Why CSR Week 6

Strategic Approaches to improving ethical behavior

1. The need for organizational ethics programs
a. Organizations are held accountable for the conduct of their
employees
i. Without such programs, employees may not understand
acceptable behavior
b. Organizations can crate unethical corporate cultures
i. Pressures to succeed
ii. Rewarding the wrong behavior
c. Stakeholders demand greater ethical and social responsibility
i. Recent corporate ethics crises have destroyed the publics trust
ii. Consumers want CEOs that demonstrate trust as a priority
iii. Companies must meet the publics demands for ethical decision
making
2. Code of conduct
a. Most companies begin the process of establishing organizational
compliance programs by developing codes of conduct (also called
codes of ethics)
b. Formal statements that describe what an organization expects of its
employees
i. Reflect the board of directors and senior managements desire for
organizational compliance with the values, mission, rules, and
policies that support an ethical climate
c. Codes of conduct do not have to be so detailed that they take into
account every situation
d. Codes of conduct should provide employee guidelines that provide a
means of achieving organizational ethical objectives in an accepted
manner
e. May address issues related to
i. Policies and procedures
ii. Government law and regulation
iii. Relationships with customers, suppliers, and competitors
iv. Acceptance of gifts, travel, and entertainment
v. Political contributions
vi. Expense reporting
vii. Conflicts of interest
viii. Business payments
3. Core values of corporate codes of conduct
a. Corporate codes of ethics often have five to seven core values that
are suggested as desirable, which include trustworthiness, respect,
responsibility, fairness, caring, and citizenship
b. Doesnt resolve every ethical issue but helps deal with ethical
dilemmas by limiting specific actions
4. Developing and implementing a code of ethics
a. Consider areas of risk and state values as well as necessary conduct
b. Identify values that specifically address current ethical issues
c. Consider values that link the organization to a stakeholder
orientation

d. Make the code understandable by providing examples that reflect

values
e. Communicate the code frequently in language employees can
understand
f. Revise the code each year
5. Ethics officers
a. Organizational ethics programs must also have oversight by a highranking person in the organization (typically called an ethics officer)
known to respect legal and ethical standards
i. Assess organizational needs and risks
ii. Develop and distribute the code of ethics
iii. Conduct ethics training programs
iv. Establish and maintain a confidential system to respond to ethics
questions
v. Make certain the company is in compliance with government
regulation
vi. Monitor and audit ethics conduct
vii. Take action when there is a code violation
viii. Review and update the code
b. Ethics officers are often recruited from other positions within the
organization
c. In most firms, they do not report directly to the board of directors
d. They are responsible not only for understanding pertinent
regulations, but also for understanding how to communicate and
reinforce values
6. Ethics training and communication
a. Educates employees about the firms policies, expectations, relevant
laws and regulations, and general social standards
b. Makes employees aware of available resources, support systems,
and personnel who can assist with ethics and legal advice
c. Can empower employees ask tough questions and make ethical
decisions
7. Training and communication initiatives
a. Should reflect the unique characteristics of an organization
i. Size, culture, values, management style, and employee base
b. Must operate with a strong foundation
i. Code, ethical concerns procedures, line and staff involvement,
and executive support
c. Are more effective if employees engage in exercises that involve
solving ethical dilemmas that relate to their job
i. Should be related to actual situations that employees may
experience
8. Establishing systems to monitor and enforce ethical standards
a. An effective ethics program uses a variety of resources to monitor
ethical conduct
i. Help or assistance lines
1. Report and request assistance with ethical concerns
2. Assists with the interpretation of company policy and
specific work-related issues

