csr_hve_unit ii.pptx

8/18/2019 CSR_HVE_UNIT II.pptx

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CORPORATE SOCIALRESPONSIBILITY,

HUMAN VALUES &ETHICS

(MS 208)UNIT II

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SYLLABUSUnit I

Moral Values and Ethics: Values – Concepts, Types and Formation of Values, Ethics and Behaiour!Values of Indian Mana"ers# Mana"erial E$cellence throu"h %uman Values# &eelopment of Ethics,

Ethical &ecision Ma'in",

Business Ethics( The Chan"in" Enironment and )ta'eholder Mana"ement, *eleance of Ethics and

Values in Business, )piritual Values! Modern Business Ethics and &ilemmas, +erie of Corporate

)ocial *esponsi-ilities .C)*/ and )ustaina-ility! .10 %ours/

Unit II

Mana"in" Ethical &ilemmas at or': The Corporation and E$ternal )ta'eholders, Corporate

2oernance: From the Boardroom to the Mar'etplace, Corporate *esponsi-ilities toards Consumer

)ta'eholders and the Enironment# The Corporation and Internal )ta'eholders# Values(Based Moral

3eadership, Culture, )trate"y and )elf(*e"ulation# )piritual 3eadership for Business Transformation!

+r"ani4ational E$cellence and Employee ell-ein" throu"h %uman Values! .15 %ours/

Unit III

Corporate )ocial *esponsi-ility: 6 %istorical 7erspectie from Industrial *eolution to )ocial

6ctiism# Moral 6r"uments for Corporate )ocial *esponsi-ility, &eelopment of Corporate

Conscience as the Moral 7rinciple of Corporate )ocial *esponsi-ility, Corporate )ocial *esponsi-ilityof Business, Employees, Consumers and Community! Corporate 2oernance and Code of Corporate

2oernance, Consumerism, Current C)* 7ractices of the Firms in India and 6-road! Challen"es of

Enironment: 7rinciples of Enironmental Ethics, Enironmental Challen"es as Business

+pportunity, 6ffirmatie 6ction as a form of )ocial 8ustice! .15 %ours/

Unit IV

Issues in Moral conduct of Business and C)*: Failure of Corporate 2oernance, )ocial 6udit,

Unethical Issues in )ales, Mar'etin", 6dertisin" and Technolo"y: Internet Crime and 7unishment,

Intellectual 7roperty *i"hts, Corruption in Business and 6dministration! B) 9 I)+ 2uideline on C)*

Mana"ement .I)+(0555/! .15 %ours/ 0


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UNIT – IIMANAGING ETHICAL DILEMMAS AT WORK

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THE CORPORATION AND EXTERNALSTAKEHOLDERS Stakeholders include any person, group or organization that

has an interest in the activities and affairs of a company.

Owners and employees are internal stakeholders, ecause

they own or work for the usiness. !"ternal stakeholders

include customers, communities, suppliers and partners,

creditors and the government.


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THE CORPORATION AND EXTERNALSTAKEHOLDERS

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THE CORPORATION AND EXTERNALSTAKEHOLDERS #orporation $Internal% Shakeholders&

'n employee contriutes laor and(or e"pertise to an

endeavour of an employer and is usually hired to perform

specific duties which are packaged into a *o. 'n !mployee is

a person who is hired to provide services to a company on a

regular asis in e"change for compensation and who does notprovide these services as part of an independent usiness.

M!"#$#!% in usiness and organizations is the functionthat coordinates the efforts of people to accomplish goals

and o*ectives using availale resources efficiently and

effectively. +anagement comprises planning, organizing,staffing, leading or directing, and controlling an organization

to accomplish the goal. esourcing encompasses the

deployment and manipulation of human resources, financial

resources, technological resources, and natural resources.


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THE CORPORATION AND EXTERNALSTAKEHOLDERS O!#'*+ of property may e private, collective, or

common, and the property may e of o*ects, land(real

estate, or intellectual property. -etermining ownership in law

involves determining who has certain rights and duties over

the property. These rights and duties, sometimes called a

undle of rights, can e separated and held y differentparties.

!"ternal stakeholders&

#ustomers are one of the most immediate e"ternal

stakeholders that a company must consider. /or retailers,

consumers are customers. 'ttracting, retaining andgenerating loyalty from core consumer markets its critical to

long0term financial success. /or usiness0to0usiness

companies, the customers are the usinesses that uy goods

for usiness use.

