Business Ethics Final
Four-way test
*Taylor gave rotary the right to use the test and retained the rights to use it for himself, his club, and the Christian workers foundation *Framework of social responsibility - FOUR WAY TEST *The more the individual strives to use these guidelines, the more salient they become to his choice
Ben and Jerry's
-"linked prosperity" between the company, its employees, and the community -give back to charitable organizations in the corporate world, -donate 7.5% of pretax profits -"strive to show a deep respect for human beings inside and outside the company and for the communities in which they live." -Unilever bought this company in 2000; it donated $2million in 2009.
International definition for social enterprise
-"not for profit is a misleading criterion." It is good practice for social enterprises to provide incentives to workers, and social and community investors through dividends.
Friedman's critics 2
-A third objection criticizes his claim that the executive's core responsibility is to run the corporation as stockholders want it to be run. -In reality the executive probably has no idea how stockholders want the company to be run, and legally, anyway, he is required to run the company in ways that serve many other interests (including employee interests and consumer interests) besides those of stockholders. -Finally, some have argued against Friedman's view that by seeking to maximize shareholder returns, the corporation will best serve society. -Sometimes competitive forces fail to steer companies in a socially beneficial way and instead lead them to act in a socially harmful manner. -For example, a company might knowingly pollute a neighborhood with substance that is not yet illegal, in order to save the costs of reducing its pollution and thereby be more competitive.
Is it fair to all concerned?
Second
Resources
What resources are needed?
Time frame
When will this be accomplished?
Responsibility
Who's going to accomplish that objective
Remarks
Accomplised or not accomplished
The Coconut House
-"It's not just a business, but part of my advocacy," Jun Castillo is quick to clarify when talking about this, a restaurant tucked amidst the lush greenery of the Quezon Memorial Circle. Castillo has spent the past 30 years working with and defending the rights of coconut farmers. -Jn Castillo's business adds in keeping domestic and international focus on the coconut. It offers dishes that all use coconut and are all organic. Castillo's the Ice Cream House, with eighty-five outlets in Luzon, also uses coconuts. -"I encourage farmers to form cooperatives," Castillo says of his advocacy. "If they are able to do this, they will make more than what they are earning from copra." -The ultimate goal, he says, is to achieve social emancipation. "I want to transfer this business sense to the farmers... They can empower themselves without help of the government." -Castillo openly shares the processes and dishes he has developed with everyone, freely and without fear of competition. -He calls his endeavor a social enterprise wherein the business is established to help people as well as earn - a concept that is several steps beyond the usual corporate social responsibility projects of most companies -"We do business to help the country. We put the profits we make back into our social activities. That's the type of business we want to encourage."
Sustainable development
-"development that meets the needs of the present without sacrificing the right of future generations to fulfill their needs" -Achieving SUSTAINABILITY has become a central issue of our time. -In building sustainable communities, just as in the challenge of poverty alleviation or eradication, the field of business and economics is called to account: a call for a re-thinking of the role of business in society, especially in the design and implementation of sustainability practices seems to be in order. -This responsibility becomes all the keener in Asia, most especially in the so-called "bottom-of-the-pyramid" (BOP) countries, where people living under $2 per capita income per day can hardly get hold of even the barest necessities. -Main question: How can you run a business that booms while also giving back to the community?
Businesses with a strong sense of purpose are more successful
-A true vision for a busines rests on foundations on both purpose and values, people within the business has to be passionate with what they do and how they do it, create products that serve causes that clearly add value in the world; allows employees to feel good about the company they work for, purpose and values unify and motivate; gives a company a solid foundation on which to make decisions; if you have no code of ethics or structure for the organization, its hard for people to make decisions, purpose and values encourage loyalty and a strong culture
Friedman's shareholder view of CSR
-According to Friedman's shareholder view of corporate social responsibility, a manager has no right to give company money to social causes when doing so will reduce shareholder's profits because that money does not belong to the manager but to the shareholders.
Developing action plans (or work plans)
-Action plans specify the actions needed to address each of the top organizational issues and to reach each of the associated goals, who will complete each action and according to what timeline. -Develop an overall, top-level action plan that depicts how each strategic goal will be reached. -Develop an action plan for each major function in the organization, e.g., marketing, development, finance, personnel, and for each program/service, etc. -These plans, in total, should depict how the overall action plan will be implemented. In each action plan, specify the relationship of the action plan to the organization's overall, top-level plan.
