Read and reflect on the assigned readings for the week. Then post what you thought was the most important concept(s), method(s), term(s), and/or any other thing that you felt was worthy of your understanding in each assigned textbook chapter.Your initial post should be based upon the assigned reading for the week, so the textbook should be a source listed in your reference section and cited within the body of the text. Other sources are not required but feel free to use them if they aid in your discussion.
Also, provide a graduate-level response to each of the following questions:
What are several of the most important environmental issues now receiving worldwide attention?
In your opinion, why does a business have a responsibility to employees and community stakeholders in a business- or plant-closing decision?
Business & Society
Ethics, Sustainability & Stakeholder
Management
10th Edition
© 2018 Cengage
1
Chapter 15
Sustainability
and
the Natural
Environment
© 2018 Cengage
2
Learning Outcomes
1. Discuss the concept of sustainability and its imperative.
2. Describe the natural environment, the impact of business on
the natural environment, and the ten major natural
environment issues.
3. Identify and discuss the issues that arise for businesses in
their responsibility for the environment and sustainability.
4. Discuss the role of governments in environmental and
sustainability issues.
5. Describe other environmental stakeholders, including
interest groups, employees, and investors.
6. Discuss business environmentalism sustainability goals, and
the future of the business/environment relationship.
© 2018 Cengage
3
Chapter Outline
• The Sustainability Imperative
• The Natural Environment
• A Brief Introduction to the Natural Environment
• The Impact of Business on the Natural Environment
• Responsibility for and Sustainability Environmental Issues
• The Role of Governments in Environmental and
Sustainability Issues
• Other Environmental and Sustainability Stakeholders
• Business Environmentalism and Sustainability
• The Future of Business: Greening and/or Growing?
• Summary
• Key Terms
© 2018 Cengage
4
Sustainability
and the Natural Environment
Sustainability •
•
•
•
Business that meets the needs of the present
without compromising the ability of future
generations to meet their own needs.
Akin to walking lightly on the earth, taking only
what’s needed, and leaving behind enough for
future generations to have access to the same
resources.
Creative business people need to develop new
ways to benefit the triple bottom line – people,
planet, profits.
Swift growth due to realization that sustainability
is the right thing to do, and can also drive
revenue, savings, and give a competitive edge.
© 2018 Cengage
5
The Sustainability Imperative (1 of 2)
•
Years ago, discussing sustainability would bring
arguments about why businesses would benefit.
Today, the need for sustainability is a “given.”
CERES’ Roadmap to Sustainability identifies several
key drivers:
Competition for resources – demand is growing more
quickly than they can be replaced.
Climate change – business must be prepared to
respond to new policies regarding emissions, and to
take advantage of new technology.
Economic globalization – wide disparities in social and
environment standards bring risks and opportunities.
Connectivity and communications – stakeholders can
monitor and react to sustainability efforts more quickly.
Reputations are quickly built and destroyed.
© 2018 Cengage
6
The Sustainability Imperative (2 of 2)
•
•
•
•
•
A leading advocate of business sustainability
is Unilever. The CEO sought out long-term
investors as shareholders, rather than shortterm hedge-fund managers, banned
quarterly earnings reports, and embarked on
a 10-year plan.
Carbon emissions have been slashed by 32%
Greenhouse gases- Halved by 2020
Water – halve water associated with
consumer use of products by 2020
Sustainable sourcing – 100% of agricultural
raw materials sustainably by 2020
© 2018 Cengage
7
The Natural Environment
•
•
•
•
For years, businesses conducted their operations
with little concern for environmental
consequences. They consumed significant
amounts of materials and energy, causing waste
accumulation and resource degradation.
They caused major air, water, and land pollution
problems. They looked the other way, labeling the
negative consequences of their actions as
externalities—side-effects or by-products not
intended, and often disregarded.
Any environmental effort usually came from
compliance or efficiency. Businesses would stop
damaging the environment only when it became
illegal or unprofitable to do so.
Now, environmentalism is becoming profitable.
© 2018 Cengage
8
A Brief Introduction
to the Natural Environment
•
•
•
•
This chapter focuses on the natural
environment—what it is, why it is important, how
it has become a major concern, and what
businesses and other organizations have done to
it or for it.
The environment has become one of the most
significant societal issues of our time.
To help you make environmental business
decisions in the future, we’ll describe the variety
of responses humans and businesses have
developed to address these issues, and present
data.
