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Transcript of Social Responsibility JJT2 Ref
Social Responsibility Strategy for Company XYZ Inc. 1
Social Responsibility for XYZ Computers Inc.
Introduction
Western Governors University
Social Responsibility Strategy for Company XYZ Inc. 2
ContentsAbstract..................................................3
Social Responsibility for XYZ Computers Inc. Introduction 4
Environmental Considerations..............................5
Materials Sourcing.......................................5
Carbon Footprint.......................................7
Ethical Leadership Considerations........................10
Corporate Ethics........................................10
Business Relationships................................12
Organizational Viability Considerations..................15
Organizational Consistency..............................15
Minimizing inventory to maximize profit...............17
Legal and Regulatory Considerations......................19
Sarbanes-Oxley (SOX)....................................19
Title VII...............................................20
Americans with Disabilities Act (ADA)..................21
References...............................................23
Social Responsibility Strategy for Company XYZ Inc. 3
Abstract
The last 30 years of business has seen a marked increase in
unethical behaviors and questionable business practices such as
the PG&E Hexavalent Chromium scandal, the Enron financial
debacle, A.I.G., and Bernie Madoff’s Ponzi scheme. In the last
decade there has been a rise of social responsibility strategies
that have emerged from companies like Dell, BMW and Subaru and
people like Bill Gates, Michael Dell and Larry Ellison who
through philanthropy and strategy are effecting change in their
environments to combat the rising unethical behaviors and
questionable business practices that plagued the business world
for the last three decades. Social responsibility for a company
can be many things such as reducing a carbon footprint, utilizing
renewable materials, giving back to the community, and planning
for the future. For companies to succeed in being socially
responsible on a wide scale they need to have an effective
strategy that lays out actions, goals and objectives for social
responsibility.
Social Responsibility Strategy for Company XYZ Inc. 4
Social Responsibility for XYZ Computers Inc.
Introduction
When asking what Social responsibility is most will say that
it can be defined in simple terms as an individual or
organization who acts with the best interest of the environment,
community, economy and people when transacting business as an
organization or going about their individual daily lives. Why is
social responsibility so important? Acting Socially responsible
is critical to preserving the fragile business climates in
challenging economic and times. Acting in a socially responsible
manner ensures that pressing environmental concerns are addressed
and handled with the utmost importance. Socially responsible
behavior helps to deliver a balance of profitability and social
concern while acting ethically. Social responsibility helps
ensure that people and organizations go above and beyond to help
improve their communities, environment and the lives of humanity
in general.
For this assignment the task was to develop a social
responsibility strategy for a client (XYZ Computers Inc.) The
company profile for XYZ Computers Inc. is that XYZ Computers is a
Social Responsibility Strategy for Company XYZ Inc. 5
medium volume custom computer fabricator and integrator that is
based and incorporated in Texas in 2010. XYZ Inc. is a publicly
traded entity that builds and integrates
High performance computer workstations (Laptops and
Desktops)
High performance computer servers and High performance
computing clusters (HPCC’s)
The focus of the strategy should be on the following
Environmental considerations and recommendations (planet)
Ethical leadership considerations and recommendations
(people)
Organizational viability considerations and recommendations
(profitability)
Legal and regulatory considerations and recommendations
Environmental Considerations
Environmental considerations in this day and age are
critical to consider because of the damage caused in the past and
how fragile the environment is. People and organizations caring
for the environment in recent years have reached new highs. The
Social Responsibility Strategy for Company XYZ Inc. 6
reason for the increase in focus is the ultimate realization that
you cannot keep damaging the environment and expect to stay
efficient and viable. Some of the environmental considerations
are listed in this section.
Materials Sourcing
For XYZ Computers, being able to source materials regularly
can be what determines if the company blossoms or withers way.
Equally as important as finding a steady flow of materials is how
cheaply or expensively those materials can be sourced for and
this can determine if XYZ Computers will win, lose or draw in the
market place. In the past, companies would look for the lowest
cost materials that met their specifications without regard to
things like sustainability, origin and overall cost to the
environment. With the strong focus on social and environmental
responsibility there has been a paradigm shift in some companies
on how they source their raw materials.
Sourcing raw materials that are sustainable and affordable
are beneficial to a company however; there are cases where raw
components are located in areas of conflict or of questionable
moral character. For example in the computer industry sourcing
Social Responsibility Strategy for Company XYZ Inc. 7
components like tin, gold and tungsten is critical due to their
incorporation into computers and computer related electronics.