Friedman's argument 2
-Although Friedman does not think managers should use company resources to benefit others at the expense of shareholders, he does think that companies ultimately provide great benefits for society. -He argues that when a company tries to maximize stockholders' profits in a "free-enterprise" economy, competition will force it to use resources more efficiently than competitors, to pay employees a competitive wage, and to provide customers with products that are better, cheaper and safer than those of competitors. -So when managers aim at maximizing profits for stockholders in competitive markets, the companies they run will end up benefiting society.
Basics of action planning
-At this point in the strategic planning process, planners have usually already completed all or most of the strategic analysis, including the environmental scan, SWOT analysis, identifying strategic issues and goals. -They've probably already developed/updated the mission statement (and a vision statement and values statement, if they choose to add these).
Milton Friedman
-Basing himself on assumptions of private property and the free market, famously said that the only social responsibility of business is to create its profits. -He argued that corporate executives work for the "owners" of the company, and today these "owners" are the company's shareholders. -As their employee, the executive has a "direct responsibility" to run the company in accordance with their desires and in their best interest, which generally will be to make as much money as possible while conforming to the basic rules of the society.
Ethical responsibility
-Be ethical. Do what is right. Avoid Harm -f the business is not ethical, it will not be socially responsible
Economic responsibility
-Be profitable
Connecting, Building Trust
-Connecting consumers, creating a neutral zone where people can act as indivudals
Discretionary responsibility
-Contribute to the community; be a good corporate citizen
Total Corporate Social Responsibility Framework
-Discretionary Responsibility -Ethical responsibility -Legal responsibility -Economic responsibility -Need all these 4 in order to be socially responsible
Action plan to assist an existing small business enterprise
-Establish the purpose of the enterprise, including the value it brings to its community. -There is a flow of authority, responsibility and accountability throughout all enterprises. At the top of this flow are the owners or their representatives. The owners or representatives of an RBE follow a three-step process to establish policy guidelines for responsible governance. 1. First, they delegate some measure of authority to managers 2. Next, they establish the purpose of the enterprise, including the value it brings to the community 3. Third, they establish clear limitations or constraints on the exercise of the authority they granted.
-For many people, their first exposure to a corporation working for "good" was related to this company. -Google Green is a corporate effort to use resources efficiently and support renewable power. -But recycling and turning off the lights does more for Google than lower costs. Investments in these efforts have real-world effects on the bottom line. Google has seen an overall drop in power requirements for their data centers by an average of 50 percent. These savings can be redirected to other areas of business or to investors.
Susan B. Anthony (US)
-Fought for Women's Rights in the United States, including the right to control property and helped spearhead the adoption of the 19th amendment. -"I declare to you that woman must not depend upon the protection of man, but must be taught to protect herself, and there I take my stand." -"Independence is happiness." -"Men, the rights and nothing more, women, their rights, and nothing less.
Vinoba Bhave (India)
-Founder and leader of the Land Gift Movement, he caused the redistribution of more than 7,000,000 acres of land to aid India's untouchables and landless. -"If a man achieves victory over this body, who in the world can exercise power over him? He who rules himself rules over the whole world."-V. Bhave -"It is a curious phenomenon that God has made the hearts of the poor, rich and those of the rich, poor."-V. Bhave -"What we should aim at is the creation of people power, which is opposed to the power of violence and is different from the coercive power of the state.
Florence Nightingale (U.K.)
-Founder of modern nursing, she established the first school for nurses and fought to improve hospital conditions. -"I attribute my success to this - I never gave or took any excuse." -"Were there none who were discontented with what they have, the world would never reach anything better." -"It may seem a strange principle to enunciate as they very first requirement in a hospital that it should do the sick no harm"
Friedman's argument
-Friedman argues that the exercise of social responsibility by a corporate executive is: (1) unfair, because it constitutes taxation without representation; (2) undemocratic, because it invests governmental power in a person who has no general mandate to govern, (3) unwise, because there are no checks and balances in the broad range of governmental power thereby turned over to his discretion; (4) a violation of trust, because the executive is employed by the owners as an agent serving the interests of his principal; (5) futile, both because the executive is unlikely to be able to anticipate the social consequences of his actions and because, as he imposes costs on his stockholders, customers or employees, he is likely to lose their support and thereby lose his power.
