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Social Responsibility

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Presentation on theme: "Social Responsibility"— Presentation transcript:

1 Social Responsibility
MKTG 1960-Team5

2 Topic Overview Social Responsibility Definitions
CSR- Corporate Social Responsibility The Role of Ethics Blowing the Whistle Rachelle Vandruff Rolando Ngayawon Phaedra Sulin Benson Lori Green

Social responsibility is an ethical theory that an entity, be it an organization or individual, has an obligation to act to benefit society at large. Social responsibility is a duty every individual or organization has to perform so as to maintain a balance between the economy and the ecosystem. Source The broadest definition of social responsibility mandates all of us to be involved… individuals, corporations, governments, global entities. etc. The problem with the term is that it is very broad and multifaceted. Varies countries and cultures view this differently, as do corporations. For example, recent news articles in SLC have spotlighted a local oil refinery with emission that are well in excess of the legal guidelines, yet there are disputes as to the interpretation of the guidelines that will allow the corporation to continue operations during a lengthy regulatory battle.

4 Fair Operating Practices Consumer Issues
June, 2012 International Standards Organization Created an international standard for Social Responsibility Six Core Subjects: Human Rights Labor Practices The Environment Fair Operating Practices Consumer Issues Community Involvement and Development ISO 26000, Published

5 ISO’s Guiding Principles of Social Responsibility
Accountability Transparency Ethical behavior Respect for stakeholders interest Respect for the rule of law Respect for international norms of behavior Respect for human rights ISO 26000, Published As you can see, the guiding principles of social responsibility really end up centering on ethical and moral values, which will be discussed in greater detail later.

6 What is CSR? Corporate social responsibility (CSR), also called corporate conscience, corporate citizenship, social performance, or sustainable responsible business. CSR is a form of corporate self-regulation integrated into a business model. ISO 26000, Published The term “corporate social responsibility” came into use in the 1960’s and has continued to gain popularity. CSR policy functions as a built-in, self-regulating mechanism whereby a business monitors and ensures its active compliance with the spirit of the law, ethical standards, and international norms. In some models, a firm's implementation of CSR goes beyond compliance and engages in "actions that appear to further some social good, beyond the interests of the firm and that which is required by law."[2][3] CSR is a process with the aim to embrace responsibility for the company's actions and encourage a positive impact through its activities on the environment, consumers, employees, communities, stakeholders and all other members of the public sphere who may also be considered as stakeholders. The term "corporate social responsibility" became popular in the 1960s and has remained a term used indiscriminately by many to cover legal and moral responsibility more narrowly construed.[ This clip was filmed in April of President John F. Kennedy introduces the concept of social responsibility. Pay attention to his angry denunciation of the steel industry and his final statement reflecting their disregard for CSR.

7 John Kennedy on Social Responsibility
Newsreels 1962 April 12 Steel Industry Defies Irate President John F. Kennedy President Kennedy devotes the major portion of his news conference to denouncing the Big Steel companies for raising steel prices by $6 a ton. He gives his opinion on its effect on the economy. News reporters rush from the room (news conference) to announce the economic news of the year. An industry answer comes from the Chairman of the Board of U.S. Steel, Roger Blough, who says they need the raise for plant improvements as he addresses news reporters the next day.

8 Integrating Social Responsibility into an Organization
Practices for integrating social responsibility throughout an organization Understanding the social responsibility of the organization The relationship of an organization’s characteristics to social responsibility Reviewing and improving actions and practices related to social responsibility Communicate on social responsibility Volunteer initiatives for social responsibility Enhancing credibility regarding social responsibility ISO determined there are six practices needed to integrate social responsibility into an organization: Understand the social responsibility aspect related to your organization . For example, Apple uses third-world labor contract and must ensure human right standards are maintained. Determine what characteristics of your organization require CSR. This may include environmental factors, recycling, community involvement, and many other elements. Consistently review and improve organizational practices and processes related to CSR. Communicate both internally and externally. Create ways to support CSR though volunteerism within the organization and in the larger community. Enhance your credibility though consistent CSR improvement and visibility. ISO 26000, Published

9 This chart published in 2009 shows that although corporate philanthropy gets the most notice, it is the least effective form of CSR an has mostly short term effect. Company assets are better utilized on risk management (compliance to regulations and published guidelines) and most effectively on value creation (innovation, competiveness, human resources, environment, business integration into the community, etc.) Strategy & Society: The Link between Competitive Advantage and Corporate Social Responsibility [1] by Michael E. Porter


11 -William Marre Published 11.23.13
“Corporate Social Responsibility has become much more important to large and small organizations because consumers and employees are demanding it.” -William Marre Published Award Winning Author & Expert on CSR It is interesting that the most recent issue of Time Magazine dated 11/25/13 contained more than 10 corporate or non-profit organization sponsored advertisements that dealt with social responsibility or CSR. Delta Faucets- minimize water usage Citizens Trust for Public Land- metropolitan green space/parks Chevron- protection of the environment Food & Drug Administration- lower fat content in junk food Toyota- lower emissions, conservation of oil and natural gas AmeriCares- donations for typhoon survivors Foundation for Technology Benefiting Humanity- innovations applying technology to confront humanities most urgent needs Nest Protect- energy-free smoke/carbon monoxide alarms

12 ETHICS: The expression of the standards of right and wrong based on conduct and morals in particular society. -Minor, Lamberton Human Relations 4th Edition Ethics encompasses the standards of right and wrong, of conduct and morals within a particular society.

