BUSINESS ETHICS LESSONS

GCSR CONTEXT AIM AND PERSPECTIVE

Corporate Social Responsibility

Corporate social responsibility is a management concept whereby companies

integrate social and environmental concerns in their business operations and
interactions with their stakeholders. It describes how a company contributes to the
well-being of communities and society through environmental and social
measures. It plays a crucial role in how brands are perceived by the customers and
their target audience.
Corporate Social Responsibility (CSR)
It is a business model by which companies make a concerted effort to
operate in ways that enhance rather than degrade society and the environment.
It helps improve various aspects of society as well as promote a positive
brand image for companies. And provide positive social value. It refers to the need
for service
It aims to give structure to a company’s efforts to give back to the
community, participate in philanthropic causes, and provide positive value.
Businesses increasingly turn to CSR to make a difference and build a positive
brand around their company.
Examples of CSR in action:
1- Reducing carbon footprints
2- Improving labor processes
3- Participating in fair trade
4- Diversity, equity and inclusion
5- Charitable global giving
6- Community and virtual
volunteering
7- Corporate policies that benefit the environment (environmentally
friendly eco-conscious)
8- Socially and environmentally conscious investment
9- Treating employees with respect

CSR is a broad concept that dates back to the 1930s . Today, there is no one-
size-fits-all CSR model.
For consumers, understanding CSR can help you support companies that are
aligned with your personal values. For organizations, setting—and achieving—
CSR goals is a way to show your business is doing what's right for profitability,
the environment, and society.
Another solution is to identify if the organization supports the
UN's Sustainable Development Goals (SDGs) and outlines a plan for
incorporating the Ten Principles of the UN Global Compact in their
operations.
Benefits of Corporate Social Responsibility

1-An effective CSR program can have a positive impact on companies,

employees, and consumers. For example, gaining efficiencies by reducing
packaging or using less energy can help companies cut costs while also
benefiting the environment.

2-CSR can also create a competitive advantage in the marketplace. Many

consumers want to support companies that have a reputation for being good
corporate citizens.

3- CSR can help companies attract and retain talent in their workforce.

"When a company engages their employees with sustainability

actions that align with their CSR goals, it leads to better business outcomes and
empowers team members to live more sustainably at work, as well as at home
and in their communities," said Nick Bradford, Program Director for Research
& Innovation at NEEF.

Globalization is the tendency of businesses, technologies, or philosophies to

spread throughout the world, or the process of making this happen.
The global economy is sometimes referred to as a globality, characterized as
a totally interconnected marketplace, unhampered by time zones or national
boundaries (Search CIO).
Organizational behavior is a field of study that studies individuals groups,
and structure. It applies the knowledge gained about individuals, groups, and the
effect of structure on behavior in order to make organizations work more effectively
(Robbins,2014).Gaining an understanding of globalization and its effect on
organizational behavior is crucial to interacting effectively in the modern global
economy. Globalization affects an organization’s behavior in several ways like
stimulating hyper competitive pricing for a product or service, perpetuating
continuous operations and communicating around the clock and globe, capitalism is
replacing governmental control and organizations are no longer constrained by
borders, and corporations are becoming more heterogeneous and adapting to people
who are from different nationalities and cultures. To be successful in a global
economy, professionals should have a thorough knowledge of sociology,
psychology, communication, and management.
The global economy has enabled customers to enjoy a buyer’s market where the
company with the most competitive price possible for a product or service receives
orders from customers around the world. The burgeoning world
Corporate social responsibility (CSR) is a complex and multifaceted concept that
presents several challenges. Some of the challenges of CSR include:
1. Climate change: Climate change is one of the most significant challenges
facing the world today. Companies must take steps to reduce their carbon
footprint and adopt sustainable practices to mitigate the effects of climate
change.
2. Social justice and human rights: Companies must ensure that their
operations do not violate human rights or contribute to social injustice. This
includes ensuring that workers are treated fairly, that supply chains are free
from exploitation, and that products are not produced using forced labor.
3. Income and resource inequality: Income and resource inequality is a
significant challenge that companies must address. This includes ensuring
that workers are paid a fair wage, that communities have access to resources,
and that the benefits of economic growth are shared equitably.
4. Environmental sustainability: Companies must adopt sustainable practices
to protect the environment. This includes reducing waste, conserving natural
resources, and minimizing the use of harmful chemicals.
5. Corporate governance: Companies must ensure that they are governed in
an ethical and transparent manner. This includes ensuring that there is
accountability and oversight, that conflicts of interest are avoided, and that
the interests of stakeholders are taken into account.
Possible individual contribution ideas:
1. Volunteer your time: Volunteering is a great way to give back to your
community and help those in need. You can volunteer at a local charity, food
bank, or homeless shelter.
2. Donate to charity: Donating to charity is another way to contribute to social
responsibility. You can donate money, clothes, or other items to
organizations that help those in need.
3. Reduce your carbon footprint: Climate change is a significant challenge
facing the world today. You can reduce your carbon footprint by using
public transportation, walking or biking instead of driving, and reducing
your energy consumption.
4. Support ethical businesses: Supporting ethical businesses is another way to
contribute to social responsibility. You can choose to buy products from
companies that have sustainable practices and treat their workers fairly.
 5. Educate yourself: Educating yourself about social responsibility is
essential. You can read books, watch documentaries, and attend seminars to
learn more about the issues facing our world.
6. Speak up: Speaking up about social responsibility is crucial. You can write
letters to your elected officials, participate in protests, and use social media
to raise awareness about important issues.
Remember, even small actions can make a big difference. By taking steps to
contribute to social responsibility, you can help create a better world for everyone.

