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Social Responsibility

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

1 Social Responsibility
CHAPTER 4 Other Sources: Social Responsibility

2 Business Ethics Definition:
System of moral principles Values related to human conduct (rightness or wrongness of certain actions To Promote ethical behavior a business will develop a code of ethics.

3 Code of Ethics Code of Ethics: Ethical conduct guidelines Values
Is the action legal? Does the action violate professional or company standards? Who is affected by the action and how? Code of Ethics: A set of rules Are used by businesses to guide the actions of the employees or members of an organization. Should be worded in terms of acceptable behaviors, to best serve as a guide of values for employees within the company. Values

4 Checkpoint  Read A Question of Ethics page 57
How would you answer question #1? Is there a limit to how valuable a gift a teacher may receive?

5 Schools – teachers and students Professional associations
Small Businesses Large Organizations Schools – teachers and students Professional associations Clubs, or recreational organizations Sometimes called- Statement of Our Core Values, code of conduct

6 Shared Values Think about how this conflict, problem or the decision will impact customers, employees, and the community. Thinking about and making decisions “ with shared values” of the society in mind is social responsibility. When an issue creates conflict between core values and violates ethical principle, as a member of the company you may…. The concept of shared value can be defined as policies and operating practices that enhance the competitiveness of a company while simultaneously advancing the economic and social conditions in the communities in which it operates. Shared value creation focuses on identifying and expanding the connections between societal and economic progress.

7 Social Responsibility of Business
Social Responsibility – the duty of the business to contribute to the well being of a community. A business must weigh the interests and concerns of many groups when considering it’s responsibility and contributions to society. Businesses generally aim their efforts toward addressing social, environmental, and economical concerns.

8 Social Responsibility Cont.
Refers to the duty of a business or individual to contribute to the well-being of the community Choice or Obligation?

9 NIKE’S UNETHICAL PRACTICES EXPOSED

10 Nike Sweatshops Reactions to videos Opinions-Is this right or wrong?
How does .20 cents an hour affect how people live, do they live like Kings and Queens? Power as a consumer  What does that mean for you and for Nike? Is social Responsibility a choice or an obligation? Does, Nike and other companies have a choice to be socially responsible ?

11 Shared Values in United States’ Businesses
Social Creating and supporting workplace diversity Providing appropriate labor conditions Job safety Fair pay Wellness programs Environmental Conservation of natural resource, and non-renewable resources Limiting/eliminating pollution Finding new and improved energy sources (solar paneling) Economical Creating and supporting local jobs Financial accountability United States our values are very different based on: Culture Traditions Economy

12 *HINT: think about even here at Shaker(We are an organization too).*
Brainstorm What are ways that companies promote the following values in their companies? workplace diversity appropriate labor conditions Job safety Fair pay Wellness programs Conservation of natural resource, and non-renewable resources Limiting/eliminating pollution Finding new and improved energy sources *HINT: think about even here at Shaker(We are an organization too).*

13 Diversity Workforce should reflect groups in the community
Members of these groups must have equal access to education, training, jobs, and career advancement

14 Diversity The Equal Employment Opportunity Act of 1972 is the act which gives the Equal Employment Opportunity Commission (EEOC) authority to sue in federal courts when it finds reasonable cause to believe that there has been employment discrimination based on of race, color, national origin, sex, religion, age, disability, political beliefs, and marital or familial status.

15 (Americans with Disabilities Act)
Diversity Eliminate bias against older workers Age Discrimination (Equal Employment Opportunity Act) Bars using age as a basis for employment decisions, including hiring, promotions, or termination Removal of barriers of women Gender discrimination (Equal Employment Opportunity Act) Can’t exclude women from physically demanding jobs Gender equality for pay, (Equal Pay Act) Need to provide accommodations for individuals who are physically challenged Buildings must have access for wheelchairs People with sight and hearing disabilities must be accommodated (Americans with Disabilities Act)

16 Job Safety/Labor Conditions
Work environment should have full protection from fire and other hazards Involves training to handle the unexpected and how to work safely (OSHA—Occupational Safety and Health Administration) Child Labor Restrictions Hours that youth under 16 years of age can work Safe work experiences for young workers by listing tasks youth can’t perform or hazardous occupations classified as too dangerous for young workers to perform