Items like tin, gold and tungsten have been found in abundance in
places like the Democratic Republic of the Congo and in
surrounding countries that are engaged in conflicts that have
human rights violations as well as not acting environmentally
friendly in there practices.
Most socially responsible companies make a concerted effort
not to knowingly purchase minerals form conflict zones. According
to the Sony Corporation’s policy in regards to mineral sourcing
for electronics it states: “It is Sony's policy to refrain from
knowingly purchasing any products, components or materials that
contain conflict minerals so that it can avoid contributing to
conflict through its sourcing practices.” (Sony Corporations,
2014). When a large conglomerate corporation like Sony makes the
responsible choice not to source products from areas such as the
conflict zone it helps to alleviate the violent and lengthy cycle
of human rights violations that occurs in the conflict zones.
Recommendation
Social Responsibility Strategy for Company XYZ Inc. 8
Problem: XYZ Computers requires minerals such as gold, tin
and tungsten in the manufacturing of their computers and
electronics. Gold, tin and tungsten have been known to be found
in abundance and cheaper than anywhere else in the world in
conflict zones like the Democratic Republic of the Congo.
Conflict minerals many times are harvested by child labor and
slave labor which are major contributors to human rights
violations. Sourcing materials from questionable sources can be
detrimental to an organizations reputation and can have far
reaching effects.
Solution: In a concerted effort to be socially responsible
in regards to the sourcing of raw materials XYZ Computers
establish a policy to not knowingly purchasing raw materials or
components that contain conflict minerals. A clearly defined and
established policy in regards to materials and components
sourcing will advise employees and business partners that those
who do not abide by the policy will be facing consequences for
violating this policy which for employees can result in and up to
termination of employment and for vendors it can mean termination
of contracts and relationship for cause. In addition to
Social Responsibility Strategy for Company XYZ Inc. 9
establishing a policy of not purchasing conflict minerals the
company will conduct vendor audits regularly to ensure the
sources of the vendor’s minerals and components do not contain
conflict minerals.
Carbon Footprint
A carbon footprint according to (merriam-webster.com, 2014)
is defined as the amount of greenhouse gases and specifically
carbon dioxide emitted by something (as a person's activities or
a product's manufacture and transport) during a given period”.
The process of running a business is taxing on resources and can
create a large carbon footprint if not managed by a good
strategy.
Business operations are taxing on environmental resources
and anytime a business can give back to the environment by
reducing the load on current resources or draw from resources
that do not impact the environment it is a socially responsible
thing to do. Reducing the overall carbon footprint is critical
and several things can be done to reduce a carbon footprint such
as utilizing solar panels to power operations where possible. The
process of using solar power via solar panels do not reduce
Social Responsibility Strategy for Company XYZ Inc. 10
greenhouse gasses but it creates energy from a source that does
not tax fossil fuels like coal and petroleum that traditional
power plants may use to power energy grids. An example of success
with solar panels comes from the United Church of Christ in
Bakersfield California. The UCC Bakersfield chapter states: “The
panels on the roof cover a 165'x30' area and produce 240-260
kilowatts of energy on an average summer day. To put it in
perspective, last year's energy costs decreased from $25,000 to
$7,500, with the $18,000 in cost savings going to repay the
Cornerstone Fund loan.” (Mullins, 2012). The monetary savings
alone only serve to highlight the carbon footprint reduction and
reduction in energy pulled from the traditional grid by almost
70%.
Recommendation
Problem: XYZ Computers is growing at a fast rate and as
sales climb so do operational costs and the demand for energy
from the power grid. For example, an office building that is
three stories in height and half a city block in size can be
expensive to power, heat, cool, and maintain. In order for a
Social Responsibility Strategy for Company XYZ Inc. 11
business to remain economically viable and socially responsible
there are operational cost needs that need to be reduced or off
set in order to reinvest in the business.
Solution: Utilize solar panels to produce cheap and clean
energy for current XYZ Computers manufacturing and operations
facilities which will reduce XYZ’s carbon foot print and power
drawn from the power grids. The utilization of solar energy
reduces the company’s dependence on expensive energy from the
power grid that may not be cleanly produced and can cause long
term damage to the environment. Solar panels can greatly reduce
energy costs by producing energy that is cheap and clean. The
initial setup of a solar grid on the roof tops and parking
structures of XYZ’s operations and manufacturing facilities will
be expensive however a return of investment could be expected in
the 18-24 month time frame.
