Corporate Social Responsibility

On Target by John K. Harrell

A reputation of being social responsibile as an organization is one of the most valuable assets a company can have (Peloza, Loock, Cerruti, & Muyot, 2012). "Many stakeholders, from customers to investors to employees to purchasing managers, report that sustainability is an important factor in their decision-making processes" (Peloza et al., 2012, p. Abstract).  Companies chose different levels of responsibility.  Some corporations make an effort to add this to their mission statement and really live this goal.  Other companies do not even consider social responsibility.  In this essay, three American companies will be reviewed for their corporate social responsibility (CSR)

“Corporate responsibility … means… you must... take care of the shareholder, but that is not your exclusive responsibility” (Boatright, 2009, p. 348).  Boatright (2009) describes the concept of corporate social responsibility as a corporation’s voluntary assumption and belief in their responsibility beyond the economic and legal tasks of the company.  Corporate social responsibility has become very popular as corporations have become larger and even more powerful.  Organizations have formed to monitor the actions of corporations and report bad companies who do not keep their standards for being socially responsible (Logan, 2005).  

Corporate Social Responsibility (CSR) Monitoring

The International Institute for Sustainable Development published a study in 2001.  Of note was the fact that 28% of people who invest money do the research into the background of the company to see if they are socially responsible.  A similar picture emerged in Canada, Japan, Britain and Italy (International Institute for Sustainable Development [IISD], 2013).  Corporate social responsbility (CSR) had a greater brand influence on a company than other influences.  " In 20 developed countries surveyed, CSR-related factors collectively accounted for 49% of a company's image, compared with 35% for brand image and just 10% for financial management" (IISD, 2013).  And, on the opposing side, companies that ignore CSR-related factors, well... buyers tend to ignore their products.  IISD (2013) stated,

Consumers, especially those in North America, are likely to vote with their wallets against companies whose social and environmental performance is perceived to be poor. Forty-two percent of North American consumers reported having punished socially irresponsible companies by not buying their products.

Coors, Haagen-Dazs®, and Tyson

Coors, Tyson, and Haagen Daaz are organizations that have devised clever ways to give back to the community.  Coors, for example, spends more money on responsible drinking education than on alcohol centered events (Coors, 2005.  

Haagen-Dazs® is committed to raising honey bee awareness.  The ice cream company has created a microsite to raise awareness that honeybees pollinate one-third of all the food we eat; including foods such as all natural ice creams/yogurt; tying it back to the company’s core mission.

Realizing early on that honey bees were crucial to the pollination of ingredients in more than half of the Haagen-Dazs brand's all-natural ice cream products, the brand created the Haagen-Dazs loves Honey Bees™ program and donated funds to Pennsylvania State University and the University of California, Davis for CCD and sustainable pollination research. In the past two years, the Haagen-Dazs brand has donated a total of $500,000 to both universities. (Haagen-Dazs, 2013).

Tyson is committed to fighting hunger. They have taken advantage of social media by creating a blog.  Tyson agreed to donate 100 lbs of chicken to the Austin food bank for every comment posted on its blog.  Tyson always give back to the military too ("Tyson donates chicken products to feed military", 2003).

Conclusion

As Peloza et al. (2012) stated that a corporation is wise to invest in a mission of corporate social responsibility.  Monitoring organizations exist to ensure they are adhering to their missions of CSR.  IISD (2013) stated that consumers in well-developed countries are more likely to vote with their wallets when they consider a company's corporate CSR mission.  Coors, Haagen-Dazs, and Tyson are just a few of the American companies that demonstrate corporate social responsibility.

 Author: Dr. Andree Swanson, EdD

Boatright, J. R. (2009). Ethics and the conduct of business (6th ed.). Upper Saddle River, NY: Prentice Hall.

Coors, P. H. (2005). Corporate Social Responsibility: A Context tor Alcohol Policy. In M. Grant, J. O'Connor (Eds.), Corporate social responsibility and alcohol: The need and potential for partnership (pp. 97-101). New York, NY US: Routledge. 

