Case 6 – The High Cost of Principles

IV. The CSR policy of the company should be to properly categorize the “core items” by
removing indecent items sold by the company. Items sold and specified as core items should be
ethical and not harmful for the customers.

The CSR policy is adopted by the company because the items sold by the convenience
stores could harm its customers and the society. Selling indecent magazines produce a perception
that women or people in general shown, are seen as objects, and people buying those magazines
develop an addiction that is venomous within and in the society.

The target beneficiaries of the CSR policy are women, children and the society. If these
magazines are eliminated, women who are usually shown in the pages of these magazines are
valued more as a person. The abuse of women and children would lessen because society
wouldn’t have such indecent perspective, but instead self-worth and respect is increased.

The CSR policy affects the company by forming its decision leaders to be more ethical in
making policies, in implementing the rules and regulations, and by setting a good example to
their employees.

Employees are involved in the CSR policy by following and abiding to the policy
implemented. By doing this, they help the company to be a benefit to society rather than harming
it.

The challenges and issues the in the implementation of the CSR policy is the approval of
the company. Since selling the magazines gives them profit, it would be hard to seek for their
approval.

The plans for future enhancements for the CSR policy is to include decent reading
materials as core items such as journals and articles related to health and education.

Case 10 – Something’s Rotten in Hondo

I. George Mackee, together with his wife and two children, moved to Hondo, Texas. He
was the manager of the Ardnak Plactics plant in Hondo, a small plant that manufactured plastic
parts for small equipment. George had lots potential, employed the majority of the population in
Hondo and had a good relationship with his boss, Bill. But George has one major problem, and
that was the smokestack emission that is consistently above EPA guidelines. Fines would be
levied if this problem was not solved. And this problem has been continuous due to the
headquarters noninvestment of new smokestack scrubbers. The noninvestment was then caused
by the lack of money.
 George argued that other plants were producing worse emissions but they were passing
EPA standards. George then learned that the other plants were scheduling their heavy emissions
work at night so that during the day when the EPA took their readings, they were within
standards. This was an option for George but it would create more air contamination. A month
passed, there is still no solution. And so Bill offered George another option: to relocate 15 miles
south of Hondo in Mexico and to hire Mexican workers, or to eliminate the fines charged. He
was given one week to decide. The cause of relocation would devastate the infrastructure of the
city and continue to contaminate air levels. Telling this situation to his wife, she responded with
a disapproval of being responsible for the loss of jobs of their friends and extended families.

II. The CSR issue involved are the following: the smokestack emission by the plant that is
consistently above EPA guidelines which has caused an increase in air contamination.

III.

1. The stakeholders in this situation are the following: First is George Mackee, the manager of
Ardnak Plastics, Inc. because his decision with regards to choosing a solution for the problem of
the company will affect the firm’s position in Hondo. Second, George’s boss, Bill, because his
power to influence and pressure George’s decision to choose a solution will either benefit or
harm the company. Third, the people in Hondo, because the company produces smokestack
emission that could be harmful to them, and due to that, this could be a cause for the people in
Hondo to see the company in a negative way. Fourth, the EPA, because their warnings and
guidelines control the company to maintain their operations, to limit their emissions and to
correct what is wrong in the company. Fifth, the headquarters, because their noninvestment to
new smokestack scrubbers hinders the company to establish a better solution. Sixth, the
contemporaries at other Ardnak plants, because their way of solving the EPA problem influences
the company to also do the same but in result worsens the air contamination levels and this could
be a bad influence to the company. Seventh, the Mexican government, because their offer to no
clean air restrictions by relocating but in return employ their people creates another option for
the company to choose, and this may benefit and harm the firm. Eight, the employees of Ardnak
Plastics, Inc. because by choosing the relocation and hiring of Mexican employees, many
employees will lose their jobs and this could create a protest towards the firm. And lastly,
George’s wife and children because relocating would result to their family to lose their jobs and
this would create a negative perspective to the company

2. The social responsibility of Ardnak Plastics Inc. have to the city of Hondo is to create clean air
by preventing the contamination of air levels. By doing this, the company has to abide to the
EPA by either paying fines or by investing in new smokestack scrubbers.

3. The ethical issue in the case is the continuous and increasing level of air contamination that is
being emitted by the smokestack. Another issue is scheduling the heavy emissions in nighttime
by other Ardnak plants so that EPA could not detect them. By doing this, it results to more air
contamination levels.

4. George should explain and convince the headquarters that they should invest in new
smokestack scrubbers. If George lets the headquarters understand and see the seriousness of the
situation, they may approve of the new smokestack scrubbers. George should do this because this
option does not increase air contamination levels but decreases it. And by decreasing it, the
smokestack emissions would be below EPA guidelines.

