COMMUNITY OUTREACH AND RESPECT Chapter Twelve Visit for the latest in business news stories. Copyright © 2012 John Wiley & Sons

Chapter 12 Learning Objectives Describe four types of social responsibilities businesses have Articulate the competitive advantages of community involvement Understand the six phases of issues- driven multi-stakeholder dialogues Develop a diverse portfolio of giving opportunities-money, products or services, skills, and job opportunities Choose community organizations for strategic partnerships Administer the community involvement process Chapter 12: Collins, Business Ethics

Extent of Social Responsibilities Milton Friedman famously articulated the viewpoint that the only social responsibility for business is to maximize profits within the guidelines of the law Friedman’s narrow conceptualization of social responsibility has been criticized by many scholars Chapter 12: Collins, Business Ethics

Work-Life balance Work-life balance refers to achieving the appropriate balance between time spent working and one’s personal life Employees need time away from work to develop their personalities, replenish their energy, and avoid burnout Chapter 12: Collins, Business Ethics

Business Case for Community Involvement A company’s reputation as a good citizen favorably impacts employee, customer, community, and investor relations Chapter 12: Collins, Business Ethics

International Corporate Citizenship Double Standards Problem  “Double standard”: one set of behaviors that meets high expectations in the U.S. and a different set of behaviors that meets low expectations in underdeveloped and developing nations  Sweatshops in developing nations epitomize the difficulty of imposing a universal standard on all organizations in all nations Chapter 12: Collins, Business Ethics

International Corporate Citizenship Insert Exhibit 12.1 Chapter 12: Collins, Business Ethics

Managing Stakeholders Insert Exhibit 12.3 Chapter 12: Collins, Business Ethics

Managing Stakeholders Insert Exhibit 12.4 Chapter 12: Collins, Business Ethics

Managing Stakeholders Stakeholder Dialogues  Julia Roloff highlights six phases of issues-driven multi- stakeholder dialogues 1. Initiation Phase 2. Acquaintance Phase 3. First Agreement Phase 4. Second Agreement Phase 5. Implementation Phase 6. Consolidation Phase Chapter 12: Collins, Business Ethics

Philanthropy and Volunteerism Philanthropy is the donation of money or property to assist a nonprofit organization or people in need Volunteerism is the donation of time for similar purposes Chapter 12: Collins, Business Ethics

What to Give What do nonprofit organizations and the community need from businesses? 1. Money 2. Products or services 3. Skills 4. Job opportunities Chapter 12: Collins, Business Ethics

What to Give Giving Money  Many nonprofit organizations operate with minimal financial resources and depend on philanthropic donations to serve clients  In 2010, Forbes rated the United Way #26 among the world’s 50 most valuable brands Chapter 12: Collins, Business Ethics

What to Give Giving Products or Services  Many community organizations can benefit from receiving company products or supplies  Low income community centers, for instance, welcome school supplies, food, books, and so on Chapter 12: Collins, Business Ethics

What to Give Giving Skills  Invoke the three “Cs”—compatibility, commitment, and communication—when forming long-term volunteer partnerships Chapter 12: Collins, Business Ethics

What to Give Giving Job Opportunities  Businesses can give back to the community by providing jobs to people in need  One of the most important aspects of a person’s life is having a job Chapter 12: Collins, Business Ethics

Social Entrepreneurship Social entrepreneurship refers to using business principles to directly meet basic human needs Many social entrepreneurs participate in nonprofit organizations, although some develop for-profit ventures Chapter 12: Collins, Business Ethics

To Whom to Give Reactive Giving  Set aside some community giving resources to support local nonprofit organizations and causes that are meaningful to employees and community members  These organizations may have unforeseen emergencies that companies can help address Chapter 12: Collins, Business Ethics

To Whom to Give Outsource Giving  Use community giving resources to support the local United Way or other highly credible intermediary organizations that select and monitor donation recipients Chapter 12: Collins, Business Ethics

To Whom to Give Strategic Philanthropy  Strategic philanthropy is the partnering of a company and nonprofit organization to achieve a communal good that also benefits the company  Set aside some community giving resources for strategic partnerships with nonprofits aligned with the company’s mission Chapter 12: Collins, Business Ethics

To Whom to Give Insert Exhibit 12.5 Chapter 12: Collins, Business Ethics

To Whom to Give Insert Exhibit 12.6 Chapter 12: Collins, Business Ethics

To Whom to Give Insert Exhibit 12.7 (large chart!) Chapter 12: Collins, Business Ethics

To Whom to Give Community Involvement as Employee Training  Community involvement provides an opportunity for team building, leadership training, and teaching project management  Volunteering on a common cause benefitting the community enhances employee morale Chapter 12: Collins, Business Ethics

Networking Community involvement provides many opportunities for networking with other businesses and community leaders Some business networking organizations fund public policy lobbying efforts Chapter 12: Collins, Business Ethics

Community Reputation Assessment Assess key constituents to ensure that an important intended benefit of community involvement—a better reputation—is being accomplished Chapter 12: Collins, Business Ethics

Social Performance Reporting A company can also demonstrate respect for the community by being transparent about its operations and impacts More than 3,500 corporate responsibility reports are published annually Chapter 12: Collins, Business Ethics

Social Performance Reporting Insert Exhibit 12.8 Chapter 12: Collins, Business Ethics