MGMT 2130

Business Ethics and Social

Responsibility
Session #4: Employees
 Course Structure
1) Introduction: What, Why, How
Foundations
2) Macro: Role of Business in Society
3) Micro: Psychology & Foundations of Corporate (Ir)responsibility

4) Business and Employees

5) Business and Customers
6) Business and Suppliers
Stakeholders
7) Business and Communities
8) Business and the Natural Environment

9) Special Applied Topic

Applications 10) Special Applied Topic

11) Applying what we've learned

Final 12) Applying what we've learned
Presentations

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Session 4 Agenda

• Recap, discussion, & follow-up

• Stakeholder Analysis

• Employees
Notes

• Discussion Comment Highlights

• L5: Moksh Naresh VASWANI
• L6: King Yat Martin MAN
• L7: Heng Shiu
• L8: Yongxi Zeng

• Best zoom screen voted on at break

• Don’t have to vote
• Next week themes: TV SHOWS
Review of Concepts

1. Philanthropic vs. integrative vs. Innovative:

2. Spocks or Monkeys?
3. Presidents of our fan clubs
4. The eyes are watching - Transparency Affects
Behavior
5. The Soviet Nail Factory: We maximize what is
visible/measured
6. Bodybuilding Poses - Transparency & strategy
7. “Your screen isn’t on”: Psychological Safety
8. Milgram – Authority & unethical behavior
• Others
 Philanthropic vs. Integrative vs.
Innovative

Philanthropic Integrative Innovative

Emphasis on charity, Emphasis on conducting Developing new business

sponsorship, employee existing business models for solving social
voluntarism, etc. operations more and environmental
responsibly problems

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Spocks vs. Monkeys?

VS

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Presidents of our own Fan Clubs
• Height– 58%
• Decision Making – 64%
• Intelligence – 64%
• Health– 64%
• Judging Other People– 64%
• Authenticity– 69%
• Ethicality– 71%
Eyes Watching Us
• Transparency affects behavior

• People/companies want to be
viewed favorably

• More sensitive to what is visible

(compared to what is not)

• Transparency à ACCOUNTABILITY
Real World Examples
Power of Transparency

Question:

What recent major change in the US police frorce

dramatically altered police behavior and
accountability?

It has galvanized US civil rights movement

(e.g. black lives matter)
Power of Transparency
Power of Transparency

• Non-Violent
Movements
 Bodybuilding Pose down
Strategic Transparency
Bodybuilding Pose down
4th Place Winner
2008 Olympics
Who won?

• China: "We won with most Golds!”

• USA: “We won with most Medals overall!”

• Australia: “We won with most Medals per

capita!”
The Nail Factors
We maximize what is visible & measured
“Professor, your screen is not on”
Psychological Safety & Groupthink
“Shock him again”
Stanley Milgram Experiments:
Obedience to Authority
Diffusion of Responsibility (“the authority figure will
take the blame”)
Others

• 5 Principles of Influence
• Read it & conquer the world (or defend yourself)

• Bounded Ethicality
Exercise
• Think Pair Share

• Groups of 3
• 3 minutes

• Introduce yourself & fun fact

• What idea from last week’s class are you able to apply
to your own life?

• What idea do you disagree with or have concerns

about?
Session 4 Agenda

• Recap, discussion, & follow-up

• Stakeholder Analysis

• Employees
Stakeholder Analysis

• What is it?

• Why do you do it?

• How do you do it?

Employees

• Five Questions to Identify Key Stakeholders

• Implementing a Stakeholder Strategy

5 Qs to identify key stakeholders

• Too many stakeholders! Need to focus:

1. Does they impact your performance? (Required response: yes.) –
relative

2. Can identify what you want from them? (Required response:

yes.)

3. Want relationship to grow? (Required response: yes)

1. Futre time horizon, LT stakeholders vs right now

4. Can you exist without or replace them? (Required response: no.)

5. Has the stakeholder already been identified

through another relationship? (Required response: no.)