The emphasis is on two themes:
• Humans are part of their natural environment
• The environment is complex, defying simple
analyses
© 2018 Cengage
9
Glossary of Environmental Terms
Bio-based Product
A product composed of biological products or
renewable agricultural or forestry materials.
Environment
External living, working, and playing spaces and
natural resources and more.
Carbon Footprint
The amount of greenhouse gases one emits.
Carbon neutral
Maintaining a balance between producing and
using carbon dioxide.
Carrying capacity
Volume and intensity of use by organisms that
can be sustained
Entropy
A measure of disorder of energy indicating its
unavailability for recycling for the same use.
Ecosystem
All living and nonliving substances present in a
particular place, interacting
Irreversibility
The inability of humans and nature to restore
environmental conditions to a previous state.
© 2018 Cengage
10
The Impact of Business
on the Natural Environment
The Top Ten fundamental environmental issues:
1. Climate Change
2. Energy
3. Water
4. Biodiversity and Land Use
5. Chemicals, Toxics, and Heavy Metals
6. Air Pollution
7. Waste Management
8. Ozone Layer Depletion
9. Oceans and Fisheries
10. Deforestation
© 2018 Cengage
11
Climate Change
Climate change global warming creates the:
Greenhouse effect – the prevention of solar heat
absorbed by our atmosphere from returning to space,
can persist in the atmosphere for centuries.
• Melting glaciers, decline in crop yields, and the
effects of sea-level rise are all signs of warming.
• Environmental Protection Agency’s Clean Power
Plan introduced in 2015 under the Clean Air Act
address climate change issues
• In 2016, the Paris Agreement on Climate Change
brought 190 countries together with an aim to
limit global warming to below 2 degrees Celsius.
• Some businesses us internal carbon tax or carbon
pricing to offset emissions with investments in
sustainability projects.
© 2018 Cengage
12
Global Carbon Dioxide Emissions
© 2018 Cengage
13
Energy
•
•
•
•
•
A major environmental issue is energy
inefficiency, wasting nonrenewable sources of
energy.
Fossil fuels such as coal, oil, and natural gas were
formed millions of years ago under unique
conditions; once they are depleted, they will be
gone forever.
Because such fuels are not equally distributed
around the world, disastrous armed conflicts
result.
Businesses should use as little non-renewal
energy as possible, and shift to renewable
sources such as solar, wind, hydroelectric,
biomass
Energy represents a challenge and an
opportunity; firms that succeed in this area will
reap big profits.
© 2018 Cengage
14
Water
• Both quality and quantity of water
endangered.
Quality – Degradation of oceans & waterways
• Municipal sewage, industrial wastes
• Urban runoff, agricultural runoff
• Atmospheric fallout, overharvesting
• Dam sedimentation, deforestation
• Overgrazing, over-irrigation
• More than a billion people lack clean water.
• Quantity –
• Earth is a closed system with a fixed water
supply; growing populations use more water.
• The world is facing water bankruptcy.
© 2018 Cengage
15
Biodiversity and Land Use
Biodiversity – The variation of life forms inside
an ecosystem, serves as a key indicator of its
health. It is being lost at an unprecedented rate.
• Ecosystem and habitat destruction, pollution,
other excesses in individual and organizational
activities are responsible.
• Species die off at a natural rate of 1 to 5 a
year, now dozens go extinct each day.
• Land degradation threatens the livelihood of
more than one billion people, especially in
Africa, the continent most affected by
drought.
© 2018 Cengage
16
Chemicals, Toxics and Heavy Metals
Toxic substances • Chemicals or compounds that may cause
damage to the nervous system,
reproductive and developmental
problems, cancer and genetic disorders
and the environment.
• Can be intentionally or unintentionally
created.
• Two main problems 1. We are not always aware of the effects of
exposure to chemicals.
2. Toxic substances can be associated with
industrial accidents, causing unforeseen
widespread biological damage.
© 2018 Cengage
17
Air Pollution
Outdoor Air pollution •
•
•
•
•
Acid Rain
Global Warming
Smog
Depletion of the ozone layer
Serious respiratory illnesses
Indoor Air Pollution –
•
•
Comes from oil, gas, kerosene, coal, wood and
tobacco products, building materials and
furnishings, damp carpets, household cleaning
products and lead-based paints.
Long term effects—respiratory diseases, heart
disease and cancer—can be fatal.
