fgh
sml0om7
2017_ihrm_lecture_8_updated.pptxPage 1
What are the 3 things that you learned in the past lecture?
1
Agenda
Introduction
Strategic International Human Resource Management
Culture and International HRM/ Cross-cultural management
Global Staffing and International Assignments
Institutions, Actors and Micropolitics: Organizational Culture
Global Talent Management
International Compensation and Reward
Global Labour Regulation and Corporate Social Responsibility (22.3.17)
Gender & Global Diversity Management (29.3.17)
Summary and essay review (5.3.17)
!
‹#›
2017
Corporate Social Responsibility
Concepts, key issues, context
Key CSR drivers
Implications for enterprise
Implications for development
‹#›
2017
3
Main Concepts of CSR
CSR (Carrol, 1979)
Firms have responsibilities to societies including economic, legal, ethical and discretionary (or philanthropic).
- See also DeGeorge (1999) on the “Myth of the Amoral Firm”
Social Contract (Donaldson, 1982; Donaldson and Dunfee, 1999) – There is a tacit social contract between the firm and society; the contract bestows certain rights in exchange for certain responsibilities.
Stakeholder Theory (Freeman, 1984) – A stakeholder is “any group or individual who can affect or is affected by the achievement of an organisation’s purpose.” Argues that it is in the company’s strategic interest to respect the interests of all its stakeholders.
‹#›
2017
4
Key Issues in CSR
Labour rights:
child labour
forced labour
right to organise
safety and health
Environmental conditions
water & air emissions
climate change
Human rights
cooperation with paramilitary forces
complicity in extra-judicial killings
Poverty Alleviation
job creation
public revenues
skills and technology
‹#›
2017
5
‹#›
2017
Rana Plaza Video
https://www.youtube.com/watch?v=9Fkhzdc4ybw
6
Context Globally
Liberalisation of markets – reduction of the regulatory approach
Emergence of global giants, consolidation of market share
Development of the ‘embedded firm’ and the global value chain
Development of supplier networks in developing countries
‹#›
2017
7
Key drivers of CSR
Around the world
NGO Activism
Responsible investment
Litigation
Gov & IGO initiatives
Developing Countries
Foreign customers
Domestic consumers
FDI
Government & IGO
‹#›
2017
8
Key Drivers: NGO Activism
Facilitators: IT (esp Internet), media, low cost travel
Boycotts, brand damage, influence legislation, domino effect
e.g. Shell in Nigeria, Exxon in Cameroon, Sinopec in Sudan, Apparel Industry (Nike, Gap), GMO, Wood Products, etc.
‹#›
2017
9
Ethical Consumer
‹#›
2017
http://www.ethicalconsumer.org
10
Key Drivers: Responsible Investment
Roots of: South Africa Apartheid Divestment
Significant size: US SRI = 2.3 trillion $ in 2005 or 10% of all professionally managed investments
Shareholder activism: shareholder resolutions; voting process
Influence corporate reporting and disclosure requirements
New rules on CSR reporting
‹#›
2017
11
‹#›
2017
12
Signatories will
1 …incorporate ESG issues into investment analysis and decision-making processes.
2 …be active owners and incorporate ESG issues into our ownership policies and practices.
3 …seek appropriate disclosure on ESG issues by the entities in which we invest.
4 …promote acceptance and implementation of the Principles within the investment industry.
5 …work together to enhance our effectiveness in implementing the Principles.
6 …each report on our activities and progress towards implementing the Principles.