IV. The appropriate CSR program would be to have a tree planting program, not only in the
city of Hondo but also to the many cities of the U.S.

The program was adopted by the company because even if the smokestack emissions are
below the EPA guidelines, there is still a portion of emission that contaminates the air. So by
adopting this program, the company protects the community and lessens the air contamination by
its smokestack emissions.

The program works by having the employees of the company to participate in the tree
planting activity. It must be done every month. For employees to be motivated, the person who
has the most plants planted would receive a bonus or a reward.

The target beneficiaries of the program are the people in Hondo because they are the
most affected by the smokestack emissions.

The program affects the company by making its employees realize that by contributing
and helping the community with no profit in return is rewarding itself. The program would also
bring a better perspective from the community which in return will produce loyal and satisfied
customers.

The employees are involved in the program in which they plant the trees in deserted
lands, in the cities and around areas with minimal trees.

The challenge and issue in the implementation of the program is the amount of people
who will participate in the program, and also the approval of location where the employees will
plant the trees.

The plan for future enhancements for the program is to expand the areas where the
company will implement their program. This means not only in the areas which are affected by
the company’s smokestack emissions but also to those areas which have fewer trees, a lot of
population and deserted areas.
Case 12 – Androfit

I. The U.S Food and Drug Administration (FDA) have regulated dietary supplements as
foods. To ensure that new ingredients used in dietary supplements are safe, there is a FDA
evaluation which under the 1958 Food Additive Amendments to the Federal Food, Drug, and
Cosmetic Act. However, the Congress amended the FD & C Act. These amendments included
the provisions about dietary ingredients used in dietary supplements which are no longer subject
to the premarket safety evaluations required for old and new food ingredients. The government
has given close examination on dietary supplements unlike before. Series of tests are to be done
before they are approved and allowed to be marketed. This was a conflict to the Dietary
Supplement Health and Education Act (DSHEA), whose purpose was to make dietary
supplements more widely and readily available. And as the industry has grown so large,
regulators are in difficulty to monitor the industry. It has been reported that only five employees
handle dietary supplement affairs and that the FDA office had no systematic process in place for
monitoring dietary supplement companies.

Wanting to start his business, Mr. Wayne Josephson left New York and his work on Wall
Street for 20 years for a slower-paced life for him and his family. But he couldn’t decide what
business to begin. As Josephson read Mark McGwire’s intake of dietary supplement while
pursuing his baseball homerun record, it was emphasized that McGwire’s success was due to
androstenedione or also known as “andro”, and how it was effective, natural and legal.
Josephson decided to try the supplements as he searched the Web and saw andro – a dietary
supplement, as a cure to the decline in testosterone levels in older men. Trying it, Josephson felt
years younger, he wanted to exercise more and he was less sore from the workouts. And because
of that experience, he wanted to share andro. He then chose to enter in the electronic commerce
industry as he built his business, Androfit, LLC. By choosing a less regulated industry,
Josephson didn’t check into any rules before starting his company and as well as not disclaiming
that the FDA has not evaluated his claims on his products. Andro is still a dietary supplement
that is not approved by the FDA in which safety data regarding the supplement is still not given
to them. There is no guarantee that andro is safe. Comments on web pages are disagreeing to the
use of andro, and people are questioning the lack of government regulation towards this matter.

II. The CSR issue involved is the distribution of untrustworthy dietary supplements to the public
because of the lack of regulation, surveillance and human resources to enforce such regulations.

III.

1. No, the government should not create legislation when it lacks the resources to enforce
because creating legislation needs an abundant amount of resources. Such as the situation in the
case, if the government tries to enforce legislation on the dietary supplements without having
enough human resources, then it would not be properly monitored which entirely, the creation of
the legislation would lose its objective and effectiveness.
 The government should decide which products or services to monitor and leave to the
vagaries of the marketplace by evaluating the safety of the ingredients used and entirety of the
product or service. A series of test must be done in order to determine if it is to be monitored
continuously or to leave to the marketplace.

2. My assessment regarding the government regulation and the dietary-supplements industry is

that it is weak. For this industry, its regulations must be strong, firm and not reluctant to those
non-abiders with the guidelines. Resources must not be lacking in this industry because the
health and lives of people are at stake with these kinds of products.

As for the case, the industry is still not yet safe because the government is too slow.
Already over 50 companies are selling dietary supplements that has not yet been approved. This
means that the government’s guidelines and regulations are weak and has loopholes. The human
resources are lacking. They don’t have the right amount of people to monitor the activities of this
industry.