Method
-How do we do it
Measures
-How we know what we are doing
Concrete Examples
-IBM's smarter planet -Shipoccles food w integrity *Stopped selling tobacco products and raised the min. Hourly pay) -HP printer - decision to center its turnaround to its employees and how it focuses its technology around the world -When speaking about profit, take a moment to talk about purpose.
Social Enterprise in the Philippines
-In December 1999, a group was organized called Social Enterprise Network. Its members, based in Metro Manila, include entrepreneurs, executives, and academics who believe in social entrepreneurship( setting up businesses by creating opportunities for the poor). -From the academe, a course "Social Entrepreneurship and Management" was first offered at the University of Asia and the Pacific School of Management in 2000. -This course was developed and taught by Dr. Jose Rene C. Gayo, then Dean of the School of Management. It was offered as an elective for the senior students of the Bachelor of Science in Entrepreneurial Management. -In March 2001, a seminar on "Social Enterprises: Creating Wealth for the Poor" was held at the University of Asia and the Pacific. -A social enterprise in the Philippines is Gkonomics International, Inc., a non-stock, non-profit organization, incorporated in 2009. They are a Gawad Kalingaw partner in social enterprise development. Their mission is building a new generation of producers.
Leveraging power by sharing it
-Jonathan Schwartz, president and CEO of Sun Microsystems said, "The old view of business is the boss trying to squeeze every last bit of work out of employees, worried they are ordering presents online. -I actually worry about the opposite, getting my people to take all the vacation time. -We have a system that notifies me when someone is about to lose vacation days because they haven't taken them in time. Every one of my direct reports is in danger.
Leader's moral influence
-Leaders shape the moral culture of their organizations---a culture that influences employees' behavior far more than corporate statements about values and ethics. -There may come a point when an organization's culture cannot bear the weight of leadership behaviors that are not based on virtue. -Consider the 2009 National Business Ethics Survey from the Ethics Resources Center. -One of the report's key findings is that top managers' actions drive an ethical culture in a company and have a significant impact on outcomes. -The report found that among employees in organizations with weak ethical cultures, 76 percent have observed misconduct, while this happened for only 39 percent of employees of companies with strong ethical cultures. -Fifteen percent of those from weak cultures felt pressured to commit misconduct, and 43 percent failed to report misconduct, compared with the 4 percent and 28 percent, respectively of employees working in a strong ethical culture. (Mindrum, 2013
Basic Necessity
-Lyndon Tan established this vegetable farm in an eight-hectar lot in Silang, Cavite in June 1997 -Tan, one of the 2003 Ten Outstading Young Men (TOYM) of the Philippines, utilizes hydroponic growing, or soilless farming, for his lettuce produce.
Models of socially responsible businesses
-Many companies believe they have a responsibility to "give back to society". -contributions of time and money -provide environmentally friendly products and services -desire to improve the lives of individuals here and around the globe. Such socially responsible companies see to it that this "consciousness" permeated everything they do.
Social Responsibility
-Means that businesses, in addition to maximizing the shareholder value, must act in a manner benefitting society, not just the bottom life -Has become increasingly important to investors and consumers who seek investments that not only are profitable but also contribute to the welfare of society and the environment -How we give back to the society
John Muir (U.S.)
-Naturalist and conservationist, he established the National Park System and helped found The Sierra Club. -"The mountains are calling and I must go." -"The clearest way into the Universe is through a forest wilderness." -"Everybody needs beauty as well as bread, places to play in and pray in, where nature may heal and give strength to body and soul."
Legal responsibility
-Obey the law
Developing objectives and timelines
-Objectives are specific, measurable results produced while implementing strategies. -While identifying objectives, keep asking, "Are you sure you can do this?" -Integrate the current year's objectives as performance criteria in each "implementer's" job description and performance review -• Remember that objectives and their timelines are only guidelines, not rules set in stone. They can be deviated from, but deviations should be understood and explained.
