MEANING AND SCOPE OF SOCIAL RESPONSIBILITY

Introduction

1. What are the responsibilities of business organizations?

2. How many of these responsibilities must managers fulfill?

MEANING AND SCOPE OF SOCIAL RESPONSIBILITYApproaches to social responsibility- Several

views have been developed of the responsibilities of business e.g.

Milton Friedman, Archie Caroll, and Andrew Carnegie.

MEANING AND SCOPE OF SOCIAL RESPONSIBILITYFriedman is of the view that the social

responsibility of business is to increase profit within the requirements of the law.

If a business person acts “responsibly” by cutting the price of the firm’s produce to prevent inflation, by making expenditures to reduce pollution, or by hiring the hard-core unemployed, that person is spending the shareholders’ money for a general interest.

MEANING AND SCOPE OF SOCIAL RESPONSIBILITYArchie Carroll is of the view that managers of

business organisation have four responsibilities:

economic, legal, ethical, and discretionary.

MEANING AND SCOPE OF SOCIAL RESPONSIBILITYEconomic responsibilities are to produce

goods and services of value to society so that the firm can repay its creditors and stockholders.

Legal responsibilities are defined by government in laws that are expected to be obeyed

MEANING AND SCOPE OF SOCIAL RESPONSIBILITYEthical responsibilities are to follow the

generally held beliefs about how one should act in society.

Discretionary responsibilities are the purely voluntary obligations a corporation assumes, i.e. philanthropic contributions. The difference between ethical and discretionary responsibilities is that few people expect an organisations to fulfil ethical ones.

MEANING AND SCOPE OF SOCIAL RESPONSIBILITYAndrew Carnegie, the founder of US Steel

Corporation, views corporations’ social responsibilities on two main principles: The Charity Principle and The Stewardship Principle.

1. The charity principle require the more fortunate members of society to assist its less fortunate members, including the unemployed, the handicapped, the sick and the elderly.

MEANING AND SCOPE OF SOCIAL RESPONSIBILITYThe stewardship principle required

businesses and wealthy individuals to view themselves as the stewards, or caretakers, of their property. Carnegie holds the idea that the rich hold their money “in trust” for the rest of society and can use it for any purpose that society deems legitimate.

DEFINITIONS OF CORPORATE SOCIAL RESPONSIBILITY ( CSR)

Forstater et al. (2002) define CSR as:“ a company’s actions that contributes to

sustainable development through the company’s core business activities, social investment and public policy debate.”

DEFINITION OF CSR (CON’T)

McWilliams and Siegel (2001) define CSR as: “actions that appear to further some social good beyond the interest of the firm and which are required by law.”

DEFINITION OF CSR (CON’T)Corporate social responsibility may be

defined in this course as:“ A business strategy which involves a business

identifying its stakeholder groups, and going beyond its legal obligations to incorporate their needs and values into the day-to-day decisions and activities of the organisation”.

KEY CONCEPTS

Some key words appear in these definitions:StakeholderConcerns/ needsVoluntary

THE PRICNCIPLES OF CSREffects of organisations’ activities on societyAs a result of these effects, three principles

form the justification for CSR engagements by firms:

1. Sustainability 2. Accountability 3. Transparency

PRINCIPLES OF CSR SustainabilitySustainability implies that society must at all

times use no more of its resources than can be generated. It is concerned with how the actions of the present have recurring effects upon the opportunities of the future.

PRINCIPLES OF CSR (CON’T) Accountability

Here an organisation must recognise that its actions generally affect the external environment and therefore assume responsibility for the effects of its actions.

PRINCIPLES OF CSRTransparencyTransparency, in principle, means that all

acts are obvious or communicated to all concerned. As a principle of CSR, transparency indicates that organisations make clear all reports of their actions and that those reports, whether in facts or figures, give accurate and detailed information of the relevant information.

