Corporate Social Responsibility course name wk7 discussion 1 Common good in the social domain is well known and understood. Define the limits of the principle of commonality in regards to individuals,
DBA BUS 745: Corporate Social Responsibility Week # 7 August 12, 2019 – 6:30 -10:00 PM Westcliff University Dr. Ziade Activities to Complete ACTIVITIES TO COMPLETE THIS WEEK : Reading The Social Domain in CSR and Sustainability: A Critical Study of Social Responsibility among Government, Local Communities, and Corporations Chapter 5 : Social Domain Strategies DQs:
• Post 1 answer to each DQ by Thursday at 11:59 pm • Post 1 Peer response for each DQ by Sunday at 11:59 pm See Grading Criteria and Rubrics in syllabus for CLA1, Discussion Question and Peer Response expectations . Week 7 - Discussion Questions Discussion Question 7 Common good in the social domain is well known and understood. Define the limits of the principle of commonality in regards to individuals, government, and corporations. Also , provide a rationale for your answer. Each student is required to review the “Video -of -the -Week”, listed in GAP for this current week. The video(s) selection is directly related to at least one of the Course Learning Outcomes (CLOs), and presents a solution(s) to a business problem . Using your textbook, LIRN -based research, JSTOR.org, the Internet, or any other electronic journal database, research at least one stated claim, aspect, challenge, solution, opinion, etc., in the video . Subsequently, you will include in your CLA2 assignment paper, a separate and distinct heading titled “Topic Video Critical Thinking & Reasoning”. You are to critically think about the solution presented and that you researched and applied critical thinking and reasoning skills to present the following (include every item in the bullet list below to potentially receive full credit): State a course CLO that the video relates to and how it relates to the CLO Discuss your initial thoughts about the solution/challenge/aspect presented in the video Present what you would do different in terms of the solution presented in the video Include the industry example demonstrating the application of your researched video Approximately 250 to 350 words in length (minimum of 2 paragraphs) Include the in -text citation in APA format to properly reference your article ALA (T) – Topic Video Expectations Read chapters Understand the questions Deliver on time APA format APA – Owl Purdue Please check the Purdue Writing Lab (OWL) site - see link below - to help you learn how to cite and list your references in APA format. https://owl.purdue.edu/owl/research_and_citation/resources.html Writing Center [email protected] APA Style 6 th edition References MUST correspond with text citation. E.g., “… activities” (Thiel, 2013, p. 10). According to Thiel (2015),… Reference Thiel, M. (2015). The Social Domain in CSR and Sustainability : A Critical Study of Social Responsibility among Governments, Local Communities and Corporations . New York: McGraw -Hill Higher Education . 6 Paper Template Running head: CAPITALS Headers are in Bold except title and Reference section Block quoting for quotes greater than 40 words Times New Roman 12 -point Numbers under 10 are spelled out unless they represent a measurement or scale. Left aligned format – NOT JUSTIFIED FORMAT … program (Thiel, 2015). … program” (Thiel, 2015, p. 10). Jinan Ziade, Ph.D. or Dr. Jinan Ziade References Thiel, M. (2015). The social domain in CSR and sustainability : A critical study of social responsibility among governments , local communities and corporations . New York: McGraw -Hill Higher Education 7 Third Person In APA, avoid the first and second person in your writing unless instructed to do so. In APA, one should avoid using terms like “I,” “me,” “my,” in the first person, and “you,” “your,” and “yours” in the second person. Be objective: E.g., “one,” “one’s,” “his or her,” and so forth. 8 Academic Integrity Policy The direct links are:
Part 1 = https://gap.westcliff.edu/mod/page/view.php?id=145343 Part 2 = https://gap.westcliff.edu/mod/page/view.php?id=145344 Academic Integrity Policy The direct links are:
Part 1 = https://gap.westcliff.edu/mod/page/view.php?id=145343 Part 2 = https://gap.westcliff.edu/mod/page/view.php?id=145344 Academic Integrity Policy The direct links are:
