Corporate Responsibility and Society MNGT 5990

Corporate Responsibility and SocietyMNGT 5990

Fall 2013 - Shanghai, PRCRobert Serben, Ph.D.

Week 6 -

MNGT 5990 Corporate Responsibility and Society

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This week

Middle management

Employee engagement

Team presentations


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CSR

• Successful CSR strategies take into account the perspectives of stakeholders

Corporate Social Responsibility 4

Stakeholders

• “… any group or individual who can affect is affected by the achievement of the organization’s objectives.”

Glossary of Terms. Class text. P.xiii

Corporate Social Responsibility 5

Stakeholder concerns – • “…any group or individual who can affect or is

affected by the achievement of the organization’s objectives.”

Stakeholders

Stockholders

Managers

Employees

Customers

Suppliers

Distributors

Local Community

Government


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A question and two thoughts…

• A question: Are middle managers stakeholders?

• Two thoughts – are these true?:1. Middle management jobs are easy2. The day-to-day operations of a business never

present middle managers with problems


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Middle managementExecutive managementMiddle

management

Employees/Associates

1. Translating strategy into action. 2. Managing competing pressures


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Middle manager, employees, and the work

Executive

MiddleMgt Employees

Day-to-day work

Plans/objectives

Middle management

Typical job titles:• Senior Manager• Manager• Supervisor• Group Leader• Team Leader

MNGT 5990 Corporate Responsibility and Society 9


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Middle management as a stakeholder

1. How is a middle management role different from an executive role?

2. Can middle management be a CSR stakeholder?

3. If “yes,” why?

Small team discussion exercise


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Middle management

Typical job titles:• Senior Manager• Manager• Supervisor• Group Leader• Team Leader

Responsible for getting the organization’s work done by leading, managing, or supervising the work of

others.


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Tough work

• Middle management is responsible for making business strategy successful at the employee level

• Business strategies may involve changes and new choices– Some can be (quite) disruptive– Disruption = change– People resist change – WHY?


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Change and middle management• “George F. Brown, Jr. observes, "the single

biggest cause of failed strategies is employee resistance to change." Brown is CEO of Blue Canyon Partners, a Chicago consulting firm that advises Fortune 500 companies on how to make change stick.”

• Source: Fisher, Annie. "How Do You Lead When No One Wants to Follow?" CNNMoney: Middle Management. Fortune Magazine, 10 Jan. 2013. Web. 27 May 2013. <http://management.fortune.cnn.com/tag/middle-management/>.


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In the middle• “More than 90% of UK workers believe the

vast majority of workplace stress is falling on middle management, which is also filtering down to junior staff”

• Newcome, Tom. "Squeezed Middle Management Face Most Pressure at Work Says Lane4 Survey." HR Www.hrmagazine.co.uk. HR Magazine, 04 Oct. 2012. Web. 27 May 2013. <http://www.hrmagazine.co.uk/hro/news/1074884/squeezed-middle-management-pressure-lane4-survey>.

• Can pressure affect our : – 1) judgment or 2)behavior?


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In the middle

• “Almost half (49%) of middle managers in the UK say they are under excessive pressure, either every day or once or twice a week, compared to a survey average of 37%.

• They are particularly unhappy with their work-life balance; just 44% agree they are satisfied with their work-life balance, compared to 70% among employees with no managerial responsibilities.”

– Web location: Woods, David. "Middle Managers Suffer Most from Workplace Stress, CIPD Survey Reveals." HR. HR Magazine. UK, 25 Jan. 2012. Web. 03 June 2013. <http://www.hrmagazine.co.uk/hro/news/1020757/middle-managers-

suffer workplace-stress-cipd-survey-reveals>.


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In the middle

• “Research shows waning interest in middle-management jobs and higher levels of dissatisfaction among those holding the positions.

• Armour, Stephanie. "Who Wants to Be a Middle Manager?" Money. USA Today, 13 Aug. 2007. Web. 02 June 2013. <http://usatoday30.usatoday.com/money/workplace/2007-08-12-no-manage_N.htm>.


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In the middle

• Just four in 10 managers are extremely or very satisfied working for their employers, according to a 2007 survey of more than 1,400 respondents by Accenture, a management consulting and outsourcing company.



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In the middleAbout 25% of those looking for new jobs said they were searching because of a lack of advancement prospects, and 43% of middle managers polled felt as if they were doing all the work but not getting credit for it.

One-third reported frustration with their work-life balance.”