What is ISO 26000? Social Responsibility Guidance Standard | ASQ

https://asq.org/quality-resources/iso-26000
ISO 26000 and Organizational Social Responsibility 1. Is intended as
guidance, not for certification 2. Presents a comprehensive documentation of
social responsibilities including core subjects and issues related to those
subjects 3. Was published in 2010 by the International Organization
for … See more
Who Should Use ISO 26000?
Organizations in the private, public, and nonprofit sectors, whether large or small,
and whether operating in developed or developing countries, use ISO 26000.
… See more
CORE Subjects of Social Responsibility
The ISO 26000 standard defines the core subjects of social responsibility. Core
subjects comprise a number of issues, but it is each organization's responsibility
… See more

Corporate governance plays a fundamental role in driving sustainable business

practices. It serves as the framework that guides organizations in promoting ethical
behavior, transparency, and long-term sustainability. This article explores the
pivotal role of effective corporate governance in fostering sustainable practices,
building stakeholder trust, and bolstering overall business performance.
Upholding Ethical Standards

Ethical behavior forms the foundation of corporate governance. Robust governance

structures establish codes of conduct, policies, and procedures that encourage
integrity and responsible decision-making. This emphasis on ethical standards is a
key driver for promoting sustainable business practices.
Board of Directors’ Oversight

The board of directors is central to corporate governance and sustainability. Their

responsibilities include setting strategic direction, overseeing management, and
safeguarding stakeholder interests. When boards prioritize sustainability within
their governance framework, it ensures the seamless integration of sustainable
practices into the company’s strategy and decision-making processes.

Mitigating Risks

Sustainability risks, including environmental, social, and governance factors, are

recognized as material risks that can impact a company’s long-term success.
Effective corporate governance incorporates robust risk management practices to
identify, assess, and mitigate these risks. By addressing sustainability-related risks,
companies can enhance their resilience and long-term performance.

Stakeholder Engagement

Sustainable business practices require active stakeholder engagement. Corporate

governance ensures that the interests of diverse stakeholders, employees,
customers, suppliers, and communities, are considered and balanced. Engaging
stakeholders in decision-making processes fosters transparency, accountability, and
trust, leading to stronger relationships and sustainable value creation.

5. Transparency and Disclosure

Corporate governance frameworks often require companies to disclose relevant

information regarding their sustainability performance. This includes
environmental impact, social initiatives, diversity and inclusion efforts, and
governance practices. Transparent reporting enables stakeholders to assess a
company’s commitment to sustainable practices, encourages accountability, and
supports informed decision-making by investors and other stakeholders.
Transparent reporting is an integral part of corporate governance. Companies are
increasingly required to disclose relevant information regarding their sustainability
performance. This includes environmental impact, social initiatives, diversity and
inclusion efforts, and governance practices. Transparent reporting enables
stakeholders to assess a company’s commitment to sustainable practices, promotes
accountability, and facilitates informed decision-making by investors and other
stakeholders.
 1- ENHANCING COMMUNITY WELL BEING
Community well-being is important for several reasons. According to a Psychology
Today article, being part of a healthy community can help us feel connected to
others, as well as feel we’re part of something larger than ourselves. This is
especially important for people who’ve experienced trauma or loss, or who are
feeling isolated, marginalized, bullied, or alone. A community can provide us with
a sense of belonging, support, and identity. When we’re going through a difficult
time, it can be enormously helpful to have people who we can turn to. Community
members can offer us emotional support, practical help, and advice. They can also
help us to feel we aren’t alone in our struggles. A community can also help us to
develop a sense of identity. When we’re part of a community, we learn about
shared values and beliefs. We also learn about our history and culture. This can
help us feel we have a place in the world, and that we are part of something
important. Finally, a community can also help to reduce stress and isolation. When
we’re part of a community, we have people to talk to and connect with. This can
help us to feel less alone—and therefore less stressed—as well as help us feel
we’re part of something larger than ourselves. Research shows that people who are
part of strong communities tend to have lower blood pressure, lower cholesterol
levels, and a lower risk of obesity. They are also more likely to exercise regularly
and eat a healthy diet. Thus, community helps reduce stress and isolation and,
ultimately, benefits our physical health in addition to our mental health.

