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Organizational Behavior CHAPTER 1 Case Study-Smuckers

J.M. Smucker Company places strong emphasis on ethics and values in its daily operations and employee standards. New hires undergo intensive day-long ethics training and sign detailed ethics statements. Existing employees repeat ethics training every 3-5 years. This focus on ethics aims to ensure the company and employees act with integrity and fairness. Key issues discussed are why ethics are important for business performance, benefits and drawbacks of being recognized as a good employer, and whether Smucker's values appeal as a potential employee.

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1K views3 pages

Organizational Behavior CHAPTER 1 Case Study-Smuckers

J.M. Smucker Company places strong emphasis on ethics and values in its daily operations and employee standards. New hires undergo intensive day-long ethics training and sign detailed ethics statements. Existing employees repeat ethics training every 3-5 years. This focus on ethics aims to ensure the company and employees act with integrity and fairness. Key issues discussed are why ethics are important for business performance, benefits and drawbacks of being recognized as a good employer, and whether Smucker's values appeal as a potential employee.

Uploaded by

val
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Organizational Behavior CHAPTER 1 Case Study – J.M.

Smucker Company

Case Summary: Overview of Case


The Smucker Co. wants to ensure that its signature comfort foods remain American
staples and that its daily operations, employees, and company standards are guided by
the overall principles of honesty, integrity, and fairness. The company values high
ethical standards of operation and employees and works diligently to maintain those
standards in various internal processes such as employee hiring, onboarding, retention,
and operations.
“Smucker steeps job candidates in its ethical standards and refers frequently to how
company values relate to the particular position a job candidate is seeking. The company
also engages in rigorous reference checks. Once hired, the ethics emphasis intensifies. Each
new hire attends a day-long training seminar that includes presentations by company
officials, videos, and breakout sessions on moral awareness, moral courage, and values.
The discussions go much deeper than a superficial review of how to be a good person. One
session concentrates on three ways to make a decision when faced with a dilemma. One
option is seeking to do the greatest good for the greatest number of people. The second is a
rules-based approach in which the decision will set a standard that everyone else follows.
The final alternative is to use the Golden Rule: “treat others as you would like to be treated.”
The sessions also explore the complexity of ethics.”

All employees go through the ethics program again every three to five years and sign a
detailed nine-page ethics statement annually to ensure that they truly understand the
level of performance Smucker expects from them. 

Problem: What are the Key Issues of the Case?


Ethical decisions often involve a nuanced balance between right and right. Smucker
communicates that it wants its employees to act with truth over loyalty, community over
the individual, and long-term over short- term company interests.

1. Why would ethics be important to a company like J.M. Smucker? How can its focus
on values and ethics improve its business performance?
2. Appearing on “best places to work” lists can increase an employer’s popularity, even
among lower-qualified applicants. The increased volume of applicants can be costly and
time-consuming. What do you feel are the benefits and drawbacks to being on this type
of list? Do you think that it is generally beneficial to be publicly recognized as a good
employer? Why or why not?
3. Do J.M. Smucker’s values and culture appeal to you as a potential employee? Why
or why not?
Analysis:
1. Why would ethics be important to a company like J.M. Smucker? How can its
focus on values and ethics improve its business performance?

Ethics are important to J.M. Smucker because it defines the expected standard


behavior of the company and its employees. Better ethics result in employees with
better focus, thus improving the company's productivity and bottom line.
Corporations establish business ethics to promote integrity among their employees and
gain trust from key stakeholders, such as investors and consumers. Business ethics
enhance the law by outlining acceptable behaviors beyond government control.
Companies that advocate for business ethics motivate their employees to perform their
roles with integrity. Employees are more likely to apply ethical reasoning when their
company clearly demonstrates why business ethics is important. According to the 2018
Global Business Ethics survey, Ninety-nine percent of U.S. employees who experience
a strong ethics culture said they are prepared to handle ethical issues. The Smucker
company focus on values and ethics works to improve overall business
performance ensuring teamwork and productivity.

2. Appearing on “best places to work” lists can increase an employer’s


popularity, even among lower-qualified applicants. The increased volume of
applicants can be costly and time-consuming. What do you feel are the benefits
and drawbacks to being on this type of list? Do you think that it is generally
beneficial to be publicly recognized as a good employer? Why or why not?

