Corporate social Corporate social responsibility: charity and responsibility: charity and

work arrangementswork arrangements

Spyros LioukasSpyros Lioukas

Sustainable DevelopmentSustainable Development• Sustainable Development includes environmental,

economic sustainability, social sustainability • Sustainable Development

– Uses an Integrated Approach– Takes a Long-term Perspective– Respects Diversity/Pluralism– Requires Equity and Justice

• between generations – Relies on Participatory Approaches

Facts About Charitable Giving 2000Facts About Charitable Giving 2000

• Total contribution in the United States was about $203 billion.

• Corporate giving was about $10.9 billion.

• Individuals gave about $152 billion.• Two-thirds of corporations do not

engage in active giving.

Corporate Philanthropy:Corporate Philanthropy:HOW?HOW?

• Has grown from very little direct giving until contributions in 2000 exceed $10.9 BILLION.$10.9 BILLION.

• The tax law currently allows corporations to deduct direct contributions of UP TO 10% OF UP TO 10% OF PRE-CONTRIBUTION NET INCOMEPRE-CONTRIBUTION NET INCOME.

• Most corporations do not give anywhere near this maximum.

• Corporate giving takes many forms:• Direct gifts & grants of cash & other assets• Lending of executives• Widespread rank & file employee involvement

Corporate Philanthropy:Corporate Philanthropy:WHO GETS IT?WHO GETS IT?

IN 1999: EDUCATION 35%

HEALTH & HUMAN SERVICES 30%

CIVIC & COMMUNITY 14%

CULTURE & ARTS 9%

ALL OTHER 12%

REMEMBER:REMEMBER: 2000 CONTRIBUTIONS EXCEEDED $10.9 BILLION2000 CONTRIBUTIONS EXCEEDED $10.9 BILLION

How to GiveHow to Give

– Select effective grantees– Signal other funders– Improve grantees performance– Advance knowledge and practice

EmployeesEmployeesChanges in Workplace: TrendsChanges in Workplace: Trends

1. AN INCREASE IN TECHNOLOGICAL HAZARDS

2. THE COMPUTER AND INTERNET INVASION OF THE WORKPLACE

3. THE DIVIDED LOYALTIES OF PROFESSIONALS

4. THE INCREASED MOBILITY OF PROFESSIONALS

Old ViewOld View

My Basic mind set was, there’s an implicit contract. I expect that the company will provide me with a career, development opportunities, and reasonable pay and benefits; and they, in turn, should expect from me that I am willing to work very hard for them. When either one of us is unhappy with that situation, the contact is broken.

Changing Social Contract (1980s)Changing Social Contract (1980s)

– Changing technologies were producing demand for employees with new skills

– Companies found it easier to hire workers on the external labor market with the skills needed rather than retain current employees

– Time to get rid of “dead wood” – older employees were seen as more complacent and more expensive

– Power of unions declined, making it more difficult to bargain for employment security

– More economically appealing and socially legitimate to use subcontractors and temp worker

The New Social ContractThe New Social Contract

Focus on team building and projects

Focus on individual accomplishments

Pay for “value added”Stable, rising income

Personal responsibility for one’s job futureSense of entitlement

Relationships far less familialPaternalism

Loyalty to selfLoyalty to employer

Fewer life careers; changes common

Life careers with one employer

Few tenure arrangementsJob securityNew Social ContractOld Social Contract

Global PhenomenonGlobal Phenomenon

• European workers have experienced a decade of unemployment averaging 10% or more

• In Japan, lifetime employment being reconsidered in the wake of economic stagnation

• Movement from “lifetime employment” to “lifeline employability”

Take-Aways - Management’s Take-Aways - Management’s Response to Job ClaimsResponse to Job Claims

• Stay on the right side of the law. The company that conducts itself honestly has the least to fear from disgruntled employees.

• Investigate complaints in good faith. Well-motivated complaints should be checked out and handled internally.

• Deal in good faith with employees. Employees continue to win court cases when companies don’t honor commitments.

• Fire only for good cause. Management needs to be attentive to retaliatory terminations. Firings must be based on sound records, not thin technicalities.

Redefining the Social ContractRedefining the Social Contract

• “Professional Ethic” (Charles Heckscher)• Open negotiations of obligations between employee

and employer

• Social Contract is one of honesty• Requires innovation in work structure

– Support Organization

• New Role of Government• Portability of benefits, “disaster insurance”

New Social ContractNew Social Contract• Each person must take full responsibility for his/her career• Old career paths are less common• Workers will be rewarded for knowledge and adaptability• Workers who flourish in new environment will be prized by

employers who are changing the social contract• It pays to offer learning opportunities to employees• Corporations will need to value and encourage change• May be more difficult for older workers to adjust

Take-Aways: Flexible Work Take-Aways: Flexible Work ArrangementsArrangements

• May help a firm– Retain talented employees– Meet future staffing needs– Build employee appreciation and commitment– Prevent Burnout– Identify better performance criteria than

number of hours– Enhance contribution and productivity

• Advance planning is important!– Establish procedures for performance reviews and

flexible arrangements– Be clear about criteria and timing for promotions– Be explicit about building upon or departing from the

precedent– Realize that new policies can make some employees

feel like they have won, while others may feel like they have list.

– Keep in mind the perceptions of equity and fairness on the part of multiple stakeholders

Take-Aways: New Work Take-Aways: New Work ArrangementsArrangements