Shareholder View
-On Friedman's view a company's only responsibility is to legally and ethically "make as much money as possible" for its owners (i.e., to maximize shareholder returns). -We can call his view the "shareholder view" of corporate social responsibility. -The main reason why Friedman holds this theory is that, in his view, shareholders own the company. -Since the company is theirs and only their property, only they have the moral right to decide what it should be used for. -These "owners" hire executives to run the business for them, so the executives have a moral obligation to do what the stockholders want, which he claims, is to make them as much money as possible. -Friedman does not say however that there are no limits to what executives can do to make stockholders as much money as possible. -Executives, he explicitly says, must operate within the rules of society including both the rules of the law and the rules of ethical custom.
Chris Enrnst
-One can use a number of different connecting tactics to link people to build trust -The pitfall of connecting requires that you take caution when the members of one group may feel a sense of threat or resistance when brought into contact with members of another group. -If there is a history of tension, conflict, or mistrust between groups, you could unwittingly spark a "Great Divide" in the organization rather than achieve your intended outcome of building relationships.
Biggest problem in strategic planning
-Plan isnt implemented -At this point in planning, planners are sometimes fatigued from completing the earlier phases of planning. -Action planning may seem detailed and tedious compared to earlier phases of strategic planning which often seem creative in nature -Therefore, action planning is too often ignored, leaving the results of earlier stages of planning much as "castles in the air" - useless philosophical statements with no grounding in the day-to-day realities of the organization. Meaningful stages of earlier planning become utterly useless. -The organization's commitment to strategic planning is commensurate to the extent that a) the organization completes action plans to reach each strategic goal and b) includes numerous methods for verifying and evaluating the actual extent of implementation of the action plan.
Jean Monnet (France)
-Responsible for the reconstruction of the French economy following World War II, including the establishment of the European Coal and Steel Community. (ECSC). -The ECSC and the European Common Markey were direct precursors of the European Union -"Make men work together to show them that beyond their differences and geographical boundaries there lies a common interest." -"People only accept change when they are faced with necessity, and only recognize necessity when a crisis is upon them." -"Nothing is possible without men; nothing is lasting without institutions.
History and philosophy of social enterprises
-Social enterprises are sometimes erroneously regarded as non-profit organizations, although many do take on a non-profit legal form. -Social enterprises can be characterized by open membership ang goals widely considered to be in the community or public interest, although some social enterprises are more tightly held and can include proprietary organizations with private membership.
Friedman's critics
-Some object to his claim that the manager or executive is the employee of shareholders -Legally, these critics point out that the executive is the employee of the corporation and so the executive is legally required to serve the interests of the corporation—his true employer—not of its shareholders. -Others have criticized Friedman's claim that stockholders are the "owners" of the corporation and that the corporation is their "property". -Critics point out that shareholders only own stock and this gives them a few limited rights, such as the right to elect the board of directors, the right to vote on major company decisions, and the right to whatever remains after the corporation goes bankrupt and pays off its creditors. -But shareholders do not have all the other rights that true owners would have and so they are not really owners of the corporation.
Social enterprise in the united States
-The Social Enterprise Alliance defines a "social enterprise" as "an organization or venture that advances its primary social or environmental mission using business methods." In the U.S. two distinct characteristics differentiate social enterprises from other types of businesses, non-profits, and government agencies: -Social enterprises directly address social needs through their products and services or through the numbers of disadvantaged people they employ. -This distinguishes them from "socially responsible businesses" which create positive change indirectly through the practice of Corporate Social Responsibility (e.g. creating and implementing a philanthropic foundation; paying equitable wages to their employees; using environmentally friendly raw materials; providing volunteers to help with community projects.)
Prudent Use of Natural Resources
-The appeal for business and industry to incorporate environmental issues and concerns in their operations is now a critical global question. -Whereas the industrial era viewed the environment as an endless resource for inputs, today's enterprises recognize the need for prudent use of its natural resources.
CSR vs Business Ethics
-The phrase "corporate social responsibility" refers to a corporation's responsibilities or obligations toward society. CSR, as defined by the World Business Council for Sustainable Development (WBCSD), is "a continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families, the local community, and society at large." -There is some disagreement about what those obligations include. Do companies have a responsibility to donate to charities or to give their employees higher wages and customers safer products? Or are they obligated to maximize profits for their shareholders or stockholders?
