Choose a company to research and analyze its Corporate Social Responsibility efforts and Ethics.
MGT 360
Management and Organizational Behavior
Ethics and
Corporate Social Responsiblity
Week Three
Dr. Diane Flannery
No in-person class next week
B-Corporation – follow up from last week
Ethics
Corporate Social Responsibility
Written Assignment One Example
Reminders
Topics
https://bcorporation.net
B Corps
currently receive no specific tax benefits over traditionally
incorporated businesses.
B Lab
Nonprofit Organization that oversees
B Corps
Ethics is an area of study that deals with ideas about what is good and
bad behavior
A branch of philosophy dealing with what is morally right or wrong
Ethics is about our actions and decisions
ETHICS – The moral principles,
values and beliefs that govern
group or individual behavior
according to what is right or
wrong and what contributes to
the balanced good of all
stakeholders.
F O U R V I E W S O F E T H I C A L B E H A V I O R
Public Ethic
what do you claim or express publicly to others about your underlying values,
intentions and motivations in a particular situation.
Private Ethic
what are your true values, intentions and motivations in the situation. Public and
Private ethics may be the same (transparent) or they may be different
(deceptive)
ETHICAL DILEMMA
A situation in which no choice is entirely right
Ethical mistake
Not intentional, a lack of experience in making value-based decisions •lack of
comprehension regarding the consequences of their actions on society, on our
organization, on colleagues, and an inability to articulate and act on our own
values and ethics in a leadership role
What Ethical Issues did Lance Armstrong face?
Discuss Lance Armstrong’s public and private ethics?
Did Lance Armstrong make an ethical mistake, or did he act
unethical?
WELLS FARGO BANK
C R O S S – S E L L I N G M E A N S G E T T I N G C U S T O M E R S W H O U S E O N E S E R V I C E ,
S U C H A S C H E C K I N G , T O U S E O T H E R S E R V I C E S , S U C H A S S A V I N G S O R
C R E D I T C A R D S .
T H E R E I S N O T H I N G W R O N G W I T H C R O S S – S E L L I N G – A L L B A N K S D O I T .
I N O R D E R T O E N C O U R A G E E M P L O Y E E S T O S U P P O R T T H E P R O G R A M ,
W E L L S F A R G O P R O V I D E D I N C E N T I V E S T O E M P L O Y E E S W H O
S U C C E E D E D A T C R O S S – S E L L I N G .
E M P L O Y E E S M A N U F A C T U R E D F A K E A C C O U N T S I N T H E N A M E S O F
E X I S T I N G W E L L F A R G O C U S T O M E R S .
I N A T T E M P T I N G T O C O R R E C T T H E P R O B L E M T H E C O M P A N Y F I R E D
5 , 3 0 0 E M P L O Y E E S A N D L O S T I T S H I G H L Y R E S P E C T E D C E O ,
J O H N S T U M P F .
W R O N G A T A M A S S I V E S C A L E .
I N T H E F A C E O F P R E S S U R E A T W O R K P E O P L E C A N B E C O M E L E S S
C O N C E R N E D W I T H E T H I C S .
ETHICAL FADING
The process by which individuals are unable to see the ethical
dimensions of a situation due to overriding factors
The human trait of self-deception
Overlook a behavior when the results are good
Look at a decision as strictly a business decision, not an ethical decision
Happens in decision-making when we focus so much on other aspects of
the decision that we forget about the ethical implications, as if they were
fading from our view
Ethical fading helps address the fact that unethical behavior is not
limited to unethical people
CSUN Student
Core Values Statement & Ethical Conduct
Pledge
College Of Business and EconomicsCalifornia State University, Northridge The
College of Business and Economics at California State University, Northridge
prepares students to be ethical decision makers. The college maintains high
standards of ethical conduct that students are expected to maintain
throughout their academic and professional careers. Students in the College of
Business and Economics have identified the values of respect, honesty,
integrity, commitment, and responsibility as their guiding principles. The
following statement describes these core values.
Student Core Values:
Respect
Treat our classmates, professors, staff, and administrators with respect.