Waste Reduction
Whenever something is manufactured, built or fabricated
there are constants and one of those constants is waste. Waste in
the business environment is a given and with a computer company
Social Responsibility Strategy for Company XYZ Inc. 12
such as XYZ Computers the amount that can be generated can be
very large due to manufacturing, business operations, and
logistics. Waste reduction has become a differentiation point in
several companies who are reducing the amount of waste and
packaging that they generate. Reducing or redirecting waste is
important to do in today’s ecologically friendly environment.
Recycling initiatives for operational wastes and manufacturing
strategies that include using materials that are made from
recycled assemblies and reclaimed materials is an effective
strategy. Simple recycling of aluminum, plastic and paper allow
for a substantial reduction in generated waste because aluminum,
plastic and paper can be broken down and reused. According to
Hamilton County Recycling and Solid Waste District the benefits
of recycling are “It projects a positive corporate image, Reduces
reliance on landfills and
Creates jobs—the recycling industry has a total economic impact
of 169,000 jobs and $6 billion in annual wages, just in the state
of Ohio”. (Hamilton County Recycling and Solid Waste District,
2014)
Recommendation
Social Responsibility Strategy for Company XYZ Inc. 13
Problem: XYZ Computers is a growing at an exponential rate.
Recently it has come to the attention of managers that the amount
of waste from operations and manufacturing has reached all-time
highs and XYZ Computers does not recycle or have waste reduction
programs in place. Key employees have pointed out that most top
tier computer manufacturers have effective and waste reductions
programs in place in order to be more conscious of the
environment and improve their social image.
Solution: in order to combat the amount of waste going to
landfills and the growing and in an effort to improve XYZ
Computers social image a two pronged waste reduction and
recycling program will be implemented. The waste reduction
portion of the solution will focus on reducing the amounts of
paper goods used in operations. For example printing of documents
will be done front and back to reduce paper use as well as making
an effort to convert to a paperless office by not printing e-
mails or schedules unless absolutely needed.
The recycling portion of the solution will be more extensive
which includes recycling paper, cardboard, and plastics from
operations such items that were printed and are no longer needed,
Social Responsibility Strategy for Company XYZ Inc. 14
old boxes, and assorted plastic waste. Also an extensive exercise
or recycling aluminum cans, paper plates, and plastic bottles
from lunch and break rooms will address much of the items in the
non-manufacturing spaces. In addition to the above, the
manufacturing side of the business will recycle items such as
cardboard, plastic assemblies and aluminum waste and reuse it in
manufacturing operations if possible and if not possible the
manufacturing wing will follow suit with the operational side of
the business and recycle items such as cardboard, plastic
assemblies and aluminum waste.
Ethical Leadership Considerations
There are several things to think about when considering the
ethical leadership or the people aspect of social responsibility.
The people considerations are quite possibly the most important
and the most difficult to address. Some of the high level
considerations are listed below.
Corporate Ethics
Having a strong corporate ethical structure is a high level
requirement in order to be socially responsible. Corporate codes
of conduct should be a map to the everyday interaction for the
Social Responsibility Strategy for Company XYZ Inc. 15
people in an organization and the organization as a whole. When
companies and organizations do not have a strong code of conduct
or corporate ethics certain people tend to deviate from the
spirit of good business and possibly engage in behavior that is
unethical, morally wrong, and possibly illegal. It is critical
for an organization and the members therein to act with integrity
in their everyday dealings which will in turn allow the company
to be socially responsible. The only way to drive people in an
organization to act in a socially responsible manner is to have
examples of socially responsible behaviors personified by their
employer’s and leaders on a regular basis. What this means is
that leaders should act in the best interest of their community,
their company and their people at all times. When an employee or
an organizational leader is confronted with a moral or ethical
conundrum they should be able to refer to an established and
effective code of conduct to help resolve the issue. If the code
of conduct is unclear the employees or leaders should turn to
someone who specializes in corporate compliance, ethics, and
conduct like a corporate ethics officer.