3. Should be easily accessible and serve as a safety net

b. Observation and feedback
i. Determine the level of adequacy in handling ethical issues
ii. Many businesses use role-playing in the training of salespeople
and managers
iii. Questionnaires can reveal employees ethical perceptions of their
company
c. Whistle blowing
i. Exposing an employers wrongdoing to outsiders, such as the
media or government agencies
9. Goal of ethics training
a. The goal of ethics training is to ensure that an employee:
i. Recognizes when a situation requires ethical decision making
ii. Understands the values and culture of the organization
iii. Is able to evaluate the impact of ethical decisions on the
company
10. Questions to ask before engaging in external whistle-blowing
a. Historically, whistle-blowers often lose their jobs or are forced to
retire; sometimes whistle-blowers receive more personal
consequences, such as threats to their safety
b. Have I exhausted internal anonymous reporting opportunities within
the organization?
c. Have I examined company policies and codes that outline acceptable
behavior and violations of standards?
d. Is this a personal issue that should be resolved through other
means?
e. Can I manage the stress that may evolve from exposing potential
wrongdoing in the organization?
f. Can I deal with the consequences of resolving an ethical or legal
conflict within the organization?
11. Variation in employee conduct
a. Because people are culturally diverse and have different values, they
interpret situations differently and will vary in ethical decisions they
make on the same ethical issues

CSR Week 7
Employee relations
1. Corporate social responsibility and employee engagement
a. CSR and employee engagement are two of the most discussed
issues in the business world today
b. An Aon consulting survey indicates that less than one-third of
employees are engaged, and that two of five employees would not
recommend their employer as a place to work
c. 44% - discount bad reputation
d. 50% - says organizations should have CSR policies
e. 80% - would work with environmental responsible company
2. CSR can provide employees with (Maslows Hierarchy of Needs)

a. A sense of security and safety that their material needs will be met
b. Self-esteem that stems from a positive social identity
c. Feelings of belongingness and social validation of important values
d. Existential meaning and a deeper sense of purpose at work
3. Economic responsibilities to employees
a. Employee-employer contract
i. Contract includes beliefs, perceptions, expectations, and
obligations that constitute an agreement between individuals and
their organizations
ii. Usually informal contract but has significant impact on an
employees actions
iii. When promises or expectations are not met, there is an enormous
breach of trust resulting in less loyalty
4. Psychological contract
a. Psychological contract is the beliefs, perceptions, expectations, and
obligations that make up the agreement between individuals and the
organizations that employ them
i. Largely unwritten
ii. Details of the contract develop through interactions with managers
and coworkers and through perceptions of the corporate culture
b. When employers present information in a credible, competent, and
trustworthy manner, employees are more likely to be supportive of
and committed to the organization
5. Workforce reduction
a. Process of eliminating employment positions
b. Also known as down sizing or right sizing
c. Can involve reducing the number of employees (layoffs,
terminations, incentives for early retirement, and hiring freeze),
simplifying products and processes, and decreasing quality and
service
d. Makes the private relationship between employee and employer a
public issue that creates concern, criticism, and economic effects on
multiple stakeholders
e. This may have profound implications for the welfare of employees,
their families, and the economic prospects of a geographic region
and other constituents, as well as for the corporation itself
6. 3 downsizing tactics
a. Workforce reduction: aimed at headcount reduction, short term
implementation, foster transition and transformation
b. Organization redesign: aimed at organization change, moderate-term
implementation, fosters transition and transformation
c. Systematic redesign: aimed at culture change, long term
implementation, fosters transformation
7. Workforce reduction
a. Key considerations
i. A comprehensive plan must be developed that takes into account
the financial implications and qualitative and emotional toll of the
reduction strategy

ii. The organization should commit to assisting employees who must

make a career transition
iii. Companies must accept the consequences of terminating
employees
8. How individuals can mitigate the effects of downsizing
a. Employees should understand how their skills and competencies
affect business performance
b. Employees should strive for cost-cutting and conservation strategies
regardless of the employers current financial condition
c. Todays work environment requires that most employees fulfill
diverse and varying roles
i. More cross training
ii. Flexible workplace
9. Whistle-blowing
a. A whistle-blower is one who reports individual or corporate wrong
doing to either internal or external sources
i. The focus is usually on issues or behaviors that need corrective
action
b. Managers and other employees may not appreciate reports that
expose company weaknesses, raise embarrassing questions, or
otherwise detract from organizational tasks
i. Historically, whistle-blowers have been retaliated against,
demoted, fired, and even worse as a result of their action