Strategies of Social

Responsiveness
BUS360 Assignment
Name: Sadman Sakib Ruhan
ID: 1921476
Course Title: Introduction to Business Law
Section: 04
Course ID: BUS360
Faculty: Ms. Seeratus Sabah
Date: 05/01/21
 Page |1

Social Responsiveness
Social responsiveness is a person's or corporation’s obligation to contribute to their community
or country in a way that makes the quality of life and environment better for those around them.
For example, Volunteering at the local homeless shelter would be considered as social
responsiveness because you are doing your part to improve the lives and circumstances of those
living in your community. But all these social responsiveness do not require the active
participation; it can be passive as well. For example, you chose to boycott a particular company
because you felt that their business practices were harmful or destructive, this would also be an
act of social responsiveness because you are intentionally avoiding something that you believe
deteriorates the welfare of others.
There are 4 strategies of social responsiveness. The corporation are using any of these strategies
when they are held socially responsible.

REACTION DEFENCE ACCOMMODATION

PRO-ACTION

Reaction: The corporation denies any responsibility for social issues. For example, by arguing
that they are the responsibility of the government.

Defense: The corporation admits responsibility. But fights it. The corporation may adopt an
approach based on superficial public relations rather than positive actions.

Accommodation: The corporation accepts responsibility and does what is demanded of it by

relevant groups.

Pro-action: the corporation seeks to go beyond industry norms and anticipates future
expectation by doing more than expected.
 Page |2

Walmart

Walmart Supercenters (hereafter Walmart) has a full offering of groceries and general
merchandise in a single store. Walmart offers to its customers a one-stop shopping experience
and is the largest private employer in the US as well as being the world’s largest retailer.66 It has
more than 10,130 retail units under 69 different banners in 27 countries. They all share a
common goal: ‘Saving people money so they can live better’.67 Walmart employs 2.2 million
associates worldwide68 and generated net sales of $ 443 billion during the fiscal year of 2012.
Walmart was founded in 1962, with the opening of the first Walmart discount store in Rogers,
Arkansas (US).

Walmart’s conflicts

Walmart has faced many obstacles over the years. It seems that legal and social challenges have
acted as important reasons for the development of its code of conduct and annual reporting. This
statement can be illustrated in two relevant cases: Walmart Stores Inc. v. Dukes et al.75 and the
press reports accusing Walmart of using child labor.

Walmart Stores Inc. v. Dukes et al.

Walmart Stores Inc. v. Dukes et al. started a decade ago and is still being heard by the US
Courts. It commenced as a national class action against Walmart. Plaintiffs Betty Dukes, Patricia
Surgeon, Edith Arana (‘plaintiffs’), on behalf of themselves and others similarly situated, allege
that female employees in Walmart retail stores were discriminated based on their gender. They
stated that they were discriminated against regarding pay and promotion to top management
positions, thereby violating the Civil Rights Act of 1964.

Walmart caught using child labor in Bangladesh

Walmart was using child labor at two factories in Bangladesh. Children aged 10-14 years old
were found to be working in the factories for less than $50 a month making products of the
Walmart brand for export to Canada. But later on, Walmart made their own code of conducts
 Page |3

against the allegations that were made against them. Walmart’s reporting culture was imitated by
the rest of the companies in the market. Nowadays, Walmart has been qualified as a ‘global
legislator’ in CSR policies.

Why I think the case fits into defense strategy

So, from the above case it can be understood that Walmart violated some social responsibilities
by discriminating and through using child labor. Walmart basically made the discrimination by
gender on giving less preference to the female. Because, the US District Court for the Northern
District of California, alleges discriminatory practices against more than 90,000 women
regarding pay and job promotion as well as requiring non-discriminatory pay and promotion
criteria. In the society both male and female should be treated according to their skills and
dedication of doing work. If a female is more skilled in workplace than a man, then the female
should get that promotion and her salary should increase accordingly. On the other hand, they
were also using the child labor in Bangladesh. This is also against social responsibility. Because
children are the future of nation. They need to acquire academic knowledge during this time. But
as Walmart is not giving that opportunity to those children. They are trying to gain more profit
by using the child labor by giving them a salary of less than $50. And it is also against the labor
law. But the most important thing is that they follow the defense strategy when these allegations
were made. They accepted all the allegations made against them and then made some code of
conducts. They followed defense strategy. They accepted all the things and then they have taken
possible measures. This helps them to be responsible towards the society.

