3.2.1 Lesson 2: Social Responsibility

Click the words below to discover why developing Corporate Social Responsibility (CSR) for employees, consumers, and the community is beneficial to corporations.This information is also located under these headings in this lesson. 

Social
Responsibility

×

Employees

Employees will be content with their jobs as long as pay cheques are big enough.

True

A healthy pay cheque is important to employees; however, today employees often desire more. They are looking for satisfaction for their social needs and for self-validation. Employees want to contribute to the operation of the business and to be recognized as valuable, productive members of the team. They want to be part of making a difference within the organization and the bigger global context.

False

Employees often desire a great deal more from their jobs. They are looking for satisfaction for their social needs and for self-validation. Employees want to contribute to the operation of the business and to be recognized as valuable, productive members of the team. They want to be part of making a difference within the organization and the bigger global context.

Employers are glad to have a discontented employee quit.

True

Any tension with an employee is eliminated if he or she quits. However, this is very expensive to employers. The costs of recruiting, training, and slower productivity can be large expenses with few long-range profits.

If the reason for the employee’s discontent is not dealt with, more staff turnover could result.

False

Employers realize that hiring new employees is very expensive. Costs of recruiting, training, and slower productivity can be a large expense with few long-range profits. If the reason for the employee’s discontent is not dealt with, more staff turnover could result.

Click the link below to review the costs related to hiring a new employee.

The Cost of Hiring a New Employee

Retaining employees is financially beneficial for employers. Personnel are more productive if they feel that their contributions to their companies is worthwhile. Therefore, knowing that the organizations for whom they work are being socially responsible gives employees greater satisfaction and contentment with their employment. Many employers offer benefits beyond health care to their employees, such as gym memberships, four-day workweeks, or even daycare services to increase employee satisfaction and retention.

Employees

×

Consumers

With access to the Internet, consumers are becoming more aware of companies’ participation in social endeavours. Many consumers are more inclined to purchase at a business that is involved in a social issue that they feel is worthwhile. Because businesses need consumers to be successful it is important that they are in tune with consumer wishes.

In 2016, the community of Fort McMurray was devastated by wild fires. Many businesses in that community and elsewhere donated free goods and services to help the people. Additionally, if consumers donated to the Red Cross, many stores matched their contributions. If you knew of that support, would you be more inclined to shop at the stores that were supportive?

Also in 2016, in an attempt to be socially responsible, Earls Restaurants made a decision to serve certified humane beef in its restaurants. However, this beef was sourced from the United States. Because Earls did not anticipate the uproar from many consumers who wanted to support local ranchers, the chain had to rethink its initial decision. This resulted in more time and effort to undo the negative publicity that was generated. This emphasizes that businesses must be mindful of their consumers.

Consumers

×

Community

Two major social issues that affect a business and the community are business closings and pollution of the environment.

Business Closings

Many Canadian communities have grown and developed around a single major company or industry. In Alberta, the closing of coalmines and the decline in the oil industry have left many workers without jobs. Sometimes, this has resulted in the complete or partial closing of a town. When a company decides to close a plant or an office, people in the community lose their jobs. The loss of wages has a ripple effect on other businesses in the area. For example, although only 800 people were employed at the coalmine in Nordegg, Alberta, the town’s population was 2500 in the early 1940s. A decline in coal markets caused the coalmine to close in 1955, and this once-booming town became a ghost town. Since 2002, it has recovered somewhat as a small town servicing recreation interests. Other towns disappeared entirely; Mountain Park (located south of Edson) went from 1500 people in 1950 to 0, with only a cemetery remaining.

Although a company must remain profitable to survive, some socially responsible actions can be taken. These include advance notice to employees and the community when a large employer is forced to close its operations partially or completely. Large corporations might offer severance payments, early retirement, and retraining programs.

Environmental Pollution

Think about the following kinds of pollution resulting from some industries and how they can be harmful. Then, click the pollution type to link to explanations of these.

Air Pollution

the release of gasses or solid particles into the air; a contributing factor in illness and agricultural and timber losses as well as property damage from rot and discoloration

Water Pollution

the discharge of solid or liquid materials into lakes and streams from industrial establishments; makes water unfit for human consumption and enjoyment, kills aquatic life, and leads to losses through the destruction of fishing grounds and the cost of extraordinary water purification measures

Land Pollution

solid wastes such as bottles, tin cans, and automobile bodies and operations such as strip mining in which the top soil is stripped to expose the minerals, particularly coal; defaces the natural beauty of the land and, in some cases, destroys important wildlife habitats

Radiation Pollution

the disposal of radioactive material through storage either above or below ground; a severe health hazard

Noise Pollution

noise from industrial plants, airplanes, and automobiles; can cause nervous disorders and sleep disturbances

Pesticide Pollution

the often excessive use in the production of food of pesticides to control insects ; can cause cancer; side effects of many are unknown

Through stringent monitoring, inspection, and enforcement procedures, Alberta Environment promotes and expects responsible stewardship of Alberta's resources. Although business has been quick to recognize the problems of pollution and is generally anxious to correct these effects wherever possible, control is expensive.

Consumers are demanding that companies build products that are environmentally friendly, and Canadians are increasingly willing to pay extra for products and services if pollution and waste are reduced. Many companies realize that producing environmentally friendly products and services is important for their profitability. Consequently, they have invested billions of dollars in pollution abatement, recycling, and alternative manufacturing techniques.

Community