5 basic principles for effective stakeholder governance

Saturday, 01 May 2021

STAKEHOLDERS
Five key principles for effective stakeholder governance

1. Stakeholders and organisational purpose

Stakeholders are groups with an interest in an organisation who are likely to be

affected by the actions of an organisation, or whose actions can impact the
operation or business model. Investing time in identifying and prioritising
stakeholders and assessing their interests forms the basis for effective stakeholder
governance. This is a dynamic process, and stakeholder groups and their priorities
may evolve over time. Board and management should regularly review the
stakeholder map.
2. Vision

Boards should consider overseeing the development and adoption of a formal

framework to guide the company’s stakeholder engagement activities. This will
identify why stakeholder governance is important and ensure the board
incorporates stakeholder perspectives into its decision-making and other
governance processes. SMEs and NFPs may not need a formal framework, but
should be asking themselves these questions.

3. Engagement

Most stakeholder engagement occurs at the management level. To provide

effective oversight of management, the board must ensure it is receiving timely and
accurate information about stakeholders. There may be circumstances where the
board determines it should engage directly with stakeholders. The board must
consider what form of engagement is most appropriate for the stakeholder group,
not just the board.

4. Decision-making

The board can take practical steps to ensure sufficient consideration is given to
stakeholder perspectives, including requesting that board papers address
stakeholder perspectives and impact, schedule meetings with stakeholders as part
of regular board meetings or strategy days and delegate responsibility for specific
stakeholders/ issues to board or advisory committees.

The board should also consider if it is necessary to communicate decisions with an

impacted stakeholder group and how best to do so.

 How should it report on and/or communicate decisions to impacted

stakeholders?

5. Evaluate

It is important to assess the effectiveness of the organisation’s stakeholder

governance and adjust as necessary. This should be led by management with board
oversight. Directors may consider commissioning an external party to undertake an
evaluation of the health of stakeholder relations. Key questions for boards:

2- BUILDING POSITIVE RELATIONS WITH STAKEHOLDERS

 Benefits of Having Good Relationships with Stakeholders
By maintaining good relationships, one lays the groundwork for the creation of an
atmosphere of support and trust as well as the establishment of a cooperation
network. As a result, the organization can anticipate potential problems and
manage stakeholders' expectations more effectively.
Organizations solidify their long-term success by learning and embracing critical
strategies for building and strengthening relationships with stakeholders.
Are you looking to accomplish the same as well? Here are some great strategies
for you.
Strategies for Strengthening Relationships with Stakeholders

1. Build Trust

This one may seem pretty obvious, but it’s a lot more difficult to achieve than
most people think. Even a single breach of trust might ruin good relationships
with stakeholders. Building them from scratch might not even be possible, so it’s
better to stick with openness and honesty.
To ensure that your relationships with stakeholders are built on trust, give them a
reason to trust you. For example, you should always speak openly and avoid
speaking about people behind their backs. Trust works both ways: if you don’t
trust a person, he or she will not trust you.

2. Seek first to understand before being understood

This rule applies to all relationships: by listening and showing interest in others,
you help them be more open and interested in what you have to say. If you prefer
not to listen because you’re in charge, prepare yourself for some
misunderstandings, tense relationships, and even conflicts.

To avoid that, do your best to engage and gain a deep understanding of the
position of stakeholders. Ask their opinion. Make eye contact. Consider them
friends. You can speak up about your position and agenda when you understand
why they think this way.

3. Take responsibility for your actions

Stakeholders appreciate it when project managers and leaders take responsibility
for their errors and resolve issues efficiently. The ability to change a situation for
the better and eliminate negative consequences is very valuable when building
and maintaining good relationships with them.

Of course, no one knows how a project will perform and what future challenges
await. Stakeholders understand that. They are really interested in the response of
the managers and leaders to these challenges.

