Ethics
Cari Sheehan
A Strong Ethical Culture The Value of Corporate Social Responsibility Many companies are reassessing how they do business in order to attract employees. The country is still recovering from the pandemic and many people have quit their jobs or simply not returned to work. This has left employers scrambling to find and attract employees over the past year. Many companies are still operating under shortened hours or have closed altogether. So, how do companies solve this problem and attract employees back to the workforce? One solution is for a company to rethink its purpose, brand, and how it values its employees. This starts with looking at its corporate ethical culture and its corporate social responsibility (CSR) initiatives. CSR initiatives help a company self-regulate and be held socially and ethically accountable to itself and others. Maintaining strong CSR initiatives help brand a company as ethical, responsible, and a strong contributor to society. A company with a strong ethical brand will normally see increases in short-term profitability as well as long-term sustainability. Many companies are striving to be recognized as leaders in CSR initiatives because it helps recruit and maintain top-quality employees and loyal customers.
one correct answer to these questions, but the answer starts with valuing all “stakeholders” in a company, and not just the shareholders. The stakeholders in a company include, but are not limited to, customers, clients, employees, and suppliers, along with the communities in which the company operates. Many companies maintain a narrow focus on the profitability for shareholders when making company decisions. However, the next generation of employees (e.g. millennials and beyond) are demanding a stakeholder approach from companies. Most people would rather work for a company that prioritizes human-value and environmental, social, and governance factors over profitability.
Ethical Human-Value Responsibility
Companies should aim to achieve fair treatment of all stakeholders. There are several ways a company can embrace ethical responsibility. For instance, a company could institute its own pay scale that starts higher than the minimum wage. A company could evaluate employees on several different scales unique to each employees skill set and it could institute a bonus structure. A company could pay for the college education of its employees. Walk the walk A company could adopt a generous parental leave plan or flexibility in However, establishing a strong ethical working hours for single parents. A culture and CSR initiatives requires company could also have a day care more than just composing a policy on-site, or pay for child care. A comand publishing it on the company’s pany could provide health coverage website for good public perception. It and on-site health facilities (e.g. gym, includes commitment and action from counseling, doctors). There are so the top leaders in a company. If the many things that a company could do top leaders do not make strong ethical to show all stakeholders that they are decisions or set a good example, how valued. The possibilities are limitless can a company expect its employees to so long as a company thinks outside act differently? Some top leaders know the minimum legal requirements. how to “talk the talk” but do not “walk the walk,” whereas genuinely ethical Environmental Responsibility leaders practice what they preach. A company does not have to do a lot to So how does a company establish a demonstrate environmental responsistrong ethical culture, with positive bility and reduce its carbon footprint. CSR initiatives, and get its top leaders A company can make small changes to to perform ethically in their profeshave a great impact, such as maintainsional and personal lives? There is no 8
ing recycling containers in its offices or going paperless. It could also maintain an employee carpool or public transit incentive program to help reduce pollution of its employees in major cities. Further, a company could provide funding to environmental organizations and participate in earth day events. These are small things that every company could do to help in the cumulative effect of saving the environment.
Philanthropic Responsibility Philanthropic responsibility refers to a company’s charitable organizations in which it supports. Companies often dedicate a portion of their earnings to particular charities, or create their own charitable organizations, which is something Barnes & Thornburg did in 2020 when it created its Racial and Social Justice Foundation. Companies like to have their employees involved in the charitable organizations and may even provide paid days off for employees to dedicate their time to the charitable organizations.
Economic Responsibility Economic responsibility is the practice of a company backing all of its financial decisions, and paying all its debts if incurred. A company with a strong financial core is more likely to remain ethical and have positive CSR initiatives. Normally companies with faulty finances are more vulnerable to potential corruption and unethical behavior. HCBM Cari Sheehan is of counsel with Barnes & Thornburg, where she sits on the firms Professional Responsibility Committee. She focuses on legal ethics, professional accountability and loss prevention. This article should not be construed as legal advice or legal opinion on any specific facts or circumstances. The contents are intended for general informational purposes only, and you are urged to consult your own lawyer on any specific legal questions you may have concerning your situation.
February • March 2022 • Hamilton County Business Magazine