17 (Included in conditions of work in labor contracts)
Employee Wellness Healthier workers are more productive Companies can provide Stop smoking seminars Counseling for drug problems Counseling for weight problems Reward/incentives for healthy lifestyle choices (Included in conditions of work in labor contracts)

18 Environmental: Limiting pollution
Limit Carbon Footprint ("the total sets of greenhouse gas emissions caused by an organization, event, product or person) Company can limit emissions of air pollutants coming from sources like chemical plants, utilities, and steel mills. 9 ( Clean Air Act) Safer procedures for oil rigs Manufacture in the U.S. verses internationally less travel for product distribution Organize company wide recycling program (bottles, cans, paper, ect.) Under the Clean Air Act (CAA), EPA sets limits on certain air pollutants, including setting limits on how much can be in the air anywhere in the United States. The Clean Air Act also gives EPA the authority to limit emissions of air pollutants coming from sources like chemical plants, utilities, and steel mills. Individual states or tribes may have stronger air pollution laws, but they may not have weaker pollution limits than those set by EPA.

19 Conservation – is the saving of natural resources.
Ex: water, lumber(wood) Non- renewable resources – natural resources that can not be replaced when used up. Ex: Gas, oil, minerals (copper and iron ore)

20 Sustainability Sustainability is based on a simple principle: Everything that we need for our survival and well-being depends, either directly or indirectly, on our natural environment. Sustainability has emerged as a result of significant concerns about the unintended social, environmental, and economic consequences of rapid population growth, economic growth and consumption of our natural resources Sustainability is important to making sure that we have and will continue to have, the water, materials, and resources to protect human health and our environment. Protecting our natural resources

21 Starbucks https://www.youtube.com/watch?v=kdrFXFMFqB0

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25 SOCIAL RESPONSIBILITY EVALUATION
Benefits – Costs = Action/No Action Benefits Expanded justice for groups of a society Enhanced company image Reduced need for government actions Improved quality of life in a community and around the world

26 SOCIAL RESPONSIBILITY EVALUATION
(continued) Benefits – Costs = Action/No Action Costs Building repairs to remove risks Wellness and rehabilitation programs Social projects sponsored by a company New safer or nonpolluting equipment

27 How would you answer question #1?
CHAPTER 4 4/21/2017 Checkpoint  Read page 27 Business Improving Society How would you answer question #1? Can you think of other ways to apply this idea? Have you heard of a Shaker person who is doing similar work? ITB

28 Ted Talk- Creating Ethical Culture
Creating Ethical Cultures in Business: Brooke Deterline Published on Sep 11, 2012 As Corporate Director for the Heroic Imagination Project (HIP), Brooke helps boards, executives, and teams at all levels develop the skills to act with courage and ingenuity in the face of challenging situations. This fosters leadership credibility and candor, builds trust, engagement and reduces risk.

29 What are four areas of social responsibility that may require the attention of business?
Environmental protection Workplace diversity Job safety Employee wellness

30 Choice or Obligation The following laws are set up to help companies be….. Equal Employment Opportunity Act Americans with Disabilities Act OSHA—Occupational Safety and Health Administration Clean Air Act

31 Ethics Social Responsibility Shared Values
TOMS A growing number of companies known for their hard-nosed approach to business—such as GE, Google, IBM, Intel, Johnson & Johnson, Nestlé, Unilever, and Wal-Mart—have already embarked on important efforts to create shared value by reconceiving the intersection between society and corporate performance.

32 Ethics Social Responsibility Shared Values
Build your own diagram using Microsoft’s Smart Art to explain how a business(of your choice) is being socially responsible? You should have at least two examples for each category – Social, Environmental, Economic. How are our business doing today? Are companies more or less social responsible now than they were 5, or even 10 years ago? Provide at least three examples from one or multiple businesses to support your answer? The pros and cons of social responsibility? A growing number of companies known for their hard-nosed approach to business—such as GE, Google, IBM, Intel, Johnson & Johnson, Nestlé, Unilever, and Wal-Mart—have already embarked on important efforts to create shared value by reconceiving the intersection between society and corporate performance.

33 Social Responsibility Project
Step 1: Collect and save all research in a word document. Narrow research down to find specific information for your SmartArt diagram. Step: 2 Create SmartArt diagram and input titles (Categories: Social, Economic, Environmental) and corresponding info for each social responsibility category. Edit diagram to make sure that all information is readable.