4. Be honest and open about project progress

It is the duty of project managers and leaders to inform stakeholders about the
performance of the company. Presenting inaccurate information, in this case,
means a breach of trust, and we already know what happens after that.

Always provide accurate and reliable information to avoid ruining good

relationships. Don’t feel pressured to agree to unreasonable demands, and never
overpromise. If a project encounters some issues, be open about them. “Years of
working in an essay writing service have taught me that hiding something from
stakeholders can become a huge problem if that something grows,” says Mark
Whittaker, a project manager. “It’s better to inform them right away if a problem
emerges.”

Your stakeholders will appreciate and respect you for being open and honest.
Moreover, they will be more willing to help before the situation goes out of
control.

5. Maintain a positive mental attitude, and don’t be afraid to reveal yourself

A positive attitude is great to have in the modern fast-changing business

environment. Your stakeholders may not always radiate positive energy, but you
certainly should. It’ll show them that you are confident because you are in your
comfort zone.
Don’t be afraid to joke and show yourself as a human with history, unique
features, and interests. Thus, you’ll reveal yourself to the people you interact with
every day, and they will appreciate it. For example, you can talk about music,
food, sports, or other interests.

These conversations with stakeholders will make you more likable and
interesting. Eventually, working with you will become a fun and engaging thing
to have to do.

6. Leverage the stakeholder relationship management platform

Effective stakeholder relationship management (SRM) goes beyond influencing

decisions and actions to achieve short-term goals. Instead, it will create a
successful stakeholder engagement plan with a proactive mindset to balance the
organization's interests and stakeholders. A recent survey has revealed that only
23% of stakeholders and project managers are aligned at the end of the project
timeline.

Various organizations with large numbers of stakeholders at all levels and

long/complex projects depend on specialized Stakeholder
relationship management platforms to manage and centralize all the engagement
activities with greater efficiency. It will give you a customizable workspace
where you manage every input from the stakeholders and key individuals in the
project.

Besides organizing processes and tasks into perfect workflows, it will also
provide automated reminders, task handoffs, and approval times to give you more
time to work on the project outcome. In addition, certain stakeholder relationship
management platforms can be integrated with leading business apps, including
Slack, Google Drive, Trello, and Microsoft 365.

With the SRM platform, you can see any potential downsides as they occur and
can correct the workflow through direct communication. It aids in the
management of all four types of project communications, such as performance,
change, knowledge, and awareness, in a single space, ensuring every
collaboration with stakeholders carry out with improved transparency.

7. Schedule periodic one-on-one meetings

Once you have got a stakeholder for your project, it is important to maintain
communication to drive the engagement rate. However, they also have jobs and
other tasks to focus on. Therefore, you need to be proactive and keep your
message short and sharp, highlighting the ultimate results of your efforts.

It is challenging to get hold of the stakeholders for meetings, especially those

who hold key positions at the executive level.

However, it is important to keep them informed about your decisions. If the

respective stakeholder group is small, you can schedule periodic or pre-organized
one-on-one meetings with them.

Similar to personal meetings, you can also add brainstorming sessions to

collaborate with the stakeholders to make them a significant part of the process.
Moreover, such an initiative creates a strong relationship and keeps you and the
stakeholders on the same page. It will allow you to identify any potential issues
on the project and solve them.

In addition, you can opt for different communication modes to update the
stakeholders with the latest progress.

 Compose Newsletter – Newsletters are an effective way to keep the

stakeholders engaged and informed about the project. It will let them know
about your decisions and why you choose them. This will increase their
trust in your organization. In a nutshell, it is vital to spend time in engaging
newsletters that present accurate project information in an easy-to-
understand structure.
  Progress emails – If you are on a big project and making quick progress,
it's time to try sending out a dedicated and formatted email regarding every
progress. Make it simple and precise to read with a chart or bulletin points
so stakeholders can review it easily.

B- ETHICAL CONSIDERATIONS 1) addressing ethical

dilemmas in corporate decision making

How to handle an ethical dilemma in the workplace

1. Analyze what's at risk

Weigh the pros and cons of what's at risk in the scenario to help you
determine what steps to take. For example, if your colleague clocks out
early every day, one might consider that theft of company time. If your
coworker routinely meets goals and completes their work, someone
else might not see the situation as an ethical concern. Before bringing
the matter to someone's attention, find clarity on the issue by
assessing the risk. If you ultimately find the risk is high, consider taking
appropriate action.

2. Rely on your training

Many companies provide ethical training for employees, especially for

leaders. When in doubt about what to do in an ethical dilemma,
consider reflecting on your training as guidance on what next steps to
take. The training exists to both guide you in such situations and helps
the company reduce its liability for such dilemmas, so you can rely on it
as much as you need to.