Nikos Mourkogiannis
-The starting point of main companies, five kinds of purpose: Discovery (life is a kind of adventure), excellence, altruism, heroism -Excellence - Warren Buffet) -Altruism - Body Shop -Heroism - Ford, Microsoft
Incorporating ethics into the organization's strategic plan
-To integrate ethics into the strategy, businesspeople have to add three more questions, according to Robert Finocchio, Dean's Executive Professor at Santa Clara University 1. What do we stand for? 2. What is our purpose? 3. What values do we have?
Ethics Endorsers: The Influencers
-To succeed in any business enterprise, one must always explore how a business ethics program helps owners, managers and how professional advisers meet these standards. For their unique enterprises, these are: 1. Responsible business conduct 2. Responsible business enterprise 3. Business ethics program -Jack Welch, "Heros are the ones with ideas, but ideas are not enough, one must explore how a bus. -Ethics programs affects owners, managers and advisers meet these standards ^^ -No one right way to achieve a business ethics program, but important to have standards for -To succeed oin any business enterprise, one must always ex plore how a business ethics program helps owners. Managers and how professional advisers meet the standards. For their unique enterprises, there are:
Maria Montessori (Italy)
-developed the Montessori approach to early childhood education. -"The greatest sign of success for a teacher...is to be able to say, "The children are now working as if I did not exist."-M. Montessor -"One test of the correctness of educational procedure is the happiness of the child." -"Establishing lasting peace is the work of education; all politics can do is keep us out of war."
Nikon's CSR Framework Philosophy
-Trustworthiness and creativity -sound corporate activities -provision of valuable goods and services for society -respect for human beings they will respect diversity and individual human rights -protection of the natural environment -responsibility to society as a corporate citizen -socially responsible behavior within the supply chain -transparent operating activities -responsibility of top management -The group will maintain constructive relationships with, will not engage in relationships with individuals or groups that threaten (remaining neutral with their political stand) -providing a healthy and safe working environment - everyone receives fair treatment iwhtout discrimination, don't be bias according to race, religion, gender or whatever -Transparency - they are transparent with their employees, business partners -Reliable financial reporting - they will tell you what hapepned to the money or where it went -To be socially responsible is to be transparent about those things
Criteria for ethical decision making
-Utilitarian approach -Individualism approach -Moral-rights approach -Justice approach
Imitating Virtuous Behaviors
-Warren Buffet once said, "Pick out associates whose behavior is better than yours and you'll drift in that direction. -The insight is relevant to personal development, and to the manner in which organizations design and deliver their ethics training and leadership programs. (Mindrum, 2013). -The idea of imitation of "mimesis", as the ancient Greeks had it, has been a critical part of philosophers' thinking about moral development---and the effects of people in power on those under them---since the time of Aristotle, 2,500 years ago. -What the Greek philosopher argued is the basis for Buffet's statement---- people learn to behave morally not just by knowing something but by imitating their superiors' behaviors. -By practicing those behaviors they become habits. -Over time, the habits turn into traits of excellence, morality and personal power--- -which is what virtue literally means. (Mindrum, 2013)
Social Enterprise
-Wherein the business is established to help people as well as earn - a concept that is several steps beyond the usual corporate social responsibility projects of most companies
Purpose Beyond Profit: The True North Star for Today's Business Leaders
-While profit is a necessary ingredient for business success, four-in-five respondents in a recent survey want to see that profit combined with a higher purpose -(What is this higher purpose: thESE INDIVIDUALS share a desire for businesses to play a role in improving peoples lives and making the world a better place, wish for business but performance gap exists within these measures of success, 20% believes business is driven by an ambition to make the world a better place; companies talk too much about profit and consumers are not motivated by what companies produces, need to treat their employees well, protect environment, employ ethical business practices, and transparent of what they do and how they do it; even more important than how a company operates is why, purpose is always connected to our why; why it exists? -Far too many people would say to sell more stuff, to deliver, people expect companies to have a purpose beyond profits, it is this purpose, experience builds trust and establishes connections to keep a business relevant, for decades marketers have to satisfy two needs: rationality, emotional, society, needs to be something beyond the profit -Most businesses have a deep and abiding love affair with profit, they measure it, profit is critical but overrated as the true measure of business success, open your mind to the role purpose can play in a guiding strategy -When asked what guides business decisions, growth, profit, none of these things explains why we feel good for our business
