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Chapter Objectives

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Describe changing attitudes toward social responsibility and business ethics. Describe concept of corporate social responsibility. Explain attempts at legislating social responsibility. Explain what is meant by stakeholder analysis and the social contract. Understand the model of ethics and describe human resource ethics. Understand the importance of a code of ethics and describe ethics and the HR manager.

Foundations Religious organizations Community Development (Source: Social Investment Forum)    .3 Changing Attitudes Toward Social Responsibility and Business Ethics  It includes…….

.  Most of 500 largest U. managers will need to be more socially responsible.4 Changing Attitudes Toward Social Responsibility and Business Ethics  To meet society’s expectations. corporations now have a code of ethics.S.

acting in their official capacity. enforced. or felt obligation of managers.Corporate Social Responsibility (CSR) 5 Defined The implied. Simple Terms: How a company behaves towards society . to serve or protect the interests of groups other than themselves.

do what’s right! .Corporate Social Responsibility 6 What is Rule 14? When in doubt.

Corporate Social Responsibility 7 Companies leading the charge Patagonia (1% of net sales for socially and environmentally initiatives) Norm Thompson Keen Footwear Timberland Footwear Nike .

Legislating Ethics and Social Responsibility 8  Procurement Integrity Act of 1988 --passed after reports of military contracts for $500 toilet seats Federal Sentencing Guidelines for Organizations (FSGO) --softer punishments for companies that have an ethic program in place  .

Stakeholder Analysis and the Social Contract  Worker Adjustment and Retraining Notification Act of 1988 --firms employing 100 or more to give 60 -days notice when a plant is closing or layoffs off affecting 50 or more 90 days notice 9 .

Responsibility and Transparency Act --known as Sarbanes Oxley Act. primary focus is to redress accounting and financial reporting abuses in light of recent corporate scandals --provides a whistle-blower protection .10 Legislating Ethics and Social Responsibility (Continued)  Corporate and Auditing Accountability.

Legislating Ethics and Social Responsibility 11    What is new in corporations: 90% have written ethics program Hired an Ethics Officer --Collaborate with Management --Implement strategies to reinforce conduct --Work with employees across all levels to determine the right course of action  Holding professionals accountable .

The Social Contract 13 Individuals Other Organizations The Organization Government Society .

Social Audit Systematic assessment of a company’s activities in terms of its social impact 17 .

Social Audit Three Types  Inventory of activities --Minority employment and training Compilation of social expenditures --Corporate giving's Social Impact --Involvement in selected communities   18 .

or with moral duty and obligation Sources of Ethical Guidance --a number of sources to determine what is right or wrong. or right and wrong. good or bad.Ethics 19  What is Ethics? --Discipline of dealing with what is good and bad. moral or immoral  .

A MODEL OF ETHICS 21 Sources of ethical guidance Lead to Our beliefs about what is right or wrong Determine Our actions Type I Ethics Type II Ethics .

Human Resource Ethics 22  The application of ethical principles to human resource relationships and activities  A Code of Ethics --establishes the rules by which the organizations lives .

we are responsible for adding value to the organizations we serve and contributing to the ethical success of those organizations .Ethics and HR Manager 25 The Role  Restore trust in the organization  Help instill ethical practices in cultural SHRM Code of Ethics As HR professionals.

Ethics and HR Manager 27 What Can HR Do? .

Ethics and HR Management 28 2 areas where HR can have a major onCorporate ethics Ethics Two Areasimpact Impact on Corporate Governance Executive Compensation .

Ethics Case Study 31  Read HRM Incident 1: An Ethical Flaw  Discuss and answer questions related to case study .