Part 1 = https://gap.westcliff.edu/mod/page/view.php?id=145343 Part 2 = https://gap.westcliff.edu/mod/page/view.php?id=145344 Late Policy The University Late Policy is stipulated in the course syllabus. For the first three days past the assignment due date, deductions of 10%, 5% and 5% of total points will be taken. The assignment should not be accepted after 3 days past the due date and receive 0 grade points. Please see the syllabus for complete details regarding the late policy. Textbook Information The Social Domain in CSR and Sustainability A Critical Study of Social Responsibility among Governments, Local Communities and Corporations. Available through VitalSource or Amazon to rent or purchase Note: This is also the correct way to reference the textbook Thiel, M. (2015). The Social Domain in CSR and Sustainability : A Critical Study of Social Responsibility among Governments, Local Communities and Corporations . New York: McGraw -Hill Higher Education. H appy and healthy at work : Employee retention reduces costs associated with advertising for and training new staff. Increased employee safety leads to reduced amounts of lost time and productivity due to injuries. employee share -ownership scheme ’ managers,’ and owners’ interests are more closely aligned The benefit of motivating Employees: Whole Foods, the organic supermarket that is consistently ranked as one of Fortune Magazine’s 100 Best Companies to Work For Costco’s willingness to invest in their employees. Employees Assets vs. C ost E mployees use flexible schedules to take paid time off for projects in the community, or even work in teams with their managers on a volunteer effort during business hours . Accenture — Loans employees to non -profits at discount rates. Cisco Systems — Places employees with education -related organizations for a year, at full salary . Bain & Co. — Supports employees who volunteer with local organizations, and pays for their time on full -time consulting projects . Pfizer — Pairs employees with health -related organizations to help with research and training . Wells Fargo — Pays employees to work with a school for as many as four months. Employee - Volunteer Programs Timberland’s commitment to community is genuine and not a public relations vehicle .” CEO , Jeffrey Swartz, inspired the volunteer program. Workers … choose their own volunteer activities . H omeless shelter to coaching a Little League baseball team. It’s effective: more than 90 percent of Timberland workers take part in the Path of Service. Community Engagement employee volunteer program Over to You… What are some of the benefits to companies that operate a volunteer employee program stated in the case study? Do you agree that these benefits are likely to come from a volunteer program ? What would your reaction be if a firm you worked for had a volunteer program?
Would you consider participating? Would it change your feelings about working for the firm ? How can companies encourage employees to participate in volunteer programs and avoid having employees feel that “by volunteering, they are potentially derailing their chances for a promotion because of the time they’ll spend out of the office ”? Go to Timberland’s main Web site ( http://www.timberland.com /) and also the company’s volunteer Web site (http://www.timberland.com/corp/index.jsp?page=csr_civic_engagement ). Do you get the sense that Timberland is genuine in its commitment to CSR? Does that create a good impression of the company or not make much difference in your perception of it?
Find another employee benefit program to compare to Timberland’s. Which is better? Why? Henry Ford drew no distinction between his employees and his customers.
Best way to maximize profits Ford’s black Model T as “America’s Everyman car $5 -a -day minimum wage for all his workers How his employees would be able to afford one of his cars Ford in Action - virtuous circle In Australia, where McDonald’s staff work for A$10.61 (US$5.60) per hour, it costs A$3.00 (US$1.58) to purchase a Big Mac . In Pakistan, however, where the company’s staff work for PR13 (US$0.22) per hour, a Big Mac costs PR185 (US$3.08).
The difference between wage rates and the cost of a Big Mac produces the difference in purchase parity . The countries covered in the report included Australia, China, Hong Kong, India, Malaysia, New Zealand, Pakistan, Philippines, South Korea, Sri Lanka, and Thailand. Significant differences were identified. Wage rates ranged from a staff member who works for IRs5.60 (US$0.11) per hour in India to the higher wages paid to McDonald’s Australian employees: A$10.61 (US$5.60) per hour . In terms of the cost of burgers, Big Mac prices ranged from MR4.30 (US$1.13) in Malaysia, to NZ$3.95 (US$1.72) in New Zealand . McDonald’s Over to You… Is any job (at any wage) better than no job?