© 2018 Cengage
18
Waste Management
© 2018 Cengage
19
Ozone Depletion
Ozone depletion • Ozone is harmful near the surface of the
earth, but vital in the atmosphere.
• It blocks dangerous ultraviolet radiation
from the sun.
• Decrease in stratospheric ozone comes
from human use of chlorofluorocarbons
(CFCs) and other chemicals.
• In 2013, the hole in the ozone was at its
second smallest point in 20 years.
© 2018 Cengage
20
Oceans and Fisheries
Watershed – an area that drains to a common
waterway. We all live in a watershed.
• Trillions of gallons of sewage & industrial waste
are dumped into marine waters each year.
• These & other pollutants do significant damage
coastal ecosystems, resulting in shellfish bed
closures, seafood-related illnesses, and reduced
shoreline protection from floods and storms.
• Once inconceivable, now 85% of the world’s
fisheries are at capacity, over capacity or have
collapsed. The oceans are running out of fish to
meet human needs.
• Conservation efforts have helped some species
recover, and such efforts continue.
© 2018 Cengage
21
Deforestation
•
Humans depend on forests for building
materials, fuel, medicines, chemicals, food,
employment and recreation.
Deforestation • Adds to soil erosion problems.
• Plays a key role in global warming; Felled
trees can no longer absorb carbon dioxide.
Dead trees release it into the atmosphere.
• Accounts for 20% of global carbon emissions
– more than the world’s trains, boats and
planes combined.
© 2018 Cengage
22
Responsibility
for Environmental Issues
•
Wicked problems – (smog, toxic waste and acid
rain) are problems with complexity, uncertainty,
interconnectedness, ambiguity, conflict, and
societal constraints. When no one takes
responsibility –
•
Tragedy of the commons – is likely to occur
•
A “commons” (our environment) is a plot of land
available to all.
Constraints must be placed on the use of the
commons because self-interest is likely to lead
individuals and organizations to behave in ways
that will not sustain our shared resources.
•
© 2018 Cengage
23
Environmental Ethics
•
Humans must consume at least some plants
and water to survive. What level is ethical?
Which school of environmental thought
should we apply?
•
•
Kohlberg – levels of moral development
Utilitarianism – greatest good for greatest
number
• Integrating sustainability into a firm’s
philosophy is a natural extension of
stakeholder theory, including as a stakeholder
the ecological system from which the firm
obtains resources and to which it bears
responsibility for its impacts, both positive and
negative.
© 2018 Cengage
24
The NIMBY Problem
Not in my Backyard: NIMBY •
Reflects human denial of responsibility for
misuse of the environment.
•
Entities causing environmental pollution are
not identified as the sources of the problem,
so no action is taken.
•
A NIMBY attitude avoids or denies the root
cause of the damage.
•
One popular cartoon pictures a stream of
polluting, honking cars passing along the
highway in front of a billboard that reads:
•
“Honk if you love the environment.”
© 2018 Cengage
25
The Role of Governments in
Environmental and Sustainability Issues
• Governments have played major roles in
environment issues:
•
developed habitable lands,
•
protected, taxed and zoned natural
environment-based areas, and
•
exercised regulatory control over how
those environments could be used.
© 2018 Cengage
26
Responses of Governments
in the United States (1 of 5)
National Environmental Policy Act (NEPA, 1970)
•
permit required for discharge of hazardous
waste into navigable waters
•
requires federal agencies to prepare
Environmental Impact Statements (EISs)
Environmental Protection Agency (EPA, 1970)
• An independent agency to research pollution
problems, aid state and local government
efforts, and administer many federal
environmental laws
© 2018 Cengage
27
Responses of Governments
in the United States (2 of 5)
Air Quality Legislation – The Clean Air Act
•
•
Sets standards and timetables for
implementation
Created Emissions trading (cap and trade)
• Intended to reduce a particular pollutant
over an entire industrial region by treating
all emission sources as if they were beneath
one bubble.
• A business can increase its emissions in one
part of a plant or region if it reduces its
pollution by as much or more in another
part of the plant or region.
• Businesses that reduce their emissions can
trade them to other businesses, earning
income.
© 2018 Cengage
28
Responses of Governments
in the United States (3 of 5)
Water Quality Legis. – The Clean Water Act
•
•
•
•
•
•
Involves both state and federal governments
Goal: to achieve water quality safe for humans,
and protection of fish, shellfish and wildlife
Banned discharge of pollutants into navigable
waters through pollution permit system
Set timetables for installation of state-of-theart pollution control equipment.
