Corporate Policies and Corporate Social Responsibility at TechFite, Thesis of Marketing Research

Download Corporate Policies and Corporate Social Responsibility at TechFite and more Thesis Marketing Research in PDF only on Docsity! Running head: ETHICAL STANDARDS 1 C717 Business Ethics Task 1: Organizational Ethics and Corporate Social Responsibility Western Governors University A. Corporate Policies The human resource department of TechFite has developed three new company polices to take effect immediately. 1. Executive Bonus Plan Policy: TechFite will provide eligible executives with a yearly financial incentive, encouraging them to perform in a manner which will enable TechFite to meet or exceed its financial objectives each fiscal year. The target bonus is 5 percentage of the executive’s annual base salary in effect at the end of the fiscal year. 2. Eligibility for Benefits Policy: TechFite will provide health benefits to all full-time employees who work 40 hours per week with 10 hours of those hours being dedicated to the local youth leadership development program of their choice. 3. Infrastructure and Community Event Voting Policy: TechFite developed an infrastructure and community event voting policy. All full-time employees will vote at the end of each fiscal year on the economic or social infrastructure project and community event TechFite should undertake for the next fiscal year. A1. Rationale Each of the company policies are important to the success of TechFite and align with the company culture. ETHICAL STANDARDS 2 1. Implementing the executive bonus plan policy allows TechFite to have the money to invest in infrastructure to rebuild the city of Dellberg, sponsor community events, and can allow workers to work 40 hours and qualify for benefits. This policy allows TechFite to be actively involved in the community which is part of the company’s culture and allows the company’s corporate and social responsibility to the city be fulfilled. 2. Implementing the eligibility for benefits policy allows TechFite to provide the residents of the community that took jobs in this bankrupt city to receive full time wages and health benefits. This allows more money to flow back into the city improving the economy of the city allowing TechFite to fulfill their social responsibility. The policy also fulfills the company culture of encouraging employee empowerment by allowing the employee to choose the leadership development program of their choice to be involved with for 10 hours a week. 3. Implementing the infrastructure and community event voting policy allows TechFite to be actively involved in the aid of rebuilding the city and fulfilling the company’s environmental responsibilities it made. This policy also aligns with the company culture of encouraging employee engagement in corporate decisions and empowerment. Overall, the policy empowers the residents that are employed with TechFite to choose which infrastructure is important to the community and should be undertaken first. A2. Ethical Versus Legal Issues There is a distinct different between ethical and legal issues in business. First, I will start with what ethical standards are and then provide some ethical issues a business may encounter. Ethical standards are a set of values, practices or polices that an individual, a certain population or members of a profession hold themselves to. These standards are based on human principles of what the individual or business views as right and wrong. Ethical standards are voluntary and ETHICAL STANDARDS 5 reviewing each executives’ financial objectives to see if they were met and reviewing the payroll to ensure the percentage that is received is compliant with the policy. Lastly the Ethics Office will conduct an annual audit of infrastructure and community event voting policy by reviewing the number of votes to payroll ensuring compliance of the policy. B. Corporate Social Responsibility Corporate Social Responsibility also known as CSR is a way for business to self-regulate social accountability to their self, their stakeholders and the public. CSR is important in business because it helps build a stronger bond between employees and business by helping both the employees and businesses feel more connected with the society around them. When a business practices CSR it helps the community and the environment which can contribute to the company’s reputation and increase profits. Currently TechFite is not practicing CSR because the company failed to meet the commitments, made to support the local youth leadership development programs and to fund the rebuilding of Dellberg. If TechFite becomes socially responsible the company’s reputation will become stronger within the city of Dellberg therefore increasing profits. The increased profits TechFite receives as a corporation will benefit the TecFite employees by allowing TechFite to provide yearly salary increase. The profits gained through TechFite CSR will also benefit the city of Dellberg because there will be additional money to invest in infrastructure to aid the rebuilding of the city. B1. Community Reputation It is important for a company to be viewed as socially responsible within its community because people want to work for a company that is well known for their assistance to the ETHICAL STANDARDS 6 community. Consumers want to support business that are socially responsible because they know when they shop at CSR company’s the money the spend goes back into the community making it a more desirable place to live. Currently TechFite has failed to meet its CSR to the community of Dellberg. When TechFite decided to provide excessive bonus to its top executives it pulled money away from the budget for employee pay and benefits. This caused a domino effect causing the company to cut employee hours to below 40 hours per week dropping employees to part-time, so the company didn’t have to pay employee benefits. The pay of excessive bonuses also took money from the company’s community investment resulting in TechFite failing to uphold its commitments to invest in the infrastructure necessary to rebuild Dellberg. If the citizens can come to view TechFite as socially responsible it will improve the company’s reputation making it a place people want to work and shop at thereby increasing the overall profits of the company. B2. Course of Action TechFite’s core values and culture are its workplace collaboration, leadership development, and being actively involved in the community. Currently the primary business challenge TechFite is experiencing which is resulting in it failing to uphold its core values and culture not being actively involved in the community. Three actions TechFite should take to resolve the primary business challenge it is currently experiencing is to stop the payout of excessive bonuses to its top executives, stop cutting employee hours and bring them back up to full time so employees receive their benefits and last is to provide funding to infrastructure projects within the community. B3. Course of Action: Explanation ETHICAL STANDARDS 7 TechFite will meeting its ethical, social and environmental CSR by taking the three actions. Once TechFite stops the payout of excessive bonuses to its top executives it will meet its ethical corporate social responsibility by ensuring all stakeholders from employees to customers receive fair treatment. TechFite will meet its social responsibility to the community by allowing employees to work full time so they receive their health benefits back resulting in the company contributing to the overall health and wellness of community. Lastly once TechFite starts providing funding to infrastructure projects within the community it will meet its environmental responsibility of CSR because it will lead to secondary employment and environmental enhancements in the community.