Does your answer change if you apply the question to a worker in a developing, rather than developed country?
Is there a maximum absolute amount that a CEO should earn? Is $1 million a year OK? What about $10 million? $100 million?
Is it OK to pay a CEO any amount, as long as the net benefit the CEO brings to the organization exceeds her or his compensation?
Where would you rather shop — Walmart/Sam’s Club or Costco ? If you answered Walmart based on the price of its products, would you be willing to pay a higher price if you knew that the extra money would go directly to the firm’s employees?
Think of some of the jobs you have done — would you work harder if your pay had been higher? Self - Interest CSR Plan CSR Plan Law / Regulation Standards: ISO, GRI, etc. Government People Planet Profit Planning Management Action Customer Supplier Government Financial Institutes Stakeholder Measurement of Sustainability Report Public Information Plan Process Disclosure process People Barriers Conflicts Achievements Success Recommendations Strategic objective Domain (Social, Environmental, Economic) Is CSR a good thing for business to do? CSR Action Plan Stakeholder View Business Principles CSR CSR Projects Key Performan ce Indicators Guidelines: interact with stakeholders Measure and compare performance Projects that offer added value for society and other stakeholders The specific factors that determine a corporation’s role in managing CSR? Step 1: Make your CSR believable. How? Create and Leverage Social Capital through your employees. Step 2: Stop preaching the CSR message; start attracting CSR followers.
How? Use CSR as a social media platform, rather than a marketing tool. Step 3: Make your CSR effective. How? Integrate your strategy with key business objectives, and measure the outcomes. Everything is CSR; While CSR may be a department in a business, it is not a part of any business. Everything a company does, including everyone the company does business with is CSR. The process is the product. CSR Management: Plan, Do, Check, Act method Plan • Consult stakeholders • Establish code of conduct • Set targets Do • Establish management systems and personnel • Promote code compliance Check • Measure progress • Audit • Report Act • Corrective action • Reform of systems The Strategic Lens: Vision, Mission, Strategy, and Tactics The vision answers why the organization exists. It identifies the needs the firm aspires to solve for others. The mission states what the organization is going to do to achieve its vision. It addresses the types of activities performed for others. The strategy determines how the organization is going to undertake its mission. It sets forth the ways it will negotiate its competitive environment. The tactics determine who, when, and where the strategy will be implemented. They are the actions necessary for success. Case Study - Federalization Issues of corporate governance in the United States are currently regulated under state rather than federal law. Those who support this system argue that it encourages competition between states (to entice corporations to incorporate within their state) and, therefore, produces effective and efficient legislation. Critics of this system, however, rebut the benefits of interstate competition because the result is a race to the bottom as states bend over backward to craft legislation that appeases corporations. States want firms to incorporate within their jurisdiction because of the lucrative fees they receive for each company that registers there, wherever the company is actually headquartered:
Corporations don’t have to incorporate where a firm is headquartered, or even where it employs the most people. Managers can go jurisdiction -shopping, looking for the most advantageous set of laws, since getting a corporate charter is easier than getting a driver’s license. As a result, some 60 percent of the Fortune 500 is incorporated in Delaware, which is most protective of managerial interests. Delaware is perceived as having the most advantageous system of regulation for companies, which translates as having the least regulation. The state, “whose more than 600,000 registered companies compare with an estimated 865,000 inhabitants ,” also advertises additional benefits : Delaware company agents advertise the state as allowing even greater secrecy than offshore tax havens. In terms of oversight, liability, responsibility, and regulation, Delaware has “long been reluctant to disturb the decisions of corporate boards.”12 As such, other states feel compelled to reproduce Delaware’s lax environment, simply to keep companies currently headquartered there from moving to Delaware:
If another state wants to be more aggressive in fighting corporate crime or protecting shareholders, employees, or communities, it runs the risk that its companies will simply re -incorporate in Delaware. So most states end up mimicking Delaware law. Case Study - Federalization There is a growing belief that meaningful reform in the area of governing corporations can take place only if the federal gov ern ment takes control of the process. This would allow either Congress or the Securities and Exchange Commission (SEC) to raise the bar for al l corporations without having to worry that companies would simply flee in protest to the state with the weakest rules, althoug h h ere the risk would be that firms would incorporate overseas in such places as Bermuda, for example, with its favorable tax treatment.