Social Enterprise 2
-a business whose primary purpose is the common good. -they use methods and disciplines of business and the power of the marketplace to advance their social, environmental and human justice agendas. -an organization that applies commercial strategies to maximize improvements in human and environmental well-being. -have a blended purpose of generating income and achieving social, cultural, and/or environmental aims. -applies commercial strategies to maximize improvements in human and environmental well-being--- -may be structured as for-profit or non-profit -their social mission is as core to their success as any potential profit -they have social and environmental goals
Bangui Windmills in Ilocos Norte
-are not just inspiring sights, but also serve as proofs that the Philippines' location in the AsiaPacific monsoon belt allows it to exploit wind power density. -The Windmills farm is recognized as the largest in Southeast Asia and sells power through the Ilocos Norte Electric Cooperative (INEC). -It is estimated that 56,788 tons of CO2e (carbon dioxide equivalent) of greenhouse gases will be reduced per year for the duration of the project activity, or the reduction of 1.2 million tons of CO2 for the estimated twenty-one-year life span of the wind generation equipment
Daniel Stutton
-connectors like Daniel seek projects, roles and opportunities that enable them to bring together the boxes and lines of the organization—-create a balanced network with people of different backgrounds and sources of expertise. -European director of CSR for global oil and energy company -Led the creation of a plan that could reduce green house gas emissions and paved the way to achieve carbon neutral status in the environment -Seeks projects, goals and opportunities that enable them to bring together the boxes and lines of the organization - create a balance network with people of different backgrounds and sources of expertise -Builds efforts to build trust by suspending boundaries, energy executives came to value creative tension between them, challenge was how to connect all these people -We must build strong, trusting and confidence based across many groups
Drastic technological changes
-create environmental crisis, as these often reduce efficiency with which we use fuel, although they are deemed more profitable. -Investment in alternative energy, for example, has rather expensive initial capital expenditures, as that of solar panels, windmill, and/or hydroelectric systems, but can be profitable in the long term.
Format of the action plan
-depends on the nature and needs of the organization. The plan for the organization, each major function, each manager and each employee might specify: 1. The goal(s) that are to be accomplished 2. How each goal contributes to the organization's overall strategic goals 3. What specific results (or objectives) must be accomplished that, in total, reach the goal of the organization 4. How those results will be achieved 5. When the results will be achieved (or timelines for each objective)
Purpose
-dictates appropriate measures and measures give manageability; relationship between purpose (what we are here to do), measures (how we know how we are doing) and method (how we do it) - =Purpose - what we are here to do, most organizations with no overriding purpose tends to lose customer focus and ultimately their customers) -Many corporate and business activities now involve sustainability, business ethics practices includes social sustainability - focuses on human capital like worker's rights, working conditions, child labor and human trafficking, these are these are connected to social sustainability, sometimes there are consumers/officials who demand documentation of a business compliance with international guidelines and standards (If you are an employee who has been treated unfairly, you have the right to go there and voice out your concerns; many industries have organizations related to ethical delivery of products such as the kimberly process (blood diamond
Social Responsibility
-encourages business to engage in practices that favor the natural environment. -Recent natural disasters in the local and international arena have also raised awareness on the responsibilities of governments and business organizations toward the natural environment.
SL Agritech Corporation (SLAC)
-formally incorporated by Henry Lim Bon Liong on September 11, 2000. -The primary purpose of this enterprise is that of "promoting the development, commercialization, and the growth of hybrid rice technology." -This objective is also a commitment to bring employment and entrepreneurship to the rural areas and stimulates economic growth -Has a close working relationship with the Regional Field Units (RFU) of the Department of Agriculture, PHILRICE, and the various agencies involved in the government rice program. Its rice brand "Dona Maria" is marketed not only in the Philippines but is also exported -The rice products are grown in the choicest farmlands, using the best rice breeding technology in the Philippines. -has been certified with the ISO 9001:2000 for Hybrid Seeds and Hybrid Rice Production in February 2009. -Investment in hybrid rice production, as practiced by SLAC, is a program that increases the productivity in the agricultural sector. -Bureau of Agricultural Statistics reported that in 2013, palay production was at 2.26% higher than the 2012 record.
