Social Responsibility JJT2 Ref

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Social Responsibility Strategy for Company XYZ Inc. 1 Social Responsibility for XYZ Computers Inc. Introduction Western Governors University

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

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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

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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

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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,

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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

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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

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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.

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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

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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

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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

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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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