CSR & Ethical

• Issues handled unethically can lead to low productivity, costs and industrial disputes 

• Ethical business practices are those that are socially responsible, morally right, honourable and fair 

• Pleasant working environment that is motivating 

• Performance and motivation maximised through job security 

• Good working relationships

 • Code of conduct should be developed with major stakeholders (statement of acceptable and unacceptable behaviours in a business) 

• Staff retention and absenteeism rates improve 

• Business costs are reduced with performance enhanced + good publicity 

Example Apple

• In 2009, 12 employees successively jumped from buildings over a period of less than 6 months as the working conditions at Foxconn were poor, involving very little pay and lots of overtime work 

• Some worked overtime more than 28 hours more than the legal limit. In response, Apple launched an international search for the most knowledgeable suicide prevention specialists- particularly those in China

Working Conditions

• Safe and fair working conditions that improve welfare

• compliance with social justice and industrial legislation

• safe and healthy working environment

• interesting and challenging work

• communication and fostering teamwork

• training opportunities, rewards, benefits

• work life balance

• Outsourcing and subcontracting has ethical issues

• Businesses are sensitive to consumer concerns due to success of lobby groups and actions

• Ethical businesses respond by demonstrating CSR through strategies like undertaking audits of factories abroad and collaborating with agencies

Working conditions have come under focus over the last two decades as businesses have increasingly responded to global competition and sought to develop practices that improve efficiency and save on labour costs, which are generally around 60% of most businesses’ costs.This pressure to become competitive has been reflected in the rapid growth of ‘precarious employment’ — employment that is predominantly casual and  part-time — in which employees 

• lack job security

• are unable to obtain credit; 

• often work multiple jobs and long shifts 

• no leave entitlements. 

• Many are poor and suffer ‘travel poverty’ - commuting long distances to work and on heavily congested highways.

Corporate Social Responsibility

• The way that a business considers the financial, environmental and social impacts of its decisions and is often referred to as its ‘triple bottom line’.

• HR policies and procedures of a business are often and integral component of its CSR.

• A business can demonstrate its commitment to CSR by:

  • Investing in community projects

  • Supporting research initiatives

  • Introducing work health and safety measures

  • Adopting environmentally friendly practices

  • Drafting and applying a code of ethics to company operations

• Strategies to promote Corporate Social Responsibility within a business include:

  • Promote effective affirmative action and anti-discrimination programs within the workplace

  • Develop initiatives that reduce the business’s impact upon the environment

  • Engage in strategies that promote work-life balance and enhance workplace flexibility

  • Encourage staff to volunteer their time to participate in community building activities.