Yes, it needs more intensive regulatory oversight because having no one monitoring if
companies are abiding with the regulations, could entail definite disobeyers. And these could in
effect produce and increase health problems.

3. The social responsibility of firms doing business in an industry like dietary supplements is to
ensure that their product does no damage to the health of people. Their product must be within
the FDA guidelines. Their use of ingredients must be approved, has been proven in a series of
test and must be safe to intake.

4. My assessment of the Dietary Supplement Health and Education Act (DSHEA) of 1994 is that
this statute regulates dietary supplements which is good because the provisions made strengthens
the requirements that need to be met of DSHEA. Before, the industry had a loose evaluation
procedure, but then it was turned into a strict and scrutinized series of procedure for the dietary
supplements to undergo to – and this is a positive development.

It is better to have DSHEA because they responsible for the regulation of dietary
supplements. Without this statute, all kinds of products that could damage people’s health are
bound to appear, and there could be a lot.

The involvement of the law on dietary supplements entails that there will be a stricter
implementation, a well organized system and a stronger regulation – and this is a good thing.
Rather than having a no sense of direction type of regulation, the effect of the law will make
regulations tighter and will promote a safe and trustworthy industry.

IV. The appropriate CSR policy of the company is to sell only dietary supplements that have
been thoroughly tested, approved by the government and FDA guidelines, and has confirmed its
safety information. And the safety information and effects of the dietary supplement must be
visible and properly oriented to the customers.

The policy was adopted by the company because the dietary-supplement industry has
many loopholes that are tempting to go through. If within the company there is no policy that
blocks its temptation to disobey with the guidelines, then many unsafe dietary supplements are
going to be produced to the society.

The target beneficiaries of the program are older men, men in general and the
community. In majority, older men are the ones who are likely to use these dietary supplements.
Their tendency to want their ailments fixed drives them to buy such dietary supplements without
even further researching what they’re going to intake. If companies are to provide them an
honest and prove worthy supplement, lesser risk to health will be achieved.

The CSR policy affects the company by producing a safe, trustworthy, reliable and
customer oriented company that abides to the guidelines and regulations of the government. By
having policies that control the company within, customers are likely to patronize the company’s
products and services and in return will produce more profit for the firm.

Employees are involved in the CSR policy by making sure that their operations and
distributions are in line with the guidelines and regulations of the government and the company
policy.

The challenge and issue in the implementation of the CSR policy is the approval of the
top managers and leaders of the company. Having to establish and implement this policy would
be costly and time consuming for the organization, thus, it hinders the approval of the top
management. Another challenge is the participation and cooperation of the employees because
they are the ones who are to take this policy into action.

The plans for future enhancement for the policy is to add a website that is official,
original, proven, trustworthy and credible where professionals explain the description, effects
and causes of the dietary supplements, and answer questions from customers, while customers
can view the reviews. Since most of today’s generation type and search for ways to cure their
ailments, this website is a way to inform and guide them.

Case 14 – Lobbying Ethics

I. Air pollution has become one of the most serious environmental problems of the U.S.
Through time, the problem worsens and this was due to the increase of use of coal. When the
usage of coal increases, there is an increase in sulfur dioxide and nitrogen dioxide emissions –
these are key ingredients in the formation of acid rain and sulfate haze. Acid rain causes damage
to life around it, and this has caused a war between companies who create and emit it and with
environmentalists who regards this as the most serious ecological hazard. For the issue of acid
rain, there is a lobbying of Congress where the polluting companies opposed to the added
regulations while social activist groups support the legislation. And this legislation is the acid
rain legislation wherein it would require coal-burning power plants to install special equipment
or use more expensive low-sulfur coal to reduce pollutants.

One group called “Citizens for Sensible Control of Acid Rain” took a stand on the issue.
They are opposed to the legislation and informed thousands of households the cause of this
legislation will increase higher electricity bills by 30%. An organization called “U.S. Public
Interest Research Group” who supports the legislation was outraged when the opposing group
was not a citizens group after all. The Citizens for Sensible Control of Acid Rain is an
organization funded by coal and power companies that are major contributors to the acid rain
problem. However, the opposing group’s reply was that they are a citizens group and have
gathered citizen volunteers who support their opposition. PIRG, an environmental advocacy
group took a stand and stated that Citizens for Sensible Control of Acid Rain’s lobbying is
misleading and deceptive. They did not mention that they funded by the power and coal
companies. PIRG also added that the opposing organization is an industry lobby masquerading
as a citizens organization. But Thomas Buckmaster, the public relations executive who runs the
opposing campaign remained firm from their stand, and through the next years indicated that the
group was funded by electric, coal and manufacturing companies.

