MGMT 452 Corporate Social Responsibility Zeynep Gürhan-Canlı Employee Relations Chapter 7 March 24, 2010

Economic Responsibilities to Employees Employee-employer contract Contract includes beliefs, perceptions, expectations, and obligations that constitute an agreement between individuals and their organizations. Informal contract has significant impact on an employee’s actions. When promises or expectations are not met, there is an enormous breach of trust resulting in less loyalty.

Psychological Contract The beliefs, perceptions, expectations, and obligations that make up the agreement between individuals and the organizations that employ them. Largely unwritten. Details of the contract develop through interactions with managers and coworkers and through perceptions of the corporate culture.

Workforce Reduction Can involve reducing the number of employees, simplifying products and processes, and decreasing quality and service.

Workforce Reduction Key considerations A comprehensive plan must be developed that takes into account the financial implications and qualitative and emotional toll of the reduction strategy. The organization should commit to assisting employees who must make a career transition. Companies must accept the consequences of terminating employees.

How Individuals Can Mitigate the Effects of Downsizing Employees should understand how their skills and competencies affect business performance. Employees should strive for cost-cutting and conservation strategies regardless of the employer’s current financial condition. Today’s work environment requires that most employees fulfill diverse and varying roles. More cross training

Legal Responsibilities of Employees Minimum wage and overtime pay, record keeping, and child labor standards. Social Security, insurance, and retirement. Safe and healthy working conditions for all employees. Collective bargaining and strike The design, arrangement, and use of equipment to maximize productivity and minimize strain. No discrimination on the basis of race, national origin, color, religion, and gender. Affirmative action programs in the US.

Legal Responsibilities to Employees Sexual Harassment Unwelcome sexual advances, requests for sexual favors, and other verbal or physical conduct of a sexual nature. When submission to or rejection of this conduct explicitly or implicitly affects an individual’s employment; unreasonably interferes with an individual’s work performance; or creates an intimidating, hostile, or offensive work environment, sexual harassment has occurred. Quid pro quo Exchange of job benefits for sexual favors. Hostile work environment Epithets, slurs, negative stereotyping, intimidating acts, and/or graphic materials that show hostility toward an individual or group. Other types of conduct that affect the work environment.

Whistle-Blowing A whistle-blower is one who reports individual or corporate wrong-doing to either internal or external sources. Managers and other employees may not appreciate reports that expose company weaknesses, raise embarrassing questions, or otherwise detract from organizational tasks. Historically, whistle-blowers have been retaliated against, demoted, fired, and even worse as a result of their action.

Ethical Responsibilities to Employees Training and development Benefits include stronger recruitment and retention, employee commitment, job satisfaction, and productivity. Diversity Embraces the unique skills and contributions of all types of people. Brings benefits as well as challenges. Allow for work/life balance Assist employees in balancing work responsibilities with personal and family responsibilities. Provide flexibility Flextime Job sharing Child care Elder care Health clubs

Philanthropic Activities Corporate giving affects employee attitudes toward the organization. Employees benefit from participating in volunteerism programs and other philanthropic projects. Builds teamwork skills. Educates employees. Example: More than 30,000 volunteers support the Ronald McDonald House Charities,donating one million hours of service per year (Source: www.rmhc.com, 02/16/2007).

Strategic Considerations Strong employee initiatives lead to a company being viewed as the “employer of choice.” This allows an organization to attract, optimize, and retain the best employee talent over the long term. Foster: Openness Community Creativity Loyalty Responsibility Individuality Teamwork