Department of Energy in the Philippines
-has encouraged the return to the natural environment through a policy statement on the use of renewable energy (RE). -The government's rural electrification programs include other renewable energy sources such as solar, microhydro, wind and biomass sources. -Other than reducing the country's dependence on imported fossil fuels, RE harnesses environmentally-sound technologies.
Rob Cross
-highest performing leaders tend to share three important characteristics: a)they forged ties that bridge groups inside and outside their organizations b)they invest in relationships that cross boundaries; c) they create trusting, high-quality relationships, not just big networks.
Social entrepreneur
-individuals with innovative solutions to society's most pressing social problems. They are ambitious and persistent, tackling major social issues and offering new ideas for wide-scale change. -rather than leaving societal needs to the government or business sectors, they find what is not working and solve the problem by changing the system, spreading the solution, and persuading entire societies to move in different directions. -are visionaries, but also realists.... - present user-friendly, understandable, and ethical ideas that engage widespread support in order to maximize the number of citizens that will stand up, seize the idea, and implement it.
Boundary spanning
-is "connecting in action," a practice of connecting to customers and consumers that can be applied by RBE in order to create a neutral zone where people can interact as unique individuals rather than members of distinct groups.
Hydroponics
-is an advanced method of growing plants that uses other medium such as coco peat (coconut fiber and palay husk), instead of soil, enabling the plant to produce more vegetation, larger fruit and flowers. -uses computer software to control lighting, environmental conditions, nutrient balance, water pH, and other parameters to create optimal lettucegrowing conditions. Basic Necessity produce is HACCP (Hazard Analysis Critical Control Point)-certified.
Essential Purpose of a Responsible Business Enterprise
-is to return a profit to its owners and investors, and to increase the prosperity of its community by meeting the reasonable expectations of its stakeholders, the RBE should nevertheless be concerned about the quality of life in its communities. -Its employees and agents should also care about the communities in which they and their families live.
Ilog Maria Honeybee fARM
-named after the Blessed Virgin Mary, to whom the farm owners prayed during El Nino episode in February 1987. -Joel Magsaysay and the Ilog Maria Honeybee Farm advocate a natural lifestyle, as stated in their website, Why Ilog Maria. -sits on ten hectares in Barangay Lalaaan, Silang Cavite. Joel Magsaysay and family consider themselves stewards of the place. -In 2006, when the farm started losing its bees to what is now called the Colony Collapse Disorder, they addressed their challenges through the use of locallyavailable alternative fuels and energy. It was found out that pollution caused by the use of fossil fuels contributed to this 'disorder'. -
Use of renewable energy
-reduces Philippine dependence on fuel-producing countries. -The resulting decrease in fuel imports is expected to impact the GDP and GNP values of the country -Further, the use of alternative fuel offers higher potential for poverty alleviation and sustainable development.
Burt's Bees
-the focus for this company has always been on well-being and "the greater good." -as part of the Natural Products Association, the company helped develop The Natural Standard for Personal Care Products, which created guidelines for what can be deemed natural. -This company follows the highest possible standards for packaging sustainability, furthering its dedication to the cause as a member of the Sustainable Packaging Coalition. -Since the brand's start at a crafts fair selling $200 worth of honey, the company has since expanded to candles, lip balm, and now more thatn 150 products. -In 2009, revenue topped $250 million
Action planning
-typically includes deciding who is going to do what and by when and in what order for the organization to reach its strategic goals. The design and implementation of the action planning depend on the nature and needs of the organization
JSJ Goat Farm
-was established in June 2001 in Gerona, Tarlac. The JSJ Goat Farm is a family enterprise owned by Jeffrey and Kathleen Lim. -It is allied with the Goat and Sheep Producers Association of Tarlac (GASPAT). -Jeffrey Lim supplies goats for slaughter and breeding, and also produces milk and cheese from goat milk. The farm has various goat breeds: Boer, Anglo-Nubian, Saanen, British Alpines and Dorpers for sheep. -In 2013, goat production was recorded at 75,420 MT by the Bureau of Agricultural Statistics (BAS), growing to 76,410 MT in 2014, and 19,230 MT during the first quarter of 2015.