Recommendation
Social Responsibility Strategy for Company XYZ Inc. 16
Problem: XYZ Computers is a company that is growing at an
exponential rate as does not appear to be slowing down in the
near future. As with any growing company new employees from
diverse backgrounds with their own set of ethics and morality are
filling the ranks. A clear set of right and wrong behaviors needs
to be addressed and described and Governance needs to be put in
place to ensure that ethical behaviors are being propagated,
taught, and communicated through the organization from the top
down.
Solution: The development of a thorough and detailed code of
ethics that illustrates and calls out good and bad behaviors as
well as the company’s commitments needs to be created and
communicated to the ever-growing staff and business partners of
XYZ Computers. The corporate code of conduct will detail
commitments to employees, customers, stakeholders, the community
and the environment. The code of conduct will also detail what is
acceptable legal behavior versus unacceptable behaviors that are
unethical in nature. Also a corporate code of ethics can clearly
layout how the organization is going to be conducting business.
Social Responsibility Strategy for Company XYZ Inc. 17
When ethical behavior is detailed and distributed it is harder to
ignore.
Problem: Even with an effective and modern corporate code of
conduct and ethics there has to be a governing body that
maintains, updates and makes changes to said documents as time
and the world progresses because a code of ethics and conduct has
to be a living document and not a static one. Also there needs to
be a group led by an individual that can manage ethics concerns
for the company internally and externally and advise on policy on
a daily basis.
Solution: The establishment of an office of corporate ethics
along with the appointment of a Chief Ethics Officer will allow
the organization to have dedicated focus on ethics, conduct and
social responsibility which other members of senior management
may not be able to provide. The office of corporate ethics will
focus on pressing ethical issues both internal to the company and
with external business partners and customers. The office will be
led by the Chief Ethics Officer and he or she will have the
responsibility to ensure that an ethical mindset and culture is
being developed and implemented within the company while ensuring
Social Responsibility Strategy for Company XYZ Inc. 18
that the company’s ethical polices are being adhered to by the
internal employees and external business partners. By the mere
fact that a company establishes a corporate ethics office and
appoints a Chief Ethics Officer that solidify their commitment to
acting in accordance to regulations and morally sound business
behaviors.
Business Relationships
According to (Hose, Ethical Relationships in Business,
2014)“The ethical foundation of a company is important to the way
a company is perceived by customers and peers alike.” Business
relationships are critical to the success and livelihood of an
organization. If a business relationship is determined to be of
questionable character it can inadvertently harm the reputation
of the business and undermine the strategy for social
responsibility. Business relationships should be examined for
integrity and potential violations of social responsibility on a
regular basis. Business relationships need to be examined at a
micro level in some cases to ensure compliance to established
ethical standards. Having an effective audit mechanism is
important to understanding what questionable behaviors the
Social Responsibility Strategy for Company XYZ Inc. 19
business partner may or may not have. Some of the potential
audits for XYZ Computers could be ensuring that business partners
are in regulatory compliance, if any human rights violations are
occurring and if the partner is in compliance with XYZ Computers
code of values and ethics. If violations are found present with
the business partner, there would be a correction period if the
violation is not highly egregious such as a violation of human
rights or clear violation of law. If the business partner can
correct the concern in a reasonable period of time the business
relationship can continue but the issue will be logged for
documentation purposes and posterity.
Recommendation
Problem: XYZ Computers is a growing company and as such they
do not always have the luxury of fully examining the business
relationships that they establish. As XYZ Computers continues to
grow they need to develop a strategy for analyzing, auditing and
investigating all their business relationships regularly. The
business relationship department will be responsible for
reporting on the health of the overall relationship and will
Social Responsibility Strategy for Company XYZ Inc. 20
determine if the relationship is becoming detrimental to XYZ
Computers overall strategy.
Solution: XYZ Computers will establish a business
relationship department that is under the office of corporate
ethics and they will consist of analysts, auditors and
investigators. The departments will have a sole charter and that
is to protect the company from potentially detrimental business
relationships by examining all applicable business data,
financial records and investigating any discrepancies with the
business partners directly. The business relationship department
will have the ability to recommend changes to the business
relationship such as asking the business partner to get their
components or products from other sources to avoid a potential
situation in the future. They will also have the ability to
suspend a relationship that has come into violation of company
ethics or code of conduct. Also the department will be able to
completely sever ties with a business partner who is in
violations or regulations or laws.
