Good Governance Flashcards
- A refusal to work organized by a body of
employees as a form of protest, typically in an
attempt to gain a concession or concessions from
their employer. - A work stoppage; is the concerted refusal of
employees to perform work their employer has
assigned to them to force the employer to grant
certain demanded concessions, such as
increased wages or improved employment.
STRIKE
—-is the idea
that businesses should operate according to
principles and policies that make a positive impact
on society and the environment.
———-is a business
model used by companies to enhance society and
the environment through concerted efforts
Corporate social responsibility (CSR)
CSR was officially introduced in the early ——–
through American economist and educator
——paved the way for the
succeeding, academic research and management
practice of CSR.
1950’s
Howard Bowen.
The last—-years, beginning the ——, saw the
marked development in CSR as companies
started to be more aware of their social
responsibility.
40
1970’s
In the ——–, more companies
became more responsive to the various
stakeholders due to social activism. At the turn of
the ——, CSR has become an integral
part of organizational strategy and rightfully so,
companies do not exist in a vacuum.
1980s and 1990s
21st century
In ——, researcher —- came up
with a ‘pyramid of corporate social responsibility.
His pyramid included the four components of CSR
1991
Archie B. Carroll
FOUR TYPES OF CORPORATE SOCIAL
RESPONSIBILITIES
- Economic responsibility (make profits)
- Legal responsibility (follow laws)
- Ethical responsibility (be fair)
- Philanthropic responsibility (be charitable).
● Forming the base of the pyramid is your
——— responsibility.
● This is about ensuring that your
organization remains profitable and
financially transparent.
Responsibilities in this slice of the
pyramid should include:
■ Keeping your costs to a
minimum.
■ Maximizing income.
■ Invest in developing and
growing the business in
the long term.
■ Ensuring financial risks
are managed correctly.
■ Providing a return to
owners and/or
shareholders.
■ Being economically
responsible enables you
to create and sustain jobs
in the community, and
contribute useful,
non-harmful products and
services to society.
ECONOMIC RESPONSIBILITIES
● This is also straightforward and a
minimum requirement for all businesses:
to obey the law.
Responsibilities covered by this
area of the pyramid entail:
■ Being truthful and
transparent about the
safety and security of the
products or services you
sell. ( Do not commit to
deceptive product
practices)
■ Keeping your employees
and customers safe.
■ Ensuring that you meet
environmental, health,
and safety requirements.
■ Paying taxes.
■ Paying mandatory
employee benefits.
LEGAL RESPONSIBILITIES
● This extends your obligations to doing what is
right and fair, even if it’s not required by law. To
attend to this responsibility, you’ll need the “moral”
outlook that Carroll refers to.
○ An example would be avoiding
structuring your company so that
it pays little or no taxes, even if
that would be allowed by the
letter of the law.
● Making your product safely and efficiently
● Selling it at a fair price,
● Treating your people well.
● Changing product recipes for example if
that product is a food item that has a lot
of sugar in it.
● Offering fair working conditions for
employees, both of the business itself as
well as its suppliers.
● Honest business practices include equal
pay for equal work and compensation
initiatives.
○ An example of ethical business
practices is the use of products
which have fair-trade certification.
Ben & Jerry’s, for instance, only
uses fair-trade certified
ingredients, such sugar, coffee,
bananas, and vanilla.
ETHICAL RESPONSIBILITIES
● This is the highest level of responsibility
and goes beyond any legal or regulatory
expectations. It’s about being a “good
corporate citizen,” actively improving the
world around you.
Examples of ——CSR
would be:
■ Enabling team members
to take part in
volunteering programs
during work time.
■ Sponsoring community
initiatives.
■ Offering mentoring
expertise to nonprofits.
■ Entering into community
or charitable
partnerships.
■ Donating to charity, and
offering employee
donation-match
schemes.
■ Tackling wider global
issues, such as poverty,
climate change, racism,
or gender inequality.
PHILANTHROPIC RESPONSIBILITIES
- A leading organization in the
pharmaceutical industry, ——– acts as a great example of
CSR in action. For more than 30 years,
—- has dedicated many of its efforts to
minimizing its ecological footprint. - Their purchase of a privately owned
energy supplier in the Texas Panhandle
allowed the company to reduce pollution
while providing a renewable, economical
alternative to electricity. The company
continues to seek out renewable energy
options to have 100% of its energy needs
from renewable sources by 2025.
- Johnson & Johnson ( renewable innovation)
- — is trusted not only for its
environmentally friendly initiatives but
also due to its outspoken CEO, Sundar
Pichai. He stands up against social
issues including President Donald
Trump’s anti-Muslim comments and the
impact of AI in
society in terms of misinformation and
fake news. - The company also builds tools to help
minority-owned businesses and
communities and factors in accessibility. - —– also funds initiatives to drive
inclusion both in the company and society
in the areas of Racial Equity, Disability
inclusion, Gender equality, LGBTQ+
inclusion, and Veteran inclusion
- GOOGLE (social issues)
- Their message is ‘a world without waste’,
with the aim of collecting and recycling
every bottle, making their packaging
100% recyclable, and replacing all water
used in creating their drinks back to the
environment to ensure water security.
They aim that by 2030, they will have
reduced their carbon footprint by 25% - In 2021, the business announced the
first-ever plant-based bottle and has since
been refining its product and
understanding how it will align with the
wider manufacturing process.
