Readings High Points Key Points From Each Article Day I.
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Transcript of Readings High Points Key Points From Each Article Day I.
Readings High PointsReadings High Points
Key Points From Each ArticleDay I
Can a CorporationHave a Conscience?
• It can and it should.• No more or less morally responsible than
individuals• Not solely economic (individuals as
means) nor legal-political (any action that is not punished by government)
• Three uses of “Responsible”– Causal (blame – after the fact)– Rule-following (follow social and legal norms)– Decision-making (independent judgment)
Corporate Social Responsibility and Employee
Engagement
• CSR can and will attract employees and retain them– Generation Y workers set social
responsibility above compensation– Even stronger in China, India and Germany– Communicate and engage
• CSR works when employees are engaged in specifics
• Belief in the values and socially responsible goals of the organization retains employees
Corporate Social Responsibility: Doing Well by Doing Good
• CSR can be an efficient management strategy– Improved economic performance– Improved competitive position, including
first mover advantage• Stakeholder approach
– Stakeholders valued by cash flow influence– Net present value– “Treat society well… It will return the favor
Corporate Social Responsibility: Doing Well by Doing Good
• Structural action vs. strategic action– Meet claim without creating opportunity for
competitors – Structural action when opportunity would
be created – Strategic action to create advantage (first
mover)• Agent – Owner
– Different time horizon/discount rates– CSR best effected by flat compensation
structure (salary only)
What Matters Most: Corporate Values and Social Responsibility
• Companies are adopting social responsibility programs, world-wide
• Workers and managers are seeking opportunity to do good
• Most frequent obstacle is lack of enlightened leadership
• Public less tolerant• Change in role of NGO’s – collaborative
relationships• Starts with values – living in the hearts and minds
of employees• Transparency forms the foundation of trust.
“Good” Bad Ethical Managers Choices
• Rationalizations– Not “really” illegal or immoral– In individual’s or company’s best
interest– It will never be found out– Company will condone and protect
• Know which risks are worth taking• Prevent misconduct, not catch it
Managing for Organizational Integrity• Company responsible for
individual’s misdeeds– Everything to do with management– Provide leadership and institute
systems to facilitate ethical conduct
• Shape individuals’ behavior– Incentive and performance systems– Management behavior
Managing for Organizational Integrity
• Compliance versus integrity– Compliance = legal– Integrity = ethical
• Compliance– Insurance for executives– Factors in sentencing
• Integrity– Leads organization– Engages employees
Readings High PointsReadings High Points
Day II
Building Organizational Integrity
• Improve ethical awareness• Limit risks from employees’
unethical behavior (often in spite of a code of ethical behavior)
• Create a culture that encourages doing the right thing rather than just compliance.
• Employee development is valued.
Building Organizational Integrity
• Barriers –Unrealistic performance objectives
–Workforce demographics–State of organization–Cynicism
Integrity and Management
• Avoid decisions that we later regret
• Tests of judgment– Publicity, trusted friend, reciprocity,
universality, obituary• One of the greatest risks of
professional life is that day-to-day pressures will lead to a gradual erosion of integrity
Discipline of Building Character
• Challenges – choice between right and right.– Forces focus on core values– Creates basis for future
• Defining moments– Individual – Who am I?– Work Groups – Who are we?– Executives – Who is the Company?
Defining Moments• Individual
– Conflicting feelings– Deeply rooted values
• Work Group– Points of view (other ethical viewpoints)– Influence behavior – Truth as a process
• Executive– Personal and organizational strength– Role of organization in society– Vision to reality