Creating Ethical Teams
Social Responsibility Strategy for Company XYZ Inc. 21
Creating an effective and ethical team that is consistent is
paramount to being socially responsible and successful in the
market place. The business team is a reflection of the values and
behaviors of the company or organization so if people in an
organization are behaving ethically questionable or morally wrong
this can be detrimental to the company’s public and social image.
People do not just wake up one morning and are ethically sound
and morally straight. Ethics and morality need to be engrained
from the beginning of life and refreshed at times in order to
foster positive behaviors. In growing companies like XYZ
Computers ethical vitality training and code of conduct
refreshers that occur on a bi-annual basis will be very helpful
to new employees and will help the refresh tenured employees. In
addition if managers and company leaders did more in depth
training than front line employees in regards to code of conduct
and ethics this would help with having leaders exemplify the
company’s core values and will help build ethical teams from the
top down. According to (Bourne, 2013) “Once created, an ethical
culture in your team can be expected to have a strong effect
Social Responsibility Strategy for Company XYZ Inc. 22
sideways and downward within the organization — and outward to
the wider stakeholder community.”
Recommendation
Problem: With the growth of XYZ Computers there has been a
corresponding growth in the internal workforce. With an expansion
of workforce there has to be a mechanism put into place to
indoctrinate new employees into the XYZ Computers ethical culture
and a way for tenured employees to receive updates and keep
current on ethical issue and changes to the code of conduct.
Solution: Implement ethics and code of conduct training
modules for new employees and create vitality ethics and code of
conduct training that occurs on a recurring basis. The new
employee indoctrination will immerse and detail to the new
employee in what is expected of them ethically and morally as an
XYZ Computers employee. In addition the development and
implementation of regular cycle of ethics and code of conduct
vitality training will keep current employees up to date on
pressing ethical issues inside and outside of the business.
Finally ethics vitality training should ideally occur at
recurring six to nine month intervals and be managed by the
Social Responsibility Strategy for Company XYZ Inc. 23
corporate ethics office and all training collateral should be
approved by the chief ethics officer.
Organizational Viability Considerations
Organizational Viability can mean several things however
simple definition is how well a company can remain profitable
while balancing other pressing considerations and concerns for
prolonged periods. Organization viability could refer to a
company’s ability to consistently create profit or a company’s
ability to bring to market cutting edge products that are
innovative and in demand. Organizational viability considerations
can be numerous however some of the key points are listed below.
Organizational Consistency
In regards to organizational viability it is important to
build an organization that is consistent, efficient and ethical.
According to (Saltzman, 2010)“People are looking for consistency
in their personal lives; organizations are looking for
consistency as they deal with other organizations.” Organizations
by nature are dynamic due to being a sum of their very diverse
makeup. When some organizations begin their journey into the
Social Responsibility Strategy for Company XYZ Inc. 24
market place they find occasionally flying by the seat of the
pants in regards to projects, processes, policies and procedures.
The only way to make sense of some of the chaos that can occur in
new company’s like XYZ Computers is to implement work strategies
that can be beneficial to the company, such as PMP methodology
which focuses on structured project management. According to
(Haughey, 2014) “Project management in the modern sense began in
the early 1950s, driven by businesses that realized the benefits
of organizing work around projects, and the critical need to
communicate and co-ordinate work across departments and
professions.” A solid project management philosophy that is well
implemented will not only create consistency throughout an
organization but it will all so reduce complexities and overall
costs.
Recommendation
Problem: XYZ Computers is a company that is growing at a
very fast pace and will likely continue to grow even faster. As
sales and demand grow and so does the need for a formalized way
to get things done. XYZ Computers currently manages projects
internally and externally without any real formality, governance,
Social Responsibility Strategy for Company XYZ Inc. 25
or control. In order to succeed as growth continues a formalized
project management methodology needs to be implemented to build
consistency and process.
Solution: Establish, train and disperse into the company a
core of project and program managers. The project management
philosophy would follow the teachings of PMP methods. The PMP
Methodology would bring key items into play such as initiating,
planning, executing, monitoring, controlling and closing for a
project. A formalized project management methodology would allow
for the company to streamline processes, cut costs, maximize
profits and reduce the product development lifecycle.