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THE CORPORATION AND EXTERNALSTAKEHOLDERS !"ternal stakeholders&

#ommunities and governments are closely tied e"ternal

stakeholders. #ompanies operate within communities, and

their activities affect more than *ust customers. 1usinesses

pay ta"es, ut they are also informally e"pected y residents

to operate ethically and with environmental responsiility.#ommunities also like to see usinesses get involved in events

and local charitale giving.

Suppliers and usiness partners have ecome more critical

stakeholders in the early 23st century. +ore often, companies

uild a numer of small, loyal relationships with suppliers andassociates. This enales each usiness to develop shared

goals, visions and strategies. Trade uyers and sellers can

effectively collaorate to deliver the est value to end

customers, which is eneficial to each partner.

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THE CORPORATION AND EXTERNALSTAKEHOLDERS !"ternal stakeholders&

#reditors& 1usinesses commonly use lenders to finance

usiness ventures, uilding and asset purchases and supply

purchases. 1anks often provide loans for ma*or purchases,

such as a new uilding. Suppliers may provide product

inventory on account, which a usiness than pays down theroad. #urrent creditors asically e"pect that a usiness meets

its payment deadlines responsily and consistently.

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CORPORATE GOVERNANCE -ROM THEBOARDROOM TO THE MARKETPLACE #orporate governance descries all the influences affecting

the institutional processes, including those for appointing the

controllers and(or regulators, involved in organizing the

production and sale of goods and services.

#orporate governance is the system y which usiness

corporations are directed and controlled. The corporategovernance structure specifies the distriution of rights and

responsiilities among different participants in the

corporation, such as the oard, managers, shareholders and

other stakeholders, and spells out the rules and procedures

for making decisions on corporate affairs.

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CORPORATE GOVERNANCE -ROM THEBOARDROOM TO THE MARKETPLACE The asic principles of effective corporate governance are&

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T'!+'#!./

're the oard telling us what

is going on4

A..1!%*3*%/Is the oard taking

responsiility4

G4, #55#.%*6#

"6#'!!.#

C'+'%# C!%'3

Is the oard doing the

right thing4


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CORPORATE GOVERNANCE -ROM THEBOARDROOM TO THE MARKETPLACE The asis of corporate governance in the marketplace egins

with a 5uestion& 6hat is the philosophical and ethical conte"t

from which corporate governance and ethical decisions are

made4

+anaging corporate social responsiility from the corporate

oard of directors to the marketplace re5uires commitment,and significant time, effort and resources from organizations.

't stake is a company7s reputation and even survival.

!"ternal regulation is also re5uired to help define guidelines

and practices for companies to act responsily towards their

stakeholders, communities and society. The corporation as social and economic stakeholders was

presented from the perspectives of the social contract and

covenantal ethic.

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CORPORATE GOVERNANCE -ROM THEBOARDROOM TO THE MARKETPLACE /ree market theory holds that the primary aim of usiness is

to make profit. 's far as usiness oligations towards

consumers, this view assumes an e5ual alance of power,

knowledge and sophistication of choice in the uying and

selling of products and services.

If usinesses deliver what customers want, customers uy.#ustomers have the freedom and wisdom to select what they

want and to re*ect what they do not want.

/aulty or undesirale products should not sell. If usinesses

do not sell their products or services it is their own fault.

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CORPORATE RESPONSIBILITIES TOWARDSCONSUMER, STAKEHOLDERS AND THEENVIRONMENT #orporate esponsiility towards consumer&

#ustomers are the lifelood of every usiness, including oth

retail and usiness0to0usiness customers. 6hether or not

you think of customer satisfaction as a social responsiility

issue, every usiness owner will think of it as a profitaility

issue. Time and resources put into understanding the customer

perspective is always a good investment. Strong and

effective customer relations can e the direct route to long

term success.

'n organization is e"pected to fulfil its esponsiility towards

its #onsumers

#onsumer is one of important stakeholders of organization

who uses or consumes product and services for personal

purposes.

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CORPORATE RESPONSIBILITIES TOWARDSCONSUMER, STAKEHOLDERS AND THEENVIRONMENT Seven #omponents of #orporate responsiility towards

#onsumers, namely0

-*' $'7#%*!", 5.%13 !4 1!*#4 *!5'$%*! !4 5*'.!%'.%13 +'.%*.#

Organization should use common language for providing

information aout product and services would e

#omplete, accurate and understandale y consumer and also

gives details aout its location $local address%, contact

including email etc

/air contractual 0 to protect the legitimate interests of oththe parties7 i.e. suppliers and consumers y mitigating the

imalance in managing power etween them

P'%#.%*!" .!1$#' #3% !4 5#%/

8rotection of health from hazardous products and services

means1=


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CORPORATE RESPONSIBILITIES TOWARDSCONSUMER, STAKEHOLDERS AND THEENVIRONMENT product doesn7t involve any risk or harm when used or

consumed

'dopt measures and instruct consumer in proper use of

products and also improve handling or storage of product in

case of consumers

S1%*!3# .!1$+%*!