We respect diversity and do not discriminate on the basis ofrace, color, ethnicity, religion, gender, disability, sexual orientation, age,
or other characteristics. We respect different points of view that add to our knowledge. We respect our learning opportunities by
behaving professionally in the classroom, andmaking academic achievement an important priority.
Honesty
Communicate truthfully with our classmates, professors, staff, and administrators in all academic matters while remaining
respectful. We observe university policies on academic dishonesty in completing all academic work. In seeking employment,
internships, and other opportunities we represent ourselves truthfully, understanding that misrepresentation may not only harm our
own reputation but that of our classmates and the college.
Integrity
Maintain integrity. Because we zealously integrate these core values into our academic work and preparation for our profession, our
integrity enables us to reach our goals, overcome obstacles, and successfully resolve ethical dilemmas.
Commitment
Strive for success as students, professionals, and citizens. We keep our promises, andadhere to our core values in all our activities
both as students and alumni. We are committed to acting honestly, respectfully, and responsibly in our effort to achieve our goals.
We understand that commitment to our core values benefits both students and the community now and in the future.
Responsibility
Embrace the responsibility we have to ourselves and to each other to maintain high ethical standards. With each task at hand comes
the responsibility to uphold the core values that unite us. We support each other in our adherence to these standards. We recognize
that reporting unethical conduct is a responsibility we all share.
My Pledge: I pledge to join my classmates in upholding these core values.
(Print Name) (Signature) (Date)
Is it ETHICAL to mandate employees to be vaccinated
for COVID-19?
YES NO
Relationship Between Ethics and Corporate Social Responsibility
The main meaning of social responsibility is that it’s more of an obligation or a
duty towards the people that the business affects. Ethics is about right and
wrong behavior. What is good for the society is sometimes not good for the
business, and what is good for the business is sometimes not good for the
society.
Corporate Social Responsibility (CSR)
Business practices that involve accessing and
taking responsibility for the company’s effects on
the environment and social issues
Generally applies to corporate efforts that go
beyond what might be required by regulations
More of a proactive approach
Programs that coordinate the company’s efforts to
address societal and community challenges as they
emerge
People– invest in the well-being of employees and provide
interesting and rewarding jobs that offer the opportunity
to be productive
Planet– protect and support the environment, causes, and
communities
Profit– ensure that the company is financially healthy
How Do Managers Make a Difference?
Managers’ bottom line defined by the “3 P’s”
Triple bottom line
“There is one and only one social responsibility of
business — to use its resources and engage in activities
designed to increase its profits.”
Milton Friedman
American Economist
1962
Detracts from the fundamental economic role of
business
Just superficial window-dressing
Pre-empts the role of governments as the
watchdog over powerful multinational
corporations
Criticism of CSR
Is it socially responsible to mandate employees to be
vaccinated
for COVID-19?
YES NO
Bisha Mines (video)
Patagonia
Tom’s Shoes
Apple Computer
B I S H A M I N E S
A S M A R A , E R I T R E A , E A S T
A F R I C A .
PATAGONIA’S MISSION STATEMENT
Our values reflect those of a business started by a
band of climbers and surfers, and the minimalist
style they promoted. The approach we take towards
product design demonstrates a bias for simplicity
and utility. Our mission is to build the best product,
cause no unnecessary harm, use business to inspire
and implement solutions to the environmental crisis
Record-breaking Black Friday Sales to Benefit the
Planet“100 percent of our global retail and online
Black Friday sales directly to grassroots nonprofits
working on the frontlines to protect our air, water
and soil for future generations, we heard from many
of our customers calling it a “fundraiser for the earth.
Economic
Social
Environmental
“How can a company that is this extraordinary in
other respects be missing in action on corporate
social responsibility?”
Forbes Magazine
More than 90 percent of Apple’s products – including
the iPhone, iPad and Mac computer are assembled in
China
Labor practices and working and living conditions at
factory-owned dorms came under scrutiny after
more than a dozen workers committed suicide
starting in 2010
Average worker salary $1.78 per hour
•iPhone 7 (2016)
Labor costs about $5.00 per phone
3,000 student interns were “forced” to work at Foxconn in order to
graduate from their high school
Factory hires students every year during the busy season between
August and December. Such hiring increases the number of
employees from 100,000 to more than 300,000 workers
Produce up to 20,000 iPhones a day•One person can assemble 1,200
iPhone cameras per day
Apple X iPhone
Financial Times, Yuan Yang in Zhengzhou, NOVEMBER 21, 2017
Comprises 71% of earth
60% of the adult body
Humans can live without water for only about 3 days
Water
What are the 3 things most of the
people in the world cannot do?