Haagen-Dazs. (2013). Haagen-Dazs(R) Ice Cream Challenges Consumers to Imagine a 'World Without Bees'. PR Newswire. Retrieved from http://www.prnewswire.com/news-releases/haagen-dazsr-ice-cream-challenges-consumers-to-imagine-a-world-without-bees-69843567.html

International Institute for Sustainable Development [IISD]. (2013). Corporate social responsibility monitor. Retrieved from http://www.iisd.org/business/issues/sr_csrm.aspx

Logan, J. (2005), Corporate Social Responsibility. Business and Economic Review, 31, 25-25.  Retrieved from http://search.Proquest.com/docview/209589976? 

Peloza, J., Loock, M., Cerruti, J., & Muyot, M. (2012). Sustainability: HOW STAKEHOLDER PERCEPTIONS DIFFER FROM CORPORATE REALITY. California Management Review, 55(1), 74-95. 

Tyson donates chicken products to feed military. (2003). Nation's Restaurant News, 37(17), 94-94. Retrieved from http://search.proquest.com/docview/229302772?accountid=32521

Ethics and Moral Courage in Leadership Positions

Organizations seek to develop stronger levels of ethical business practices in order to limit negative employee behaviors that can damage public image, lessen investor confidence, and improve upon contractual relationships with stakeholders. The first step in developing an ethical organization is to hire an ethical leader. Through proper leadership modeling in moral courage and ethical behaviors employees develop standards that apply to their own behaviors. 

Developing ethical organizations, and meeting the needs of people, requires strength of character (Hunter, 2003). It is difficult for leaders to deal with the multiple issues that often face them from competing interests. When leaders use an ethical value system they have an anchored value point that allows them to judge the validity of these competing interests. 

Strong leaders should have an impetus to act with moral purpose.  Such conation requires moral courage, moral efficacy and psychological ownership over one’s behavior (Hannah, Avolio, & May, 2011). Positive behaviors require an ownership over one’s life and responsibilities toward others. Such concepts need to be embedded in the way leaders view themselves and their purpose in leading.

Moral courage is “the ability to use inner principles to do what is good for others, regardless of threat to self, as a matter of practice” (Sekerka and Bagozzi, 2007, pp. 135).  It is a willingness to do what is in the best interest of others and the group even if one were to lose something of value. It can be further understood as, “a commitment to moral principles, an awareness of the danger involved in supporting those principles, and a willing endurance of that danger” (Kidder, 2005, pp. 7). 

Ethics and moral courage are associated but not exactly the same concept. Ethics is a minimal standard of behavior that avoids engaging in immoral actions (Treviño et al., 2006). It is more defined by compliance with the law, telling basic truths, and conducting business within standard societal constraints. It is a much lower level of investment in one’s decisions than moral courage. 

Ethical behavior also has a pro-social component. Moral courage is associated with the desire to use inner standards that encourage actions that help others (Sekerka & Bagozzi, 2007). It is this wider understanding of the needs of the group that creates a higher standards of existence. Through this moral courage one acts with effort to help others live happy and free lives based upon underlining principles of inherent value. 

Leadership has a huge impact on the moral and ethical actions of their organizations. Leaders impose significant influence on followers’ thoughts and behaviors related to ethical and moral expectations (Lester et. Al., 2010). It is through watching leaders that employees come to understand appropriate actions. 

Ethical and moral leadership is not easy when competing interests are pushing for certain results. However, such leadership can improve upon the overall financial and public image of the organization overtime. Furthermore, it creates workplace expectations and guiding behaviors that impact the  habits employees use to solve their own issues. Such ethical approaches require the focus on others beyond their own needs and the courage to follow through on guiding principles to make it happen despite the competing interests.

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A review. Journal of Management, 32, pp. 951-90.