Exam 2 Review.docx - Exam#2 Review CSR Sustainability Social Environmental and Economic Value chain activities should be considered prime candidates for

Exam 2 Review.docx - Exam#2 Review CSR Sustainability...

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Exam #2 Review: CSR Sustainability: - Social, Environmental and Economic. - Value chain activities should be considered prime candidates for a firm’s corporate social responsibility initiatives because they benefit society by reducing harm (or doing social good) and can also help the company by reducing costs or improving its reputation. - The second part of the strategic CSR analysis attempts to identify where the company has the potential to do social good because of its unique knowledge and expertise. - To further this approach toward creating social good, Porter and Kramer argue that firms should also consider how they can leverage potential CSR initiatives in a way that also helps the company succeed in its competitive environment. - Financial Performance + CSR (relationship) (can’t proof cause and effect) Compliance = Law : - (some industries (e.g., defense and chemicals) are more highly regulated than others, so compliance with laws and regulation is an important goal, and it must be managed. - Examples: SOX: Sarbanes Oxley (CEO need to sign financial statements), FCPA, Title V II CRA (governs employment discrimination), Federal Sent. Guidelines (cooperation piece) Ethics Policies (law is mandatory ethics is influential): - Policy-the “rules of the organization”- is critical to any company, and most organizations create a policy manual or an intranet site to house all relevant company rules. - Generally, policy manual and websites describe not only laws and regulations pertaining to the company and its industry but also company policy, including human resources policy. - Although much of a firm’s policy applies to everyone, surely some policy applies only to specific employee groups. - Policy should be presented in a way that lets employees see, at a glance, what the most important rules are. - Ethics Officers: - Many firms designate their legal counsel as the ethics officer. Others create a title such as vice president or director of ethics, compliance, or just plain ethics coordinator. - Most firms, locate the ethics officer at the corporate level, and these high-level executives generally report to a senior executive, the CEO, the board of directors, the audit committee of the board, or some combination. - These individuals are expected to provide leadership and strategies for ensuring that the firm’s standards of business conduct are communicated and upheld throughout the organization. - The most important thing for executive officers is earning other employees’ respect as being fair, trustworthy, credible and discreet.
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Ethics and Compliance Officers: - Today, with a growing number of ethics and compliance practitioners worldwide, these high-level executives have their own professional organization, the Ethics and Compliance Association (ECOA).
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