Water business grosses $600 billion annually
O W N S 7 0 O F T H E B O T T L E D W A T E R
C O M P A N I E S
A T O N E S I T E I N M I C H I G A N T H E Y
P U M P 4 5 0 G A L L O N S P E R M I N U T E
N E S T L E D O E S N O T P A Y F O R T H I S
W A T E R
E S T I M A T E D P R O F I T S F R O M T H I S
P U M P I N G S I T E I S $ 1 . 8 M I L L I O N P E R
D A Y
Nestle
Tim Brown, Nestle North America CEO
“If I stop bottling water tomorrow, people would buy a different brand of
bottled water. We see this everyday,” Brown told KPCC. “In fact, if I could
increase [bottling], I would.”Brown claims the company has complied with
all regulatory agencies
Bottling water still takes 30% to 50% more water than turning on the taps
How many gallons of water does
it take to make one pair of
blue jeans?
Is water a basic human right or a
commodity*?
*Commodity is a raw material or primary agricultural
product that can be bought and sold, such as copper or
coffee
President Biden, appoint a fashion czar!
The fashion industry is responsible for 10% of the world’s carbon
emissions. It needs to be regulated like other big sectors.
“The fashion industry is a $2.5 trillion beast with tentacles in every
corner of the world, and yet it operates with little oversight or
regulation. It employs more than 75 million people, the majority of
whom are poorly paid women, who are vulnerable to abuse.”
FAST Company
H&M is one of fashion’s biggest polluters. Now its foundation is on a
$100 million quest to save the planetCan the brand that pioneered
fast fashion undo the environmental devastation its business model
has caused?
“The world is drowning in clothes. While curbside recycling
programs have existed for half a century, there’s no easy way to
recycle jeans or dresses, which means many of the 100
billiongarments bought each year get thrown out: 92 million tonnes
annually, in fact. By 2030, that number is expected to go up to 134
million tonnes.”
FAST Company
Written Assignment # 1
Example
Amazon has a Code of Business Conduct and Ethics it operates under
Amazon received more than $1.5 billion in local tax breaks since 2000 and gained
market share by avoiding sales taxes
Privacy concerns (Alexa)
Jeff Bezos is making about $321 million a day, $13.4 million an hour, $222,884 a
minute, and $3,715 a second this year
Written Assignment #1
Example of Content
Choose a company to research and analyze its Corporate Social
Responsibility efforts and Ethics. Use class lectures, textbook readings
(Chapter 3), and Online Assignments to discuss the two concepts by
providing examples from the company. Make sure to clearly distinguish
between the two concepts of Ethics and Corporate Social Responsibility.
Company: Amazon
Ethics
Commitment to a supply chain who “respect human rights, provide safe and inclusive work places, and promote a
sustainable future.” (cite)
Give examples
Comply with industry standards by formal benchmarking industry peers (accommodative strategy)
The policy of transparency on human rights violations from where their products are sourced. Public information on
human rights and workplace conditions (proactive strategy)
Amazon in the Community – support underserved communities to learn engineering and coding skills, grants to
nonprofit organizations for disaster relief, COVID-19, (proactive strategy)
Equity and diversity Amazon board of directors is comprised of six men and four women, and 100% whiteOf Jeff Bezos’
10 direct reports, only one is female, and all are white.
Sustainability
Amazon takes a broad, science-based approach to measuring and reducing carbon emissions in their
operations.Impact on the environment —Delivers nearly 3 billion packages per year, and 6.5 billion deliveries projected
for 2022
Profitable company for shareholders
Conclusion
Your thoughts on the company’s ethics and CSR
Your thoughts on the company’s ethics and CSR
CSR
Summarize what Amazon is doing for its CSR efforts.
