Weekly Lectures/Week 9 Lecture Ethics, Social Responsibility, and Environmental Sustainability.htmlMGMT 670: Week 9 Lecture Week 9: Ethics, Social Responsibility, and Environmental Sustainability. The students examine the triple bottom line--social, environmental, and financial performance factors. Learning Objectives:Understand what corporate ethics is.Discuss the theories of corporate responsibility and environmental sustainability.Examine the changing role of strategic human resources management in international businessAnalyze the triple bottom line to improve the performance and success of a business.Introduction After numerous corporate scandals in the 1990s and 2000s, firms began paying more attention to corporate ethics, social responsibility, and environmental sustainability. This commitment people, the planet, and economic value is exemplified by three theories: corporate social responsibility, the triple bottom line, and stakeholder theory (“Three theories of corporate social responsibility,” 2012). Although economic performance is certainly important to a firm’s stakeholders, “increasingly though, it seems clear that noneconomic accomplishments, such as reducing waste and pollution, for example, are key indicators of performance as well. … Increasingly, evidence is mounting that attention to a triple bottom line is more than being “responsible” but instead just good business” (Economic, social, and environmental performance,” 2012). Corporate social responsibility Corporate social responsibility is “a general name for any theory of the corporation that emphasizes both the responsibility to make money and the responsibility to interact ethically with the surrounding community. … Corporate social responsibility is also a specific conception of that responsibility to profit while playing a role in broader questions of community welfare” (“Three theories of corporate social responsibility,” 2012). The triple bottom line “is a form of corporate social responsibility dictating that corporate leaders tabulate bottom-line results not only in economic terms (costs versus revenue) but also in terms of company effects in the social realm, and with respect to the environment” (“Three theories of corporate social responsibility,” 2012). Stakeholder theory is the mirror image of corporate social responsibility. Instead of starting with a business and looking out into the world to see what ethical obligations are there, stakeholder theory starts in the world. It lists and describes those individuals and groups who will be affected by (or affect) the company’s actions and asks, “What are their legitimate claims on the business?” “What rights do they have with respect to the company’s actions?” and “What kind of responsibilities and obligations can they justifiably impose on a particular business?” In a single sentence, stakeholder theory affirms that those whose lives are touched by a corporation hold a right and obligation to participate in di ...

1. Weekly Lectures/Week 9 Lecture Ethics, Social Responsibility,
and Environmental Sustainability.htmlMGMT 670: Week
9 Lecture
Week 9: Ethics, Social Responsibility, and Environmental
Sustainability. The students examine the triple bottom line--
social, environmental, and financial performance factors.
Learning Objectives:Understand what corporate ethics
is.Discuss the theories of corporate responsibility and
environmental sustainability.Examine the changing role of
strategic human resources management in international
businessAnalyze the triple bottom line to improve the
performance and success of a business.Introduction
After numerous corporate scandals in the 1990s and 2000s,
firms began paying more attention to corporate ethics, social
responsibility, and environmental sustainability. This
commitment people, the planet, and economic value is
exemplified by three theories: corporate social responsibility,
the triple bottom line, and stakeholder theory (“Three theories
of corporate social responsibility,” 2012). Although economic
performance is certainly important to a firm’s stakeholders,
“increasingly though, it seems clear that noneconomic
accomplishments, such as reducing waste and pollution, for
example, are key indicators of performance as well. …
Increasingly, evidence is mounting that attention to a triple
bottom line is more than being “responsible” but instead just
good business” (Economic, social, and environmental
performance,” 2012). Corporate social responsibility
Corporate social responsibility is “a general name for any
theory of the corporation that emphasizes both the
responsibility to make money and the responsibility to interact
ethically with the surrounding community. … Corporate social
responsibility is also a specific conception of that responsibility
to profit while playing a role in broader questions of community

2. welfare” (“Three theories of corporate social responsibility,”
2012). The triple bottom line “is a form of corporate social
responsibility dictating that corporate leaders tabulate bottom-
line results not only in economic terms (costs versus revenue)
but also in terms of company effects in the social realm, and
with respect to the environment” (“Three theories of corporate
social responsibility,” 2012). Stakeholder theory
is the mirror image of corporate social responsibility. Instead of
starting with a business and looking out into the world to see
what ethical obligations are there, stakeholder theory starts in
the world. It lists and describes those individuals and groups
who will be affected by (or affect) the company’s actions and
asks, “What are their legitimate claims on the business?” “What
rights do they have with respect to the company’s actions?” and
“What kind of responsibilities and obligations can they
justifiably impose on a particular business?” In a single
sentence, stakeholder theory affirms that those whose lives are
touched by a corporation hold a right and obligation to
participate in directing it. (“Three theories of corporate social
responsibility,” 2012)Ethics
Business ethics is defined as knowing “what it right or wrong in
the workplace and doing what's right -- this is in regard to
effects of products/services and in relationships with
stakeholders” (McNamara, n.d.). “Organizational ethics express
the values of an organization to its employees and other
entities, irrespective of governmental and/or regulatory laws”
(“Ethical issues at an organizational level,” 2016).
The ethics of effective and competitive business practices
include creating a shared sense of meaning, vision, and purpose
that connect the employees to the organization and are
underpinned by valuing the community without subordinating
the individual and seeing the community's purpose as flowing
from the individuals involved” (Waddock, 2008).
Organizations can encourage ethical behavior by use ofA
written code of ethics and standardsEthics training to
executives, managers, and employeesAvailability for advice on