- COCA-COLA COMPANY (sustainability)
- Their mission is to ‘build a better world,
where everyone is free to move and
pursue their dreams’. They have
increased investment in electrification to
$22Bn (from an original $11Bn) and aim
for their vehicles to be carbon neutral by
2050. - The company is also focusing on pay
equity. They are conducting a diversity,
equity, and inclusion audit while
introducing a global salaried pay ratio
(including gender) to level the playing
field for all employees.
- FORD MOTOR COMPANY (carbon neutral &
pay equity)
enables relationships by offering
its staff members 52 weeks of paid
parental leave, which can be taken any
time within a child’s early years.
- To put this into perspective, the average
technology firm provides parents with 18
weeks of paid leave during the
maternity/paternity phase.
- NETFLIX (employee rights)
- 24 weeks of paid leave but employees
can take parental leave until their child is
three years of age. - The program also allows employees one
month of flexible work when they return to
help transition from being a full-time
parent to a full-time employee
- Spotify (employee rights)
- Promotes health equity and enables
equitable access to vaccines.
- Promotes health equity and enables
- They also provide grants in the instance
of natural disasters such as Haiti in the
aftermath of Hurricane Matthew and the
global refugee crisis in Europe and the
Middle East. This money is provided in
cooperation with NGOs to reach as many
people as possible. - Through Pfizer’s Global Health Innovation
Grants program, $100,000 is provided
each year to twenty organizations to drive
solutions to address vaccine-preventable
illnesses in their communities. The North
Star Alliance in Uganda is one grant
recipient.
- PFIZER (access to healthcare
- ——- donates up to 1.5% of its
revenue to charitable causes each year to
more than 14,500 nonprofits through
philanthropy such as food banks and
incubators (plant science and renewable
energy) to hasten the speed to market for
start -ups. - A recent ‘Housing Affordability
Breakthrough Challenge’ was established
by Wells Fargo to address the housing
affordability crisis in America. Winners of
the challenge received between $2 to $3
million along with support from peers and
industry experts to scale new strategies
to make homes more accessible and
affordable.
- WELLS FARGO (philanthropic)
- Backing climate-neutrality, —- is a
major provider of high-quality, reliable
electronics, along with other solutions to
support sustainable developments. The
company is committed to reducing
emissions both upstream and
downstream in its supply chain. - From an electric vehicle (EV) standpoint,
—– enables electrification through its
electric drive solutions, providing scalable
propulsion solutions to the industry.
- BOSCH (climate neutral)
- Over a decade since ——-
launched Ecomagination, its renewable
business strategy with a mission to
double down on clean technology and
generate $20 billion in revenue from
green products. - As part of its ‘Ecomagination Challenge’
launched last year, GE awarded five
people $100,000 each to develop their
innovations such as an inflatable wind
turbine, an intelligent water meter, a cyber
secure network infrastructure, and
short-circuiting and outage technology.
- GENERAL ELECTRIC (clean technology)
To tackle racial and social equity,
—– announced a mentorship
program to connect black, indigenous,
and people of color (BIPOC) to senior
leaders and invest in partnerships. The
Chain also aims to have BIPOC
represented at 30% in corporate roles
and 40% in retail and manufacturing by
2025.
- With an eye to hiring, Starbucks wanted
to diversify its workforce and provide
opportunities for specific cohorts. It has
pledged to hire 25,000 US military
veterans and spouses by 2025 as part of
its socially responsible efforts. The
company has surpassed targets, hiring
40,000 veterans and spouses since the
launch.
- Starbucks (workplace diversity & inclusion)
- Produces its electricity through solar
panels and wastewater and aims to have
all its beer carbon neutral by 2030. - The first wind-powered brewery in the
United States, the first certified carbonneutral beer in North America (Fat Tire),
and the first to achieve a perfect score of
100 on the Human Rights Campaign’s
Corporate Equality Index. - It also gives away $1 of every barrel sold
to support its philanthropic initiatives,
values, and goals giving away $30 million
so far.
- NEW BELGIUM BREWING COMPANY
(sustainability)
- —— committed to reducing emissions
and waste along with using sustainable
design and sustainable materials in its
2030 Environmental Goals report. - Some of the goals include achieving net
zero emissions for direct operations,
using plastic that contains at least 30
percent recycled content or a
lower-impact alternative material and
eliminating single use plastics on cruise
ships by 2025.
They are also active in the community
and encourage employees to do the
same. Through Disney’s VoluntEARS
program, employees and cast members
worldwide have volunteered 13 million
hours of service to their communities
while more than $140 million of Disney’s
donations were directed to programs
serving underrepresented communities
- THE WALT DISNEY COMPANY (local
communities)
- Their primary focus as a modern-day
superbrand is to phase out single-use
plastic packaging for its bricks with all
packaging to be sustainable by 2025.
While testing on creating a sustainable
brick has been challenging, the company
is committed to continuing its research to
come up with a viable solution. - Currently, 93% of packaging is made from
paper, cardboard, and other paper-based
materials. Work is now underway to
replace single-use plastic pre-pack bags
in —– boxes with paper-based ones in
partnership with the Forest Stewardship
Council.
- LEGO (packaging)
In the wake of fake news, news outlets
are taking to social media networks like
TikTok and Threads to address a new
audience and tackle false information
around issues such as the U.S. election
and coronavirus.
- Their goal is to draw in new readers and
build trust using short-form videos and
viral content
- THE WASHINGTON POST (social media and
journalism)
- —— is an attitude of determination and
dedication toward one’s job. Those with a strong
——- place a high value on their professional
success. They exhibit moral principles that make
them outstanding employees in any position. - If you have a strong —–, you believe in the
importance of your job and typically feel that hard
work is essential to maintaining a strong
character
Work ethic