Examples of what the company is doing for CSR
People
Planet
Profits
Conclusion
Important Topics
The End
MGT 360
Management and Organizational Behavior
Ethics and
Corporate Social Responsiblity
Week Three
Dr. Diane Flannery
No in-person class next week
B-Corporation – follow up from last week
Ethics
Corporate Social Responsibility
Written Assignment One Example
Reminders
Topics
https://bcorporation.net
B Corps
currently receive no specific tax benefits over traditionally
incorporated businesses.
B Lab
Nonprofit Organization that oversees
B Corps
Ethics is an area of study that deals with ideas about what is good and
bad behavior
A branch of philosophy dealing with what is morally right or wrong
Ethics is about our actions and decisions
ETHICS – The moral principles,
values and beliefs that govern
group or individual behavior
according to what is right or
wrong and what contributes to
the balanced good of all
stakeholders.
F O U R V I E W S O F E T H I C A L B E H A V I O R
Public Ethic
what do you claim or express publicly to others about your underlying values,
intentions and motivations in a particular situation.
Private Ethic
what are your true values, intentions and motivations in the situation. Public and
Private ethics may be the same (transparent) or they may be different
(deceptive)
ETHICAL DILEMMA
A situation in which no choice is entirely right
Ethical mistake
Not intentional, a lack of experience in making value-based decisions •lack of
comprehension regarding the consequences of their actions on society, on our
organization, on colleagues, and an inability to articulate and act on our own
values and ethics in a leadership role
What Ethical Issues did Lance Armstrong face?
Discuss Lance Armstrong’s public and private ethics?
Did Lance Armstrong make an ethical mistake, or did he act
unethical?
WELLS FARGO BANK
C R O S S – S E L L I N G M E A N S G E T T I N G C U S T O M E R S W H O U S E O N E S E R V I C E ,
S U C H A S C H E C K I N G , T O U S E O T H E R S E R V I C E S , S U C H A S S A V I N G S O R
C R E D I T C A R D S .
T H E R E I S N O T H I N G W R O N G W I T H C R O S S – S E L L I N G – A L L B A N K S D O I T .
I N O R D E R T O E N C O U R A G E E M P L O Y E E S T O S U P P O R T T H E P R O G R A M ,
W E L L S F A R G O P R O V I D E D I N C E N T I V E S T O E M P L O Y E E S W H O
S U C C E E D E D A T C R O S S – S E L L I N G .
E M P L O Y E E S M A N U F A C T U R E D F A K E A C C O U N T S I N T H E N A M E S O F
E X I S T I N G W E L L F A R G O C U S T O M E R S .
I N A T T E M P T I N G T O C O R R E C T T H E P R O B L E M T H E C O M P A N Y F I R E D
5 , 3 0 0 E M P L O Y E E S A N D L O S T I T S H I G H L Y R E S P E C T E D C E O ,
J O H N S T U M P F .
W R O N G A T A M A S S I V E S C A L E .
I N T H E F A C E O F P R E S S U R E A T W O R K P E O P L E C A N B E C O M E L E S S
C O N C E R N E D W I T H E T H I C S .
ETHICAL FADING
The process by which individuals are unable to see the ethical
dimensions of a situation due to overriding factors
The human trait of self-deception
Overlook a behavior when the results are good
Look at a decision as strictly a business decision, not an ethical decision
Happens in decision-making when we focus so much on other aspects of
the decision that we forget about the ethical implications, as if they were
fading from our view
Ethical fading helps address the fact that unethical behavior is not
limited to unethical people
CSUN Student
Core Values Statement & Ethical Conduct
Pledge
College Of Business and EconomicsCalifornia State University, Northridge The
College of Business and Economics at California State University, Northridge
prepares students to be ethical decision makers. The college maintains high
standards of ethical conduct that students are expected to maintain
throughout their academic and professional careers. Students in the College of
Business and Economics have identified the values of respect, honesty,
integrity, commitment, and responsibility as their guiding principles. The
following statement describes these core values.
Student Core Values:
Respect
Treat our classmates, professors, staff, and administrators with respect.
