Student Led Discussion:
Corporate Social Responsibility
Jenna Magill, Aly Wilensky, Troy
Sattin, Jon Schwartz, Anthony
Angelico, Meaghan George
Rules of
The 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’s
Questions
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 Maids
Questions
1. Describe some aspects of the Merry Maids
Organization culture or design that led to its unsustainability
-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
1.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 Spar
Questions
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
2. 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 Trash
Questions
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?