Presentation on theme: "SOCIAL RESPONSIBILITY AND BUSINESS ETHICS"— Presentation transcript:
1 SOCIAL RESPONSIBILITY AND BUSINESS ETHICS HUMAN RESOURCES:SOCIAL RESPONSIBILITY AND BUSINESS ETHICS
2 Chapter ObjectivesDescribe changing attitudes toward social responsibility and business ethics.Describe concept of corporate social responsibility.Explain attempts at legislating social responsibility.Explain what is meant by stakeholder analysis and the social contract.Understand the model of ethics and describe human resource ethics.Understand the importance of a code of ethics and describe ethics and the HR manager.
3 Changing Attitudes Toward Social Responsibility and Business Ethics It includes…….FoundationsReligious organizationsCommunity Development(Source: Social Investment Forum)
4 Changing Attitudes Toward Social Responsibility and Business Ethics To meet society’s expectations, managers will need to be more socially responsible.Most of 500 largest U.S. corporations now have a code of ethics.
5 Corporate Social Responsibility (CSR) Defined The implied, enforced, or felt obligation of managers, acting in their official capacity, to serve or protect the interests of groups other than themselves.Simple Terms:How a company behaves towards society
6 Corporate Social Responsibility What is Rule 14? When in doubt, do what’s right!
7 Corporate Social Responsibility Companies leading the chargePatagonia(1% of net sales for socially and environmentally initiatives)Norm ThompsonKeen FootwearTimberland FootwearNike
8 Legislating Ethics and Social Responsibility Procurement Integrity Act of 1988--passed after reports of military contracts for $500 toilet seatsFederal Sentencing Guidelines for Organizations (FSGO)--softer punishments for companies that have an ethic program in place
9 Stakeholder Analysis and the Social Contract Worker Adjustment and Retraining Notification Act of 1988--firms employing 100 or more to give 60 -days notice when a plant is closing or layoffs off affecting 50 or more 90 days notice
10 Legislating Ethics and Social Responsibility (Continued) Corporate and Auditing Accountability, Responsibility and Transparency Act--known as Sarbanes Oxley Act, primary focus is to redress accounting and financial reporting abuses in light of recent corporate scandals--provides a whistle-blower protection
11 Legislating Ethics and Social Responsibility What is new in corporations:90% have written ethics programHired an Ethics Officer--Collaborate with Management--Implement strategies to reinforce conduct--Work with employees across all levels to determine the right course of actionHolding professionals accountable
12 Stakeholder Analysis and the Social Contract Organizations, profit and nonprofit have large number ofstakeholders
13 The Social Contract Individuals The Organization Other Organizations Governmentsocial contract—Set of written and unwritten rules and assumptions about acceptable interrelationships among the various elements of society.Obligations to Individuals—Organizations have certain obligations to their employees.Obligations to Other Organizations—Managers must be concerned with relationships involving other organizations--both organizations that are like their own, such as competitors, and very different ones.Obligations to Government—Government is an important party to the social contract for every kind of organization.Obligations to Society in General—Businesses operate by public consent with the basic purpose of satisfying the needs of society.Society
14 The Social Contract Organizational Stakeholder --individual or group whose interests are affected by organizational activitiesSocial Contract--set of written and unwritten rules and assumptions about acceptable interrelationships among various elements of society - hiring minoritiesObligations to Individuals--certain obligations to organization’s employees- Voting and Jury Duty
15 The Social Contract Obligations to Other Organizations --managers must be concerned with relationships with other organizations, both like their own (such as competitors) and very different onesObligations to Government--expect to work with government agencies
16 The Social Contract Businesses are expected to help Society Meet Eliminate povertyQuality health-careStandards of having a clean environmentJob opportunitiesImprove the quality of working lifeSave livable communities
17 Social Audit Systematic assessment of a company’s activities in terms of itssocial impact
18 Social Audit Three Types Inventory of activities--Minority employment and trainingCompilation of social expenditures--Corporate giving'sSocial Impact--Involvement in selected communities
19 EthicsWhat is Ethics?--Discipline of dealing with what is good and bad, or right and wrong, or with moral duty and obligationSources of Ethical Guidance--a number of sources to determine what is right or wrong, good or bad, moral or immoral
20 EthicsType I Ethics--strength of relationship between what an individual or an organization believes to be moral and correct and what available sources of guidance suggest is morally correctType II Ethics--strength of relationship between what one believes and how one behaves
21 A MODEL OF ETHICS Sources of ethical guidance Our beliefs about what is right or wrongLead toDetermineOur actionsType I EthicsType II Ethicssources of ethical guidance—One might use a number of sources to determine what is right or wrong, good or bad, moral or immoral.Type I ethics: Strength of the relationship between what an individual or an organization believes to be moral and correct and what available sources of guidance suggest is morally correct.Type II ethics: Strength of the relationship between what one believes and how one behaves.
22 Human Resource EthicsThe application of ethical principles to human resource relationships and activitiesA Code of Ethics--establishes the rules by which the organizations lives
23 Human Resource Ethics Code of Ethics --Easy to talk the talk but harder to executeMust breathe itTrain its peopleCommunicate the code--Topics for Code of EthicsBusiness conduct and Fair competitionWorkplace and HR issues
24 Human Resource Ethics Reinforcing the Code of Ethics --Committee is established w/LegalHR, Corporate ComplianceCorporate CommunicationExternal AffairsTraining and DevelopmentBaldrige National Quality Award are changing criteria
25 Ethics and HR ManagerThe RoleRestore trust in the organizationHelp instill ethical practices in culturalSHRM Code of EthicsAs HR professionals, we are responsible for adding value to the organizations we serve and contributing to the ethical success of those organizations
26 Ethics and HR ManagerSurveys of HR and TrustHR effective= 62% believe the company is trustworthyHR ineffective= 8% believe company is not trustworthy79% HR Executives= blow the whistle over legal violation83% HR Executives= take strong action against legal violation
28 Ethics and HR Management Two Areas Impact on Corporate Ethics2 areas where HR can have a major impact on ethicsCorporate GovernanceExecutive Compensation
29 Ethics and HR Manager Corporate Governance Enforce polices and implementation methods to ensure executive integrity and effectivenessEmployees should know what is ethical and unethical
30 Executive Compensation Ethics and HR ManagerExecutive CompensationHR can provide the greatness impact in this areaHR should make sure that the compensation committee has relevant data for decision making
31 Ethics Case Study Read HRM Incident 1: An Ethical Flaw Discuss and answer questions related to case study