II. The CSR issue involved is the air pollution that is being produced by electric, coal and
manufacturing companies that is increasing in the formation of acid rain and sulfate haze. An
added issue involved is the Citizens for Sensible Control of Acid Rain’s opposition regarding the
acid rain legislation which will help to lessen and strictly regulate the nation’s most serious
ecological hazard. Another issue is that this group acts as a citizens group but is actually funded
by coal and power companies that are major contributors to the acid rain problem

III.

1. Yes, I do find the practices of Citizens for Sensible Control of Acid Rain questionable
because they are funded by companies who are the major contributors to acid rain. This may
mean that the only reason the organization is opposed to the legislation was because of the funds
give to them.

Yes, they did constitute unethical lobbying practices because the reason behind their
opposition was not disclosed to thousand of households who were affected by their warnings to
vote down the legislation. They also disguised as a citizens group, having “citizens volunteers”
to support their cause. And the fact that they receive money from those causers of the problem to
fight for what they’re causing as destruction to the environment is unethical.
 No, I don’t find these practices defensible because the group’s reason to oppose is for
their own benefit as they are the cause of the problem. If their opposition has nothing to do with
receiving dirty money or any bribery, then their practices might be defensible because we all
have our own opinions regarding the mater. But if in exchange of support is an unethical deal
between the causers and the fakers, then the group’s practices has no right to be defended.

2. The changes I would recommend would be to stop receiving funds from companies who are
the major causes of the acid rain because these funds comes with an exchange altogether. If the
group is truly not deceptive of their practices, another recommendation is to disclose the
information to the public involved saying that this group is being funded by electric, coal and
manufacturing companies.

The minimal changes that it should implement are the perspective of the public. With
bearing out the truth, their opinion and support regarding the matter are considered as volunteer.

Ideally, this group should provide the pros and cons of the legislation, and state their true
reason as to why they have more cons to the legislation to the public.

3. Yes, it is reasonable for certain ethical guidelines to be applied in lobbying because without it
there is no control over the influence or power. There must be a fine line between the allowed
things to do and what’s not in lobbying. The reason for this is to have order in lobbying.

Yes, a code of conducts or ethics should be developed for lobbyists because for this
lobbying, there is a high risk of unethical practices that will be committed. To refrain or reduce
this, a guideline must be put in place. This is a reminder and a control for lobbyist to commit to
honesty, integrity and credibility.

IV. The appropriate CSR program would be to have a Go Green program which is a tree
planting program.

The program was adopted because it helps lessen the air pollution, the formation of acid
rain and sulfate haze being produced by coal and power companies.

The program works by ensuring the community that all employees are to participate in
the program every month, and that heavily affected communities will be the first priority.

The target beneficiaries of the program are the community heavily affected by the causes
of acid rain and as well as the environment.

The program affects the company by producing companies that are socially aware to the
contamination it produces to the community. By doing this program, companies are going to find
ways to improve their production and to prevent their contamination to the environment.
 Employees are involved in the program by having their top managers and rank and file
employees participate in the tree planting and decision making as to where the tree planting
program should be located next.

The challenges and issues in the implementation of the program would be approval of top
managers with regards to the implementation of the program and the participation of the
employees and top managers.

The plans for future enhancement for the program is to have coal and power companies
unite or partner in this program so that the program will grow bigger and expand to many
communities, and not only one.

Case 17 – Societal Impacts of Marketing

I. Len Quill is an importer of ethnic arts who majored in marketing and cultural
anthropology. Currently he is working at Artifacts, Ltd. He started his career at Artifacts in the
importing department, and soon became a buyer, traveling through South America and buying
native arts from local communities. One of his major sources of artifacts is the Puna Native
American tribe. By learning their native language, he is the only person from Artifacts who
works directly with the Puna.

Len’s boss, Mary Mathers, Len and Bob Littman, a client who owns several art galleries
specializing in ethnic arts, joined together for lunch and talked about Bob’s interest in the arts of
Puna Native Americans. This tribe makes woven baskets which are very distinctive that has
symbolized the tribe’s long history. However, Bob wants to change the patterns and colors to
reflect the tastes of his customers. It would be Len’s job to market the idea to the Punas. And in
return, the Native Americans would receive a good price. While for Mary Mathers, it will result
in a large profit for Artifacts, Ltd. But Len is not sure he wants to convince the Punas to change
their artwork because as an anthropology major, many societies weaken when basic cultural
symbols are changed. No contract has been signed nor will a contract be signed until and unless
Len gets an agreement from the Puna tribe council. It is informed to Len by Mary that if Bob’s
specifications with regards to the basket are made, Bob will insist on placing a large order that
will be due in a short period of time. This means men and women have to work to meet the
deadline, however, traditionally, making the baskets has been women’s work.

