1. www.cipr.co.uk / @CIPR_UK Ethics and CSR Sue Wolstenholme FCIPR CIPR Chartered Practitioner Crisis (Response) Communication Diploma 24 th April 2015

2. www.cipr.co.uk / @CIPR_UK Today  The Code of Conduct  Ethics and Morals  Responsibilities  CSR

3. www.cipr.co.uk / @CIPR_UK Consider some unethical issues  Outstanding or recent examples  What is the main thing that makes it unethical  Score out of 5 with 5 being the worst

4. www.cipr.co.uk / @CIPR_UK Morals, ethics and laws  Personal and learned  Harmony and safety  Education, culture and religion  Do unto others as you would be done by  An ethical environment determines our conception of what is due to us and what is due from us, as we relate to others. (Blackburn 2001:1)

5. www.cipr.co.uk / @CIPR_UK Codes of conduct 1. Bribery and corrupt payments 2. Employment and personnel issues 3. Marketing practices 4. Impact of multinational on host countries 5. Effects on natural environment 6. Cultural impact of multinational operations 7. Relations with host governments 8. Relations with home countries

6. www.cipr.co.uk / @CIPR_UK Codes of conduct 1. Gifts (hospitality and bribes) 2. Conflicts of interest 3. Insider dealing 4. Equal opportunity and discrimination 5. Protection of the environment

7. www.cipr.co.uk / @CIPR_UK Corporate governance  Arises as consequence of separating ownership and management control  Need for organisations to be publicly accountable  Issues surrounding risk and responsibility

8. www.cipr.co.uk / @CIPR_UK In UK mainly voluntary codes, but increasing demand for legislation  Hampel Committee (1997) Management is responsible to shareholders – but should take account of stakeholders interests Code of behaviour for companies listed on UK stock exchange, viewed as ‘best practice’ Governance approach

9. www.cipr.co.uk / @CIPR_UK Chartered Institute of Public Relations Code of Conduct 1. Members of the Chartered Institute of Public Relations agree to:  i. Maintain the highest standards of professional endeavour, integrity, confidentiality, financial propriety and personal conduct;  ii. Deal honestly and fairly in business with employers, employees, clients, fellow professionals, other professions and the public;  iii. Respect the customs, practices and codes of clients, employers, colleagues, fellow professionals and other professions in all countries where they practise;

10. www.cipr.co.uk / @CIPR_UK And  iv. Take all reasonable care to ensure employment best practice, including giving no cause for complaint of unfair discrimination on any grounds;  v. Work within the legal and regulatory frameworks affecting the practice of public relations in all countries where they practise;  vi. Encourage professional training and development among Members of the profession;  vii. Respect and abide by this Code and related Notes of Guidance issued by the Institute of Public Relations and encourage others to do the same.

11. www.cipr.co.uk / @CIPR_UK Principles of Good Practice  Integrity  Competence  Transparency and avoiding conflicts of interest  Confidentiality  Maintaining professional standards

12. www.cipr.co.uk / @CIPR_UK International pressure - initiatives from:  The UN Global Compact  10 Principles Human Rights-2 Labour-4 Environment-3 Anti-corruption-1 Wolstenholme 2013:91-3  The World Bank  ISO standard on CR 26000 Regulation

13. www.cipr.co.uk / @CIPR_UK Knowledge and morality Sex and sexuality  1290banned1295 12  1300burned  1533 – 1861 hanged188516  1967 (1957)over 21  1973conference  1984over 18  2000armed forces and 16  2005civil partnerships  2013marriage

14. www.cipr.co.uk / @CIPR_UK Western Ethics OntologyDeontologyTeloelogy AristotleKantMill/Bentham VirtueDutyUtilitarian Being/existenceNon consequentialist Consequentialist

15. www.cipr.co.uk / @CIPR_UK Ethics also known as moral philosophy  Addresses questions about morality - concepts such as good and evil, right and wrong, virtue and vice, justice As a subject dates back to Aristotle c384 – 322 BC who claimed people can become virtuous by practising the virtues

16. www.cipr.co.uk / @CIPR_UK Aristotle  Golden Mean – virtue at mean point between extreme vices  Cowardice Courage Rashness  Prodigality LiberalnessMeanness  Boastfulness Truthfulness Mock modesty

17. www.cipr.co.uk / @CIPR_UK Aristotle  ‘all I can do is to urge you to regard friendship as indeed the greatest thing in the world, for there is nothing which so fits human nature, or is so exactly what we both desire and need, whether in prosperity or adversity. But I must at the very beginning lay down this principle: that true friendship can only exist between good people.’ And he goes on to clarify: ‘Let us mean by “good people”, those whose actions and lives leave no question as to their honour, sense of justice and generosity both of hand and heart; who have the courage to stand by their principles and are free from greed, intemperance and violence.’ Grayling 2011:57