Principles for Responsible Investment www.unpri.org
‹#›
2017
13
Financial Times, 21.3.2017
‹#›
2017
https://www.ft.com/content/e86c9564-0e46-11e7-b030-768954394623
14
Key Drivers: Litigation
Foreign Direct Liability
Alien Tort Claims Act (ATCA): human rights, environmental rights
Unocal Burma
Coca-Cola Columbia
Rio Tinto Papau New Guinea
Del Monte Guatemala
The Gap Saipan
Shell Nigeria Other tools: RICO, False Advertising
E.g. Saipan ‘sweatshop’ cases; Katsky v. Nike
$30,000,000 settlement
‹#›
2017
15
‹#›
2017
Dole
https://www.youtube.com/watch?v=-gBDnRKd6FA
Bananas
https://www.youtube.com/watch?v=4LikhNC5T34
16
‹#›
2017
Dole
https://www.youtube.com/watch?v=-gBDnRKd6FA
Bananas
https://www.youtube.com/watch?v=4LikhNC5T34
17
Implications for Enterprises
New social and product liability patterns
Development of Codes of Conduct and CSR reporting
Expanding sphere of influence
Application of Code of Conduct to value chain
CSR management: value chain management = compliance management
The Extended Firm
Regional Plants / JV Partners
Suppliers / Distributors
CSR Drivers
Transnational Corporations
‹#›
2017
18
How do companies address socio-environmental & legal compliance issues?
Policies - Code of Conduct
Systems - Compliance Management
Reporting - Accounting and Reporting
Implications for Enterprises: CSR Management
‹#›
2017
19
Sustainable business development does not come about of its own accord.
Rather, commitment to sustainability demands that corporate processes be reliably controlled and that everyone's actions - in finance as much as in environmental and social areas - be coordinated.
Prerequisites for this are binding guidelines, unambiguous corporate goals and a clear organizational structure.
- Deutsche Telekom
Policies
‹#›
2017
20
Example: Chiquita
Board of Directors
President & CEO
Group Presidents
Chief Financial Officer
VP of Human Resources
General Counsel
Corporate Responsibility Officer
Steering Committee
Audit Committee of Board
CSR Management: Management structure
‹#›
2017
21
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
‹#›
2017
22
Code of Conduct: Emerging consensus on key issues
Source: Conference Board 1999, Survey of 123 Codes
‹#›
2017
23
Code of Conduct: Cascade effect
Source: OECD 1999 survey of 233 codes
‹#›
2017
24
Code of Conduct: Cascade effect
Source: Conference Board 1999, Survey of 123 Codes
‹#›
2017
25
Sphere of Influence
Who – is to be influenced?
‹#›
2017
26
Sphere of Influence
What – issues are to be influenced?
‹#›
2017
27
How – are those issues to be influenced?
Sphere of Influence
‹#›
2017
28
Example: Mattel
Who: suppliers, JVs and branch plants
What: OSH
How: focus on manufacturing processes, HR, factory design
Sphere of Influence
‹#›
2017
29
CSR Management: CSR reporting becomes ‘mainstream’
% of Large Firms Issuing a CSR Report
64%
‹#›
2017
30
CSR Management: Emerging standards in CSR Reporting
Global Reporting Initiative (GRI)
A multi-stakeholder initiative
www.globalreporting.org
International Standards of Accounting and Reporting (ISAR)
A project of UNCTAD
www.unctad.org/isar
‹#›
2017
31
Implications for Development
CSR ‘cascade effect’ on members of the global value chain
labour conditions (e.g. OSH, right to organise, wages)
environmental controls
transfer of new management techniques
Compensation for weak legal environment in LDCs
Impact on economic development & national competitiveness???
‹#›
2017
32
Implications for Development: is CSR good for growth?
“…[CSR] is liable to hold back the development of poor countries through the suppression of employment opportunities within them.”
David Henderson
“[CSR]’s adoption would reduce competition and economic freedom, and undermine the market economy.”
‹#›
2017
33
Do we still need employees?
