Chapter 14 - Contemporary Organizational Behavior: From Ideas to Action

Copyright©2016 Education, Inc. 14-1 TOPIC SUMMARY 14 Corporate Social Responsibility, Ethics, and Sustainability Topic Summary Learning Objectives: Describe why corporate social responsibility and sustainability are relevant for organizational behavior. Define the triple bottom line and the environmental and human approaches to sustainability. State the elements of the business case approach and the ethical mandate approach for corporate social responsibility. Compare and contrast the shareholder and stakeholder perspectives. Apply concepts of corporate social responsibility, ethics, and sustainability to organizations. Copyright©2016 Education, Inc. 14-2 Corporate Social Responsibility LO 1: Describe why corporate social responsibility and sustainability are relevant for organizational behavior Corporate social responsibility (CSR) refers to the expectations that society holds of an organization and how the society chooses to uphold the organization to those expectations. Copyright©2016 Education, Inc. 14-3 Sustainability LO 1: Describe why corporate social responsibility and sustainability are relevant for organizational behavior Sustainability is referred to as the set of voluntary actions that an organization takes to demonstrate its environmental and social responsibilities. Environmental Human Copyright©2016 Education, Inc. 14-4 Arguments for CSR LO 2: Define the triple bottom line and the environmental and human approaches to sustainability The business case approach emphasizes strategy, stability, and survival. The ethical mandate approach emphasizes values, ethics, and integrity. Copyright©2016 Education, Inc. 14-5 An Ethical Mandate LO 3: State the elements of the business case approach and the ethical mandate approach for corporate social responsibility Copyright©2016 Education, Inc. 14-6 • Strategy • Stability • Survival • Ethics • Values • Integrity Business Case Approach Ethical Mandate Approach CSR/Sustainability Types of Values {5C22544A-7EE6-4342-B048-85BDC9FD1C3A}Terminal Values Instrumental Values A comfortable and prosperous life Ambitious An exciting, stimulating life Broad-minded A sense of accomplishment as a last contribution Capable A world at peace, free from war and conflict Cheerful A world of beauty, beauty of nature and the arts Clean Equality, brotherhood, equal opportunity Courageous Salvation, eternal life Forgiving True friendship, close companionship Helpful Copyright©2016 Education, Inc. 14-7 Challenges to Ethical Decision Making Aligning multiple stakeholder interests Difficulty determining the correct answer Viewing what is right by one group is wrong by another Solving a problem that requires more than rational-economic models provide Confusing and ambiguous potential outcomes Living in a world with multiple competing values Copyright©2016 Education, Inc. 14-8 Expert Contribution LO 5: Apply concepts of corporate social responsibility, ethics, and sustainability to organizations. The Business of Making a Better World Philip H. Mirvis Private Consultant Bradley Googins Boston College Copyright©2016 Education, Inc. 14-9 Governing Ideas Vision is the “What” – the picture of the future we seek to create. Mission is the “Why” – the organization’s answer to why we exist (purpose). Values are the “How” – how we act to achieve our vision. Copyright©2016 Education, Inc. 14-10 Implications for Next Generation Leaders Find a job at a mission-driven company. Do something socially responsible at work and at school. Smarten up about sustainability and CSR. Copyright©2016 Education, Inc. 14-11 Expert Contribution LO 5: Apply concepts of corporate social responsibility, ethics, and sustainability to organizations. Ethics Gary R. Weaver University of Delaware Copyright©2016 Education, Inc. 14-12 Key Influences on Ethics Copyright©2016 Education, Inc. 14-13 {5C22544A-7EE6-4342-B048-85BDC9FD1C3A}Key influences on   organizational ethics . . . . What leaders can do . . . . Fairness perceptions   Outcomes Processes Interactions Listen; be aware of employee concerns Consistency in practices View ethics as an aspirational ideal, not just a burdensome requirement Integration of ethics across the organization Use ethics language so that ethical decision making seems normal and important Use your influence to encourage ethical values in organizational culture See that organizational routines (hiring, promotion, performance appraisal, etc.) emphasize ethics Moral identity development Affirm and encourage employees’ moral identity, by modeling ethical behavior talking about ethics providing employees with opportunities for ethical success Expert Contribution LO 5: Apply concepts of corporate social responsibility, ethics, and sustainability to organizations. The Psychology of Fairness at Work Robert Folger University of Central Florida Stephen Gilliland University of Arizona David Bowen Thunderbird School of Global Management Copyright©2016 Education, Inc. 14-14 Components of Organizational Justice Copyright©2016 Education, Inc. 14-15 Keys to Building Organizational Justice {5C22544A-7EE6-4342-B048-85BDC9FD1C3A}Managerial Activity Key organizational Justice Actions Recruiting and Hiring Hiring process and interview questions that appear to be job-related Timely feedback on hiring decision and delays in hiring process Rejection letters that explain who was hired and why Remember: Recruiting never ends and interpersonal and informational justice are effective recruiting tools Performance Management Ratings that meet expectations—no surprises—and that mean something because they are tied to raises or promotions Seek input (self-evaluations and peer feedback) prior to conducting evaluation Base evaluations on accurate and specific behaviors and results Timely feedback is more important than annual evaluations Remember: Performance management is more about an effective ongoing dialog than an annual appraisal and feedback meeting Compensation and Rewards Compensation and rewards that accurately reflect inputs Structured, systematic processes for reviewing and adjusting compensation Explanations to accompany pay increases and lack of increases Remember: Open compensation means fair compensation—secrets are only needed to hide underlying unfairness Terminations and Layoffs Decisions based on objective criteria that are consistently applied to everyone Thorough and timely explanations for why layoff or termination is necessary and what other potential actions were considered Remember: Maintain trust, respect and human dignity—layoffs are a difficult process for everyone and interpersonal justice is essential Copyright©2016 Education, Inc. 14-16 14-17 Copyright©2016 Education, Inc.