It is generally beneficial to be publicly recognized as a good employer, plus, it is a


powerful recruiting tool. Research has shown that “best places to work” companies are
often more profitable than comparatives; and these designations provide the advantage
of positive corporate branding, employee retention, talent acquisition, and benefits the
company in the areas of advocacy and attraction.
Most people like the idea and have a want to work for a company that has a good public
image and reputation, thus it is no surprise that there is an increased volume of
applicants to the company which can be costly and time-consuming for the HR
department. Internal management decisions can be made to adjust for the volume of
elevated interest in people wanting to work for the company. High positive public
interest and goodwill goes hand in hand with high volume of interest in employment.
Smucker Company promotes social sustainability in communities in which it operates,
promoting initiatives and programs that support and enhance quality of life. Smucker
also strongly believes in environmental sustainability, including utilizing renewable
energy, improving wastewater management, using sustainable raw materials, and
reusing resources rather than consuming new ones. All these initiatives around
corporate social responsibility or CSR are beneficial for the company’s public image
and perception; they provide a competitive edge for the company by improving
business performance; and these initiatives generate good with multiple stakeholders in
the community.

3. Do J.M. Smucker’s values and culture appeal to you as a potential employee?


Why or why not?
No, I prefer not to willingly enter a work environment with such a high bar of personal
ethical standards, because to me, it seems as if it is an unrealistic expectation and can
lead to cult-like employee behavior and distrust. This environment has the potential to
unintentionally create a “like me” bias in hiring practices which can causes barriers to
inclusion in the workplace. I would prefer to work for a company that recognizes and
emphasizes diversity - ethnic, gender, work-life - and strives to ensure all employees
are compensated fairly, trained in their area of work, and feel comfortable with sharing
ideas and strategies for overall company growth.

References:
Phillips, JM, Gully, SM, & Griffin, RW (2017). Organizational behavior. Managing people
and organizations.

Common questions

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The J.M. Smucker Company integrates ethical principles through detailed reference checks during hiring, emphasizing how company values relate to job positions. New hires attend a day-long seminar that covers moral awareness and courage, and decision-making techniques such as the greatest good principle, a rules-based approach, and the Golden Rule. This intensive focus ensures employees engage deeply with ethical complexities. Employees also sign a nine-page ethics statement annually and repeat the ethics program every 3-5 years to reinforce ongoing ethical standards .

The annual signing of a detailed nine-page ethics statement ensures employees formally acknowledge and commit to company values and ethical standards. This process reinforces the seriousness and importance the company places on ethical behavior, serving as a continual reminder to uphold integrity in decisions and actions, thereby aligning personal actions with corporate expectations .

Maintaining high ethical standards poses challenges such as the risk of creating an unrealistic expectation or a perceived 'cult-like' environment, leading to possible employee distrust. This can foster a 'like me' bias in hiring, limiting diversity. Additionally, consistently enforcing these standards may be resource-intensive, requiring frequent training and monitoring, which could strain company resources and require steadfast commitment from leadership .

Ethical values enhance J.M. Smucker's business performance by building integrity, fostering employee loyalty, and cultivating trust with investors and consumers. This environment encourages employees to act with moral courage and align actions with company values, leading to improved productivity and teamwork. The ethical culture supports long-term strategic goals, balancing community welfare and company success .

Rigorous reference checks are crucial in ensuring potential employees align with J.M. Smucker’s ethical values. By thoroughly vetting candidates' backgrounds and ethical orientations, the company minimizes risks of compromising its high ethical standards. This careful selection process is pivotal in maintaining a cohesive corporate culture rooted in integrity and trust .

J.M. Smucker integrates corporate social responsibility by promoting initiatives for environmental sustainability, such as using renewable energy and sustainable materials, and improving waste management. These programs enhance the company’s public image while contributing positively to community welfare, providing a competitive edge, and boosting business performance by aligning with consumer and stakeholder expectations for responsible corporate behavior .

To manage an increased applicant volume, J.M. Smucker could streamline its recruitment process by leveraging technology for initial screenings and implementing talent management software to efficiently handle applications. Additionally, developing a strategic focus on targeted recruitment campaigns can help in prioritizing candidates who best align with its ethical and cultural standards, thus optimizing resource allocation in HR .

Benefits include enhanced corporate branding, increased profitability, employee retention, and talent acquisition due to a positive public image. However, drawbacks include managing a high volume of applicants, which may be costly and time-consuming for HR. Despite these costs, being recognized as a good employer generally benefits the company by attracting and retaining top talent, ultimately enhancing its competitive edge .

Imposing high ethical standards could inadvertently lead to a 'like me' bias, as the demand for certain ethical conformity might discourage diversity in thought and background. This could create barriers to inclusion if hiring practices favor those who closely align with established ethical norms, potentially risking a homogeneous work environment rather than promoting a diverse workforce .

The company teaches frameworks such as the greatest good principle, rules-based decision-making, and the Golden Rule. These frameworks guide employees to consider broader ethical implications of their decisions, encouraging them to prioritize community welfare over individual gains and long-term benefits over short-term outcomes. Such training can profoundly influence employee behavior by embedding ethical reasoning into their everyday decision-making processes .

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