Organizational Justice, Ethics, and Corporate Social Responsibility

CHAPTER 2 • ORGANIZATIONAL JUSTICE, ETHICS, AND CORPORATE SOCIAL RESPONSIBILITY 75
Charities works to improve the health and well-being of children and families around
the world. The company also is actively engaged in protecting the environment by
recycling and using innovative ways to conserve resources.
UPS. For over 50 years, this large package delivery firm has set up a separate
nonprofit company, the UPS Foundation, to help the community. Recently, it has
contributed generously to Keep America Beautiful, a volunteer organization dedicated
to improving the quality of the physical environment. 85
It is important to note that corporate social responsibility is not merely a collection
of isolated practices or occasional gestures, nor does it involve initiatives motivated by
marketing or public relations benefits. Instead, corporate social responsibility is a comprehensive
set of policies, practices, and programs that are integrated throughout business
operations, and decision-making processes that are supported and rewarded by top
management. Importantly, social responsibility involves more than simply making a few
charitable donations. It must be a commitment to doing what’s best for people and the
community—as is the case with the companies spotlighted in these examples. For a particularly
good example of this, see Figure 2.21.
In recent years, many of the largest companies in the United States have been going
out of their way to behave in a variety of socially responsible ways. For a summary of
some of the most socially responsible companies in a recent year, along with just a single
noteworthy example of their commitment to social responsibility, see Table 2.5. 86
Forms of Socially Responsible Behavior
Our examples make it clear that corporate social responsibility takes many different
forms. 87 The major ones are as follows.
Helping the community by making charitable contributions. One of the most popular
ways for companies to be socially responsible is by making donations back to the
communities in which they operate. Such acts are not only helpful and generous, of
course, but also stand to be good business practices insofar as helping the community
promotes business and helps develop future employees. Cisco Systems, the large
computer networking firm, is a good example. Its various grant programs donate
money and computer equipment to schools that train underprivileged children. In
addition, many organizations provide assistance in various forms when disasters
strike, such as the tsunami that devastated parts of southeast Asia and east Africa on
December 26, 2004 (for various examples, see Table 2.6, p. 78). 88
Preserving the environment. Many companies, particularly those that derive products
from natural resources, are involved actively in efforts to preserve the natural environment.
As one example, the large paper and building products company Boise Cascade
has ceased harvesting timber from old-growth forests and endangered forests. Likewise,
the large oil company Royal Dutch Shell preserves the environment by refraining from
mining or drilling for oil in regions with special biological or cultural significance.
Socially responsible investing. Another popular form of being socially responsible
involves being highly selective in making investments. Typically, this involves making
investments in companies that promote the well-being of society and refraining
from investing in companies that may do harm. A good example is the Co-operative
Bank located in the United Kingdom. This firm has gone out of its way to keep from
investing its money in companies that engage in such socially irresponsible practices
as financing weapons, the fur trade, and companies involved in animal testing.
Although some individuals might not share these values, the bank has chosen to act
in ways that reflect the values of its leaders.
Promoting the welfare of employees. One of the most fundamental ways of being socially
responsible is by promoting the welfare of a company’s own employees. Several companies
have gone out of their way to avoid abusive labor practices even if they prevail in the
industry. As an illustration, the Brazilian cosmetics firm Natura Cosmeticos shows its support
for human rights by not using child labor. It also gives generously to educational programs
and encourages its employees to do volunteer work for nonprofit organizations.