Presentation Transcript

1. Week 7 Discussion Facilitation

   Jim Edson & Cari Jacobs May 13th, 2010
2. The Social Bottom Line and Human Resource Management Sustainable Human Resource Strategy: The sustainable and Unsustainable Dilemmas of Retrenchment International Journal of Social Economics 2003 The "New Employment Contract" and the Virtual Work Force The Human Equation, Chapter 6 1996 Outsourcing: Pros and Cons Business Horizons 2005 Breaking Down the Wall of Codes: Evaluating Non-Financial Performance Measurement California Management Review 2006 Strategies for Responsible Restructuring Academy of Management Executive 2005 Expectations of Organizational Mobility, Workplace Social Inclusion, and Employee Job Performance Journal of Organizational Behavior 2004 The Path to Corporate Responsibility: NIKE Harvard Business Review 2004
3. Theme #1: Sustainability Metrics Fast Facts: No Agreed Upon Standard Inconsistencies Social Responsibility Investing=$2.2Trillion business 1 out of every $9 invested is put into SRI strategies Transparency in the SRI industry SRI firms rely on: Press reports Management surveys Little or no independent confirmation of data quality
4. Theme #1: Sustainability Metrics “Absolute bar” Impact on high risk industries Ex. software company is inherently more sustainable than a mining company Dow Jones survey 25% response rate in 2001 Reliance on media reports results in: Serious data biases Rewards companies for PR; Not sustainability No formal system to encourage improvement Quote from computer industry sums it up: “Standards are wonderful, there are always so many to choose from.”
5. Theme #1: Issues US employers receive thousands of pages of sustainability surveys each year Response Rates < 20% Bias and Dilution Reliability of questionnaires Who filled out? Role in organization? When was it completed? Measurement and unintended consequences Ex. Lead Free Requirement
6. Theme #1: Issues Lack of standardization: High costs Low relevance Standardization could: Streamlining Economies of scale Increased reporting from smaller business
7. Theme #1: Issues Confusion for customers due to: Certification options Lack of transparency Which ones are actually responsible? Which ones support the issues that you consider important? Examples: Worker Rights Consortium Worldwide Responsible Apparel Production The Clean Clothes Campaign or Fair Labor Association.
8. Theme #1: Discussion Questions With different weighting methods across standards, what aspect of sustainability (economic, environmental, or social) do you think companies are the worst at addressing? Why? How do we improve the performance in this area? What standards are true measures of social responsibility? How do we standardize the process with so many options out there? Is it better to leave standardization to government or business? What are the pros/cons? How does this impact small firms, how can they afford to play in the SRI game?
9. Theme #1: Discussion Questions Has this focus on metrics improved the situation? Or have we simply shifted the issues? Labor metrics shifting children from sweat shops to sex trade? Environmental metrics shifting from lead-free to something as bad or worse? For companies that do practice sustainability, which arm or angle do you feel they are worst at managing? (environmental, social, human, economic) How is sustainability within a firm, and particularly the metrics used to assess sustainability impacted by outsourcing? Does the inconsistency/redundancy of metrics place undue burdens on supply chains?
10. Theme #2: Outsourcing Fast Facts (1993 version): The US insources more than it outsources Companies only outsource their non-core competency activities Outsourcing low skill positions: reduces overall costs allows companies to reallocate those funds higher paying, higher skill positions domestically
11. Theme #2: Outsourcing Eliminating outsourcing would create a backlash Impact insourcing Outsourcing to undeveloped countries: Improves the standard of living of country’s citizens New markets that US products and services can benefit from No company can: Outsource the management, responsibility, or accounting of its activities Local infrastructure of outsourced countries can become an issue for companies
12. Theme #2: Outsourcing Costs associated with real estate Jobs located in dense population centers Increasing labor costs Rising standard of living in nations Cost in managing overseas suppliers Travel: Face-to-face visits Assessment of social, ethical, and environmental concordance Skilled labor in the US is on the decline: High school drop out rate US STEM standing Regulatory and tax barriers to innovation Impact on Outsourcing Domestic Sourcing
13. Theme #2: Questions How do we effectively manage this relationship? How do you effectively measure this? Is there reason to be concerned about highly skilled positioned being sourced by non-local talent pools? Do you see a resurgence of science and technology and a decline in high school drop outs as solution to this issue? Do you think we’re already improving this, is it still on the decline? Maybe a transition question: How do you maintain employee morale while you go through an outsourcing phase? How does this contribute to the social bottom line?
14. Theme #3: Social Bottom Line Fast Facts: Not a new concept Temporary workforce was a strong theme of pre-industrial America Rate of temporary workforce adoption 1960’s to Present Employers argue that this is what employees want, but… Surveys: Job as a career Commitment to employer Employers facilitate employee owned careers What is it preparing them for? Impact?
15. Theme #3: Questions With the high cost of measuring and verification, is there value add in the social bottom line? Is it meaningful enough to change consumer practices? Personal perspective questions: Do you feel connected to your organization? Do you feel loyal to them? Are they loyal to you? Do you think this trend towards a temporary workforce is still active or is it just another cycle of business?
16. Theme #3: Questions Within your organization, what would need to be done to create more of a sense of belonging and self within the organization? How do you bond with an organization? With media attention so focused on overseas labor practices environmental impacts, is there a place for us to address an issue with commitment to the employer? Is this trend bad for the economy or for employees? Is it positive?