Readings High Points Key Points From Each Article

Readings High Points Key Points From Each Article Day I

Can a Corporation Have a Conscience? • It can and it should. • No more or less morally responsible than individuals • Not solely economic (individuals as means) nor legal-political (any action that is not punished by government) • Three uses of “Responsible” – Causal (blame – after the fact) – Rule-following (follow social and legal norms) – Decision-making (independent judgment)

Corporate Social Responsibility and Employee Engagement • CSR can and will attract employees and retain them – Generation Y workers set social responsibility above compensation – Even stronger in China, India and Germany – Communicate and engage • CSR works when employees are engaged in specifics • Belief in the values and socially responsible goals of the organization retains employees

Corporate Social Responsibility: Doing Well by Doing Good • CSR can be an efficient management strategy – Improved economic performance – Improved competitive position, including first mover advantage • Stakeholder approach – Stakeholders valued by cash flow influence – Net present value – “Treat society well… It will return the favor

Corporate Social Responsibility: Doing Well by Doing Good • Structural action vs. strategic action – Meet claim without creating opportunity for competitors – Structural action when opportunity would be created – Strategic action to create advantage (first mover) • Agent – Owner – Different time horizon/discount rates – CSR best effected by flat compensation structure (salary only)

What Matters Most: Corporate Values and Social Responsibility • Companies are adopting social responsibility programs, world-wide • Workers and managers are seeking opportunity to do good • Most frequent obstacle is lack of enlightened leadership • Public less tolerant • Change in role of NGO’s – collaborative relationships • Starts with values – living in the hearts and minds of employees • Transparency forms the foundation of trust.

“Good” Managers Bad Ethical Choices • Rationalizations – – Not “really” illegal or immoral In individual’s or company’s best interest It will never be found out Company will condone and protect • Know which risks are worth taking • Prevent misconduct, not catch it

Managing for Organizational Integrity • Company responsible for individual’s misdeeds – Everything to do with management – Provide leadership and institute systems to facilitate ethical conduct • Shape individuals’ behavior – Incentive and performance systems – Management behavior

Managing for Organizational Integrity • Compliance versus integrity – Compliance = legal – Integrity = ethical • Compliance – Insurance for executives – Factors in sentencing • Integrity – Leads organization – Engages employees

Readings High Points Day II

Building Organizational Integrity • Improve ethical awareness • Limit risks from employees’ unethical behavior (often in spite of a code of ethical behavior) • Create a culture that encourages doing the right thing rather than just compliance. • Employee development is valued.

Building Organizational Integrity • Barriers – Unrealistic performance objectives – Workforce demographics – State of organization – Cynicism

Integrity and Management • Avoid decisions that we later regret • Tests of judgment – Publicity, trusted friend, reciprocity, universality, obituary • One of the greatest risks of professional life is that day-to-day pressures will lead to a gradual erosion of integrity

Discipline of Building Character • Challenges – choice between right and right. – Forces focus on core values – Creates basis for future • Defining moments – Individual – Who am I? – Work Groups – Who are we? – Executives – Who is the Company?

Defining Moments • Individual – Conflicting feelings – Deeply rooted values • Work Group – Points of view (other ethical viewpoints) – Influence behavior – Truth as a process • Executive – Personal and organizational strength – Role of organization in society – Vision to reality