II. The CSR issue involved is Mary Mathers’ pressure for Len to get the permission from the
Puna Native Americans of Bob’s desire to change the patterns and colors to reflect the tastes of
his customers. Another issue is that if the Puna tribe is willing to enter into the contract to make
new type of baskets, there will be conflict to their tradition of only having women make the
baskets. And that conflict is to have men women make the baskets due to a short deadline. An
additional issue is the lack of awareness of the tribe to the damages that such changes may inflict
to their society.

III.

1. The following are the stakeholders of the case: first is Len Quill because his decision to
approve or disapprove Bob’s offer of change may be a benefit or loss to the company. Second is
Mary Marthers because her plan to have Len and Bob meet for lunch is an opportunity for the
company to grow and to create new partnerships and agreements between employees and clients.
Third is Bob Litman because his offer to the company creates an opportunity or a threat to the
company. If his offer is accepted, the company will earn a lot of profit from the client and from
future clients who will see the artwork if placed in art gallery. And if the offer is declined, this
will project as negativity from Bob’s perspective and a loss. Fourth is the Puna Native
Americans because their artwork will be a determinant factor to the company’s gain or loss in
which if it is sold, the company will gain more customers and income. While if declined from
being sold, the company will lose a competitive advantage for the firm.

I would assess the stakeholder’s legitimacy and power as something influential,

controlling and at times complex. Influential and controlling because they have say to the
company’s well being. They could harm or do good to the company. Complex because there are
times when each stakeholder holds a power against a company, that sometimes having to adhere
to each one is complex.

2. The social responsibility of Artifacts, Ltd., is to protect ethnic arts, artifacts and artworks
because the people who created this has illustrated their life, their history and their love for the
society – and all of this holds a high value form of art. Art must be preserved in order to show a
picture of an artist’s mind, to show the uniqueness of the culture, the history, the society and its
people.

3. The ethical issue in this case is Litman’s interest to change the distinctiveness of the Puna
Native Americans. Another is to break the tradition of this tribe. For a company that should value
ethnic arts and artifacts, the issue of Artifacts, Ltd. is that the company allowed and followed a
client’s order to change the tradition of a tribe if possible.

4. No, Len should not impose his own personal concerns upon a company decision because
what he personally thinks might waver or damage a company decision if it based on feelings,
emotions and self-interest. But if what he thinks could help the company improve and attain the
objectives of the company, then what he thinks must be imposed. But if it does not, then those
personal concerns should not be a basis to a company’s decision.

5. Len should not agree to the change the client is asking for because the company is a seller
of artifacts, so it should value the essence of the artifact, the culture, ethnicity and history of it,
and its creators. It is better to present customers the truth and beauty of the distinctness than
meeting the wants or expectations of the stereotypical viewpoints of society.

IV. The appropriate CSR program is to have a free and voluntary workshop program for
artworks wherein children, the youth or adults could learn or enhance their skills knowledge in
drawing, painting, sculpting, the culture of ethnic art and its importance. Their love for art will
make them appreciate the art before and the art now. And also by appreciating art, they will learn
its culture, history and people. Their creations will be displayed and sold to customers and the
funds will go to indigenous tribes to improve their standard of living.

The program was adopted by the company so that continuously the company itself will be
reminded of the value of what they are selling to clients and will also have an awareness of the
artifact’s essence and importance. It is also adopted by the company so the community will
appreciate art as something to preserve than to destroy.

The program works by having the employees of Artifacts, Ltd. volunteer to teach the
participants. For the community to be involved more, the program will showcase artworks most
especially artifacts, to which the cause for the company’s program will be returned to the tribes
who made the artifacts. In this program, people will freely learn art and get to create art and sell
their art to the public.

The target beneficiaries of the program are the community and indigenous tribes because
community will be more aware to appreciate the culture of art, and the tribes will be more known
for the distinctiveness of their culture and tradition for artifacts.

The program affects the company in which it strengthens their value for the culture and
tradition for art or artifacts. It also makes their employees realize that art is not always meant for
business.

Employees are involved in the program in which they are to participate in teaching the
participants. They may also participate in the creation of artworks to be sold to the public

The challenge and issue in the program is to have participants join in and be committed in
learning and creating art, and selling the artworks for a cause. Another challenge is a good
location for the program for people to see and participate. Spreading the program through social
media is also a way but advertising could be costly.