#onsumption of good and healthy food which satisfies the

present needs without compromise future needs that

consumption of products and resources at rates of consistent

with sustainale development

8romote and provide practical advice how to modify

consumption patterns and

!ncourage consumers to use products and services which are

energy efficient, environment0friendly, socially eneficial and

eliminate or minimizing any negative health andenvironmental impact 1


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CORPORATE RESPONSIBILITIES TOWARDSCONSUMER, STAKEHOLDERS AND THEENVIRONMENT C!1$#' #'6*.#, .$+3*!% !4 4*+1%# '#31%*! #onsumer services refer to proper installation, warranties and

guarantee, repair and maintenance, after sale service

Take measures to prevent complaints and reviews complaints

to improve the practices

C!1$#' 4% +'%#.%*! !4 +'*6./

'n organization collects and records consumer related

information

which is essential for the provision of products and services.

6hen an organization needed consumer information firstlyspecify the purpose for which personal data are collected and

protect the data y ade5uate safeguards

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CORPORATE RESPONSIBILITIES TOWARDSCONSUMER, STAKEHOLDERS AND THEENVIRONMENT

A..# % ##!%*3 #'6*.# !ssential services refers to asic needs such as health care,

right to essential utility services, such as electricity, gas,

water, drainage, sewage and communication

'n organization should contriute to fulfilment of the right to

satisfy asic needs

C!1$#' E41.%*! !4 A'#!#

!ducation and awareness initiative helps consumer to e well

informed aout their rights and responsiilities and

'lso make their purchasing decisions or consumptionchoices responsile to contriute sustainale development

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C'+'%# R#+!**3*%*# %'4 %7#34#'

3. Increase the 8rofit& Noel prizewinning economist +ilton

/riedman wrote in 39:; that the one and only one social

responsiility of usiness is to increase its profits,

assuming an honest and open marketplace. #ompanies

should focus on honestly earning as much money as possilefor their stakeholders.

2. 8ut the #ustomer /irst& +ackey elieves that while profits

are indeed the core element of running a usiness, the

modern company must create value for all of its

constituencies. +ackey noted that the successful companiestypically put the customer first. 8utting the customer first

may not guarantee the most in profits, ut it does ensure

that customer happiness is an end in itself, which may lead

to greater customer loyalty.

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C'+'%# R#+!**3*%*# %'4 #!6*'!$#!% #orporate responsiility towards the environment is

asored and honed through pulicity and education, the

influence of educated trends, and a core concern for the

continued liveaility of the environment < oli5ue rather

than direct pressures. 6ith #S = specifically caron reduction = weighing on the

corporate mind, the many decisions of the corporate ody

may e incrementally tailored to the needs of the

environment and the instincts for preservation of our way of

life. In market0speak, the direct and indirect costs of caron

need to outweigh the profits of pollution, in the corporate

suconscious. That is where victory will e won against

caron and any other pollution.

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THE CORPORATION AND INTERNALSTAKEHOLDERS Internal stakeholders are those within an organization who enefit

financially from their contriutions to an organization>s success.

Internal stakeholders $also known as primary stakeholders% are those

within an organization with an interest in its success and failure,

since they may e rewarded or punished accordingly. !mployees,

managers, corporate leaders, and owners(stockholders are e"amplesof internal stakeholders.

/or internal stakeholders, the continuance and success of the

organization is the paramount concern. Other interests may vary

etween the different types of internal stakeholders.

/or e"ample, employees may e most concerned aout such things

as *o security, pay and enefits, rewards and recognition, whilestockholders care most aout usiness growth, share price,

and profitaility. On occasion, doing what is est for one group may

e detrimental to another, and in such instances ethical *udgment

can come into play.

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THE CORPORATION AND INTERNALSTAKEHOLDERS Internal stakeholders can influence oth the ethical standards of an

organization and the e"tent to which they are followed. Increasingly,

corporations are motivated to ecome more socially responsile

ecause their internal stakeholders e"pect them to understand and

address relevant social and community issues.

Understanding what social causes are important to employees andacting on them can produce enefits including increased employee

engagement and satisfaction, higher performance, and

improved retention.

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VALUES9BASED MORAL LEADERSHIP ?alues are important and enduring eliefs or ideals aout what is

good or desirale and what is not. ?alue e"ert ma*or influence on

the ehaviour of an individual and serve as road guidelines in all

situations.