CRITICISMS /ARGUMENTS AGAINST CSRFriedman (1962) argues that the only social

responsibility of business is to make profit within the law. Some arguments against CSR are based on the following issues:

“The business of business is business.” Useless PR exercise The idea of theft Lack of Regulation of CSR

CRITICISMS/ARGUMENTS AGAINST CSRImposes unequal cost to organisations

CRITICISMS/ARGUMENTS FOR CSR Arguments in favour of firm CSR

engagements are based on:Interdependence of firm and societyStakeholder interest may transcend financial

benefitsBenefits of CSR- (1)Helps attract qualified staff (2) Minimizes government intervention

ARGUMENTS FOR CSRImproves Corporate Image – GoodwillLeads to improved financial performance

PROMINENCE OF CSRKey drivers of CSR engagements in

recent years have been identified as:Sustainable developmentGlobalizationGovernance ( UN, OECD, Signing of

Compacts)Corporate sector impactCommunications (Technological

Advancement)Ethical consumerism

PROMINENCE OF CSR (CON’T)Finance (pressure from investors)Strategic Business ToolSocial awareness and educationCrises management

FORMS OF CSR ISSUESAreas of Social Responsibility Concerns:Concern for ConsumersAre products safe and well designed?Are products priced fairly?Are advertisements clear and not deceptive?Are credit terms clear?Is adequate product information available?Are customers treated fairly by salespeople?

FORMS OF CSR (CON’T)Concern for EmployeesAre employees paid fair wages?Are employees provided safe work environment?Are workers hired, promoted, and treated fairly

without regard to sex, race, colour, or creed?Are employees given special training and

educational opportunities?Are handicapped people given employment

opportunities?Does the business help rehabilitate employees

with physical, mental, or emotional problems?

FORMS OF CSRConcern for EnvironmentIs the environment adequately protected

from unclean air and water, excessive noise, and other types of pollution?

Are products and packages biodegradable or recyclable?

Are any by-products that pose a safety hazard to society (such as nuclear waste or commercial solvents) carefully handled and properly treated or disposed of?

FORMS OF CSRConcern for Society in GeneralDoes the firm supports minority and

community enterprises by purchasing from them or subcontracting to them?

Are donations made to help develop and support education, art, health, and community development programmes?

Is the social impact of plant locations or relocations considered by managers who make those decisions?

CORPORATE SOCIAL INITIATIVESWhat is corporate social initiatives?

Kotler and Lee (2005) who defined corporate social initiative as “ major activities undertaken by a corporation to support social causes and to fulfill commitments to corporate social responsibility.”

CORPORATE SOCIAL INITIATIVES (CON’T)

The second is from Hess et al. (2002, p. 110), who said, social initiative in the business context is defined here as any program, practice, or policy undertaken by a business firm to benefit society.

CORPORATE SOCIAL INITIATIVES (CON’T)Options for Doing GoodSix major initiatives under which most social

responsibility-related activities fall have been identified by Kotler and Lee (2005) as:

Cause promotionsCause-related marketingCorporate social marketing Corporate philanthropyCommunity volunteering and Socially responsible business practices

CORPORATE SOCIAL INITIATIVES (CON’T) Cause promotions A corporation provides funds, in-kind

contributions, or other corporate resources to increase awareness and concern about a social cause or to support fundraising, participation, or volunteer recruitment for a cause. The corporation may initiate and manage the promotion on its own; it may be a major partner in an effort; or it may be one of several sponsors.

CORPORATE SOCIAL INITIATIVES  Cause-Related Marketing (CRM) Cause related marketing has been defined as the

process of formulating and implementing marketing activities that are characterized by an offer from the firm to contribute a specified amount to a designated cause when customers engage in revenue-providing exchanges that satisfy organizational and individual objectives. (Varandarajan & Menon 1998, p. 60).

In adopting CRM, a corporation commits to making a contribution or donating a percentage of revenues to a specific cause based on product sales.

CORPORATE SOCIAL INITIATIVES (CON’T) Corporate Social MarketingA corporation supports the development

and/or implementation of a behavior change campaign intended to improve public health, safety, the environment, or community well being. The distinguishing feature is the behavior change focus, which differentiates it from cause promotions that focus on supporting awareness, fundraising, and volunteer recruitment for a cause.

