s no easy way to recycle jeans or dresses, which means many of the 100 billiongarments bought each year get thrown out: 92 million tonnes annually, in fact. By 2030, that number is expected to go up to 134 million tonnes."

FAST Company

Written Assignment # 1 Example

Amazon has a Code of Business Conduct and Ethics it operates under Amazon received more than $1.5 billion in local tax breaks since 2000 and gained market share by avoiding sales taxes Privacy concerns (Alexa) Jeff Bezos is making about $321 million a day, $13.4 million an hour, $222,884 a minute, and $3,715 a second this year

Written Assignment #1 Example of Content

Choose a company to research and analyze its Corporate Social Responsibility efforts and Ethics. Use class lectures, textbook readings (Chapter 3), and Online Assignments to discuss the two concepts by providing examples from the company. Make sure to clearly distinguish between the two concepts of Ethics and Corporate Social Responsibility. 

Company: Amazon Ethics

Commitment to a supply chain who “respect human rights, provide safe and inclusive work places, and promote a sustainable future.” (cite) Give examples Comply with industry standards by formal benchmarking industry peers (accommodative strategy) The policy of transparency on human rights violations from where their products are sourced. Public information on human rights and workplace conditions (proactive strategy) Amazon in the Community – support underserved communities to learn engineering and coding skills, grants to nonprofit organizations for disaster relief, COVID-19, (proactive strategy) Equity and diversity Amazon board of directors is comprised of six men and four women, and 100% whiteOf Jeff Bezos’ 10 direct reports, only one is female, and all are white.      

Sustainability Amazon takes a broad, science-based approach to measuring and reducing carbon emissions in their operations.Impact on the environment ---Delivers nearly 3 billion packages per year, and 6.5 billion deliveries projected for 2022  

Profitable company for shareholdersConclusionYour thoughts on the company’s ethics and CSR

Your thoughts on the company’s ethics and CSR

CSR Summarize what Amazon is doing for its CSR efforts.  Examples of what the company is doing for CSR People

Planet 

Profits

Conclusion

Important Topics

The End