Implicit values are assumed values of the leader and open to

misinterpretation. !"plicit values are reflected in the organization7s policies, visions

and systems.

Self0enhancement values&

3. 'chievement $pursuit of personal success%

2. 8ower $dominance over others%@. Aedonism $personal gratification%

. Self0transcendent values&

3. 1enevolence $concern for immediate others%& include honesty,

responsiility and loyalty

2. Universalism $concern for the welfare of everyody%0;


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VALUES9BASED MORAL LEADERSHIP Organizational values& 1eliefs and ideas aout what kinds of goals memers of an

organization should pursue and ideas aout the appropriate kinds or

standards of ehaviour organizational memers should use to achieve

these goals.

' good leader encourages others to take action, sharing with themthe vision that gives them the desire to follow. 'n inspirational

leader remains positive even in the face of insurmountale

circumstances and continues to motivate the team. This type leader

involves the team in changes and provides the support needed for

them to carry out their responsiility.

6ith this 5uality a leader is more interested in results than process,allowing memers the fle"iility to plan and implement their

strategy.

!veryone wants to feel appreciated. Breat leaders use gratitude to

motivate their team and to create a positive workplace. Cearn to

complement even the smallest thing. If employees can e"periencesmall successes, it can lead to even greater successes. 0<


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VALUES9BASED CULTURE, STRATEGY ANDSEL-9REGULATION

Strategy influences the goals and o*ectives of the company and itsstakeholders.

Sets the overall direction of usiness activities

eflects and models activities that management values and

prioritizes

Sets the tone and tenor of usiness activities and transactions insidethe organization

#orporations formulate at least four levels of strategies& !nterprise

#orporate

1usiness /unctional

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The strategy management process involves& /ormulating goals

/ormulating strategies

Implementing strategies

#ontrolling strategies

!valuating strategies 'nalyzing the environment

' corporation7s culture is the shared values and meanings its

memers hold in common, which are articulated and

practiced y an organization7s leaders.

Organizational cultures are& ?isile and invisile

/ormal and informal

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Organizational cultures can e studied y& Oservation

Cistening to and interacting with people

Other ways

Signs of cultures in troule or weak cultures include&

'n inward focus

' short0term focus

+orale and motivational prolems

!motional outursts

/ragmentation and inconsistency

#lashes among sucultures

Ingrown sucultures

-ominance of suculture values

No clear values or eliefs

+any eliefs0>


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Signs of cultures in troule or weak cultures include& -ifferent eliefs

-estructive or disruptive cultural heroes

-isorganized or disruptive daily routines

!stalishing codes of ethical and legal conduct,

implementing stakeholder management assessments, andenacting ethics programs can help a company financially andmorally.

!thics codes

?alue statements that define an organization

Omudspersons and peer review programs

To manage the legal and moral aspects of potentially

prolematic activities

!thics programs

'nother method for handling moral 5uestions

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SPIRITUAL LEADERSHIP -OR BUSINESSTRANS-ORMATION

SpiritualityD has many meanings& Tapping into a deeper meaning of lifeE

Civing in harmony with the essential nature of #reationE

Aaving a relationship with the Source of #reationE

!"periencing union with -ivinity. One definition of spirituality in leadership is a holistic

approach to leadership in which the leader strives to

encourage a sense of significance and interconnectedness

among employees

Spiritual leadership involves the application of spiritualvalues and principles to the workplace. The spiritual leader

understands the importance of employees finding meaning in

their work and demonstrates a genuine concern for the

whole person, not *ust the employee.

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Spiritual leadership tries to assist others in finding meaningin their work y addressing fundamental 5uestions such as&

6ho are we as a work team, department, or organization4

Is our work worthy4 6hat is our greater purpose4

6hat are our values and ethical principles4 6hat will e our legacy4

The spiritual leader strives for a workplace that is truly a

community, consisting of people with shared traditions,

values, and eliefs.

Spirituality in leadership implies that the focus will e less onformal position power and more on peopleF less on conformity

and more on transformation and diversityF and less on

controlling and more on partnership, collaoration, and

inspiration.

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Spirituality in leadership does not re5uire that the leaderadhere to a particular religion or that he or she attempt to

convince suordinates to pursue a specific set of religious

principles.

6hile leaders who emphasize spirituality may ase their

leadership approach in #hristianity or another religioustradition, they may also have so0called non0traditional

religious eliefs or may not adhere to any particular religion

at all.

Spirituality in leadership is more concerned with the

development of employees as whole people=people whoe"hiit compassion to other employees, superiors,

suordinates, and customers.