CORPORATE SOCIAL INITIATIVES (CON’T) Corporate PhilanthropyA corporation makes a direct contribution to

a charity or cause, most often in the form of cash grants, donations, and/or in kind services. This initiative is perhaps the most traditional of all corporate social initiatives and for many decades was approached in a responsive, even ad hoc manner.

CORPORATE SOCIAL INITIATIVES Community VolunteeringA corporation supports and encourages

employees, retail partners, and/or franchise members to volunteer their time to support local community organizations and causes.

CORPORATE SOCIAL INITIATIVES (CON’T)  Socially Responsible Business PracticesA corporation adopts and conducts

discretionary business practices and investments that support social causes to improve community well-being and protect the environment. Initiatives may be conceived of and implemented by the organization or they may be in partnership with others.

CAUSE PROMOTIONSDifferences Between Cause Promotions and

other forms of corporate social initiativesIt differs from cause-related marketing in that

contributions and support are not tied to company sales of specified products.

It differs from social marketing in that the focus is not on influencing individual behavior change. Although cause promotion campaigns have calls to action, they are most commonly in the areas of contributing, such as by donating money or time or by signing petitions.

CAUSE PROMOTIONSIt differs from philanthropy in that it involves

more from the company than simply writing a check, as promotional campaigns will most often require involvement in the development and distribution of materials and participation in public relations activities, and will include visibility for the corporation's sponsorship.

Although a cause promotion may include employee volunteerism, it goes beyond this to participating as well in the development and implementation of promotional materials.

CAUSE PROMOTIONS (CON’T)Typical cause promotions Corporate cause promotions most commonly focus on the

following communication objectives. Cause promotion programmes are of the following forms:  

Building awareness and concern about a cause by presenting motivating statistics and facts; by sharing real stories of people or organizations in need or who have been helped by the cause.

Persuading people to find out more about the cause by visiting a special web site or by requesting an informational brochure or tool kit.

CAUSE PROMOTIONS (CON’T)Persuading people to donate their time to help those in

need.Persuading people to donate money that will benefit a

cause. Persuading people to donate nonmonetary resources,

such as unwanted cell phones and used clothing.Persuading people to participate in events, such as

attending an art show featuring minority professional photographers, participating in a fundraising walk, or signing a petition to ban or promote a social an issue

CAUSE PROMOTIONSBy their very nature, cause promotion activities have a

common theme of communications. They utilize publicity, printed materials, special events, web sites, and advertising, featuring the logo and key messages of the company as well as those representing the cause.

CAUSE PROMOTIONSPotential corporate benefits:Strengthens Brand Positioning Builds traffic and customer loyaltyCreates brand preference with target marketsProvides customers convenient ways to contribute and

participate in social causesProvides opportunities for employees to get involved in

something they care aboutCreates partnerships with societyStrengthens corporate Image

CAUSE PROMOTIONSWhen should a corporate cause promotion be

considered?When a company has easy access to the target markets. When the cause can be connected and sustained by a

company's products.When the opportunity exists to contribute underutilized

in-kind services, such as in-house printing or corporate expertise.

When employee involvement will support the cause and employees get excited.

CAUSE PROMOTIONDeveloping a cause promotion campaign

plan:Identify campaign partners (if needed)Design a campaign plan -Develop a creative briefComponents of creative brief:1. Target audiences2. Communication objectives: This is a statement of what

we want our target audience to know (facts, information), believe (feel), and perhaps do (e.g., donate or volunteer for a cause), based on exposure to our communications

CAUSE PROMOTION3.What benefits to promise?4. Openings. This refers to the times, places and situations

when the audience will be most attentive to and able to act on the message.

5. Positioning and requirements. This section describes the overall desired tone for the campaign (e.g., serious versus light hearted), as well as requirements such as the use of corporate logos.