• Overlapping interests
Implementing Shareholder Strategy

• Everyone agreed need stakeholder strategy

• But how!?!
• Steps:
• Identify stakeholders
• Value proposition for each
• Financial, functional, or emotional
• Want want from them?
• Compare capabilities you have with those you need
• Create profit model to manage tradeoffs
• Determine key performance indicator
Stakeholder Analysis: Who

• Identify Major Stakeholders

• Market Stakeholders
• Suppliers, employees, managers, customers, creditors
• Voluntary contractual financial relationships with firm

• Non Market Stakeholders

• Government, community, commercial groups
• Not employed by the firm / no vested financial interest

• Not all are relevant

Stakeholders: What Want?

• Identify Stakeholder Interests

• What do they want?

• How are they affected by a decision

• Positive / negative externalities

• Specific to a company or decision

Stakeholder: What Power?
• Stakeholder Power: Ability to use resources to affect
outcome

• Types of power:

1. Voting:

2. Economic: affect company transactions

3. Political: legislation, regulation, lawsuits

4. Legal: Lawsuits

5. Informational: access to or ability to share information

Stakeholder: How will Alliances form?

• Stakeholders often combine force on particular

issue

• Who has overlapping interests?

 Stakeholder Map

Keep Satisfied Actively Engage

High Handle with Care Top Priority
POWER

Monitor
Show Consideration
low

Low Interest High

 Break - 5 Minutes

Vote for favourite background from class

Session 4 Agenda

• Recap, discussion, & follow-up

• Stakeholder Analysis

• Employees
Employees
1. Documentary Nightline ABC iFactory Apple Foxconn

2. Forced Labor Whistleblower was sent to prison by

Amazon supply chain Foxconn

3. A Hard-Hitting Investigative Report Into Amazon

Shows That Workers’ Needs Were Neglected In Favor
Of Getting Goods Delivered Quickly

4. Is Your Corporate Culture Cultish

5. Chief Happiness Officer

Exercise – 6 minutes
• Even Number Groups (employees)
1. Why are you working?
• What do you value? What are your interests? What motivates you?
2. What are your rights?
3. What is your obligations?
4. What power do you have

• Odd Number Groups (employers)

1. How can you compensate/motivate employees
• What do they value? What are their interests?
2. What are your obligations to your employee?
3. What is your employees obligations to you?
4. What power do you have?

4. Where do you think your interests overlap?

 Core Rights and Obligations of Employees?
Employee Rights Employer Rights
Employer Obligations Employee Obligations

1. Respect for fundamental human rights 1. No actions that endangers others

2. Fair and decent wage 2. Treat others with respect and without
harassment of any kind
3. Safe and healthy workplace
3. Honesty; appropriate disclosure
4. Right to equal opportunity / no
discrimination 4. Respect for employer’s property and
intellectual capital
5. Fair and just discipline or termination
of employment 5. No drug or alcohol abuse

6. Privacy 6. Loyalty and commitment

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7. Right to blow the whistle 7. Complete their job
How much is enough? Your answers?

• Realists:
• 1: Infinite
• 2: 500m-1B

• Median: 1 million HKD

• Average: 5.2M HKD (666K USD) (removed 3)

• Is there a “cutoff” beyond which point science says

more money doesn’t increase happiness?
• Debatable, some argue between 70k-120k USD, others argue it
never plateaus

Killingsworth, M. A. (2021). Experienced well-being rises with income, even above $75,000 per year. Proceedings of the National Academy of Sciences, 118(4).

Kahneman, D., & Deaton, A. (2010). High income improves evaluation of life but not emotional well-being. Proceedings of the national academy of sciences, 107(38), 16489-16493.
 Happiness Equation: 3 inputs

Happiness = Pleasure + Flow + Meaning

1. Pleasurable Life: Life of enjoyment (pleasure)

2. Engaged Life: Life of engagement (“flow”)

3. Meaningful Life: Meaning, impact, affiliation (purpose)

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Happiness Equation

• Which is least important for overall happiness?

• Pleasure
• Engagement
• Meaning

Go to www.menti.com and use the code 4027 9628

Meaning Experiment
• How many Lego figures will subjects build?
• Subjects paid 3$ for first lego, 30c less for each subsequent
one.
• What is lowest amount for which they will build a Lego & how many?

• Condition 1: Subject sees Lego broken down in front of them

upon each completion

• Condition 2: Subject told Lego will be broken down later

• How many Legos they make?

