Transcript ADMS1000D – Lecture 10
Session 3 Societal Context & Labour Context
What is the importance of corporate social responsibility (CSR)?
WHAT IS BUSINESS & SOCIETY?
Business: private, commercially oriented organizations Society: a community/national or group of people with common values, traditions, institutions, activities & interests
Community Business Government Owners Employees Consumers
THE BUSINESS-SOCIETY RELATIONSHIP
Assuming a relationship between business and society connects to notions of ‘ embeddedness ’ and organizations as ‘ open systems ’
SHOULD BUSINESS HAVE ANY RESPONSIBILITIES TO SOCIETY? AND IF SO, WHAT IS THE NATURE OF THOSE REPSONSIBILITIES?
CORPORATE SOCIAL RESPONSIBILITY CSR is: The obligation of decision makers to take actions which protect and improve the welfare of society as a whole along with their own interests.
IE….
Corporate Social Responsibility (CSR)
obligations that involve going beyond:
the production of goods/services at a profit the requirement of competition, law or custom
Corporate Social Responsibility (CSR)
To create policies, make decisions & engage in actions that are desirable in terms of the values & objectives of society.
i.e. ethical responsibilities to society
BUSINESS & SOCIETY: CONTEMPORARY CONCERNS
Business helping society Example: Levi’s
THE ROLE OF BUSINESS IN SOCIETY: CORPORATE SOCIAL RESPONSIBILITY Examples of CSR:
• 3M & health of employees • Merck Pharmaceutical & River Blindness
Can you think of examples of companies that have recently demonstrated CSR?
THE ROLE OF BUSINESS IN SOCIETY: CORPORATE SOCIAL RESPONSIBILITY
• The social responsibility of business
encompasses the expectations (Carroll, 1979).
economic, legal, ethical and discretionary (philanthropic) that society has of organizations at a given point in time
• A PYRAMID OF RESPONSIBILITIES!
THE CSR PYRAMID Philanthropic Responsibilities Be a good corporate citizen Ethical Responsibilities Be Ethical Legal Responsibilities Obey the Law Economic Responsibilities Be Profitable
(Adapted from Karakowsky, Carroll, Bucholtz, 2007)
THE CSR PYRAMID
• Components can be
interdependent rather than mutually exclusive. e.g., serving ethical responsibilities does not necessarily mean that profit (economic responsibilities) will be sacrificed – or vice versa.
THE CSR PYRAMID
• However, there may also be
tensions between the components – e.g.,
“
profits versus ethics
”
.
THE CSR PYRAMID
• Our discussion of this pyramid has already
implied that business is responsible to more than simply its owners or shareholders!
• Rather there exists a network of
STAKEHOLDERS FOR WHICH THESE REPSONSIBILITIES EXITS
• What or who are the stakeholders of business?
Find out in our next module!
THE STAKEHOLDERS OF BUSINESS
STAKEHOLDERS, BUSINESS & SOCIETY
WHAT IS A STAKE?
An Interest or share in an activity A Right - a legal right e.g. to fair treatment or a moral right, e.g. to expect satisfactory service Ownership property – a legal title to an asset/
STAKEHOLDERS, BUSINESS & SOCIETY
A stakeholder is any individual or group who can affect or is affected by the actions, decisions, policies, practices or goals of the organization
STAKEHOLDER VIEW OF THE FIRM: Primary & Secondary Stakeholders
Suppliers etc Employees Soc. Pressure Groups Media & Academics Local Communities
F I R M
Government & Regulators Competitors Shareholders/ owners etc Customers/ consumers Trade Bodies Adapted from KCB, 2007
Should business have some kind of moral obligation to society? Is CSR a desirable goal?
DEBATING CORPORATE SOCIAL RESPONSIBILITY AGAINST CSR FOR CSR
Sole responsibility of business is to make a profit Business should conform to social rules Business is not equipped to manage CSR Business talent, capital & expertise could ensure CSR Business has enough power – shouldn ’ t dictate morality Could use its power for CSR, i.e. using its power positively Costs of CSR would be passed on to consumers & limit national competitiveness CSR provides long term benefits by enhancing business environment
OTHER ARGUMENTS…?
THE LABOUR CONTEXT
EMPLOYEES ARE IMPORTANT STAKEHOLDERS IN ANY BUSINESS.
WHAT OBLIGATIONS DOES BUSINESS HAVE TOWARD LABOUR?
HOW DO UNIONS HELP ADDRES LABOUR ISSUES?
THE EMPLOYEE STAKEHOLDER
EMPLOYEE RIGHTS Guarantees of fair treatment in the workplace granted by courts, legislatures or employers.
Provide workers with:
Desired outcomes
Protection from unwanted outcomes
Women Aboriginals DESIGNATED EMPLOYEE GROUPS Visible minorities Persons with Disabilities
WOMEN
Segregated Lower status occupations Under-representation in many areas Career barriers Gender-stereotyping
First Nations/Aboriginals
Vastly underrepresented in the workforce Education & employment gaps Educational, geographical and perceptual barriers
INDIVIDUALS WITH DISABILITIES
Higher unemployment rate compared to national average Access, physical and attitudinal barriers Economic barriers and social discrimination
VISIBLE MINORITIES
Account for most of the growth in the labour force Barriers include: cultural difference issues, foreign credential issues, language issues Highest unemployment rates
THE EMPLOYEE STAKEHOLDER
PROTECTING EMPLOYEE RIGHTS The Case of: Women, Aboriginal people, people with disabilities, members of visible minorities
Legal Protection Against Discrimination Canadian Charter of Rights & Freedoms The Canadian Human Rights Act
THE EMPLOYEE STAKEHOLDER
EMPLOYMENT EQUITY Treating people fairly by recognizing individual differences “treating people fairly by recognizing that different individuals and groups require different measures to ensure fair and comparable results”
THE EMPLOYEE STAKEHOLDER
EMPLOYMENT EQUITY
Deal with systemic discrimination & inequality at work
THE EMPLOYEE STAKEHOLDER
EMPLOYMENT EQUITY
Eliminates employment barriers for specified groups
THE EMPLOYEE STAKEHOLDER
EMPLOYMENT EQUITY
Redresses past discrimination
THE EMPLOYEE STAKEHOLDER
EMPLOYMENT EQUITY
Improve access and foster equity
UNIONS
Unions are the organizations most directly responsible for representing the interests of Canadian working people.
- workers
’
associations formed to enhance their power in dealings with employees
Union membership
-
Why have unions membership rates fallen?
Manufacturing decline Part time work Focus on public sector
UNION ACTIONS
The mutual insurance function of unions Collective bargaining Legal enactment
COLLECTIVE BARGAINING
-
Negotiated outcomes
-
Increasing issues reflect increasing diversity of workforce
-
Political action and expanded scope
Social unionism
-
- economic development, human and labour rights overseas
UNION IMPACTS
-
Impact on productivity
-
Impact on management
-
Impact on society
-
ARE UNIONS STILL NEEDED?
What would society look like without unions?
-
Workplace representation
-
-balancing interests of big business with labour interests
KEY LEARNING POINTS
CSR: Responsibilities extend beyond just those to the owners or Shareholders of the business
•
Stakeholders
•
CSR Debate
•
Labour context/employee Stakeholder: Designated employee groups Labour unions