6. Campaign goals e.g., desired reach and frequency goals, number of people to sign up for the race.

CAUSE-RELATED MARKETINGMeaning of Cause-Related Marketing (CRM)Key features:1. Link with product sales or transaction2.Corporate contribution is conditional- dependent on

sales or transaction3. Requires a formal agreement and coordiation with

charity organisation4. Requires co-branding advertisements, and tracking

consumer purchases and activities.5. involves more promotion, especially paid advertising

CAUSE-RELATED MARKETING Typical corporate cause-related marketing initiatives include:1. A specified cedi amount for each product sold 2. A percentage of the sales of a product or transaction is pledged to the charity.3. A portion of the sale of an item, sometimes not visibly disclosed, will be donated to

a charity.4.The company matches consumer contributions related to product-related.

5.It may be for a specific time frame or open-ended 6. The corporation may decide to set a ceiling for their contribution from sales (e.g.

Lysol contributing five cents for each product coupon redeemed, up to Gh 225,000).

7. The offer may be for a specific, designated product or for several or all products

CAUSE-RELATED MARKETINGWhen should a cause-related marketing (CRM)

initiative be considered?Those with products that enjoy a large market or mass

market appeal.Have well-established and wide distribution channels.Product differentiation that offers consumers an

opportunity to contribute to a favorite charityWhen increased product sales, visibility, or co-branding

with a popular cause would support corporate marketing objectives and goals for a product or products.

CAUSE-RELATED MARKETINGIt may also be most successful in situations where a

company has an existing, ideally long-term association with a cause or charity and then adds this initiative to the lineup, in an integrated fashion.

 

CAUSE-RELATED MARKETINGSteps in Cause-Related Planning ProcessSituational Assessment:1.identifying the company's marketing needs2. identifying a social issue to support: What are the major

social concerns of target markets? Of these, which one is most closely aligned with the company's core values and has the strongest potential for connections with products that would support marketing objectives.

3. potential partners are explored. How large is their membership or donor base and what is their reputation in the community.

CAUSE-RELATED MARKETINGSetting Objectivesquantifiable goals, e.g. Increase in sales, desired

fundraising levels.Selecting Target Audiences 1. Identify their characteristics,2. needs, and3.media consumption habitsDetermine the Marketing Mix (4Ps or 7Ps)Developing BudgetImplementation and Evaluation Plans

CORPORATE PHILANTHROPY Meaning and Forms of Corporate Philanthropy Corporate philanthropy may be defined as a direct contribution by

a corporation to a charity or cause, most often in the form of cash grants, donations and/or in-kind services (Kotler and Lee, 2005).

Typical Philanthropic ProgramsProviding cash donations Offering grantsAwarding ScholarshipsDonating productsDonating servicesProviding technical expertiseOffering the use of equipment

CORPORATE PHILANTHROPYBenefits of Corporate Philanthropy:

Reputation as Corporate CitizenReputation for Consumer CentricityReputation as an Ethical OrganisationBuilding and Securing a Strong Brand PositionStrengthening the Corporation's Industry

CORPORATE PHILANTHROPYPotential Concerns of Philanthropic Programmes:Selecting the Social Cause- Reputation of charity

organisationImplementing Corporate Philanthropic Porgramme-

Monotoring the use of donations for intended purpose. Difficulty in quantifying donations that are in kind.

CORPORATE PHILANTHROPY Key Success Factors (KSFs) of Corporate

Philanthropy:Align corporate giving with business activities.Clarify the role of officers and directorsEstablish standards of independent for board

membersMeasure financial and social performance. Communicate ResultsCelebrate Success

CORPORATE PHILANTHROPYDeveloping Philanthropic Endeavors The process begins with reference to already established

philanthropic priorities, those that have been chosen by the company as areas of focus based on a variety of factors including business goals, employee passions, and Customer concerns.

Determining levels of contributions Developing a communication plan establish monitoring and evaluation system to keep track of

total cash contributions, estimate the value of any service, and, provide feedback on programmes and impacts on society.

Design tracking and measurement tools.

COMMUNITY VOLUNTEERING Meaning of Community VolunteeringCommunity volunteering is an initiative in which the

corporation supports and encourages employees, retail partners, and/or franchise members to volunteer their time to support local community organizations and causes Kotler and Lee (2005).