The plan for future enhancement for the program is to spread the cause for the program
not only to indigenous tribes but also to unappreciated artists.
Case 20 – A Paler Shade of Green

I. Ping Soon was a firm believer and advocate of protecting the environment. Having seen
the ad for “Care-for-Nature”, he felt inclined to give Hongkong Bank (HkB) his business
because of the Care-for-Nature credit card. But because of fake products emerging as
environment friendly, he wanted to avoid those kinds of products in the near future. Having a
strong proactive stance on important issues such as the environment, he was encouraged to send
his application for the “Care-for-Nature” credit card. Then several days later, the application
packet arrived. At first he thought he was making a good choice to help the environment, but
soon realized that the recycled logo was missing. Ping Soon then contacted a friend from the
National Council on the Environment (NCE) to know if they have any connection to HkB.
Farheen, the friend of Ping Soon told him that she was not aware that HkB practiced
environmental auditing as part of its business practice. At first Ping thought this was alright but
Farheen told him to think the issue carefully, to see why a bank should conduct an environmental
audit.

The first issue was paper. The manufacturing of bleached white virgin paper is a major
cause of habitat destruction and environmental pollution. Bleached recycled paper also is a major
source of organo-chlorine pollution if chlorine bleach was used to whiten paper. The next issue is
energy. Farheen said conventional buildings, when managed properly, could save considerable
energy. But the problem for most businesses is that they stop thinking about community
concerns after they have exhausted the superficial issues. Did people realize how much demand
for recycled paper on firm the size of HkB could generate? The headquarters of HkB was in
Hong Kong and its management was probably not too concerned about or even aware of the
environment in Singapore. After considering the issues, Ping felt that he should support a
company making an effort. He did not want to be “greenwashed” by a marketing program into
thinking that his money was supporting an important cause when it was simply increasing the
company’s sales. He knew that the “Care-for-Nature” Fund had done some good things for the
environment, but the HkB, he was not too sure.

II. The CSR issue involved is that Hongkong Bank should not display to their customers that
they are supposedly “environment friendly” just because they offer “Care-for-Nature” credit
cards, when in fact they actually have no care for nature and is simply doing this to increase the
company’s sales.

III.

1. I have seen a lot of products or services that are advertised as “environmentally friendly”
especially products coming from big companies. Environmentally friendly means products or
services that cause no harm to the environment. These products do not really meet my
expectations because chemicals coming from these products can still harm to the environment.
2. I assume that a company that makes environmental claims regarding its product is marketing
their products as safe and environmentally friendly because a company that does that only means
that their product really contains harmful chemicals to the environment.

Yes, I expect a higher level of corporate social performance because a company that
causes harm to the environment and to the community should have a plan to minimize its harm
and produce concrete ways to guarantee safety and to earn their customers trust.

The risks involved for a corporation that decides on this kind of product positioning or
CSR strategy is that their strategy will only last for a short time. People will realize that they
were being manipulated and being lied to. These will lead to a lot of complaints, bad reviews and
a decrease in customers and sales. The worst reputation for a company is by committing fraud to
their customers.

3. I know that businesses who claim to be environmentally friendly are trying to make this as a
strategy to win people to buy their products. By promoting a company with a sense of
responsibility to the community, the people will patronize them. I would want to know how they
would promote harmful products as environmentally friendly. In other words, what marketing
ploy they use to fool the public.

4. I think it is more important to have a routine operation of the firm that reflects the position of
responsibility presented on its products rather than offering only a choice because the product
represents the company. If through the efforts of the company, the product is shown as their
responsibility to the company and to the customers, then it will reflect on the good side of the
customer’s response.

5. In the case, the general manager’s personal values were not necessarily shared by the whole
organization. He wanted a balance between his commitment to the environment and to the
company, but it wasn’t really given focus to by the company. In other words, there was an
imbalance and no commitment.

6. Ping Soon should not send his application for the “Care-for-Nature” credit card because the
company is not committed as the customer is.

IV. The appropriate CSR policy is to have a Reduce, Reuse, Recycle policy wherein the
company could focus on tackling the issue of paper and energy.

The policy was adopted because the company is not committed in responding to the
company’s issue. Their “Care-for-Nature” credit cards should not only be a façade to the people,
but a start that HkB is truly environmentally friendly. And as a foundation to their “Care-for-
Nature”, this Reduce, Reuse, Recycle policy will also be a guideline to the company and a
response to the community.
 The policy works by having recycled bins in all branches of HkB. The company will
encourage the people to have a mindset of “instead of throwing it, recycle it” in which people
will put their trash into the right place by way of segregation. These materials will be made into
environmentally friendly materials such as pens, bags, pillows, bags and notebooks, and this will
be donated to schools. The company’s used papers, office supplies and equipment are to be
recycled materials. HkB will also encourage other companies to do the same by forming a
partnership to have their recycled bins in other companies. The use of plastic bags will be
discouraged, and energy saving light bulbs will be encouraged for companies and households.