Uber CEO
https://www.youtube.com/watch?v=vL4pC59DJsk
4:40
More videos:
https://www.youtube.com/watch?v=fgQPj90OrQE
https://www.youtube.com/watch?v=Dt3HX1ekWDA
34
‹#›
2017
South-Western College Publishing
Strategic Issues in Workplace Ethics
Overview of varied examples where work conflict can occur regarding what is ethical, moral, legal, or good manners
Workplace ethics can involve contrasting rights of individuals, groups (such as of employees), or the employer
Ethics at work can involve contrasts in rights of life and safety, privacy and freedom, and property and pursuit of happiness
‹#›
2017
Selection and Promotion of Employees and Supervisors
Job description criteria and measurement fairness
Pre-selection of eventual winners
Caring person values and skills
South-Western College Publishing
‹#›
2017
Rights to Collect Information vs. Rights of Privacy
Monitoring for drug and alcohol use
Collecting data on work lives and performance
Screening for dexterity, communication skills, and personality traits
Computer performance monitoring, electronic eavesdropping, and video camera surveillance
South-Western College Publishing
‹#›
2017
South-Western College Publishing
Income Differentials Within Workplaces and Society
Compensation and pay structures within the firm
Gender-related pay differentials
CEO compensation in relation to others in the firm; and to minimum wages and living wage ordinances
‹#›
2017
Punishments, Progressivity, and Just Cause in Discipline Cases
Procedural justice and progressive, corrective discipline systems
Just cause standards in union and non-union settings
Employment-at-will versus wrongful discharge exceptions
South-Western College Publishing
‹#›
2017
Module 27 - 41
Occupational Health and Safety
Worker’s compensation acts and disputed claims
OSHA’s general duty clause
Cost benefit analysis in standard setting and enforcement
Reproductive hazards: health versus non-discrimination
South-Western College Publishing
‹#›
2017
Module 27 - 42
Employee Involvement and Quality of Worklife Enhancement
Varied programs seek to enhance employees’ worklife quality and increase their involvement in decision-making
Ethical conflicts can occur over the sharing of productivity improvements and the impact on employee numbers
South-Western College Publishing
‹#›
2017
Module 27 - 43
Labor--Management Relations
Rights of employees to unionize vs. employer rights to operate union-free
Union rights to collect dues and service fees and limitations to do so under:
Right-to-work state laws and
Employee Beck rights and
Union’s duty of fair representation
Union and employee rights, and limitations, to strike
Collective bargaining processes under:
Traditional labor-management negotiations and
Interest-based (win-win styles of) bargaining
South-Western College Publishing
‹#›
2017
Workforce Reductions vs. Job Creation Efforts
Labor-management conflict over workforce redundancies
Causes of plant closings and conflicting ethical claims of stakeholders including employers, employees, and communities
Impact of privatization of public sector workplaces
Various responses to downsizing pressures have included:
Humane downsizing policies
Labor-management-community job creation efforts, and
Employee Stock Ownership Plans
South-Western College Publishing
‹#›
2017
Page 45
What are the 3 things that you learned in this lecture?
45
Seminar 8: In your workshop group:
Please work together with your company team:
Based on the lecture slides, identify which ethical dilemmas you are most likely to encounter in your company
Apply the Plan, Do, Check, Act method to incorporate CSR goals into your wider strategy and into SMART targets.
How will you measure your success in CSR and how will communicate your CSR successes to your stakeholders
How will your customers know about your corporate social responsibility?
How can you motivate your customers to accept a higher price because of your ethical conduct.
Agenda
Introduction
Strategic International Human Resource Management
Culture and International HRM/ Cross-cultural management
Global Staffing and International Assignments
Institutions, Actors and Micropolitics: Organizational Culture
Global Talent Management
International Compensation and Reward
Global Labour Regulation and Corporate Social Responsibility
Gender & Global Diversity Management
Summary and essay review
‹#›
2017
Artificial Intelligence
“Second Machine Age”
Erik Brynjolfsson
Andrew McAfee
Dramatic growth driven by smart machines
Evidence everywhere
SRC: Washington Post: Steven Pearlstein http://wapo.st/1bFeuMQ ; http://blog.instagram.com/post/104847837897/141210-300million
49
4th Industrial Revolution
The Fourth Industrial Revolution by Prof Klaus Schwab World Economic Forum; Subject UBS paper
EXTREME automation, connectivity
Cyber-physical systems driven by AI and robots
https://www.weforum.org/pages/the-fourth-industrial-revolution-by-klaus-schwab/
https://www.ubs.com/global/en/about_ubs/follow_ubs/highlights/davos-2016.html https://en.wikipedia.org/wiki/$1,000_genome
50
AI Impact
Economic, cultural, social, … endless disruption
Labour - McKinsey 58% of jobs automated
Martin Ford, Rise of the Robots
Elon Musk, artificial intelligence... existential threat
SRC: NewsSRC: News
51
AoE: AI of Everything
Is AI creating a digital quake where > 80 percent of companies and jobs will need to change or fail?
