Student Led Discussion: Corporate Social Responsibility

Student Led Discussion:Corporate Social Responsibility Jenna Magill, Aly Wilensky, Troy Sattin, Jon Schwartz, Anthony Angelico, Meaghan George

Rules ofThe Game • Gimme some rulesssss, yo

Scenario #1: Ben & Jerry’s • Calvert Social Investment Fund • Wayne Silby & Joshua Mailman • Ward, Colorado for socially responsible entrepreneurs • Ben Cohen • Co-Founder of Ben & Jerry’s Ice Cream • At the meeting • Upset about negative screens on companies • Against giving money to “bad” companies • Thought companies should be rewarded for doing good in addition to punishing the bad • “Socially responsible company was function of processes and practices as well as products.” (P. 11)

Ben & Jerry’sQuestions 1. What were the types of companies some people at the conference were assuming negative screens for? • Alcohol, tobacco, war, environmentally bad chemicals, petroleum 2. What were some power levers Ben used in growing his company? • Personal impact – p. 10 it said he was passionate with the other entrepreneurs , Access – Met Bernie Glassman (brownie maker) and B&J’s got a new great tasting flavor, Expert – p. 10 it said he was persuasive by using his knowledge of business, Role – he was a co-founder of a company, Reward – p. 9 thought companies should be rewarded for doing good, in addition to simply punishing them

Scenario #2: Merry Maids • Strict company rules • No Breaks • Low Wages/ No Incentives • No Health Benefits/ Injury Compensation

Scenario #2: Merry MaidsQuestions • Describe some aspects of the Merry Maids Organization culture or design that led to its un-sustainability -Divisive Culture- emphasis on rewards, Low Solidarity- ineffective employees 2. According to Gardner would the management of Merry maids be following moral or immoral Leadership types? And Why? -Immoral, Cruelty towards staff, Scare tactics to motivate, Treat as childlike and dependant

Milton Friedman • It is the role of corporate executives to be socially responsible because only people can have responsibilities, not businesses. • Corporate executives must maximize performance ($ or service) while still conforming to the rules of society (laws & ethics). • Corporate executive is also a person and has responsibilities outside of the company. • To be socially responsible the stakeholders and stockholders all lose money, all stakeholders should have a say but the individual must serve a more general social interest. • Political way of achieving social responsibility is very slow. Should it be the role of corporate executives? How are the corporate executives supposed to know how to spend the money to get the desired outcome?

Milton Friedman Questions 1. Organizational culture relates to social responsibility and could influence where the organization chooses to allocate money in their attempt to give back. What are some societal issues an organization may choose to use their money to counteract? -Poverty, Inflation, Pollution, Disease, Crime 2. Other than his business what are other responsibilities a corporate executive may have? -Family, Conscience, Charity, Church, Clubs, City, Country

Scenario #4: Interface Carpets • By 1994 Interface became the largest producer and distributor of carpet tiles • Became known as a pioneer in corporate social responsibility • Practiced sustainability throughout all dimensions of Interface; • Which included: people, process, product, place, and profits

Scenario #4: Carpet Questions • What were some ways Interface turned into socially responsible pioneer? -Tile Carpets, Recycling, Sustainability, Waste Management Program, Full-Cost Accounting 2. Ray Anderson was an example of a POWER LEADER. What are some characteristics of a POWER WIELDER? -Self Interest, Taking advantage of other, Lying, Manipulation, No concern for followers needs

Scenario #4: Shell & The Brent Spar • Shell’s 460-foot-tall oil storage tanker and loading platform anchored in the North Sea, outlived its useful life and was decommissioned • Shell narrowed it down to 2 options on how to get rid of the oil tanker: • Deep Sea Disposal: requires towing the platform into the Atlantic Ocean, blowing it up with explosives, and letting the remains, including oil sludge, radioactive scale, and heavy metals, sink into the ocean • On Shore Dismantling: requires the oil tanker to be towed to a harbor where the platform would have to be cut up and its toxic reside drained where an oil or chemical spill could likely occur • Shell management decided on Deep Sea Disposal • After deliberations with Greenpeace, Shell reversed their decision and decided to go with On-Shore Dismantling

Brent Spar Picture

Scenario #4: Brent SparQuestions 1. In what ways does the decision of On-Shore Dismantling help Shell’s sustainability? (Use the Triple Bottom Line to Help) • Environmental stewardship – no need for money if no life on earth, Socially responsible, Maintain reputation, Economic Prosperity-Continue to make money, Long term thinking, beneficial for society of tomorrow • The motivation to save money was a big factor for Shell’s reasoning to use Deep Sea Disposal. Name and define some motivational theories discussed earlier in the semester that might have contributed. • Maslow’s Hierarchy, McClellands Needs, Organizational Justice, Expectancy Theory

Scenario #5: HP & Toxic Trash • Developed countries are disposing of their old electronics in village of foreign countries. • Workers would grill motherboards over open charcoal fires to extract chips and trace amounts of gold and other metals. • Full cost accounting • Systematic approach for identifying, summing and reporting the actual costs of solid waste management • No matter where you place the costs- the consumer pays in the end, either up front or later down the line with environmental degradation

Toxic Trash Pictures

Scenario #5: Toxic TrashQuestions 1. Name some things that can be included in full cost accounting. • Full cost of disposal, Health benefits to employees, Non renewable raw materials, Overhead costs, Research and development, Other externalities 2. Referencing Clawson’s Moral Rock (truth telling, promise keeping, fairness and respect) and moral leadership, what are some ways that HP can make their company more socially responsible • Truth telling- be honest about the waste and hazards of your products, Promise keeping- do what you say you will, Fairness- be fair and equitable among countries with different socio economic status, Respect- pair your workers fair wages

Conclusion • (anthony add some brilliant insight)

THANK YOU Any Questions or Comments?

Student Led Discussion: Corporate Social Responsibility