Volunteer efforts may include employees volunteering their expertise, talents; ideas, and/or physical labor. Corporate support may involve providing paid time off from work, matching services to help employees find opportunities of interest, recognition for service, and organizing teams to support specific causes the corporation has targeted.

Typical Community Volunteering ProgrammesCorporate support for employee volunteering

ranges from programs that simply encourage their employees to give back to their communities to those representing a significant financial investment and display of recognition and reward. Examples representing types of support include the following:

Promoting the ethics through corporate communications that encourage employees to volunteer in their community and that may provide information on resources to access in order to explore volunteer opportunities.

Typical Community Volunteering ProgrammesSuggesting specific causes and charity that the

employee might want to consider and providing detailed information on how to get involved, often with causes and charities supported by other current social initiatives.

Organizing volunteer teams for a specific cause or event, such as blood donations to a hospital, breast cancer screening.

Providing paid time off during the year to do volunteer work with typical benefits ranging from offering two to five days of annual paid leave to do volunteer work on company time, to more vigorous programs that provide opportunities for an employee to spend a year on behalf of the company working in developing country.

Typical Community Volunteering ProgrammesAwarding cash grants to charities where employees

spend time volunteering; grant amounts are then often based on numbers of hours reported by employees.

Recognizing exemplary employee volunteers through gestures such as mentions in internal newsletters, awards of service pins or plaques, and special presentations at department or annual company meetings.

NB: Types of projects that employees volunteer in range from those that contribute to a local community to ones that improve health and safety for individuals, to those that protect the environment

Potential Benefits of Community VolunteeringThis initiative creates a win-win-win situation for

employees, society and the organization.Employees BenefitsIt provides unique opportunity for employees to

contribute directly to society in areas of social concern they are personally interested in.

It gives relief to employees from the pressure of their normal working routine, which may be a form of stress relief.

Increasing employee satisfaction and motivation. A company's reputation for community involvement, including support for employees to volunteer for causes, can influence their morale, as well as their choices about where they work.

Organisational BenefitsBuilding genuine relationships in the

community Contributing to business goalsEnhancing Corporate Image Providing opportunities to showcase products

and services 

Potential ConcernsSpecific Nature of Concerns This can get expensive. With so many employees, efforts may get spread

over so many issues that we don't really make a social impact.

Similarly, when efforts among employees are dispersed throughout the market, even the globe, how do we realize business benefits for company as well

Being able to track efforts and outcomes for this initiative can be the most difficult of all.

Key Success Factors (KSFs) of Community Volunteering ProjectsThe following factors are useful to serve as a guide:When selecting a social issue: Choose issues and organizations that are relevant

to the lives of the company’s employeesConduct due diligence, learn from history but

always innovate. It is critical to learn from past efforts by companies and foundations.

Support causes and projects that improve the social and economic environment in the locations where the company has its physical facilities.

KSFs of Community Volunteering ProjectsEnsure that the projects, issues and

organizations supported reflect the values of the company and have the support of senior leadership involvement, including the CEO and chairman of the board.

KSFs of Community Volunteering ProjectsWhen developing the programme planEngage employees throughout the company in the

effort- employees at the top, middle, and bottom.Develop partnership between Community Affairs and

brand the managersCollaborate with community organizations that are

behind the most innovative responses to the social issue.

Make sure there is a connection between the effort and the core of the company. In our case we endeavored to connect our employees to programmes they were already broadly aware of, had significant interest in, and were able to partner with.

 

KSFs of Community Volunteering ProjectsWhen implementing the programmeStay committed to the issue for an extended

period of time instead of jumping around between different causes. Positive change takes time, requiring a long-term investment. Be patient, many of the benefits of supporting worthy causes are not immediately evident.

Make sure you don't compromise the content of what you do. Keep your eye on the most valued customer, which must be the community in which you are engaged. Provide your employees with the tools and resources they need to be successful,

Include promotional strategies. To reach employees and the community you are serving, you must publicize your programs both internally and externally and capitalize on efforts to recognize and share employee contributions and effective practices whenever possible. However, let the organization or community receiving support from the company tell the story of the company’s involvement.