34 Examples of where to start your research

35 Examples of where to start your research

36 Examples of where to start your research

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38 Helpful Websites The 25 Best Companies for Employee Compensation and Benefits America's Most Reputable Companies most-reputable-companies-2/ Top 50 socially responsible corporations: 2014 responsible-corporations-2014/

39 Governmental Involvement in Promoting Social Responsibility
Americans with Disabilities Act (ADA) Age Discrimination in Employment Act Occupational Safety and Health Act & Occupational Safety and Health Administration Family and Medical Leave Act Environmental NYS Department of Environmental Conservation Clean Air Act(CAA) The United States Environmental Protection Agency Under the Clean Air Act (CAA), EPA sets limits on certain air pollutants, including setting limits on how much can be in the air anywhere in the United States. The Clean Air Act also gives EPA the authority to limit emissions of air pollutants coming from sources like chemical plants, utilities, and steel mills. Individual states or tribes may have stronger air pollution laws, but they may not have weaker pollution limits than those set by EPA.

40 Governmental Involvement in Promoting Social Responsibility
Economic Sarbanes-Oxley Act The federal Trade Commission(FTC) Securities and Exchange Commission Food and Drug Administration Sarbanes-Oxley In the wake of major corporate fraud in recent years in companies such as Enron, Tyco, WorldCom, among others, major legislation called the Sarbanes-Oxley Act was enacted governing accounting, auditing and corporate responsibility. Many in the business world opposed the bill, claiming that compliance with its rules was difficult, time consuming, and would still not have the desired effect - the protection of shareholders against fraud. (For more, see How The Sarbanes-Oxley Era Affected IPOs.) The EPA and FTC Another frequent target of certain businesses is the Environmental Protection Agency. The disposal of waste materials, the restrictions on greenhouse emissions, pollutants and other substances harmful to land, water and atmosphere are now regulated by this government agency. Companies to which these rules apply have complained that the restrictions are costly and compromise profits. The Federal Trade Commission has also been perceived as a foe of business by some firms, which have had their practices such as price fixing, monopolies, and fraudulent or misleading advertising curtailed by this arm of the government. The SEC and FDA The Securities and Exchange Commission has imposed strict regulations on initial public offerings of corporate stock, on the full disclosure requirements of a stock prospectus, and on the buying and selling of equities on the various stock exchanges under its oversight. (To learn more, read Policing The Securities Market: An Overview Of The SEC.) Pharmaceutical companies have often complained that the Food and Drug Administration needlessly withholds approval and subsequent marketing of certain drugs pending additional or more extensive clinical trials, although these drugs have already proven to be effective.

41 Social Responsibility Around the World
In our international economy, what happens when American companies “outsource”- produce products and manage organizations abroad? United States our values are very different based on: Culture Traditions Economy Read PAGE 57

42 Social Responsibility Around the World
The Inter-American Convention Against Corruption (IACAC) was adopted by the member countries of the Organization of American States (OAS) in March 1996; it came into force in March It was the first international convention to address the question of corruption. It gives a wide and inclusive interpretation to what constitutes 'corruption offences' including bribery, domestic and foreign; illicit enrichment; money laundering and concealment of property. According to Article II of the Convention's text, it has two goals: To promote and strengthen the development by each of the States Parties of the mechanisms needed to prevent, detect, punish and eradicate corruption; and, To promote, facilitate and regulate cooperation among the States Parties to ensure the effectiveness of measures and actions to prevent, detect, punish and eradicate corruption in the performance of public functions and acts of corruption specifically related to such performance. It represents regional consensus about what states should do in the areas of prevention, criminalization, international cooperation and asset recovery. It covers corruption in the public sector, both on demand and supply.

43 Social Responsibility Around the World
U.S. Department of State The Office of Economic Policy Analysis and Public Diplomacy (EPPD), provides guidance, promotion and support for responsible business practices, engaging the private sector, civil society, and non-governmental organizations.  EPPD leads the U.S. relationship with the Organization for Economic Cooperation and Development (OECD) on vital international economic issues. The mission of the Organization for Economic Cooperation and Development (OECD) is to promote policies that will improve the economic and social well-being of people around the world. We set international standards on a wide range of things, from agriculture and tax to the safety of chemicals. OECD Guidelines ISO Standards The EPPD also manages the Secretary of State’s annual Award for Corporate Excellence (ACE)program.


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