Ethics In Operations Management

What are we up to this lesson? Management is expected to act honestly and fairly (ethically), and take a business perspective that includes concern for the condition of society in general. (This means that they must be socially responsible, which includes environmental concerns). These are values of ESM/CSR/ESR.

First: on terminology……. Be aware that ESM/CSR/ESR are used interchangeably in articles and texts. They basically cover the same area: CSR=Corporate Social responsibility ESM and ESR= Ethical and Social Responsibility Management.

Students will be able to: Learning Intentions Students will be able to: Explain how each component of the operations system (inputs, process, outputs) present ethical and social responsibility choices Identify and suggest tactics organisations can use to meet their CSR commitments Describe the positive benefits arising from CSR

1. Ethics in the Operations System Here we examine each of the elements of operations for typical situations that require management to deal with issues in an ethical and socially responsible way, that is, to apply CSR/ESM/ESR. INPUTS TRANSFORMATION PROCESS OUTPUTS

1. Ethics in the Operations System Let’s try and sort some CSR/ESM issues into the operation system component that they would fall into the realm of. Use the A3 sheets to sort the issues into their respective component areas. Pineapples for Winner Board Diagram of A3 set-up. Disseminate A3 pages and envelopes. Pineapples for winner! INPUTS TRANSFORMATION PROCESS OUTPUTS

2. Ethical and Socially responsible Tactics Sustainability Health and Safety of employees Waste Minimisation Supplier and customer relationships

Avoid depleting unsustainable resources 1. Sustainability Avoid depleting unsustainable resources Companies switching their power sources to carbon neutral/green sources Organisations are involved in replenishing resources to compensate for their use. Sustainable logging – using plantations and not old- growth forest

Open up to today’s Wiki and read and complete the logging activity. 1. Sustainability Open up to today’s Wiki and read and complete the logging activity.

2. Health and Safety of Employees Organisations have a moral and legal responsibility for the health and safety of all employees Such as ensuring that there is adequate safety procedures, policies and equipment (Occupational Health & Safety or OH&S) Also means adequate compensation if employees are injured in a workplace incident

3. Waste Minimisation Organisations should at all times attempt to minimise the waste and pollution that they create. For instance Mercedes Benz is able to recycle every part of their old cars thereby reducing the amount of waste they ultimately create.

4. Environmental Management Systems A EMS is a series of policies and practices that focus on an organisation’s approach to environmental issues. It is an externally accredited policy (ISO 14001) that shows the organisation has accepted responsibility for environmental issues.

4. Environmental Management Systems Go to today’s wiki and complete the “ISO 14000” Activity.

Case Study Consider the link (Wiki) on McDonald’s CSR. In your workbooks jot down some of their CSR activities and also some of the KPIs they use in the measurement of some of these activities. When possible, group them by stage in the operations system.

3. Positive Benefits of CSR improved financial performance (efficiency savings) identification of new products and new markets enhanced brand image increased sales and customer loyalty improved staff motivation, recruitment and retention performance improved government relations & reduced regulatory intervention reduced costs through environmental best practice leading to more sustainable profitability. What is productivity? Input/Output. What are the main inputs and outputs at a branch level? Input=staff. Output=customers served.

Students will be able to: Learning Intentions Students will be able to: Explain how each component of the operations system (inputs, process, outputs) present ethical and social responsibility choices Identify and suggest tactics organisations can use to meet their CSR commitments Describe the positive benefits arising from CSR

Linking the Learning Intentions Complete Qs 1-5 on page 137

Homework – all on today’s wiki Complete notes template. Read over CSR article and answer questions Try playing through the online CSR game (link on Wiki)