The target beneficiaries are the companies who also have paper and energy issues, the
community, the employees of the company and the environment. Having a “reduce, reuse,
recycle” mindset benefits business firms, households and the community because what was once
trash is now usable, and reducing the use of electricity saves money.

The policy affects the company by way of reducing its costs for the firm in terms of
reusing and recycling their materials and saving energy. By doing this, the company will be more
effective and customers would also lean onto the company’s action for being environmentally
friendly.

Employees are involved in the policy by being active participants on the CSR policy.
Their cooperation helps the company strengthen its values and social responsibility to the
community and the environment.

The challenges and issues in the implementation of the policy is the approval of the top
management for this policy. Another is the cooperation of employees and the partnership of the
company to other firms with the placement of recycled bin in their buildings.

The plan for future enhancement for the policy is to have employees refrain from
bringing plastics bottles, cans and have their own water bottle, to minimize the usage of it.

Case 23 – The Letter to the Editor

I. An employee’s freedom or right to speak out is a significant tension between an employer

and an employee. In extreme cases, the employees “blow the whistle” on his or her employee. It
is said that employees have a right to the whistle and be protected against employer retaliation.
Another said in contrast, is that employees owe their loyalty to their employers. But where does
the employee’s duty to the firm end and his right of free speech as a citizen begin?
 John Cox was angered by an editorial he read which was a criticism about the U.S Postal
Service. Typing a letter to the editor, he defended his employer. His superiors were pleased until
they got to the last paragraph. I said, “Despite some of the worst management in industrial
society, postal workers move more mail faster and cheaper than anywhere else in the world”.
Because of this, Cox received an official disciplinary letter of warning. The charge was
“disloyalty to the Postal Service”. The letter was placed in his personal file which could affect
future promotions or other personnel decisions if he committed other infractions. The warning
accused him of violating a Postal Service Code of Ethics. But Cox fought back through filing a
complaint with the National Labor Relations Board. Cox thought that the letter was in retaliation
for his union activities and two previous disputes he had with his superiors. Cox’s workers
seemed gleeful about the dispute saying, “that this is going to come back and hurt management.”

II. The CSR issue involved is Cox’s way of writing to the editor. He wanted to defend the
company but he made the matter worst by stating his indifference to the company. Another is
that he thought the warning letter was because of his union activities and previous disputes he
had with his superiors, which was actually due to disloyalty.

III.

1. Yes, I think Cox went too far in making a critical statement for the company. This is
because although his intention was to defend the company but instead criticized the management.
As an employee, Cox should have communicated his concerns first to the management. If his
point of view was not taken and was disregarded by the company, then I think this would be the
time to criticize the company.

2. In my opinion, Cox was not disloyal to the company and did not violate the code of ethics
because by telling his honest thought about the company and the desire for it to improve and to
defend is in itself a loyalty to the firm. Every employee has the right to blow the whistle if they
deemed the company is not working on the right track.

3. My assessment is that it is right to give the warning letter but the supervisor should have
included the exact reason as to why the warning letter was given in order to avoid
misunderstandings.

4. If I were the supervisor I would’ve talked to Cox first. I would have wanted to know his
side and reason for doing that and what both of us should do to correct the situation. But also, as
a supervisor, I would give him a sort of penalty or reminder that what he did damages the
company and also him as an employee.

IV. The appropriate CSR policy is to have a Share Your Opinion policy wherein the top
management and rank and file employees will interact. The top managers will hear the voices of
their employees in order to improve the flow of operations in the organization. Another policy is
an Undercover Walkthrough wherein the top managers will walk around their company and be
one as a rank and file employee hiding the fact that they’re the boss. This will enable the
employee and employer to talk at ease and comfort.

The policy was adopted because the employer and employee lacked communication. The
employer didn’t know that this was what the employee thought of the organization. And the
employee though that he was only stating the obvious to the editor. If only there was a thorough
communication between this relationship, then this dispute would be avoided.

The target beneficiaries of this policy are the employees, employer and the company
because with thorough communication, there would be understanding and improvements to get
better as an individual and for the company.

The policy affects the company in which the communication between the decision
makers and workers of the firm will result to the betterment for the company.

Employees are involved in the policy by way of voicing out what they think is going to
make the company better in terms of operations, customer satisfaction and the distribution of
products or services. Having the perspective of those who do the hands on work is in itself an
asset to the company.

