Ethics And Corporate Social Responsibility (CSR) PDF

ETHICS AND CORPORATE SOCIAL RESPONSIBILITY (CSR) Fundamental Influence Sources of Ethics Wheel Four Fundamental Influence Sources of Ethics Wheel:  1. Individual  Personal values, spiritual influences, past experiences/environment, social image  2...

ETHICS AND CORPORATE SOCIAL RESPONSIBILITY (CSR) Fundamental Influence Sources of Ethics Wheel Four Fundamental Influence Sources of Ethics Wheel:  1. Individual  Personal values, spiritual influences, past experiences/environment, social image  2. Societal  Societal interpretation, legal and regulatory guidelines  3. Professional  Professional designation (title, choice, classification), association influences, industry practices  4. Business culture  Pressure to meet company objectives, structure of reward system, pressure from superiors, corporate ethics guidelines Concepts & Vocabulary to remember  Integrity: is honesty, reliability, ethics, moral judgement  Board of Directors: governing body of a corporation, comprising individuals chosen or elected to oversee the management of the organization  Whistleblowing: the process through which an individual informs someone in authority of a dishonest act or the dishonest behaviour of another person  Code of Conduct: the name for a statement that describes the required responsibilities, actions, and rules of behaviour of an organization’s employees  Ethics: a reflection of the moral principles or beliefs about what an individual views as being right or wrong. Ethics can be thought of as an invisible hand that guides us as we make decisions CORPORATE SOCIAL RESPONSIBILITY  Corporate Social Responsibility (CSR): the understanding that the purpose of an organization is to create shared value (business and society) by strategically integrating into its actions a partnership mentality with society where the objectives of both parties are met  Treating the public interest as a key stakeholder in an organization’s operational success  Four Views of CSR (Corporate Social Responsibilities)  1. Personal project - by a business leader  2. Philanthropy - helping others such as donations  3. Operational initiative - from arm’s length social issues to embedding social importance in the habits of organizations  4. Strategic partnering - integrating CSR in the organization’s strategy and culture CSR can be much more than a cost, a constraint, or a charitable deed. It can be a source of opportunity, innovation, and competitive advantage. An organization’s success is driven by a shift in attitudes from “winning for me” to one of enabling the organization to win while serving the public good.  Managing Movement in the Economy  Gross Domestic Product (GDP) : total market value of the goods and services a nation produces domestically over a period of time  The national bank seeks to maintain equilibrium between growth and inflation without allowing it to overheat  Growth needs to be managed in a way that stimulates investment yet maintains control of inflation  Recession: a contraction in the overall economic activity in two or more quarters  Four Quadrants of Managerial Responsibility  1. Market Assessment and Strategy Development  Customer privacy policies and practices  Relationships with external stakeholders  Product safety  2. Business System Design and Development  Recycling and disposal practices  Emissions and carbon footprint impact  Packaging requirement  Outsourcing policies  Transportation modelling  Four Quadrants of Managerial Responsibility  3. Financial resource management  Financial transparency  Investor relations  Ethical financial reporting practices  4. Attracting, retaining, and managing talent  Diversity & discrimination  Safe working conditions  Labour relations  Education and training  Fair and equitable personnel policies and procedures  Equitable and realistic compensation practices  Employee benefit programs