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“View from the Trenches”

• Lesson for every CSR perspective• 1995. In-depth interviews with 30 recent

graduates from the Harvard MBA program. – Be careful - -----

• Group:– Took an elective course on business ethics– Wrote a paper on ethical dilemmas


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• Lesson – Ethical practices they experienced in business presented uncomfortable friction with their internal values of right and wrong


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“View form the Trenches”

• Survey findings: Group felt - – Pressured to do things that they believed were

unethical– Internal ethics programs and procedures offered

little help– Executives were out-of-touch on ethical issues– Became stronger – as people - for having to deal

with these problems

“View from the Trenches – Pressures”


Rewards and consequences

Profit

Employees

Environment

Customers

Time

Competition


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• “Four Commandments”1. Performance is what really counts2. Be loyal3. Don’t break the law4. Don’t overinvest in ethical behavior


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Ethics and the law: “View from the Trenches”

IllegalUnethical


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• How did they make decision when confronted with unethical matters?

• What are some lessons for executives from this article?

Motives and means for unethical behavior


Conditions for possible

unethical behavior

PLUS

Opportunity for significant rewards

Opportunity to avoid significant consequences

Pressure for results

Exposure level?

Motive

Organizational position

Expertise/know how

Means

Yield

Suspending Ethical Thought

Release from responsibility

1. No one will find out

2. Smart people are doing it

3. Everybody’s doing it



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Internal CSR Communication and Employee Engagement – PDF – p.9-13

• Why the concern about employees and communication?– “…employees are regarded as a public or

stakeholder group.”– Even the best initiatives can be useless without

the buy-in from the employees who will be carrying them out.

Change and middle management• “George F. Brown, Jr. observes, "the single

biggest cause of failed strategies is employee resistance to change." Brown is CEO of Blue Canyon Partners, a Chicago consulting firm that advises Fortune 500 companies on how to make change stick.”

• Source: Fisher, Annie. "How Do You Lead When No One Wants to Follow?" CNNMoney: Middle Management. Fortune Magazine, 10 Jan. 2013. Web. 27 May 2013. <http://management.fortune.cnn.com/tag/middle-management/>.



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Employee engagement

• Should be important to all stakeholders• Are the firm’s employees a stakeholder

group ? • What do employees want?


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Employee engagement

• Definition - “… an individual's emotional attachment to the organization, fellow associates and the job.”

• Why should the above point be important to all stakeholders ?


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Employee engagement – research

• Only 31% of employees are actively engaged in their jobs. These employees work with passion and feel a profound connection to their company


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• According to SHRM (Society of Human Resource Management) the cost of replacing one $8 per hour employee can exceed $3,500, which gives companies a strong financial incentive to maintain their existing staff members through strong employee engagement practices.


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• Studies have statistically demonstrated that engaged employees are more productive, more profitable, more customer-focused, safer, and less likely to leave their employer.


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Beverage company MolsonCoors, found that engaged employees were five times less likely than non-engaged employees to have a safety incident and seven times less likely to have a lost-time safety incident.• …the average cost of a safety incident for an engaged

employee was $63, compared with an average of $392 for a non-engaged employee. Consequently, through strengthening employee engagement, the company saved $1,721,760 in safety costs in 2002.


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Employee engagement research

• It has been routinely found that employee engagement scores account for as much as half of the variance in customer satisfaction scores


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• “…employee disengagement is often the root cause of companies going out of business. Disengaged employees cannot adequately respond to competitive business pressures or changes in serving customers..”

• http://www.scarlettsurveys.com/papers-and-studies/white-papers/quality-employee-engagement-measurement-and-its-effect-on-ceo-success/2

http://www.scarlettsurveys.com/papers-and-studies/white-papers/quality-employee-engagement-measurement-and-its-effect-on-ceo-success/2




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• “Employee sense of fair treatment underpins engagement — if people feel they are treated unfairly, there is less than a 15% chance they will be positively engaged….”

• http://www.scarlettsurveys.com/papers-and-studies/white-papers/quality-employee-engagement-measurement-and-its-effect-on-ceo-success

http://www.scarlettsurveys.com/papers-and-studies/white-papers/quality-employee-engagement-measurement-and-its-effect-on-ceo-success




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• “Based on our sampling, 7 out of every 10 CEOs are less than satisfied with the measurement integrity or return value of their current employee engagement survey”

• http://www.scarlettsurveys.com/papers-and-studies/white-papers/quality-employee-engagement-measurement-and-its-effect-on-ceo-success/2





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Internal CSR Communication and Employee Engagement - PDF


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Employee engagement in CSR

I’m committed to act

I believe

I understand the message

I’m aware of the message

Values, plans, strategies become actions


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Engagement and its relevance

• Summary Points from a research study1. Only one in every five workers is highly engaged

in their work.2. Increased employee engagement in work results

in better employee productivity and loyalty.3. Companies with high employee engagement

outperform low engagement companies in many areas of business success.

Attridge, M. (2009). Employee work engagement: best practices for employers. Research works: Partnership for Workplace mental health, 1(2), 1.


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Research• “…Analyzing data from 1984 to 2011, the researchers

discovered that companies listed on the 100 Best Companies to Work for in America produced 2.3 to 3.8 per cent higher stock returns every year. This is an important research finding for managers who invest in employees, but wonder if those investments have measurable, financial payoffs,” …. This research shows there is a significant difference in financial performance in companies where job satisfaction is high versus companies where it is low.”