18. www.cipr.co.uk / @CIPR_UK Commitment  It is the moral dimension of commitment that turns a superficial relationship into something meaningful – ‘so does our only hope remain in the preservation of the consciousness of the broader community to which we belong?’ (Debeljak 2000)  or as Hegel put it: ‘our consciousness of ourselves is largely or even essentially a consciousness of how we stand for other people.’ (in Blackburn 2000:1)

19. www.cipr.co.uk / @CIPR_UK Kant 1724 - 1804 You must tell the truth, even if someone else suffers as a result. An individual, alone, is responsible for his or her actions and that human reason could and should live by the basic principles of behaviour without needing the help of a higher being. Wolstenholme 2013:169

20. www.cipr.co.uk / @CIPR_UK Bentham and Mill  Pleasure and pain  Central to that system were theories of public opinion, suggesting that public opinion had the power to ensure that rulers would rule for the greatest happiness of the greatest number.  Wolstenholme 2013:81

21. www.cipr.co.uk / @CIPR_UK Utilitarians  Utilitarians saw happiness as being the sole human goal. Mill stated that if happiness was not, ‘in theory and in practice, acknowledged to be an end, nothing could ever convince any person that it was so.’ In his essay On Liberty (1859) he put forward the principle that people should be able to define their own version of happiness, within the law that, in pursuing it, they must not interfere in any way with the legal choice for happiness of another.  Wolstenholme 2013:81

22. www.cipr.co.uk / @CIPR_UK Public Relations!  Mere expression of the communicator’s point of view will not succeed; so it must be attuned to the mental and emotional bent of the audience’. (Lesly 1974 in Ewan 1996:xv)  According to Abraham Lincoln (1860) ‘public opinion needs to be molded.’ And he went on: ‘When the conduct of men is designed to be influenced, persuasion, kind, unassuming persuasion, should ever be adopted. It is an old and true maxim “that a drop of honey catches more flies than a gallon of gall.” So with men. If you would win a man to your cause, first convince him that you are his sincere friend. Wolstenholme 2013:164

23. www.cipr.co.uk / @CIPR_UK Lao Tze c350 – 250BC  Make sure that all are provided for but hold information back from the masses, who think they are happy because they have full stomachs and comfortable beds  ‘Not to honour men of worth will keep the people from contention; not to value goods which are hard to come by will keep them from theft; not to display what is desirable will keep them from being unsettled of mind. Wolstenholme 2013:171

24. www.cipr.co.uk / @CIPR_UK Confucius – K’ung Tzu - 550BC  Categorical imperative  ‘ A rich man’s house may be decorated luxuriously but his self-cultivation is enhanced only when he is virtuous’  I can try a lawsuit as well as other men but surely the great thing is to bring about that there be no going to law

25. www.cipr.co.uk / @CIPR_UK Buddhism Buddhism is 2,500 years old:  The path to Enlightenment is through the practice and development of morality, meditation and wisdom  Trust is the best of relationships  Whatever words we utter should be chosen with care for people will hear them and be influenced by them, for good or ill Wolstenholme 2013:171

26. www.cipr.co.uk / @CIPR_UK When would it be ok to:  Tell a lie  Refuse to work  Hide the facts

27. www.cipr.co.uk / @CIPR_UK Buddha for CSR As the bee collects the nectar and departs without injuring the flower or its colour or scent, so let the sage dwell in his village

28. www.cipr.co.uk / @CIPR_UK Corporate behaviour Responsibility Financial Environmental Social

29. www.cipr.co.uk / @CIPR_UK Corporate Financial Responsibility

30. www.cipr.co.uk / @CIPR_UK Corporate Environmental Responsibility

31. www.cipr.co.uk / @CIPR_UK Corporate Environmental Responsibility

32. www.cipr.co.uk / @CIPR_UK Closely watched

33. www.cipr.co.uk / @CIPR_UK  Can you be transparent without being ethical?  And vice versa?  We define people and businesses according to their values and so we require proof as to the extent by which those values are applied to their lives and vice versa  Consider some proof… Transparency

34. www.cipr.co.uk / @CIPR_UK Greenwash

35. www.cipr.co.uk / @CIPR_UK Social Equity  Ethical Practice: honest, fair, financially reliable  Employment Ethos: a good employer  Social Engagement: responsive to local community  Service Orientation: cares about its customers  Social Responsibility: corporate citizenship  Emotional Proximity: my kind of brand or company  Social Utility: provides worthwhile products

36. www.cipr.co.uk / @CIPR_UK CSR is Not  Baseball caps with logos  A company box at the football  Sponsoring the CEO’s daughter’s ballet school  But what’s the strategy for resisting these?

