Social Responsibility

CSRCorporate Social Responsibility

• Have you ever wondered if anyone or any thing was harmed during the production of items you use every day?

• How can you make sure the companies you work for / buy from demonstrate ethical practices?

• How can you contribute to making the world a better place?

Forms of CSR• Making charitable donations• Treating employees ethically• Being Environmentally conscious• Sponsoring local sports teams• Creating and promoting diverse

workplaces

Benefits of CSR• ‘PR’ – Marketing

• Not having to comply with legislation

• Attract better employees

• Being socially responsible!

Criticisms of CSR• Costs companies money!

– Milton Friedman – ‘Companies that are socially responsible are stealing from their shareholders.’

• Good CSR can distract the public from real problems. (Smoking, Pollution, etc.)

Careers in CSR

Many companies focus on:

-human rights programs

-reputation management

-environmental risk

SRI• Socially Responsible

Investing

• aka: Ethical Investing

?

Phillip Morris

Roots Canada Inc.• Has a strong reputation for CSR

• High standards in both Canadian and International production facilities.

• Code of conduct: all workers be respected.

• Roots has a third party audit the safety and health conditions of ALL its suppliers.

Making a list….• Brainstorm a list of five companies that

you feel are socially responsible.• What makes each company socially

responsible?

» To help, take a look at the following list:» http://www2.macleans.ca/2009/06/18/jantzi-maclean

s-50-most-socially-responsible-corporations/

Business Ethics• are the personal or professional guidelines

(values) that individuals and management follow to make decisions for their company.– ie. Code of Ethics / Code of Conduct

» Against Juvenile Labour» Allow worker unions» Antidiscrimination

Ethical Dilemma

• When values conflict!

– Need to make a living, support your family!

(Need to stretch your $$)» vs.

– Does your employer have ‘questionable’ practices?

(What does buying those products imply?)

Global Ethics• For companies with a global focus, ethical

decisions are more complex.

• Do values vary from country to country?

Ethical Imperialism• Certain values should

apply across all cultures and borders.

ex. – Women should be able to

wear what they want, without fear of persecution.

– Women should be able to vote.

Cultural Relativism• The values of

different cultures should be respected.

Ex.– Traditional dress

should be respected.

– Don’t enact a code of ethics that counteracts local custom / values.

Ethical Imperialismvs.

Cultural Relativism

Ethical Imperialism Cultural Relativism

Ethical Imperialism Cultural Relativism

One set of values f or all cultures

Values are dependent on the

culture

Right and wrong are the

same in all cultures

Right and wrong depend on

local values

A person's ethics are not

situational. "When in Rome"

* please copy this *

Activity• You are in a foreign country negotiating an

important contract that is worth $5 million for your company.

• A man who is handling the negotiations asks you for a $15,000 bribe to ensure your company gets this contract.

• You know that bribes are common in this country but illegal in Canada.

» Use ‘Ethical Imperialism’ to determine what you would do.» Use ‘Cultural Relativism’ to determine what you would do.» Would you pay the bribe? Why or why not?

CSR Policy

• 1: Male and female workers will be paid in accordance with the customs and culture of that area in order to avoid conflict or disruption to local norms.

or• 2: All workers, regardless of gender, shall be

paid a minimum wage of $4 per hour.or• 3: Workers will be paid in accordance with local

laws and customs with a minimum wage rate of $3 per hour.

EthicalImperialism

CulturalRelativism

12 3

• 1: Male and female workers will be paid in accordance with the customs and culture of that area in order to avoid conflict or disruption to local norms.

or• 2: All workers, regardless of gender, shall be

paid a minimum wage of $4 per hour.or• 3: Workers will be paid in accordance with local

laws and customs with a minimum wage rate of $3 per hour.

EthicalImperialism

CulturalRelativism

12 3

• 1: Male and female workers will be paid in accordance with the customs and culture of that area in order to avoid conflict or disruption to local norms.

or• 2: All workers, regardless of gender, shall be

paid a minimum wage of $4 per hour.or• 3: Workers will be paid in accordance with local

laws and customs with a minimum wage rate of $3 per hour.

EthicalImperialism

CulturalRelativism

12 3

• 1: Male and female workers will be paid in accordance with the customs and culture of that area in order to avoid conflict or disruption to local norms.

or• 2: All workers, regardless of gender, shall be

paid a minimum wage of $4 per hour.or• 3: Workers will be paid in accordance with

local laws and customs with a minimum wage rate of $3 per hour.

EthicalImperialism

CulturalRelativism

12 3

Small Groups - Chart

How could you be socially responsible as an international company?

(Let’s say you were hired as the VP of CSR at Wal-Mart.)

- give at least five policies you would have.