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Ethics and CSR
Sue Wolstenholme FCIPRCIPR Chartered
Practitioner
Crisis (Response) Communication Diploma
24th April 2015
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Today
The Code of Conduct Ethics and Morals Responsibilities CSR
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Consider some unethical issues
Outstanding or recent examples What is the main thing that makes it
unethical Score out of 5 with 5 being the worst
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Morals, ethics and laws
Personal and learned Harmony and safety Education, culture and religion Do unto others as you would be done by An ethical environment determines our
conception of what is due to us and what is due from us, as we relate to others. (Blackburn 2001:1)
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Codes of conduct
1. Bribery and corrupt payments2. Employment and personnel issues3. Marketing practices4. Impact of multinational on host countries5. Effects on natural environment6. Cultural impact of multinational
operations7. Relations with host governments8. Relations with home countries
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Codes of conduct
1. Gifts (hospitality and bribes)2. Conflicts of interest3. Insider dealing4. Equal opportunity and discrimination5. Protection of the environment
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Corporate governance
Arises as consequence of separating ownership and management control
Need for organisations to be publicly accountable
Issues surrounding risk and responsibility
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In UK mainly voluntary codes, but increasing demand for legislationHampel Committee (1997)
Management is responsible to shareholders – but should take account of stakeholders interestsCode of behaviour for companies listed on UK stock exchange, viewed as ‘best practice’
Governance approach
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Chartered Institute of Public Relations Code of Conduct
1. Members of the Chartered Institute of Public Relations agree to:i. Maintain the highest standards of professional endeavour, integrity, confidentiality, financial propriety and personal conduct; ii. Deal honestly and fairly in business with employers, employees, clients, fellow professionals, other professions and the public; iii. Respect the customs, practices and codes of clients, employers, colleagues, fellow professionals and other professions in all countries where they practise;
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And
iv. Take all reasonable care to ensure employment best practice, including giving no cause for complaint of unfair discrimination on any grounds;
v. Work within the legal and regulatory frameworks affecting the practice of public relations in all countries where they practise;
vi. Encourage professional training and development among Members of the profession;
vii. Respect and abide by this Code and related Notes of Guidance issued by the Institute of Public Relations and encourage others to do the same.
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Principles of Good Practice
Integrity Competence Transparency and avoiding conflicts
of interest Confidentiality Maintaining professional standards
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International pressure - initiatives from:
The UN Global Compact 10 Principles Human Rights-2 Labour-
4 Environment-3 Anti-corruption-1 Wolstenholme 2013:91-3
The World Bank ISO standard on CR 26000
Regulation
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Knowledge and moralitySex and sexuality
1290 banned 1295 12 1300 burned 1533 – 1861 hanged 188516 1967 (1957) over 21 1973 conference 1984 over 18 2000 armed forces and 16 2005 civil partnerships 2013 marriage
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Western Ethics
Ontology Deontology Teloelogy
Aristotle Kant Mill/Bentham
Virtue Duty Utilitarian
Being/existence
Non consequentialist
Consequentialist
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Ethics also known as moral
philosophy
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Aristotle
Golden Mean – virtue at mean point between extreme vices
Cowardice Courage Rashness
Prodigality Liberalness Meanness
Boastfulness Truthfulness Mock modesty
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Aristotle
‘all I can do is to urge you to regard friendship as indeed the greatest thing in the world, for there is nothing which so fits human nature, or is so exactly what we both desire and need, whether in prosperity or adversity. But I must at the very beginning lay down this principle: that true friendship can only exist between good people.’ And he goes on to clarify: ‘Let us mean by “good people”, those whose actions and lives leave no question as to their honour, sense of justice and generosity both of hand and heart; who have the courage to stand by their principles and are free from greed, intemperance and violence.’ Grayling 2011:57
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Commitment
It is the moral dimension of commitment that turns a superficial relationship into something meaningful – ‘so does our only hope remain in the preservation of the consciousness of the broader community to which we belong?’ (Debeljak 2000)
or as Hegel put it: ‘our consciousness of ourselves is largely or even essentially a consciousness of how we stand for other people.’ (in Blackburn 2000:1)
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Kant 1724 - 1804
You must tell the truth, even if someone else suffers as a result.