37. www.cipr.co.uk / @CIPR_UK SITA UK  Leading supplier of recycling and waste services  Over 100 years in the business in Europe  Integrated solutions - recycling, composting, energy recovery etc  In UK since 1988 and employs over 5000  Parent company Suez Environment

38. www.cipr.co.uk / @CIPR_UK SITA UK  Treats waste as a resource  CSR - Sustainability - environmental, economic and social  CSR Agenda influences corporate decision making  From procurement and recruitment to community action and charitable giving

39. www.cipr.co.uk / @CIPR_UK Actions  Fleet to be developed for PPO and Bio Fuels  Neighbourliness - over 250 sites  Liaison groups, open days, exhibitions, help desks, education packs  Employ socially excluded or challenged

40. www.cipr.co.uk / @CIPR_UK Suppliers  No arms traders  Must understand and follow steps towards sustainable development and waste minimisation  Detailed form and annual inspections  Ethics

41. www.cipr.co.uk / @CIPR_UK Employee development interests community needs and expectations Company mission Objectives/priorities Social Responsibility Begins Here

42. www.cipr.co.uk / @CIPR_UK Corporate Social Responsibility  Hobbes 17 th 18th, Rousseau and Rawls 20th  Quakers  Education  Communication

43. www.cipr.co.uk / @CIPR_UK Responsibilities to society  CSR pyramid: Carroll, 1991

44. www.cipr.co.uk / @CIPR_UK BITC’s aims:  To work in partnership with businesses to build their relationships and involvement with the communities in which they operate.  Supporting the social and economic regeneration of communities by raising the quality and extent of business involvement and making that involvement a natural part of successful business practice. Business in the Community

45. www.cipr.co.uk / @CIPR_UK Corporate Social Responsibility  A concern with these issues can actually lead to improved performance Crowther – Social environmental accounting September 2000  Sustainable companies, ie companies integrating economic aspects with environmental, ethical and social – yield a larger return than conventionally managed companies Holmstrom, S The Reflective Paradigm – Masters thesis 2002

46. www.cipr.co.uk / @CIPR_UK Relationships  Commercial  Political  Legal  Professional  Social  Moral

47. www.cipr.co.uk / @CIPR_UK CSR Golden Mean?  Imperialism…………………..Exploitation  CSR

48. www.cipr.co.uk / @CIPR_UK The Co-operative Bank  Why are you our customers  What else do you want (30,000)  Human Rights – 90%  Armaments – 87%  Animal exploitation – 80%  Environmental damage – 70%  Fur trade 66%

49. www.cipr.co.uk / @CIPR_UK Seven partnership networks for the Co-operative Bank Source: Co-operative Bank Ethical Policy, Co-operative Bank internal publication

50. www.cipr.co.uk / @CIPR_UK Aim to be the most sustainable retailer by 2015, based around 5 ‘pillars’: 1.Climate change 2.Waste 3.Natural Resources 4.Fair partnership 5.Health and Wellbeing How are they doing? M&S Plan A (Doing the Right Thing)

51. www.cipr.co.uk / @CIPR_UK Positioning  Lead the debate  Define roles clearly  Develop protocols with NGOs  Create national codes  Celebrate the partnerships  Make awards

52. www.cipr.co.uk / @CIPR_UK Responsible corporate culture  Set realistic values and goals, do not over- promise  Encourage input from all levels within organisation regarding values and practices  Explore methods to provide for greater diversity and dissent  Provide practical training for managers implementing corporate values

53. www.cipr.co.uk / @CIPR_UK  Public cynicism – ‘a PR job’, or ‘greenwashing’  Transparency exposes “token” community actions  Need consistency with values and corporate objectives  Clear criteria for evaluating gains and measuring stakeholder support  2-way symmetrical model  CSR can make or break reputation Implications for PR practitioners

54. www.cipr.co.uk / @CIPR_UK L’Etang  ‘while the term ‘corporate responsibility’ can have many meanings, it is most widely used in an evaluative and laudatory manner, describing the business as a whole or of a corporation, above and beyond its purely economic function.’ L’Etang 2006:406  Redressing the balance (Ibid:413/4)  may well be seen as an investment against the day when a crisis occurs and the company needs all the goodwill it can muster’ (Ibid:414)  Wolstenholme 2013:182

55. www.cipr.co.uk / @CIPR_UK By 2020... “ a successful practice will be clear on what public relations is, and the benefits it can deliver. It will be strongly led, respected, and established as a senior management discipline. Practitioners will be confident, committed to professional development and working to well-developed codes of conduct.” Jon White PR2020

56. www.cipr.co.uk / @CIPR_UK Skills, knowledge, expertise  Ensure you have the skills necessary to do the work assigned to you  Keep your knowledge, skills and expertise up to date  Ensure you do not give employers or clients the impression you can guarantee specific results (overpromising) Parsons (2004)

57. www.cipr.co.uk / @CIPR_UK PR ethics and professionalism  Improving public relations ethics has been seen as a key component in achieving greater professionalism…. Day, Dong, Robins (2001)  Only when public relations professionals engage in two-way communications with their publics, where the organisation responds to its publics, can public relations be truly ethical. Grunig (1989)

58. www.cipr.co.uk / @CIPR_UK  Ethics and profit – symbiotic relationship in the form of CSR – Tench (2009)  Tangible business benefits  Shareholder and community interests can both be served  Must act ethically and honestly or risk exposure Some conclusions

59. www.cipr.co.uk / @CIPR_UK Next Session The next session for this diploma is on 15 th May 2015. We look forward to seeing you all there.