How Walmart resolved the issue

Walmart developed its first Code of Conduct (COC) ‘Standard for Suppliers’ in 1992,95 which
mainly focuses on quality standards for suppliers only. Currently, Walmart publishes a full and
complete report on CSR issues called ‘Global Responsibility Report’ which covers the three
dimensions of ‘People, Planet, Profit’.104 This report emphasizes gender equality and a diverse
workforce.105 Walmart has a Gender Equality and Diversity gender policy that can be found in
its ‘Global Responsibility Annual Report’. In 2009, Walmart took the commitment one step
further with the incorporation of the Advisory Board on Gender Equality and Diversity. The
board is aimed at providing equal and enhanced opportunities for all in top leadership roles.106
 Page |4

These policies have generated an increase in female officials and managers from 23,873
employees in 2005 to 25,246 employees in 2010.

My Verdict

There can be another option to me is to follow and that is accommodation strategy. In this
strategy they can accept all the allegations and they can take necessary actions on demand of the
relevant groups. But they took defense strategy which is also helpful for them to back into the
business.

Canon

Canon’s profile Canon Inc. (hereafter Canon) was founded in 1937. Its headquarters are in Japan
and the company is listed on the NYSE. Although the digital camera is the most well-known
product to consumers, Canon also produces devices for office and industry use.

Canon’s conflicts

Stress-related illnesses

In Canon Denmark, a problem of stress related illnesses occurred. These illnesses were the
result of changes in the organization and increasing pressure to perform. As this caused many
problems for business managers, human resources (HR) and increased the workload for other
employees, Canon Denmark started to develop a policy to reduce stress in the workplace. While
it was carrying out research for that policy, the government of Denmark also strengthened the
anti-smoking legislation, and the works council was demanding changes to several existing
policies. The company realized that a specific stress-reduction policy was not enough and started
to examine not only its own, but the European and global Canon policies as well.
 Page |5

Why I think the case fits into reaction strategy

When the problem regarding stress-related illness raised, Canon at first denied any responsibility
for social issues. Later, when government intervened, they took the matter in hands and with
researching changed their policies.

How Canon resolved the issue

Canon’s experience in managing stress, from the previously mentioned Canon Denmark case,
had convinced the company to focus on prevention, rather than the treatment of problems. A
clear shift from reactive to proactive management was made. When looking through its webpage,
this is now clearly seen. Canon also took the opportunity to develop action-based policies. In
August 2007 Canon launched a new policy that covered topics such as: Work-life balance, aging
workforce, health and safety, stress management, respect and tolerance, smoking, alcohol and
substance abuse, nutrition, and exercise. Some of these policies can also be measured. To ensure
an appropriate work-life balance excessive working hour were constrained through the strict
implementation of a ‘no-overtime day’. During 2009, an average in-house ratio of 80%
adherence to prescribed working hours on ‘no-overtime days’ was achieved, and the number of
total overtime hours worked per employee for that year was down by approximately 100 hours
from 2008.

My Verdict

I would say that I agree with the decisions Canon made. As when the Denmark government took
in consideration of the stress related problem that raised in Denmark, Canon was already
researching with the policy and they decided to shift their policies from reactive to pro-action
with regards to save its people from such dangers. It shows that they care for their company and
employees.

Reference
 Page |6

[ CITATION Tor12 \l 1033 ]

https://www.utrechtlawreview.org/articles/abstract/10.18352/ulr.205/