An individual, alone, is responsiblefor his or her actions and that human reason could and should live by the basic principles of behaviour without needing the help of a higher being. Wolstenholme 2013:169
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Bentham and Mill
Pleasure and pain Central to that system were theories of
public opinion, suggesting that public opinion had the power to ensure that rulers would rule for the greatest happiness of the greatest number.
Wolstenholme 2013:81
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Utilitarians
Utilitarians saw happiness as being the sole human goal. Mill stated that if happiness was not, ‘in theory and in practice, acknowledged to be an end, nothing could ever convince any person that it was so.’ In his essay On Liberty (1859) he put forward the principle that people should be able to define their own version of happiness, within the law that, in pursuing it, they must not interfere in any way with the legal choice for happiness of another.
Wolstenholme 2013:81
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Public Relations!
Mere expression of the communicator’s point of view will not succeed; so it must be attuned to the mental and emotional bent of the audience’. (Lesly 1974 in Ewan 1996:xv)
According to Abraham Lincoln (1860) ‘public opinion needs to be molded.’ And he went on: ‘When the conduct of men is designed to be influenced, persuasion, kind, unassuming persuasion, should ever be adopted. It is an old and true maxim “that a drop of honey catches more flies than a gallon of gall.” So with men. If you would win a man to your cause, first convince him that you are his sincere friend. Wolstenholme 2013:164
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Lao Tze c350 – 250BC
Make sure that all are provided for but hold information back from the masses, who think they are happy because they have full stomachs and comfortable beds
‘Not to honour men of worth will keep the people from contention; not to value goods which are hard to come by will keep them from theft; not to display what is desirable will keep them from being unsettled of mind. Wolstenholme 2013:171
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Confucius – K’ung Tzu - 550BC
Categorical imperative ‘ A rich man’s house may be decorated luxuriously but his self-cultivation is enhanced only when he is virtuous’ I can try a lawsuit as well as other men but surely the great thing is to bring about that there be no going to law
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Buddhism
Buddhism is 2,500 years old: The path to Enlightenment is
through the practice and development of morality, meditation and wisdom
Trust is the best of relationships Whatever words we utter should
be chosen with care for people will hear them and be influenced by them, for good or ill Wolstenholme 2013:171
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When would it be ok to:
Tell a lie Refuse to work Hide the facts
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Buddha for CSR
As the bee collects the nectar and departs withoutinjuring the floweror its colour or scent, so let the sage dwell in his village
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Corporate behaviour
Responsibility
Financial Environmental Social
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Corporate Financial Responsibility
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Corporate Environmental Responsibility
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Corporate Environmental Responsibility
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Closely watched
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Can you be transparent without being ethical?
And vice versa? We define people and businesses
according to their values and so we require proof as to the extent by which those values are applied to their lives and vice versa
Consider some proof…
Transparency
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Greenwash
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Social Equity
Ethical Practice: honest, fair, financially reliable Employment Ethos: a good employer Social Engagement: responsive to local
community Service Orientation: cares about its customers Social Responsibility: corporate citizenship Emotional Proximity: my kind of brand or
company Social Utility: provides worthwhile products
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CSR is Not
Baseball caps with logos A company box at the football Sponsoring the CEO’s daughter’s ballet
school But what’s the strategy for resisting these?
