Professional Documents
Culture Documents
SocialResponsibility
Framework
Whatdoyoubelieveorganizations
shouldberesponsiblefor
accomplishing?
Businessesshouldlookbeyondtheirself
interestsandrecognizethattheybelongto
alargergroupthatexpectsresponsible
participation.
Legal
Abidebylegalandregulatoryinfluence
Ethical
Ensurejustandfairbehaviorintheworkplace
Philanthropic
Promotehumanwelfareandgoodwill
Whoarethekey
stakeholdersoftheorganization?
Stakeholders
Thoseconstituentswhohaveastakein,or
claimon,someaspectofacompanys
products,operations,markets,industry,and
outcomes
Companiesthatoperatewithastakeholder
orientationrecognizethatbusinessandsociety
areinterpenetratingsystems,inthateach
affectsandisaffectedbytheother.
1980s
Flatterorganizations(downsizing)
Morebusinessscandals
Empowermentoflowerlevelemployees
Focusonprofitabilityandeconomiesofscale
Transparency
Longtermperspective
Liquidity
Limiteduseofderivatives
Absenceofratingtriggers
Minimalcounterpartyexposure
Diversification
Greatertrustwithstakeholders
Greatercustomersatisfaction
Strongeremployeecommitment
Strongerinvestorloyalty
Greaterprofitability
Countrieswithgreatertrustbasedinstitutionsfostera
productivityenhancingenvironment.
Competitiveprocessesaremoreefficientandeffective.
Mostworkersfeeltheycanbe
trustedmorethantheycan
trustothers.
Allorganizationalmembersshouldsharea
senseoftrust.
Trustshouldexistbetweendepartments
withinafirm.
AnEthicsResourceCenterstudyshowsthat
93%ofemployeeswhosaytrustis
frequentlyevidentintheirorganization
reportsatisfactionwiththeiremployer.
Social Responsibility
Improves Customer Satisfaction
Focusesoncustomersatisfactionand
strengthenstrust.Thisisespeciallykeyin
serviceorganizations.
Seventypercentofconsumersina
Cone/Roperpollindicatedtheywould
switchtobrandsassociatedwithagood
causeifpriceandqualitywereequal.
Social Responsibility
Strengthens Employee Commitment
Thegreateracompanysdedicationtoemployees,thegreater
thelikelihoodthatemployeeswilltakecareofthe
organization.
Failuretocareforemployeesresultsinlowerloyaltyand
commitment.
Employeesperceptionsareaffectedby:
Safeworkingconditions,competitivesalaries,and
contractualfulfillment
Socialprograms,includingworkfamilyrelationships,
stockownership,communityservice
Strengthening
Employee Commitment
Employeestockownershipplans(ESOPs)
Rewardsemployeesforcontributingtoandgainingfrom
organizationalsuccessandallowsthemtogainfromit
Employeecenteredprograms
Healthcarebenefits
Healthclubs
Childcareandeldercare
Cafeteriabenefitsplans
Social Responsibility
Contributes to Investor Loyalty
Investorrelationshipsrequiredependability,
trust,andcommitment.
Shareholdersareconcernedaboutethics,
socialresponsibility,andcorporatereputation.
Halfofinvestorsselltheirstock
withinoneyear.
Social Responsibility
Enhances Economic Performance
Doesbusinessconductrelatetoa
nationsoveralleconomicconduct?
Economicwellbeingispromotedby:
Trustandasenseofcommunity
Rigorinthelegalandethicalsystems
Consistentexerciseofauthoritywithinsociety
Socialinstitutionsthatfosteraccess,
productivity,andeconomicgrowth
Positiveattitudesaboutwork,innovation,
savings,andprofits
Procter&Gamble
WashingtonMutual
Starbucks
GeneralMotors
Avon
AIG
McDonalds
CocaCola
Chapter3
CorporateGovernance
Chapter4
Legal,Regulatory,andPoliticalIssues
Chapter5
BusinessEthicsandEthicalDecisionMaking
Chapter7
EmployeeRelations
Chapter8
ConsumerRelations
Chapter9
CommunityRelationsandStrategicPhilanthropy
Chapter11
SustainabilityIssues
Chapter12
SocialResponsibilityinaGlobalEnvironment