• Condition 1: 11
• Condition 2: 7

• Conclusion: Subjects won’t work for less when efforts are

evaluated as meaningless

Ariely, D., Kamenica, E., & Prelec, D. (2008). Man's search for meaning: The case of Legos.
Journal of Economic Behavior & Organization, 67(3-4), 671-677.
Related Studies on happiness,
motivation, job satisfaction
• Lego building & meaninglessness:
• If you see your efforts go to nothing, you won’t try and stop working
• Ariely, D., Kamenica, E., & Prelec, D. (2008). Man's search for meaning: The case of Legos. Journal of Economic Behavior & Organization, 67(3-4), 671-677.

• Shredding Paper & acknowledgement:

• When our efforts are acknowledged, we’ll work more for less
• Ariely, D. (2016). Payoff: The hidden logic that shapes our motivations. Simon and Schuster.

• Ikea Effect: When Labor leads to love

• When we feel part of creating something ourselves, we value the outcome more
Norton, M. I., Mochon, D., & Ariely, D. (2012). The IKEA effect: When labor leads to love. Journal of consumer

psychology, 22(3), 453-460.

• Harvard Long Term Well Being Study:

• Positive social relationships are major determinant of happiness over the long run
• https://www.adultdevelopmentstudy.org/

• Call Centers: People work more when introduced to those they’re helping
• Feeling that our efforts positively impact others motivates us to work more for less
• Grant, A. M. (2007). Relational job design and the motivation to make a prosocial difference. Academy of management review, 32(2), 393-417.
Meaning/Acknowledgement Experiment
• Group 1 Acknowledged: Look & put into pile

• Group 2 Ignored: No name, no look, put into pile

• Group 3 Shredded: Put directly into shredder

Ariely, D. (2016). Payoff: The hidden logic that shapes our

motivations. Simon and Schuster.
Flow
• Flow is the mental state of operation in which a
person performing an activity is fully immersed in a
feeling of energized focus, full involvement, and
enjoyment in the process of the activity.

• It also happens surprisingly often at work—as long

as the job provides clear goals, immediate
feedback, and a level of challenges matching our
skills.

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Hedonic Treadmill
Want First Job
Want Last Job
Enjoy Most Now
Takeaways
• “Value” for employees can be more than just money

• Relationship between job satisfaction and money is not linear

• Non-financial considerations influence employee well being,

happiness, job satisfaction

• Companies can ‘pay’ their employees with:

• Meaning, engagement, social relationships, status,
recognition, value alignment, etc

• ‘Shared value’ includes non-financial “value”

• Negotiations involve more than just money
PVA Pt
Pt 1:
• Complete values exercise / reflect on values
1. Submit your values over Qualtrics
https://columbia.az1.qualtrics.com/jfe/form/SV_81v4whcYFcWQdBI

Pt 2:
• Make Map
• Meet with partner & share/discuss
• Research two companies
1. Write paper explaining your values & comparing them to those of those two
companies & submit
• Which want to work for & why?
2. Submit values
3. Submit map
PVA Pt

Pt 1:
• Complete values exercise / reflect on values
• Optional on Qualtrics
• Come up with list of values
• I will host class on this on Monday

1. Submit your values over Qualtrics (required)

https://columbia.az1.qualtrics.com/jfe/form/S
V_81v4whcYFcWQdBI
Optional exercise Walkthrough

Starting Values
Add any that are missing
At the end
FINALLY

• Submit over Qualtrics (required)

• https://columbia.az1.qualtrics.com/jfe/form/SV_81
v4whcYFcWQdBI
Between Now and Next Class
• Homework:
• Online discussion (Tuesday midnight)
• Homework reading posted
• Late credit for survey until next Tuesday

• PVA pt 1 due next week

• Optional help Sessions on Monday / Tuesday

• Next Week Theme: Fav - TV Shows

• Linkedin group: https://www.linkedin.com/groups/12621845/

• Add & introduce yourself to 1-2 classmates you don’t know

• Feedback / Questions:
https://docs.google.com/forms/d/e/1FAIpQLScFMlOvPp_b3U4-
0LkKyabqANEEjFYRwJlYnlDOl-
0NAIr7AA/viewform?vc=0&c=0&w=1&flr=0

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