Develop and implement measurement systems. Independent process and outcome evaluations must be in place to determine what is working and what is not, and the type of resource investments that will help you to be successful.

When is Community Volunteering Ideal?When current social initiatives would benefit from a

volunteer component.When a group of employees express an interest in a

specific cause that has strong connections with business and corporate citizenship goals

When a community need emerges, especially an unexpected one that is a good match for the resources and skills of a workforce.

When technological advances make it easier to match employees to volunteer, opportunities.

When a strong community organization approaches a business for support, represents an issue of interest to employees, and has a natural connection to strategic corporate citizenship and business goals.

When a volunteer effort might open new markets or provide opportunities for new product development and research.

Community Volunteering Programme Development Process Develop guidelines for employee involvement.Determine types and levels of employee support.Develop an internal communications plan. Develop a recognition plan. Develop an external communications plan.Develop a plan for tracking and assessment.

THE PHILOSOPHY OF CORPORATE ETHICSWhat is Ethics? Brady (1986) refers to ethics as “those standards

or morals a person sets for himself or herself regarding what is good and bad or right and wrong”.

Ethics is defined as “.... an individual’s personal beliefs regarding what is right and wrong or good or bad”.

Distinguish ethics from involuntary actions- carefully reasoned out actions.

The need for ethical behaviour has resulted in code of ethics for various occupations e.g teachers, doctors etc.

The Origins of Ethics

Religious DoctrinesLawScienceStudy of Society Power of Authority

Arguments underpinning ethicsDeontological EthicsAccording to deontologists (those who argue

from this stand), certain actions are right or wrong in themselves- these we are aware of without being told; thus making legitimate the claim that there is an underlying innate code of ethics that must be obeyed or upheld.

The problems with this positions are concerned with how we know which acts are wrong and how we distinguish between a wrong act and an omission.

Arguments underpinning ethicsTeleological EthicsTeleologists, however argue that what

determines a good act, is the outcome of that act. Therefore if the outcome is good then the act is deemed as good. It distinguishes between ‘the right’ and ‘the good’, with ‘the right’ encompassing those actions which maximize ‘the good’. It is like the expression, ‘The end justifies the means’.

Arguments underpinning ethticsUtilitarianismUtilitarianism, similar to teleologists, posits

that outcomes are all that matter in determining what is good and that the way in which a society achieves its ultimate good is through each person pursuing his/her own self interest. The philosophy states that the aggregation of all these self interests will automatically lead to the maximum good for society at large.

Ethical relativism and objectivism

Relativism is the denial that there are certain universal truths or moral principles. Two forms exist:

‘Conventionalism’, which argues that a given set of ethics or moral principles which define what is moral behaviour and ethical standards are set, not absolutely, but according to the dictates of a given society at a given time and are only valid within a given culture at a particular time

‘Subjectivism’, that sees individual choice as the key determinant of the validity of moral principles.

  

conventionalismDifficulty with conventionalism are:

Ethical standards change over time within one society and vary from one society to another.

There exist several ethical codes belonging to several other bodies within any one society, as such what determines which ones one must conform to. This results in conflict with standards of society.

ConventionalismTendency to behave differently at different times

and when we are with different groups of people.

Objectivism on the other hand is in direct opposition to ethical relativism and holds the view that although moral principles may differ between cultures, some moral principles have universal validity whether or not they are universally recognized. There are two key variants of ethical objectivism: ‘strong’ and ‘weak’.

ObjectivismStrong objectivism hold the view that certain

actions that are intrinsically, universally and unconditionally unethical.

Weak objectivism however holds the view that certain actions may have wide application but are intrinsically, universally and unconditionally unethical.

Ethics and BusinessNeed for business managers to achieve

organisational objectives while being ethical. For example, one classic study of business

ethics reported that at some point in their careers 75% of the responding managers felt a conflict between profit and considerations of being ethical (Baumhart, 1961). Later studies noted that the majority of managers also felt that this pressure to be unethical (Steven et al., 1977).