A starting point for the federal government would be a law stating that corporations have to incorporate where they have the la rgest presence — that is, where their true headquarters are, where they employ the most people, or where they have the greatest percenta ge of operations. This would make corporations more directly accountable for their actions to the community within which they actua lly operate. By introducing these changes, the government would also go a long way toward closing the loophole in the tax code that allows co rpo rations to incorporate offshore (again, irrespective of where their headquarters are) to avoid paying the higher rates of corporation ta x l evied in the United States.
As a first step in this campaign toward federalization, various attempts have been made to introduce a Code for Corporate Respon sib ility at the state level, which would reform the law with regard to directors’ duties :. For public corporations, the corporate purpose of maximizing returns for shareholders is now held in place by the state law of di rec tor’s duties, which in all states say that directors must act in the best interests of the corporation and its shareholders. Attorney Robert Hinkley has drafted a model Code for Corporate Responsibility which would change this to say, in effect, directors may not pursue shareholder gai n a t the expense of employees, the community, and the environment. If these parties can demonstrate harm, they would have a right to s ue under the proposed law. The potential impact of this simple but far -reaching change to the law would be significant. The entire purpose of the corporati on would necessarily shift and the new law would give stakeholders a tool with which to hold corporations accountable for their action s a nd policies. Forcing this multiconstituency approach would result in U.S. firms increasingly acting like European ones, as well as firms in Asian countries such as Japan, which tend to define their stakeholders more broadly and actively. Groups in both Minnesota and California hav e b egun to campaign for this change, with states such as Maine and Massachusetts also showing interest.16 Legislation has been introduce d i n California to put the new code into effect: Case Study - Federalization In California — where the state legislature is controlled by Democrats — corporate purpose legislation was introduced … by Senate Majority Whip Richard Alarcon (D -San Fernando Valley). While current law says directors must maximize profits for shareholders, Alarcon’s Good Corporate Citizen bill (SB 917) says companies may not do so at the expense of the environment, human rights, the public health, the community, or the dignity of employees. The attorney general could bring civil action against violators. U nde r certain conditions, directors would be personally liable. In February 2009, Minnesota Senator John Marty and Representative Bill Hilty introduced a Bill for Socially Responsible Corporations into the Senate19 and House,20 respectively. According to the Citizens for Corporate Redesign Web site : The bill creates a new section of law for an alternative kind of corporation, the SR (socially responsible) corporation:
1-Directors will have an affirmative duty to all stakeholders, 2-Employees and representatives of the public interest will be on the Board of Directors, 3-Directors will be protected from shareholder suits when they choose to consider other stakeholders and the public interest , 4- Socially Responsible investors and consumers will know where to invest their money, and 5-Socially Responsible Companies will be protected from hostile takeover. There are legitimate issues relating to the implementation of these proposed laws . For example, “What happens if a company moves a plant to a more environmentally friendly facility, thereby helping the environment but harming the employees and community of th e previous locality ?” What would be the consequences if investors sell their stock under these anti -investor policies in favor of firms in more investor -friendly countries? Also, what would be the proposed penalties for directors that fail the new test? Would they be individually liable? Nevertheless, the idea that modern corporations should be compelled to register a public purpose that re fle cts a broader set of social responsibilities is receiving growing support. Thank You