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If a leader in the workplace possesses a strong sense ofspirituality that affects his or her attitudes, emotions, and

ehavior in a positive way, then the leader is likely to

influence suordinates to pursue the development of

spirituality in their own lives.

This raises at least two 5uestions& 6hat leadership approachor style effectively promotes spirituality in the workplace4

and 6hat enefits are derived from fostering spirituality in

the workplace4G

Two leadership approaches seem to e more closely related

to the concept of spiritual leadership than others& servantleadership and transformational leadership.

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SERVANT LEADERSHIP It suggests that leaders must placethe needs of suordinates, customers, and the community

ahead of their own interests in order to e effective.

#haracteristics of servant leaders include empathy,

stewardship, and commitment to the personal, professional,

and spiritual growth of their suordinates. TRANS-ORMATIONAL LEADERSHIP It focuses on attempting

to e"plain how leaders can accomplish e"traordinary things

against the odds, such as turning around a failing company,

founding a successful company, or achieving great military

success against incredile odds. The theory also emphasizesthe importance of leaders> inspiring suordinates> admiration,

dedication, and un5uestioned loyalty through articulating a

clear and compelling vision.

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ORGANI:ATIONAL EXCELLENCE AND EMPLOYEEWELLBEING THROUGH HUMAN VALUES

The key to organizational e"cellence is e"cellent leadershipand at the heart of e"cellent leadership lie four universal

values < *oy, hope, peace and love.

*oy is defined as a spirit of gladness < a state of deep

happiness that is not contingent upon e"ternal

circumstances. Aope is defined as optimism < the elief thatone can positively impact the future.

8eace is defined as a freedom from inner conflict < a sense of

well0eing, and security.

Cove is defined as a spirit of appreciation, acceptance,

respect, kindness, and support. Successful leaders realizethat these values can inspire, unify, and transform.

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8ositive values, though necessary, are not sufficient. In orderto achieve remarkale results, these values must e

translated into congruent ehavior.

To do so is re5uired new leadership strategies and skills <

strategies and skills that will enale leaders to rise aove the

status 5uo and create high performance organizations. Organizational !"cellence H Ceadership ?alues

Transformational Strategies Juantum Skills

Successful leaders share information freely. They view it as a

currency to e spent rather than a resource to e hoarded.

T'NS/O+'TION'C ST'T!BI!S

'ttention through ?ision& !"cellent leaders have a vision that

captures the attention of their stakeholders.

+eaning through #ommunication& Organizational e"cellence

re5uires leaders to communicate the vision in a way thatinduces ho e. ;=


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T'NS/O+'TION'C ST'T!BI!S Trust through 8ositioning& ' key factor in the process of

estalishing trust through positioning is integrity. 6ords

associated with integrity are themselves interesting& the

5uality of eing complete, unimpaired, moral soundness,

honesty, freedom from corrupting influence or practice, andpredictale strictness in the fulfilment of contracts and the

discharge of trusts.

#onfidence through espect& !ffective leaders develop

confidence among their colleagues. This confidence is orn in

the leader7s self0confidence that worthy o*ectives can andwill e achieved. Such confidence is contagious, and in time

mutual love and respect among leaders and followers grow

and flourish.

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!mployee 6elleing& !mployees e"periencing reduced productivitywhile at work, or presenteism, attriutale to health issues are

much more likely to report reductions in productivity attriutale

to other factors, such as *o overload, financial stress and personal

prolems.

6ell0eing is missing from a lot of work cultures, ut this is notnecessarily intentional. In most cases, cultures that discourage

well0eing do so y accident. 'n employer might e growing 5uickly

and have difficulty forecasting staffing needs, thus creating an

environment where employees are re5uired to work e"cessive

overtime in order to meet customer demands. There are a numer of steps that can e taken in order to infuse

well0eing into a work culture. The core element is to ensure that

consideration, respect and value of the whole person are present.

6hile many organizations elieve that they have these values, they

might not e enforced at the workgroup level.;>


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Organizational policies need to e written or modified tosupport well0eing.

Setting policies that discourage smoking, encourage healthier

lifestyles and permit time off for family are key to making well0

eing a part of the culture. Aowever, while policies are helpful,

they aren7t enough. 1enefits need to e aligned to encourageemployees to comply with policy&

8rohiiting smoking at the workplace does little if employees

aren7t provided with a smoking cessation program to increase

the proaility of 5uitting.

6ritten policies that employees will e allowed time for fitnessactivities during the work day does little if employees don7t

have a place to e"ercise.

'ligning e"ecutives to model well0eing appropriately, writing

policies that provide guidance, and providing a enefit design

th t t th li i t th th t f ll i

csr_hve_unit ii.pptx

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