• Williams, Lindesy. "Satisfied Employees Boost Your Stock Price." Network For Business Sustainability, 13 May 2013. Web. 02 June 2013. <http://nbs.net/knowledge/satisfied-employees-boost-your-stock-price/>.


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Critical Elements Of An Organizational Culture - PDF

• Study asked EMPLOYEES about managerial actions

• Looked at 18 cultural elements and 8 measures– Setting a good example– Keeping promises and commitments– Supporting others adhering to ethical standards

MNGT 5990. Corporate Responsibility and Society

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Reminder of class dates

--- Class on September 28 Team presentations

--- October 5 class moved to October 7 We review in preparation for the final

--- No class on October 12

--- Final exam on October 19

Online documents MNGT 5990 - CORPORATE RESPONSIBILITY AND SOCIETY End of course team presentati on Background : Precision Munich is a maker of scienti fi c and industr ial measurement equipment for the energy producti on industry. Headquartered in Munich, Germany, the company i s 150 years old and pr ivately owned by the Gruber family . It currently has offi ces and operati ons in Canada , the United Kingdom, Norway, Saudi Arabia, Kuwait , Venezuela, and the United States. Its client l i st includes some of the largest oil and natural gas producti on companies in the world . Precision Munich’s fi e ld producti on and refi nery instruments measure gas and oi l well pressure, fl ow, and temperature. At the retail gasol ine outlet , Precision Munich’s inst ruments measure inventory levels and fl ow volumes. The company’s products have “set the standard” for measurement in the producti on of petrochemica ls and high tech carbon based polymer products . Al l of the company’s products are note d for durabil ity, accuracy, and a low level mainte nance. Because of their super ior products , experti se, and experience, Precision Munich received approval from the Chinese government to open an offi ce in Shanghai and begin commercial operati ons in China . At th is point, Precis ion Munich’s sole c l ient is China Petrochemical Corporati on (Sinopec Group) . (Website : htt p://www.sinopecgroup.com/englis h/companyprofi le/Pages/default2012.html ) German companies are noted for the importance they place on the technical competency of their business executi ves. In keeping with this traditi on, the German executi ves opening the Shanghai offi ce are a mixture of scienti sts , engineers , and petrochemica l e xperts . In keeping with the broader German commercial culture, Precision Munich’s executi ves support business having a social responsibi l ity to the societi es in which they are acti ve. However, al l the executi ves are new to China and unfamil iar with how to construct a soc ial responsibi l ity program strategy appropriate to China. To insure a proper start to the constructi on of a corporate social responsibi l ity strategy, Precis ion Munich has contacted your fi rm (a CSR consultancy) for an initi al presentati on o f thoughts on seven (7) ques ti ons they’ve sent to you. Presentati on : Your team wil l assume the role of a CSR consulti ng fi rm headquartered in Shanghai. The questi ons from Precis ion Munich your team wil l address are:

1 . Should Precision Munich have a CSR program in China? If “yes,” why? If ‘ no,” why?

2. What objecti ves should Precision Munich’s CSR strategy in Ch ina pursue? 3. How wil l Precision Munich know if it is making progress?

MNGT 5990 Corporate Responsibil ity and Society Note to c lass for week 4 For this week – We will conti nue our look at CSR complexity in CSR. P lease be prepared to share with the c lass your v iews on the fo l lowing fi ve questi ons.

1. What industry does you company parti cipate in? (For, example, this might be informati on technology, or it coul d be constructi on.)

2. What change or changes are going on in that industry that may aff ect your

company’s business strategy?

3. Can you descr ibe your company’s business st rategy?

4. Which stakeholders might your company’s business strategy aff ect?

5. Do you bel ieve your company be able to meet the needs of its stakeholders in its business strategy?

Later in the c lass , we wil l form teams for the course presentati on. The case f or that presentati on is avai lable to you on l ine along with this week’s PowerPoint presentati on. You wil l have ti me in class to work on the team presentati on.

MNGT 5990. Corporate Responsibility and Society 46

Team presentation – week 7

Presentation structure: Your team will offer a PowerPoint presentation to address seven CSR strategy questions. The PowerPoint will act as guide the audience’s visual guide to your presentation. You will have up to 20 minutes for your presentation. At the conclusion of your presentation, your team will offer to address questions from either the professor or class members.


Team presentation – Week 7

PowerPoint format: Every team presentation will have a title slide with the title of your presentation, the name of your firm, the number of your class team. • The second page will contain the name

(printed in English) and student number of you team.

• Every PowerPoint slide will be numbered.



Evaluation Your team’s presentation will be evaluated on:

– Participation in the presentation by all team members

– Quality and specificity of information presented in the questions addressed by your presentation

– Use of course concepts and principles in the presentation



A copy of your team’s presentation will be sent to the professor prior the Saturday it is presented



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Corporate Responsibility and Society MNGT 5990

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