The challenges and issues in the program is the cooperation of the top management. Their
time and will to hear out their employees is going to be difficult. Some would have no time since
top managers have a tight schedule, while some will have the time but would have a hard time
listening and taking into consideration the employees opinions.

Case 25 – A Moral Dilemma: Head versus Heart

I. A male employee died due to a brain tumor, leaving his child and wife. Reviewing his
employee benefits, it was noted that although he was eligible for an additional company-
sponsored life insurance plan used for decommissioning purposes, his name was not identified
on the insurance rolls. His paperwork had been submitted to the corporate office for inclusion in
the program but was not entered due to administrative oversight.

A legal department review determined that the program was offered to certain
supervisory employees at the discretion of the company. Therefore, there was no legal obligation
to pay. The death benefit was twice the employee’s salary. The company could argue that it must
start acting like a business and use its head, not its heart. Existing company programs should
compensate the individual’s family but it was also an administrative oversight that failed to enter
the employee into the program.
II. The CSR issue involved is that the employee who died was supposed to be under the
company’s life insurance but due to an error, this prevented him from being under the insurance
plan.

III.

1. If I were to make the decision, I will disburse the life insurance proceeds because from the
beginning the company has intended that its managers to be under life insurance. Having an error
prevent this from happening does not only dismay the family of the deceased but also shows
distrust to the employees of the company. Loyalty from employees is essential to the company’s
growth.

2. At the start, it has been the company’s obligation to disburse the proceeds to the employees
who have applied for the plan. No, I would not be perceived as a weak manager but rather a
manager who values her customers as much as she values the company.

3. The ethical issue in this case is that the company is unwilling in disbursing the life insurance
proceeds to his family due to the company’s error. And if I were to disburse the proceeds, it will
be from the general fund of the firm.

4. I would approve of disbursing the life insurance proceeds and make the company realize that
employees are the company’s assets. Dishonor their trust and the company will lose its sales
more than it will earn if I chose to not disburse it.

IV. The appropriate CSR policy is to have a Care for Your Employees policy wherein the
company will provide the employees the assurance that their effort and works for the company
will be rewarded. Benefits will be evaluated more thoroughly and the company will also focus on
their employees as much as to their customers.

The policy was adopted by the company because the organization was not fair on how it
treated the situation. The mistake has caused the family to be involved and as well as the
company’s budget. To prevent this from again, the policy was implemented.

The target beneficiaries of the policy are the employees and the company because by
valuing the employees, employees will also value the company, and when this relationship is
strengthen, employee and customer satisfaction will increase.

The policy affects the company by strengthening its relationships within the organization.
There will be interdependence and camaraderie in helping the company grow.

Employees are involved in the policy in which they will be given focus to; their family
will also be taken into consideration.

The challenges and issues in the policy is the approval of the top management because
there are times employees, especially lower ones are not given too much of a consideration.
Their focus in general is to make money and at times, demanding employees with regards to
benefits, promotions and high salaries can also be a burden to them.

Case 32 – Greenway Environment Technologies

I. Greenway Environment Technologies is an industry leader in hazardous waste cleanup

services that specializes in the treatment and disposal of chemical and biological wastes. The
company employs an ethnically diverse workforce and hires and promotes minorities. Ron
Debitson reports to the CEO and is responsible for all financial and administrative functions. He
also serves on the board of directors of a nonprofit bleeding disorders organization.

The rapid growth of the company required Ron to hire several accounting staff members.
Paul Carvey was one of the temporary employees Ron wanted to hire as full-time due to
outstanding performances. But when he proposed this to Patrick, the head personnel, there was a
disagreement. The conflict was due to the belief that Paul was homosexual. This was an issue
because it is said that homosexual people have AIDS. Sam Sasbe, the executive vice president
also agreed to this when this was discussed in the meeting. Ron was dumbfounded by their
views. There was no evidence Paul was a homosexual but if he is, there was also no reason to
believe that he was infected. If Paul was infected, the virus cannot spread by casual contact.
These prejudices to their employees and to their customers conflicts to the company’s
employment of diversity. But when Sam, the CEO, told Ron not to hire Paul, he had began to
have doubts about his future with the organization.

II. The CSR issue involved was the management’s beliefs and reasons for not hiring Paul
Carvey which was the fact that he is homosexual.

III.

1. The ethical issues in this case are the judgment of the management by reason of assumption
and stereotyping an individual. The issue is raised due to being assumed as a homosexual, a
homosexual person having AIDS, the spread of this virus and what this could image the
company to their customers.

2. The stakeholders are following: