SOCIAL RESPONSIBILITY AND BUSINESS ETHICS

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HUMAN RESOURCES:

Chapter Objectives2

Describe changing attitudes toward social responsibility and business ethics.

Describe concept of corporate social responsibility. Explain attempts at legislating social responsibility. Explain what is meant by stakeholder analysis and

the social contract. Understand the model of ethics and describe human

resource ethics. Understand the importance of a code of ethics and

describe ethics and the HR manager.

Changing Attitudes Toward Social Responsibility and Business Ethics

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It includes…….

Foundations

Religious organizations

Community Development

(Source: Social Investment Forum)

Changing Attitudes Toward Social Responsibility and Business Ethics4

To meet society’s expectations, managers will need to be more socially responsible.

Most of 500 largest U.S. corporations now have a code of ethics.

Corporate Social Responsibility (CSR)5

Defined

The implied, enforced, or felt obligation of managers, acting in their official capacity, to serve or protect the interests of groups other than themselves.

Simple Terms:Simple Terms:

How a company behaves towards societyHow a company behaves towards society

Corporate Social Responsibility

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What is Rule 14?

When in doubt, do what’s right!

Corporate Social Responsibility

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Companies leading the charge

Patagonia(1% of net sales for socially and environmentally initiatives)

Norm ThompsonKeen Footwear

Timberland FootwearNike

Legislating Ethics and Social Responsibility

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Procurement Integrity Act of 1988 --passed after reports of military contracts for $500 toilet seats

Federal Sentencing Guidelines for Organizations (FSGO) --softer punishments for companies that have an ethic program in place

Stakeholder Analysis and the Social Contract

Worker Adjustment and Retraining Notification Act of 1988

--firms employing 100 or more to give 60 -days notice when a plant is closing or layoffs off affecting 50 or more 90 days notice

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Legislating Ethics and Social Responsibility (Continued)

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Corporate and Auditing Accountability, Responsibility and Transparency Act --known as Sarbanes Oxley Act, primary focus is to redress accounting and financial reporting abuses in light of recent corporate scandals--provides a whistle-blower protection

Legislating Ethics and Social Responsibility

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What is new in corporations: 90% have written ethics program Hired an Ethics Officer

--Collaborate with Management--Implement strategies to reinforce conduct--Work with employees across all levels to

determine the right course of action Holding professionals accountable

The Social Contract13

The Organization

Individuals

Other Organizations

Government

Society

Social Audit

Systematic assessment of a

company’s activities in terms of its

social impact

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Social Audit Three Types

Inventory of activities--Minority employment and training

Compilation of social expenditures--Corporate giving's

Social Impact--Involvement in selected communities

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Ethics19

What is Ethics?

--Discipline of dealing with what is good and bad, or right and wrong, or with moral duty and obligation

Sources of Ethical Guidance

--a number of sources to determine what is right or wrong, good or bad, moral or immoral

A MODEL OF ETHICS21

Type I Ethics Type II Ethics

Sources of ethical

guidance

Our beliefs about what is right or wrong

Our actionsLead to Determine

Human Resource Ethics22

The application of ethical principles to human resource relationships and activities

A Code of Ethics --establishes the rules by which the organizations lives

Ethics and HR Manager25

The Role Restore trust in the organization Help instill ethical practices in cultural

SHRM Code of Ethics

As HR professionals, we are responsible for adding value to the organizations we serve and

contributing to the ethical success of those organizations

Ethics and HR Manager27

What Can HR Do?

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2 areas where HR can have a major

impact on ethics

Two Areas Impact on Corporate Ethics

Corporate Governance Executive Compensation

Ethics and HR Management

Ethics Case Study31

Read HRM Incident 1: An Ethical Flaw

Discuss and answer questions related to case study