What are the implications to society, economic development, and path to prosperity?
AI technical standards achieve SDGs?
SRC: News
52
AI Driven Unprecedented Era
AI of Everything (AoE)-the global AI mesh spawning a Digital Quake driving the Knowledge Synthesis of Everything (KSE), an inflection point for humankind and the SDGs.
SRC: News
53
AoE: Evidence
Singapore self-driving Taxis September 2016
Telefonica, BigML AI selects startups
GE survival on software and AI
Baidu, AskADoctor, 520 diseases, refers specialists
Baidu, StockMaster predicts market trends
Controversy: AI bias
SRC: News
54
United Nations Sustainable Development Goals (SDGs): affordable, reliable, everywhere, safe, inclusive, fair, equal, resilient, sustainable, all ages
AI
SRC: United Nations
55
ITU WSIS 11 Action Lines
UN 8 MDGs 2000-2015
UN 17 SDGs 2015-2030
United Nations Sustainable Development Goals (SDGs): affordable, reliable, everywhere, safe, inclusive, fair, equal, resilient, sustainable, all ages
AI
SRC: United Nations
56
AI and SDGs
Tracking poverty (SDG1)
Diagnosis (SDG3)
Causal influences development programs education (SDG4)
Micro-finance (SDG8)
Greenhouse emissions and smart cities (SDG11&13)
Global partnerships (SDG17)
SRC: United Nations
57
0%25%50%75%100%
Human rights
Confidentiality of personal information
Community relations
Political activities
Workplace safety
Antitrust
Sexual harassment
Environment
Giving gifts
Discrimination / equal opportunity
Receiving gifts
Security of proprietary information
Conflict of interest
Bribery/improper payments
% of codes addressing issue
Chart8
| Human rights |
| Confidentiality of personal information |
| Community relations |
| Political activities |
| Workplace safety |
| Antitrust |
| Sexual harassment |
| Environment |
| Giving gifts |
| Discrimination / equal opportunity |
| Receiving gifts |
| Security of proprietary information |
| Conflict of interest |
| Bribery/improper payments |
OECD subjects
| OECD Survey of Codes - Topics Addressed by 233 Codes of Ethics | ||
| Corporate Citizenship | 29% | 67 |
| Observance of the Rule of Law | 33% | 78 |
| Fair Employment & Labour Rights | 52% | 122 |
| Environmental Stewardship | 55% | 129 |
| Fair Business Practices | 59% | 137 |
OECD subjects
CB subjects
| Bribery/improper payments | 92% | 92 | Child labor | 15% | |
| Conflict of interest | 92% | 92 | Nepotism | 28% | |
| Security of proprietary information | 92% | 92 | Substance abuse | 42% | |
| Receiving gifts | 90% | 90 | Whistleblowing | 46% | |
| Discrimination / equal opportunity | 86% | 86 | Employee privacy | 48% | |
| Giving gifts | 84% | 84 | Human rights | 50% | |
| Environment | 78% | 78 | Confidentiality of personal information | 52% | |
| Sexual harassment | 78% | 78 | Community relations | 62% | |
| Antitrust | 76% | 76 | Political activities | 71% | |
| Workplace safety | 71% | 71 | Workplace safety | 71% | |
| Political activities | 71% | 71 | Antitrust | 76% | |
| Community relations | 62% | 62 | Sexual harassment | 78% | |
| Confidentiality of personal information | 52% | 52 | Environment | 78% | |
| Human rights | 50% | 50 | Giving gifts | 84% | |
| Employee privacy | 48% | 48 | Discrimination / equal opportunity | 86% | |
| Whistleblowing | 46% | 46 | Receiving gifts | 90% | |
| Substance abuse | 42% | 42 | Security of proprietary information | 92% | |
| Nepotism | 28% | 28 | Conflict of interest | 92% | |