Forms of unethical practices

Manufacture of wholesome productsIllegal Business PracticesMethod of Management (e.g. Organised

criminal management Enron).Business and Sex

Understanding ethics as a practice

Consequently, several ethical maxims are used as the theoretical foundation for a variety of industry statements on ethics. Typical of the more simplistic maxims are:

The utilitarian principle- Act in a way that results in the greatest good for the greatest number.

The professional ethics- Take only actions that would be viewed as proper by a disinterested panel of professional colleagues.

Ethical maxims The golden rule – Act in the way you would

expect others to act towards you. Kant’s categorical imperative- Act in such a

way that the action taken under the circumstances could be a universal law or rule of behaviour. 

The TV test – A manager should always ask, ‘Would I feel comfortable explaining to a national TV audience why I took this action?

Management of human resource and ethics

Building an Ethical Foundation for the Employer-Employee Relationship

Despite the common corporate mantra that “people are our greatest asset,” many workers feel unappreciated or underutilized (or both) in their jobs, and many managers tend to view their employees as their job titles rather than as individuals.

There are four elements of employer-employee relationship critical to the creating an ethical workplace environment:

Fairness: Employees at every level should be held to the same standards of conduct. If high performers are allowed to get away with unethical behaviour, other employees’ morale and thus productivity and ethical standards will suffer.

Communication: Most companies are pretty good at sharing information from the top down. But the companies with the best workplace environment also allow communication to flow from the bottom up. Top management cannot fix a problem if they are not aware of it, and employees are the most likely sources of information about problems that can affect a company’s health.

Respect: Employees deserve consideration as individuals rather than simply as cogs in the company machine. Recognizing individuals’ talents, skills, and goals helps develop employees into even more valuable members of the organization, which, in turn, helps a company thrive.

Trust: Many mangers cling to the notion that people do not like to work and will goof off at any opportunity. Yet various studies have shown that employees who telecommute tend to work more hours (an average of 58 hours per week, compared to the standard 40 in-office hours) and are more productive than their cubicle-bound counterparts. Certainly, companies will always have some employees who require more supervision than others.  

DiscriminationDiscrimination is the act of treating someone

differently – typically by restricting or excluding the person from opportunities that are available to others – solely because of that person’s membership in a certain class or category of people.

Discrimination almost always involves stereotyping, or making assumptions about an individual based on perceptions about the individual’s class or category as a whole. (E.g. Men stereotyped as rational, robust and strong; Women stereotyped as emotional and weak).

Common Types of Discrimination Ageism is discrimination against a person or a

group of people based on assumptions about age-related limitations. Both young and old- experience, strength,

Disability discrimination: Unfair treatment based on physical or mental disabilities also is ethically unsound. Employees with genuine disabilities, whether they are temporary or permanent, often appreciate managers’ efforts to make life a little easier for them.

Gender discrimination: Gender discrimination usually (but not always) involves less favourable treatment of women in the workplace. Women may receive lower wages for the same work that men perform, for example, or they may be passed over for promotion to senior or executive-level positions.

Men can be subjected to gender discrimination, too. Employers may deny men’s requests for time off to attend to family matters like doctor’s appointments or school activities, for example, while routinely granting such requests from female workers.

Racial and ethnic discrimination: Racial and ethnic discrimination most often refers to unfair treatment from an employer, such as refusing to hire a Ghanaian to certain jobs in the country or paying them lower wages even if they have the same qualifications and experience as an expatriate. This is often the case for the Black Stars coaching job.

Religious discrimination: Religious discrimination refers to treating people differently because of their religious beliefs and practices.

Do businesses have to provide paid time off to allow certain employees to pray several times a day?

Ensuring Employee Safety

Businesses have a legal and moral obligation to provide safe work environments for their employees and produce safe goods and services for their customers.

The price for neglecting safety can include:Civil fines for violating safety laws and regulationsCriminal charges and penalties for negligence and

other behavior that meets the threshold for criminality

Judgments and awards to victims and their families

Increased regulations or government supervision of operations

Expenses for implementing mandated safety or remedial measures

Consumer boycotts of products and services Loss of trust among customers, stockholders,

employees, and potential investorsBankruptcy