13 MORALITY: A system of conduct that covers all broadly based, mostly unwritten standards of how people should behave and generally conform to cultural ideals of right and wrong. -Minor, Lamberton Human Relations 4th Edition It must be clarified; morality and ethics although very similar, have very broad distinctions from one another, especially in a business environment.

14 ETHICS vs. MORALITY ETHICS MORALITY Where do they come from?
Social system External Individual Internal Why we do it? Because society says it is the right thing to do Because we believe in something being right or wrong. What if we don’t do it? We may face peer/social disapproval of even being fired from our job. Doing something against one’s morals and principles may affect individuals differently Uncomfortable, remorseful, depressed, etc.


16 both relate to “right” and “wrong” conduct.
Ethics and Morals both relate to “right” and “wrong” conduct. However, Ethics refer to the series of rules provided to an individual by an external source, e.g. their profession. On the other hand, Morals refer to an individuals own principles regarding right and wrong.

17 ETHICS CODES: Formalized sets of ethical guidelines developed by some companies for use at all levels of the organization. Because ethical, moral, and legal issues are all so different, companies have begun to draft “ethical codes” for the employees in their companies, making it easier for employees and leadership alike to make consistent ethical judgments in the workplace despite differences in their personal morals to those around them. Once a code of ethics is made in a business and the staff knows what standards they and their peers are being held to, it is no longer a guessing game. In modern businesses, big and small, it is now a norm to have a code of ethics.

18 Case Study : Ingredient Labels What Would You Do? Group Discussion
Ethics Moral Values Whistleblowing What Would You Do? Group Discussion I worked for Smith’s Grocery Stores. Last month we had a situation occur that we would like to discuss. The Bakery Director made a change to one of the ingredient labels. You have a sample of one of them in front of you. The ingredient label must contain a proper description of each ingredient (as mandated by law). The ingredients must be in order, beginning with the main ingredient followed by other ingredients listed by volume. The change that the manager made was very slight, involving the removal of the word “sea” from the description of “sea salt”. The reason the change was made was to make the label more easy to read and reduce the statement by one line. The Administrative Assistant to the Bakery Director felt that this change was unethical and did not properly represent the ingredients to the consumer. Keep in mind several factors: She had worked for Smith’s for over 25 years and loved her job.. She reported directly to the Bakery Director who had made the change. The Bakery Director would have no doubt who reported the change. What would you do? The administrative assistant reported the label change to our corporate ethics committee. The label was changed back to its original verbiage. The Bakery Director and Administrative Assistant are still in their positions and no disciplinary action was taken against either one. However, there is a definite problem between them now, which brings us to our next topic….

19 Whistleblowing Disclosing information that an employee reasonably believes is evidence of illegality, gross waste, gross mismanagement, abuse of power, or substantial and specific danger to public health or safety. -Devine, Tom and Tarek F. Maassarani The Corporate Whistleblower's Survival Guide San Francisco, CA: Berret-Koehler Publishers, Inc.

20 Risks of Whistleblowing
2010 Study by the Ethics Resource Center: 50% of Employees Witness Misconduct on the Job 40% Do Not Act On Their Knowledge Retaliation: Spotlight the whistleblower, not the wrongdoing Build a damage record against the whistleblower Threaten them Isolate them Set them up for failure Physically attack them Eliminate their jobs Paralyze their careers Blacklist them

21 Why Do People Become Whistleblowers?
Conflicts of values and social responsibility “I am honored that people think I am a hero… but I do not accept that moniker as others are much more deserving of it. I did what was right… have no regrets and would do it again. As you see, we were just ordinary people placed in some extraordinary situation and did the right thing as all should do.” -Dr. Jeffrey Wigand, former high-ranking tobacco industry executive who disclosed the truth about the industry’s disregard for public health and safety.

22 What to Know Before You Blow
Be Clear With Your Objectives Anonymity vs. Going Public Essential Survival Tips Maintain Your Sanity Relationships Gathering More Information A Note on Defamation

23 13 Survival Tips Consult your loved ones
Test the waters for support among your workplace peers Before breaking ranks, consider working from with the system Always be on guard not to embellish your charges Seek legal and other expert advice early Stay of the offensive with a well-though-out plan Maintain good relations with administrative/support staff Network off the job and identify potential allies Keep an ongoing, detailed, contemporaneous record Secure all relevant records before drawing any suspicion on your concern Engage in whistleblowing initiatives on your own time and with your own resources Check for skeletons in your closet Do not reveal your cynicism when working with authorities

24 Summary Social responsibility is the obligation of all individuals, organizations, and nations. Corporation must practice social responsibility in today’s world, it is no longer optional. Ethics and moral values guide our attitudes toward being socially responsible. Whistle-blowing is a necessary safeguard to social responsibility. It has become the expectation of the modern day consumer that ethical approaches be applied in all areas of a corporation. Having a corporate code of ethics is now standard in the business world. Whether a company is making efforts to reduce their green house gasses or giving “one for one”, corporations are making efforts to get on the social responsibility band wagon, and they want you, the consumer, to know about. If they are not, then there are plenty of people out there waiting to blow the whistle. It is clear that Corporate Social Responsibility (CSR) is here to stay.

25 “Be the change that you want to see in the world.”
“The greatest use of a human is to be useful. Not to consume, not to watch, but to do something for someone else that improved their life, even for a few minutes.” -Dave Eggers, A Hologram for the King “Be the change that you want to see in the world.” -Mohandas Gandhi

26 Thank You!



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