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Sustainability: the process of meeting present needs without compromising the ability of future
generations to meet their needs.
3 pillars: social, economic and environmental
Environmental sustainability:
- Preservation of environmental resources and biodiversity
- Access to safe drinking water
- Enhance quality of life for the poor
- Global warming: increase in the earths temperature caused by Greenhouse Effect
- Kyoto Protocol 1997: emission trading, clean development mechanism, joint implementation
projects
Difficult to agree and enforce
Social sustainability:
The ways natural resources, education, skills and social institutions quality of life
3 issues: child labour, worker exploitation, workplace safety (dangerous material, chemicals affect other
countries)
Economic sustainability:
Economys ability maintain conditions foster economic health and long-term development
Shared responsibility of governments and private institutions
Green economy: development and use of renewable energy
CSR
Definition: Form corporate self-regulation builds sustainability and public interest decision making
and activities
5 dimensions:
- Environmental: cleaner environment, environmental stewardship
- Social: contribute, consider full impact, integrate social concern
- Economic: economic development, profitability today and in the future
- Stakeholder: interact with employees, suppliers, customers, communities
- Voluntaries (willingness): the right thing to do, based on ethics, beyond obligations
2 opposing views:
- Classical view:
Managers only responsible maximize profit operate in the best interest of shareholders
Spending resources on social good waste/cost for the business
Higher prices passed on to consumers lower return to shareholders
CSR means maximize the profit for shareholders
- Socioeconomic view:
Manager responsibility beyond making profit include improving societys welfare
Company responsibility to larger society allow to operate
Company responsibility to consumers support and purchase products/services
Company focus on maximizing short-run profit face long-term financial consequences
Organizations around the world embrace socioeconomic view
4 approaches:
- Obstructionist: Greatest importance profit little attention to CSR hide socially irresponsible
behavior illegal, unethical
- Defensive: Engage in CSR legally required and enforceable comply with minimal requirements
- Accommodative: Positive view of CSR beyond legal obligation address important issue based on
ethical standpoint
- Proactive: Highest industry standard actively engage integrate CSR in all aspects of the business
Human resource role in sustainability:
- Telecommuting: allow flexibility work-life balance reduce emission
Employee service programs: volunteer workers serve local communities and stakeholders
Promoting global citizenship: understand your place and impact on the world community
support global environmental, social and economic sustainability
- Servant leadership: Leaders serve followers not dominate
Listening, empathy, healing, persuasion, conceptualization, foresight, stewardship, commitment to
growth of people, building community
Concern for the welfare of others brings loyalty, commitment, contribution
Understudy assignments: Work with seasoned veteran provide support and encouragement
apprenticeship
4 Off-the-job methods:
Classroom lectures: convey technical, interpersonal, problem-solving skills
Films and videos: media explicitly demonstrate technical skills not easily presented in other
ways
Simulation exercises: Learning by actually doing case analyses, experiment, role play
Vestibule training: Learn with same equipment but in simulated environment
Workplace heath and safety: attitudes and behaviors that minimize accidents and injuries
- Training programs, review of work practices, work design, safety equipment, safe handling policies,
warning systems
- Consultation with employee groups, unions, government agencies
- Effective monitoring of productivity, absenteeism, accident and injury rates
Retain high-performing employees:
- Performance management system: performance standards evaluate employees
6 methods:
- Written essay: simple not accurate, comprehensive, more about evaluator writing ability
- Critical incidents: rich examples, behavior-based time-consuming, lack qualification
- Graphic rating scales: quantitative data, less time-consuming no depth of job behavior
- BARS: specific and measureable job behaviors time-consuming, difficult to develop measures
- 360-degree appraisal: seeks feedbacks from various sources thorough time-consuming
- MBO: result-oriented time consuming
Underachievement:
- Reason: hiring error, inadequate training, lack of desire
- Discipline: actions by managers enforce organizations standards and regulations
- Employee counseling: process help employees overcome performance-related problems
Employee compensation:
- Compensation administration: process determine cost-effective pay structure attract and retain
employees incentive to work hard ensure fairness
- Pay levels: skill-based, variable pay (contingent on performance but compliant with law), employee
benefit (nonfinancial rewards to enrich employees life)
9 factors for compensation:
- Employees tenure and performance (how long, how well)
- Kind of job performed (skills required)
- Kind of business (industry)
- Unionization
- Labor or capital intensive
- Management philosophy (towards pay)
- Geographical distance
- Company profitability
- Size of the company
Contemporary issues: downsizing/reducing workfore, improving workforce diversity, sexual harassment,
career planning (matching career goals with capability to achieve those goals)
Managing change
Organizational change: any alteration of an organizations people, structure or technology
- Changing structure: authority relationships, coordination mechanisms, job design
Ex: bureaucratic => organic structure
- Changing technology: work processes, work methods, work equipment
- Changing people: employee expectations, perceptions, attitudes, behaviors