We respect diversity and do not discriminate on the basis ofrace, color, ethnicity, religion, gender, disability, sexual orientation, age,
or other characteristics. We respect different points of view that add to our knowledge. We respect our learning opportunities by
behaving professionally in the classroom, andmaking academic achievement an important priority.
Honesty
Communicate truthfully with our classmates, professors, staff, and administrators in all academic matters while remaining
respectful. We observe university policies on academic dishonesty in completing all academic work. In seeking employment,
internships, and other opportunities we represent ourselves truthfully, understanding that misrepresentation may not only harm our
own reputation but that of our classmates and the college.
Integrity
Maintain integrity. Because we zealously integrate these core values into our academic work and preparation for our profession, our
integrity enables us to reach our goals, overcome obstacles, and successfully resolve ethical dilemmas.
Commitment
Strive for success as students, professionals, and citizens. We keep our promises, andadhere to our core values in all our activities
both as students and alumni. We are committed to acting honestly, respectfully, and responsibly in our effort to achieve our goals.
We understand that commitment to our core values benefits both students and the community now and in the future.
Responsibility
Embrace the responsibility we have to ourselves and to each other to maintain high ethical standards. With each task at hand comes
the responsibility to uphold the core values that unite us. We support each other in our adherence to these standards. We recognize
that reporting unethical conduct is a responsibility we all share.
My Pledge: I pledge to join my classmates in upholding these core values.
(Print Name) (Signature) (Date)
Is it ETHICAL to mandate employees to be vaccinated
for COVID-19?
YES NO
Relationship Between Ethics and Corporate Social Responsibility
The main meaning of social responsibility is that it’s more of an obligation or a
duty towards the people that the business affects. Ethics is about right and
wrong behavior. What is good for the society is sometimes not good for the
business, and what is good for the business is sometimes not good for the
society.
Corporate Social Responsibility (CSR)
Business practices that involve accessing and
taking responsibility for the company’s effects on
the environment and social issues
Generally applies to corporate efforts that go
beyond what might be required by regulations
More of a proactive approach
Programs that coordinate the company’s efforts to
address societal and community challenges as they
emerge
People– invest in the well-being of employees and provide
interesting and rewarding jobs that offer the opportunity
to be productive
Planet– protect and support the environment, causes, and
communities
Profit– ensure that the company is financially healthy
How Do Managers Make a Difference?
Managers’ bottom line defined by the “3 P’s”
Triple bottom line
“There is one and only one social responsibility of
business — to use its resources and engage in activities
designed to increase its profits.”
Milton Friedman
American Economist
1962
Detracts from the fundamental economic role of
business
Just superficial window-dressing
Pre-empts the role of governments as the
watchdog over powerful multinational
corporations
Criticism of CSR
Is it socially responsible to mandate employees to be
vaccinated
for COVID-19?
YES NO
Bisha Mines (video)
Patagonia
Tom’s Shoes
Apple Computer
B I S H A M I N E S
A S M A R A , E R I T R E A , E A S T
A F R I C A .
PATAGONIA’S MISSION STATEMENT
Our values reflect those of a business started by a
band of climbers and surfers, and the minimalist
style they promoted. The approach we take towards
product design demonstrates a bias for simplicity
and utility. Our mission is to build the best product,
cause no unnecessary harm, use business to inspire
and implement solutions to the environmental crisis
Record-breaking Black Friday Sales to Benefit the
Planet“100 percent of our global retail and online
Black Friday sales directly to grassroots nonprofits
working on the frontlines to protect our air, water
and soil for future generations, we heard from many
of our customers calling it a “fundraiser for the earth.
Economic
Social
Environmental
“How can a company that is this extraordinary in
other respects be missing in action on corporate
social responsibility?”
Forbes Magazine
More than 90 percent of Apple’s products – including
the iPhone, iPad and Mac computer are assembled in
China
Labor practices and working and living conditions at
factory-owned dorms came under scrutiny after
more than a dozen workers committed suicide
starting in 2010
Average worker salary $1.78 per hour
•iPhone 7 (2016)
Labor costs about $5.00 per phone
3,000 student interns were “forced” to work at Foxconn in order to
graduate from their high school
Factory hires students every year during the busy season between
August and December. Such hiring increases the number of
employees from 100,000 to more than 300,000 workers
Produce up to 20,000 iPhones a day•One person can assemble 1,200
iPhone cameras per day
Apple X iPhone
Financial Times, Yuan Yang in Zhengzhou, NOVEMBER 21, 2017
Comprises 71% of earth
60% of the adult body
Humans can live without water for only about 3 days
Water
What are the 3 things most of the
people in the world cannot do?
