ETHICS IN OPERATIONS

MANAGEMENT

WHAT ARE WE UP TO THIS LESSON?

Management is expected to act honestly and fairly (ethically), and take a business perspective that includes concern for the condition of society in general. (This means that they must be socially responsible, which includes environmental concerns). These are values of ESM/CSR/ESR.

FIRST: ON TERMINOLOGY…….

Be aware that ESM/CSR/ESR are used interchangeably in articles and texts. They basically cover the same area:

CSR=Corporate Social responsibility

ESM and ESR= Ethical and Social Responsibility Management.

LEARNING INTENTIONS

Students will be able to:1. Explain how each component of the

operations system (inputs, process, outputs) present ethical and social responsibility choices

2. Identify and suggest tactics organisations can use to meet their CSR commitments

3. Describe the positive benefits arising from CSR

1. ETHICS IN THE OPERATIONS SYSTEM

Here we examine each of the elements of operations for typical situations that require management to deal with issues in an ethical and socially responsible way, that is, to apply CSR/ESM/ESR.

INPUTSTRANSFORMA

TION PROCESS

OUTPUTS

1. ETHICS IN THE OPERATIONS SYSTEM

Let’s try and sort some CSR/ESM issues into the operation system component that they would fall into the realm of.

Use the A3 sheets to sort the issues into their respective component areas.

Pineapples for WinnerINPUTS

TRANSFORMATION

PROCESSOUTPUTS

2. ETHICAL AND SOCIALLY RESPONSIBLE TACTICS

• Sustainability• Health and Safety of

employees• Waste Minimisation• Supplier and customer

relationships

Avoid depleting unsustainable resources

Companies switching their power sources to carbon neutral/green sources

Organisations are involved in replenishing resources to compensate for their use.

Sustainable logging – using plantations and not old-growth forest

1. SUSTAINABILITY

Open up to today’s Wiki and read and complete the logging activity.

1. SUSTAINABILITY

• Organisations have a moral and legal responsibility for the health and safety of all employees

• Such as ensuring that there is adequate safety procedures, policies and equipment (Occupational Health & Safety or OH&S)

• Also means adequate compensation if employees are injured in a workplace incident

2. HEALTH AND SAFETY OF EMPLOYEES

Organisations should at all times attempt to minimise the waste and pollution that they create.

For instance Mercedes Benz is able to recycle every part of their old cars thereby reducing the amount of waste they ultimately create.

3. WASTE MINIMISATION

A EMS is a series of policies and practices that focus on an organisation’s approach to environmental issues.

It is an externally accredited policy (ISO 14001) that shows the organisation has accepted responsibility for environmental issues.

4. ENVIRONMENTAL MANAGEMENT SYSTEMS

Go to today’s wiki and complete the “ISO 14000” Activity.

4. ENVIRONMENTAL MANAGEMENT SYSTEMS

Consider the link (Wiki) on McDonald’s CSR.

In your workbooks jot down some of their CSR activities and also some of the KPIs they use in the measurement of some of these activities. When possible, group them by stage in the operations system.

CASE STUDY

3. POSITIVE BENEFITS OF CSR• improved financial performance (efficiency

savings)

• identification of new products and new markets

• enhanced brand image

• increased sales and customer loyalty

• improved staff motivation, recruitment and retention performance

• improved government relations & reduced regulatory intervention

• reduced costs through environmental best practice leading to more sustainable profitability.

LEARNING INTENTIONS

Students will be able to:1. Explain how each component of the

operations system (inputs, process, outputs) present ethical and social responsibility choices

2. Identify and suggest tactics organisations can use to meet their CSR commitments

3. Describe the positive benefits arising from CSR

LINKING THE LEARNING INTENTIONS

Complete Qs 1-5 on page 137

HOMEWORK – ALL ON TODAY’S WIKI

Complete notes template.

Read over CSR article and answer questions

Try playing through the online CSR game (link on Wiki)