3. Review your company handbook

Many organizations have an employee handbook that outlines
professional conduct and behavior expected. Check for a chapter
about ethics to see what information might influence your decisions.
You might have a compliance and ethics hotline at your place of
employment, for example. You can use this number to confidentially or
anonymously report misconduct or corporate ethics violations. Some
people prefer this option rather than reporting directly to leadership to
reduce any concerns about retaliation.

4. Refer to industry guidelines

Some professions, like lawyers, accountants and doctors, have industry

guidelines or legal regulations that uphold ethical and moral behavior.
Often, violations can lead to disciplinary action or a loss of licensing,
for example. Referring to codes of conduct and ethics can help you
determine what steps to take when solving challenging moral
dilemmas. Similar to a company's own ethics hotline, many industries
have ones of their own. For example, you can report a lawyer's ethics
violation to the state bar association for an investigation.

Read more: Professional Code of Ethics: Definition and Examples

5. Trust your instincts

There may be times when you sense something isn't right at work and
it's often worth exploring rather than ignoring. This can help protect
both your company and yourself if there is unethical activity
happening. Trusting your instincts might also mean you first confirm
or investigate your suspicions before taking other actions. For
example, you might become more observant of a colleague you think
is manipulating the time clock before confronting them or going to a
supervisor.

6. Have a conversation
Consider discussing the ethical dilemma with the person directly to
help manage the situation. You can gain perspective, ask clarifying
questions and attempt to influence your colleague to make a more
ethical decision. They might appreciate your directness and correct
their actions.

For extreme ethics violations, like discrimination or harassment, you

rarely need this approach. If the issue remains unresolved after
speaking with the person directly, consider connecting with a
leader, human resources representative or your company's ethics
hotline.

7. Remove yourself from the situation

If you find yourself in ethical dilemmas consistently within a team or

organization, consider leaving if no other attempts or actions resolve
the situation. Finding other employment can help you ease stress and
allow you to uphold your own personal standards and ethics. You
might look to exhaust other options before committing to leaving.

What is an ethical dilemma?

An ethical dilemma is an issue, problem or concern in your decision-

making process, in which neither choice you make offers a great
outcome. Also called a moral dilemma or ethical paradox, you often
face these challenges in professional settings. For example, you might
bear witness to ethical dilemmas or get asked to do something you
think is wrong. Your concern might be whichever decision you choose
could lead to repercussions for yourself or others. Ethical dilemmas
might sometimes happen because of:

 Managerial pressure
 Ignorance
 Personal ambitions
Tips for handling ethical dilemmas

Here are five tips on how to handle an ethical dilemma in the

workplace:

 Apply the value theory approach: When considering your

options to resolve the ethical dilemma, the value theory
approach means selecting the option that offers the greater
good or lesser evil. This can be helpful when neither of the
options is ideal.
 Brainstorm other solutions: Some dilemmas might have
alternative options to consider when reevaluating the problem
from an unbiased position.
 Ask rather than accuse or assume: Approach someone with
questions about their behavior instead of with accusations and
assumptions that their actions are ethically wrong. It can help the
conversation from escalating and often gives you insight into
whether someone is receptive or if you need to take other
actions.
 Make a plan: Give consideration and thought to what steps you
might take or how to approach someone about an ethical
dilemma you witnessed. This can give you confidence and a
strategy to follow through.
 Examine your assumptions: Question your reaction or
rationalizations you might try to apply when learning about an
ethical dilemma. For example, you might react with the
assumption that it's not a big deal or that you can't change the
course of events to avoid confrontation or retaliation if you were
to take action.

Put Ethics to Work

Here are some best practices for making values an integral
part of your company:
  Provide time and space for team members, including
leaders, to reflect on and write down their values.
 Cultivate an environment of encouragement and respect
so that team members feel comfortable sharing their
opinions and disagreeing with others.
 Remember the Friends and Family Test. Encourage
employees to build networks of colleagues who will help
them stay aligned with their values.
 Ask your team to think about the types of situations
they might encounter at work and how they plan to
react. Role-playing potential scenarios with co-workers
may help them prepare for unexpected situations.
 Let employees know that if they find themselves in an
unethical situation, physically and emotionally
distancing themselves temporarily will help them
reestablish their ethical boundaries.
As a leader, it’s important to understand and stay true to
your own values. But it’s equally important to understand
that every employee has their own values shaped by their
unique experiences. Fostering an environment of respect
and empathy for these differences, while communicating
your own values clearly, allows for greater collaboration and
a more productive team.
 Business Ethics ■ Director:

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