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SITA UK
Leading supplier of recycling and waste services
Over 100 years in the business in Europe Integrated solutions - recycling,
composting, energy recovery etc In UK since 1988 and employs over 5000 Parent company Suez Environment
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SITA UK
Treats waste as a resource CSR - Sustainability - environmental,
economic and social CSR Agenda influences corporate decision
making From procurement and recruitment to
community action and charitable giving
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Actions
Fleet to be developed for PPO and Bio Fuels
Neighbourliness - over 250 sites Liaison groups, open days, exhibitions,
help desks, education packs Employ socially excluded or challenged
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Suppliers
No arms traders Must understand and follow steps towards
sustainable development and waste minimisation
Detailed form and annual inspections Ethics
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Employee development
interests
community needs and
expectations
Company missionObjectives/priorities
Social Responsibility Begins Here
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Corporate Social Responsibility
Hobbes 17th 18th, Rousseau and Rawls 20th
Quakers Education Communication
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Responsibilities to society
CSR pyramid: Carroll, 1991
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BITC’s aims: To work in partnership with businesses to build their relationships and involvement with the communities in which they operate. Supporting the social and economic regeneration of communities by raising the quality and extent of business involvement and making that involvement a natural part of successful business practice.
Business in the Community
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Corporate Social Responsibility
A concern with these issues can actually lead to improved performance Crowther – Social environmental accounting September 2000
Sustainable companies, ie companies integrating economic aspects with environmental, ethical and social – yield a larger return than conventionally managed companies Holmstrom, S The Reflective Paradigm – Masters thesis 2002
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Relationships
Commercial Political Legal Professional Social Moral
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CSR Golden Mean?
Imperialism…………………..Exploitation
CSR
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The Co-operative Bank
Why are you our customers What else do you want (30,000) Human Rights – 90% Armaments – 87% Animal exploitation – 80% Environmental damage – 70% Fur trade 66%
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Seven partnership networks for the Co-operative Bank
Source: Co-operative Bank Ethical Policy, Co-operative Bank internal publication
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Aim to be the most sustainable retailer by 2015, based around 5 ‘pillars’:
1.Climate change2.Waste3.Natural Resources4.Fair partnership5.Health and Wellbeing
How are they doing?
M&S Plan A (Doing the Right Thing)
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Positioning
Lead the debate Define roles clearly Develop protocols with NGOs Create national codes Celebrate the partnerships Make awards
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Responsible corporate culture
Set realistic values and goals, do not over-promise
Encourage input from all levels within organisation regarding values and practices
Explore methods to provide for greater diversity and dissent
Provide practical training for managers implementing corporate values
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Public cynicism – ‘a PR job’, or ‘greenwashing’ Transparency exposes “token” community
actions Need consistency with values and corporate
objectives Clear criteria for evaluating gains and
measuring stakeholder support 2-way symmetrical model CSR can make or break reputation
Implications for PR practitioners
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L’Etang
‘while the term ‘corporate responsibility’ can have many meanings, it is most widely used in an evaluative and laudatory manner, describing the business as a whole or of a corporation, above and beyond its purely economic function.’ L’Etang 2006:406
Redressing the balance (Ibid:413/4) may well be seen as an investment against
the day when a crisis occurs and the company needs all the goodwill it can muster’ (Ibid:414)
Wolstenholme 2013:182
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By 2020 . . .
“ a successful practice will be clear on what public relations is, and the benefits it can deliver. It will be strongly led, respected, and established as a senior management discipline. Practitioners will be confident, committed to professional development and working to well-developed codes of conduct.”
Jon White PR2020
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Skills, knowledge, expertise
Ensure you have the skills necessary to do the work assigned to you
Keep your knowledge, skills and expertise up to date
Ensure you do not give employers or clients the impression you can guarantee specific results (overpromising) Parsons (2004)
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PR ethics and professionalism
Improving public relations ethics has been seen as a key component in achieving greater professionalism….
Day, Dong, Robins (2001)
Only when public relations professionals engage in two-way communications with their publics, where the organisation responds to its publics, can public relations be truly ethical.
Grunig (1989)
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Ethics and profit – symbiotic relationship in the form of CSR – Tench (2009)
Tangible business benefits Shareholder and community interests can
both be served Must act ethically and honestly or risk
exposure
Some conclusions
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Next Session
The next session for this diploma is on 15th May 2015.
We look forward to seeing you all there.