Social Responsibility 2
-y is the obligation of an organization's management to make a decision and take actions that enhance the welfare and interest of society as a whole.
Finocchio's 13 rules
1. Don't be in an unethical business in the first place. 2. Obey the law and the spirit of the law everywhere you do business. 3. Articulate a complete strategy, including purpose. 4. Explicitly articulate values as a key component to the strategy. 5. Don't rely on auditors, ethics officers, regulations, manuals and audits as the vehicle to insert ethics into the strategy. 6. Emphasize principles more than rules. 7. Individual ethical responsibility and accountability are never trumped by some corporate imperative. There is no "my company said it was ok" defense. 8. Be totally transparent with your constituents, and make that part of the strategy. 9. Have a framework and process for the resolution of ethical issues. 10. Have the right organizational structure. 11. Have rewards based on the right metrics. 12. Make employee development part of the strategy and make ethics training part of employee development. 13. Encourage all employees to be challenging and demanding in the ethical domain (of everyone in the organization, including the bosses).
3 useful tips that are the backbone of the company
1. Educate Yourself 2. If your employees are happy, your business is happy 3. Be a conscious capitalist
Reasons to do business beyond profit
1. Profit is an output, not a purpose (Stocker, 2010) (Cannot be the goal, vision, or purpose of the organization, seeking profit as a primary business purpose is like building a house of cards on sand; can also lead to a lack of direction/reduced staff motivation) 2. Companies with a purpose beyond profit tend to make more money (Paradox: Most profitable companies are not those that are profit focused) 3. Business needs Purpose than Profit to Make it Through 4. What is the purpose of doing business if it is not being profitable? 5. Profit doesn't motivate the salaried staff who make success happen 6. Businesses with a strong sense of purpose are more successful 7. .Other reasons for your business to look beyond profit
Genuine Corporate social responsibility
1. That profit maximization is not the sole purpose of the firm 2. That a firm's shareholders are not the only stakeholder group for whom managers bear some responsibility 3. The economic system seems to be in urgent need of a moral compass, that is to say, values other than the ubiquitous profit margin need to inform business practice -The more thye businesses does not take accountability, the more it is bad for the business in the long run -continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families, the local community, and society at large.
3 Factors which can frame the business philosophy of a social enterprise
1. The extent to which it engages in ethical review of the goods and services it produces, and its production processes; Reflect; are their processes still environmentally friendly?) 2. The extent to which it defines its social purpose(s), and evidences its social impact; 3. The extent to which it democratizes ownership, management, and governance by passing control of its human, social, and financial capital to its primary stakeholders (producers, employees, customers, service users).
Business Ethics program
A tool that owners and managers use to encourage and support responsible business conduct
SL Agritech Corporation, Basic Necessity JSJ Goat Farm, The Coconut House, Ilog Maria Honeybee Farm
BUSINESSES THAT INCORPORATE ENVIRONMENTAL ISSUES AND CONCERNS IN THEIR OPERATIONS
Is it the truth?
First
Will it be beneficial to all concerned?
Fourth
Socially Responsible Investment and Corporate social performance
Has come to be subsumed within the term sustainable development
Will it build goodwill and better friendships?
Third
Google's Stakeholder groups
a. users b. employees c. advertisers and other customers d. investors e. governments f. communities -Diverse because of the wide array of products, diversification includes Google Search, Google Glass, and Google Fiber, to maintain its leadership, Google must maintain through suitable corporate leadership policies -Influence is manifested in the CSR programs -Through Charity programs, more than 100 million, they give it to grants and investments and tries to invest climate change, public health, and global property, and they have this Philosopy
Responsible business enterprise
an enterprise characterized by good governance policies and management practices as well as by a culture of responsible business conduct.
Responsible business conduct
the choices and actions of employees and agents that foster and meet the reasonable expectations of enterprise stakeholders.
Companies with the top 10 CSR
•Google •BMW (up from #4) •The Walt Disney Company •Microsoft (down from # 2) •Daimler (up from #10) •LEGO •Apple •Intel •Rolls-Royce Aerospace •Rolex (down from #9)