| Child labor | 15% | 15 | Bribery/improper payments | 92% |
CB subjects
OECD sector
| Multi-Sector | 7% |
| Technology | 17% |
| Services | 20% |
| Light Industry | 17% |
| Heavy Industry | 27% |
| Not Specified | 12% |
| 1 |
82%
50%
34%
22%
0%
25%
50%
75%
100%
CompanyContractorsSub-
contractors
Customers
as % of all codes surveyed
Chart2
| Company |
| Contractors |
| Sub-contractors |
| Customers |
OECD Data
| Company | 82% |
| Contractors | 50% |
| Sub-contractors | 22% |
| Customers | 34% |
OECD Data
CB data
Sheet3
| Issue | JV Partners | Suppliers/ Vendors |
| Nepotism | 8% | 5% |
| Community relations | 13% | 8% |
| Employee privacy | 10% | 8% |
| Child labor | 7% | 8% |
| Whistleblowing | 10% | 10% |
| Political activities | 13% | 11% |
| Confidentiality of personal information | 11% | 11% |
| Substance abuse | 12% | 12% |
| Human rights | 17% | 14% |
| Workplace safety | 18% | 20% |
| Sexual harassment | 17% | 22% |
| Discrimination / equal opportunity | 22% | 25% |
| Environment | 24% | 27% |
| Antitrust | 23% | 27% |
| Security of proprietary information | 25% | 30% |
| Conflict of interest | 26% | 37% |
| Bribery/improper payments | 27% | 45% |
| Receiving gifts | 25% | 46% |
| Giving gifts | 26% | 48% |
Sheet3
0%10%20%30%40%50%
Nepotism
Child labor
Whistleblowing
Political activities
Human rights
Workplace safety
Sexual harassment
Discrimination / equal opportunity
Environment
Conflict of interest
Bribery/improper payments
Receiving gifts
Giving gifts
% of COE applying to JV partner or Supplier/Vendor
JV PartnersSuppliers/ Vendors
Chart5
| Nepotism | Nepotism |
| Child labor | Child labor |
| Whistleblowing | Whistleblowing |
| Political activities | Political activities |
| Human rights | Human rights |
| Workplace safety | Workplace safety |
| Sexual harassment | Sexual harassment |
| Discrimination / equal opportunity | Discrimination / equal opportunity |
| Environment | Environment |
| Conflict of interest | Conflict of interest |
| Bribery/improper payments | Bribery/improper payments |
| Receiving gifts | Receiving gifts |
| Giving gifts | Giving gifts |
OECD Data
| Company | 82% |
| Contractors | 50% |
| Sub-contractors | 22% |
| Customers | 34% |
OECD Data
CB data
CB data (2)
| Issue | JV Partners | Suppliers/ Vendors |
| Nepotism | 8% | 5% |
| Community relations | 13% | 8% |
| Employee privacy | 10% | 8% |
| Child labor | 7% | 8% |
| Whistleblowing | 10% | 10% |
| Political activities | 13% | 11% |
| Confidentiality of personal information | 11% | 11% |
| Substance abuse | 12% | 12% |
| Human rights | 17% | 14% |
| Workplace safety | 18% | 20% |
| Sexual harassment | 17% | 22% |
| Discrimination / equal opportunity | 22% | 25% |
| Environment | 24% | 27% |
| Antitrust | 23% | 27% |
| Security of proprietary information | 25% | 30% |
| Conflict of interest | 26% | 37% |
| Bribery/improper payments | 27% | 45% |
| Receiving gifts | 25% | 46% |
| Giving gifts | 26% | 48% |
CB data (2)
Sheet3
| Issue | JV Partners | Suppliers/ Vendors |
| Nepotism | 8% | 5% |
| Child labor | 7% | 8% |
| Whistleblowing | 10% | 10% |
| Political activities | 13% | 11% |
| Human rights | 17% | 14% |
| Workplace safety | 18% | 20% |
| Sexual harassment | 17% | 22% |
| Discrimination / equal opportunity | 22% | 25% |
| Environment | 24% | 27% |
| Conflict of interest | 26% | 37% |
| Bribery/improper payments | 27% | 45% |
| Receiving gifts | 25% | 46% |
| Giving gifts | 26% | 48% |