Minimizing inventory to maximize profit
Maximizing the value of the shareholder is of the utmost
concern for most of not all company officers. When the corporate
shareholder is not taken care of the company and stock lose
credibility and investor confidence. Finding the happy medium
between pleasing shareholders and fulfilling the obligations of
the business is difficult. Good portions of cost that are
incurred by organizations are in relation to inventory and
carrying said inventory on their books. Many organizations carry
Social Responsibility Strategy for Company XYZ Inc. 26
more inventory than what they actually need and this is because
some people may not plan as accurately as they should or they
just want to have more on hand just in case. Neither of those
options are profit maximizers proper inventory control is a vital
mechanism to have in place. According to Kokemuller “Just in time
inventory is intended to avoid situations in which inventory
exceeds demand and places increased burden on your business to
manage the extra inventory.” (Kokemuller, 2014)
A just in time inventory model is very effective and allows
for maximizing of profits while reducing costs. Just in time
inventory does carry risks such as being susceptible to improper
sales forecasting and shortages. Several top tier computer
manufacturers such as Dell have been able to make the best of
just in time inventory and according to Byrnes “Through its use
of profitability management, Dell matched supply and demand on a
daily, weekly, and monthly basis. It sharply reduced the
variance, and the need for inventories simply disappeared.”
(Byrnes, 2003)
Social Responsibility Strategy for Company XYZ Inc. 27
Recommendation
Problem: XYZ Computers has been carrying more inventory than
is needed and has been holding the excess inventory or finished
goods on their books some times for several quarters. Carrying
excess raw materials and finished goods on the books is a heavy
financial burden and while the product sells it still cost money
to store it and stage it.
Solution: XYZ Computers should implement a strategy of Just
in Time Inventory controls. Just in Time inventory controls allow
product to be built based on market demands so the need for
carrying inventory would be minimal. Utilizing items like demand
management, forecasting, supplier advisory’s and market
performance XYZ Could build a fairly accurate model of what needs
to be built and in what timeframe that it needs to happen in. By
implementing a JIT system there would be less cost associated
with inventory management which in turn could increase profit
margins.
Product innovation and sustainability
Keeping products on the shelves that are sustainable, green,
and cost effective that can flow from raw materials all the way
Social Responsibility Strategy for Company XYZ Inc. 28
to finished goods environmentally friendly manner is important in
this day and age. Green products may not always be the most
economical or with the highest profit margins but they are the
most sustainable and responsible. Designing products with the
environment in mind such as building products with recycled
materials is socially responsible. According to Dell “For
example, in FY14, we used more than 10 million pounds of
recycled-content plastics in Dell OptiPlex desktops and flat-
panel monitors.” (Dell , 2014). Building products that are
socially responsible in this day and age is a benefit and goes a
very long way in keeping a company viable and improving their
social image.
Recommendation
Problem: Currently XYZ Computers builds its new products
from new materials that may not have recycled content. The reason
that this occurs is because XYZ initially sourced materials and
goods for manufacturing without thinking of the social and
environmental implications. Needless to say, creating products
that don’t have at least some recycled content does nothing for
Social Responsibility Strategy for Company XYZ Inc. 29
the social and ecological image of the company as well as
differentiating the product in the market place.
Solution: In order for XYZ Computers to successfully
differentiate itself in the market with an innovative and
sustainable product they need to build products from more
ecologically friendly materials. XYZ Computers should follow suit
with companies like Dell and build their products and packaging
from renewable and sustainable items. For example XYZ Computers
could create its assemblies from recycled plastics and use
recycled paper and cardboard in the packaging items. If XYZ
Computers used recycled materials it would build up the XYZ Brand
as a socially and ecologically responsible company committed to
the future of the environment.
Legal and Regulatory Considerations
Legalities and regulations are an everyday part of business
and need to be adhered to by socially responsible organizations.
The legalities of being socially responsible need to be
understood in order to maximize the effectiveness of the company
and of the social responsibility strategy.
Social Responsibility Strategy for Company XYZ Inc. 30
Sarbanes-Oxley (SOX)
Financial accountability in the corporate world is something
that has gotten a lot of publicity since 2000 when several
companies engaged in unethical and immoral financial practices.
Amongst the companies that acted unethically and illegally were
Enron and Tyco. These companies played a financial shell game to
create profits that were not present in order to paint a
profitable and positive picture for investors, employees and
regulators. In the end they cheated employees and investors out
of billions of dollars and ruin thousands of lives. The Sarbanes
Oxley act of 2002 was meant to provide regulation and governance
of financial activities. According to SOX-online “The Sarbanes-
Oxley Act created new standards for corporate accountability as
well as new penalties for acts of wrongdoing.” Sarbanes-Oxley
cuts down on financial tampering by formalizing audits and
implement stringent governance.