Water business grosses $600 billion annually
O W N S 7 0 O F T H E B O T T L E D W A T E R
C O M P A N I E S
A T O N E S I T E I N M I C H I G A N T H E Y
P U M P 4 5 0 G A L L O N S P E R M I N U T E
N E S T L E D O E S N O T P A Y F O R T H I S
W A T E R
E S T I M A T E D P R O F I T S F R O M T H I S
P U M P I N G S I T E I S $ 1 . 8 M I L L I O N P E R
D A Y
Nestle
Tim Brown, Nestle North America CEO
“If I stop bottling water tomorrow, people would buy a different brand of
bottled water. We see this everyday,” Brown told KPCC. “In fact, if I could
increase [bottling], I would.”Brown claims the company has complied with
all regulatory agencies
Bottling water still takes 30% to 50% more water than turning on the taps
How many gallons of water does
it take to make one pair of
blue jeans?
Is water a basic human right or a
commodity*?
*Commodity is a raw material or primary agricultural
product that can be bought and sold, such as copper or
coffee
President Biden, appoint a fashion czar!
The fashion industry is responsible for 10% of the world’s carbon
emissions. It needs to be regulated like other big sectors.
“The fashion industry is a $2.5 trillion beast with tentacles in every
corner of the world, and yet it operates with little oversight or
regulation. It employs more than 75 million people, the majority of
whom are poorly paid women, who are vulnerable to abuse.”
FAST Company
H&M is one of fashion’s biggest polluters. Now its foundation is on a
$100 million quest to save the planetCan the brand that pioneered
fast fashion undo the environmental devastation its business model
has caused?
“The world is drowning in clothes. While curbside recycling
programs have existed for half a century, there’s no easy way to
recycle jeans or dresses, which means many of the 100
billiongarments bought each year get thrown out: 92 million tonnes
annually, in fact. By 2030, that number is expected to go up to 134
million tonnes.”
FAST Company
Written Assignment # 1
Example
Amazon has a Code of Business Conduct and Ethics it operates under
Amazon received more than $1.5 billion in local tax breaks since 2000 and gained
market share by avoiding sales taxes
Privacy concerns (Alexa)
Jeff Bezos is making about $321 million a day, $13.4 million an hour, $222,884 a
minute, and $3,715 a second this year
Written Assignment #1
Example of Content
Choose a company to research and analyze its Corporate Social
Responsibility efforts and Ethics. Use class lectures, textbook readings
(Chapter 3), and Online Assignments to discuss the two concepts by
providing examples from the company. Make sure to clearly distinguish
between the two concepts of Ethics and Corporate Social Responsibility.
Company: Amazon
Ethics
Commitment to a supply chain who “respect human rights, provide safe and inclusive work places, and promote a
sustainable future.” (cite)
Give examples
Comply with industry standards by formal benchmarking industry peers (accommodative strategy)
The policy of transparency on human rights violations from where their products are sourced. Public information on
human rights and workplace conditions (proactive strategy)
Amazon in the Community – support underserved communities to learn engineering and coding skills, grants to
nonprofit organizations for disaster relief, COVID-19, (proactive strategy)
Equity and diversity Amazon board of directors is comprised of six men and four women, and 100% whiteOf Jeff Bezos’
10 direct reports, only one is female, and all are white.
Sustainability
Amazon takes a broad, science-based approach to measuring and reducing carbon emissions in their
operations.Impact on the environment —Delivers nearly 3 billion packages per year, and 6.5 billion deliveries projected
for 2022
Profitable company for shareholders
Conclusion
Your thoughts on the company’s ethics and CSR
Your thoughts on the company’s ethics and CSR
CSR
Summarize what Amazon is doing for its CSR efforts.
Examples of what the company is doing for CSR
People
Planet
Profits
Conclusion
Important Topics
The End