3. ethical situations (i.e., advice lines or offices)Systems for
confidential reporting (“Ethical issues at an organizational
level,” 2016; McNamara, n.d.).
Some organizations also perform social responsibility audits, a
process of evaluating a corporation's social responsibility
performance (“Social responsibility audits,” 2016).
“Organizations with these types of ethically based approaches
also focus on development for both employees and the
organization as a whole, which means valuing individuals as
ends, not as means to ends (a key ethical principle), and
focusing on learning and growth” (Waddock,
2008). Environmental sustainability
Environmental issues may be caused by nature or
humans:Changes in the climate, such as global warmingNatural
disasters, such as hurricanesThe alteration of terrain or bodies
of water by natural disasters or developmentDeterioration of
either inside or outside air qualityThe release of hazardous
materials from activities such as oil spills and the dumping of
hazardous wasteThe depletion or deterioration of natural
resources, such as farmland, water, trees, and mineralsThe
displacement of wildlife or depletion of their food sources
(Connaughton, 2015).
For a company to effectively practice environmental
sustainability, it needs to formally write its strategies into its
planning. “To be truly effective, all stakeholders — from top
management to employees — need to be committed to the
planning and execution of actions and decisions that contribute
to a sustainable society” (Connaughton, 2015). Firms can
actively engage in “practices that will result in a positive
impact on a sustainable society” or passively engage by
avoiding “practices that will result in a negative impact on a
sustainable society” (Connaughton, 2015). Active practices
includeCreating a formal, written environmental management
plan that details goals, actions, responsibilities, and
timelines.Using renewable resources, such as bamboo and
treated pine timber whenever possible.Planting trees on

4. company property and in the community.Using recycled and
biodegradable materials in product development.Designing
products that are recyclable or biodegradable.
Passive practices include limiting building and development
that will alter the course of nature, such as rerouting rivers,
encroaching upon wetlands, or displacing wildlife habitats
(Connaughton, 2015).
The World Resources Institute (2012) has developed a guide to
help organizations assess their risks and opportunities for
environmental sustainability. Conclusion
There are “definite benefits to the environment and local,
national, and global communities from incorporating sustainable
society factors into corporate management strategies. In fact,
measurement tools do exist for calculating the benefits of a
company's actions on society; the Center for Sustainable
Innovation (http://www.sustainableinnovation.org) created a
non-financial, mathematical tool called the Social Footprint,
which is both a corporate sustainability measurement and a
reporting method” (Connaughton, 2015). But the company also
reaps benefits, by fostering a positive public image and
attracting employees, investors, and customers to a "socially
responsible" company.References
From the UMUC library: (Note: You must search for these
articles in the UMUC library. In the case of video links in the
UMUC library, exact directions are given on how to find the
video.)Connaughton, S. A. (2015). Strategic management in a
sustainable society. Research Starters: Business (Online
Edition).
From Other webpages:Economic, social, and environmental
performance. (2012). In Management principles. Retrieved from
http://2012books.lardbucket.org/books/management-principles-
v1.1/s05-05-economic-social-and-environmen.htmlEthical
issues at an organizational level. (2016, May 26). Retrieved
from https://courses.lumenlearning.com/boundless-
business/chapter/business-ethics/Leading an ethical
organization: corporate governance, corporate ethics, and social

5. responsibility. (2012). In Strategic management: evaluation and
execution. Retrieved from
http://2012books.lardbucket.org/books/strategic-management-
evaluation-and-execution/s14-leading-an-ethical-
organizatio.htmlMcNamara, C. (n.d.). Business ethics and social
responsibility. Free Management Library. Retrieved from
http://managementhelp.org/businessethics/#anchor4194Metzger,
E., Putt Del Pino, S., Prowitt, S., Goodward, J., & Perera, A.
(2012, December). sSWOT: a sustainability SWOT: user’s
guide. Washington, DC: World Resources Institute. Retrieved
from
http://www.wri.org/sites/default/files/pdf/sustainability_swot_u
ser_guide.pdfSocial responsibility audits. (2012). In Ethics in
business. Retrieved from
https://courses.lumenlearning.com/boundless-
management/chapter/corporate-social-responsibility/Three
theories of corporate social responsibility. (2012). In Strategic
management: evaluation and execution. Retrieved from
http://2012books.lardbucket.org/books/business-ethics/s17-02-
three-theories-of-corporate-so.htmlWaddock, S. (2008). Ethical
role of the manager. In R. W. Kolb (Ed.), Encyclopedia of
business ethics and society (Vol. 5, pp. 786-790). Thousand
Oaks, CA: SAGE Publications Ltd. doi:
10.4135/9781412956260.n303. Retrieved from
http://sk.sagepub.com.ezproxy.umuc.edu/reference/ethics/n303.
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