Current Compliance: XYZ Computers is acting in accordance
with the Sarbanes-Oxley act by ensuring that there is strict
governance, formalized check and balances, and oversight for
financial reporting which allows for greater transparency and
Social Responsibility Strategy for Company XYZ Inc. 31
reduced chance of wrongdoing. The current process for SOX
controls are all manual, time consuming and high cost.
Recommendation: XYZ Computers needs to focus on technology
to streamline and enhance financial controls in order to
alleviate the heavy financial and resource costs incurred with
the SOX governance process. Utilizing an electronic suite of
tools like Infogix will streamline needed reporting features,
automate critical compliance controls and reduce cost. When
complicated and in-depth SOX controls can be automated and stream
lined they will be even more effective than manual controls
because there is less chance for error.
Title VII
Title VII of the civil rights act of 1964 is intended to
protect people from discrimination in the workplace based on sex,
race, creed, or national origin by employers. Title VII also has
provisions to protect people from hostile work environments,
unfair hiring practices, stereotyping, and retaliation by
employers following the filing of an EEOC (equal employment
opportunity commission) complaint.
Social Responsibility Strategy for Company XYZ Inc. 32
Current Compliance: Currently XYZ Computers is practicing
fair and inclusive hiring practices that are in compliance with
Title VII which take into account the potential candidates
experience and education while not basing choices based on sex,
religion, or race. XYZ Computers has also implemented a new hire
orientation that teaches about working in a diverse workplace and
helping to build an atmosphere of respect and understanding.
Solution: One particular solution in the staffing practices
area is to develop an interviewer’s guide. The guide would teach
the interviewer about the off-limits questions such as age, race,
religion or national origin and why it is critical not to ask
those questions as well as techniques for thoroughly vetting an
applicant without crossing Title VII lines. Having a diverse
workforce is a benefit to the organization. Another solution is
train diversity councilors in each business group to assist with
creating a diverse and inclusive environment while promoting good
order and discipline.
Social Responsibility Strategy for Company XYZ Inc. 33
Americans with Disabilities Act (ADA)
The Americans with disabilities act of 1990 was signed in
1990 and strictly prohibits discrimination of the disabled in the
workplace and it affords equal opportunity to the disabled. The
ADA protects people who have a diagnosed disability or impairment
which can be either physical or mental and seriously impacts
major activities such as walking, talking, seeing or thinking to
name a few. According to ADA.gov discrimination against a
disabled individual is “limiting, segregating, or classifying a
job applicant or employee in a way that adversely affects the
opportunities or status of such applicant or employee because of
the disability of such applicant or employee;” (ADA.gov, 2014)
Current Compliance: Currently XYZ Computers does not label
or classify disabled candidates or employees any different than
those regularly abled employees or candidates. XYZ strives to
create an inclusive and welcoming organization for employees and
candidates of all abilities and restrictions. XYZ Strives to make
the appropriate accommodations for all its employees such as
having ADA complaint restrooms, modular workstations that can be
adjusted for height and vision impaired.
Social Responsibility Strategy for Company XYZ Inc. 34
Recommendations: XYZ Computers should build on the continued
success of their current practices by allowing third party
contractors to come and evaluate XYZ compliance level with ADA
and help to make the needed changes or adjustments to either meet
compliance or continue to exceed it. Also XYZ Computers should
have people detailed in every business unit as accommodations
specialists to evaluate what additional accommodations are needed
for employees with disabilities to be efficient and effective.
Conclusion
Social responsibility at its core not about just building
products with green and sustainable products it is about doing
what is right for the environment, humanity, and your
stakeholders. Social responsibility and economic viability will
not always balance each other and that is when tough decisions
will need to be made. When making recommendations and that affect
people, planet and profit you can only hope to find the most
common ground to stand on because it is difficult to balance
these items. The balancing act is less difficult with an
effective strategy but difficult none the less. In this
Social Responsibility Strategy for Company XYZ Inc. 35
assignment we have laid out the relative socio-economic
considerations for XYZ Computers and recommended some solid
actions that can deliver a base but effective Social
responsibility strategy the XYZ Computer can continue to build on
and evolve as time goes on. .
Social Responsibility Strategy for Company XYZ Inc. 36
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