Marine Protection , Research & Sanctuaries Act
set a similar system for coastal waters
The Safe Drinking Water Act of 1974
establishes maximum contaminant levels for
drinking water.
© 2018 Cengage
29
Responses of Governments
in the United States (4 of 5)
Land-Related Legis. – Solid Waste Disposal Act
•
•
•
•
•
State and local governments mainly responsible
Resource Conservation & Recover Act set up a
regulatory system for tracking hazardous waste
Toxic Substances Control Act requires
businesses to identify chemicals posing
substantial risks.
Superfund (CERCLA) places responsibility for
remediation of hazardous waste dumps
Emergency Planning and Community Right-toKnow Act requires manufacturers to report
annually all of their releases into the
environment of any of more than 500 toxic
chemicals
© 2018 Cengage
30
Responses of Governments
in the United States (5 of 5)
Endangered Species –
•
•
World’s species are disappearing at an alarming
rate
Nearly 20,000 species now considered threatened
or extinct
• Endangered Species Act (1973)
•
•
Prohibits harm to endangered and threatened
species
May require moving the species to another
location or restricting threatening business
activities, resulting in intense political conflicts
between business and environmental groups
© 2018 Cengage
31
International Government Environmental
and Sustainability Responses
• United Nations Environmental
Programme (UNEP) – has led the way in
identifying global environmental and
sustainability problems and resolutions:
• Montreal Protocol, 1987 – by which most
CFC-producing nations agreed to a quick
phase-out of these ozone-destroying
substances. This was the first UN treaty to
achieve universal ratification.
© 2018 Cengage
32
International Government
Environmental Responses
• Global Compact – joins firms across the
world to support environmental and social
principles.
• Global Reporting Initiative (GRI) – a
collaborating center of the UNEP. GRI
developed a sustainability reporting
framework, now the most widely used
standard in the world; outlines principles
and indicators that organizations can use
to measure and report their economic,
environmental and social performance.
© 2018 Cengage
33
Other Environmental and
Sustainability Stakeholders
Environmental Interest Groups –
•
•
A collection of nonprofit membership and thinktank organizations has moved the world in the
direction of environmental responsibility. Known
as “the environmental movement,” they are
responsible for the “greening” of nations.
Environmental interest groups have evolved, and
have been instrumental in significantly influencing
business environmental policy.
• Examples: Environmental Defense is working
with Federal Express on building a new
generation of vehicles; with DuPont on
developing nanotech standards; with PHH
Arval on becoming the first carbon neutral
fleet.
© 2018 Cengage
34
Environmental Groups Based on
Cooperation with Business
© 2018 Cengage
35
Other Sustainability Interest Groups
Green consumers – actual and potential
customers of retail who express preferences for
environmentally-friendly products and services.
Green employees – play a major role in
promoting environmentalism at work.
Green investors – individuals and organizations
who prefer to invest with firms that are
associated with environmentally-oriented
companies. A growing number of bond
offerings, money market fund and other
financial instruments now include
environmental components.
© 2018 Cengage
36
Business Environmentalism and
Sustainability (1 of 2)
•
•
These firms are “shaking up” sustainability. They
have taken “principled stances” and/or led
innovative programs for better social and
environmental conditions.
Patagonia – Recycled decades before others
• Made its outdoor gear out of old plastic soda
bottles
• Discovered the dangers of cotton due to
dependencies on pesticides, insecticides, and
defoliants.
• Apple – Partners with multiple initiatives to
avoid conflict of minerals and unfair labor
conditions. The electronics brand with the
highest use of renewable energy.
© 2018 Cengage
37
Business Environmentalism and
Sustainability (2 of 2)
•
CVS Health – Stopped the sale of tobacco products in
their stores. Offer smoking cessation programs.
•
Tesla – Known for the development of the electric
vehicle. Building an ecosystem of sustainable brands –
group of interconnected elements, formed by
interactions with others in its community and
environment.
© 2018 Cengage
38
Business & Environmental
Partnerships-Activists, NGOs, &
Interest Groups –
• Accommodation replacing antagonism with
understanding of mutual dependence.
• Business needs environmental partners to inform
and validate environmental efforts.
• Activists, NGOs and interest groups need business
to change the way it operates in order to protect
the planet.
• GreenBiz survey shows corporations view NGOs in
4 ways: trusted partners, useful resources, brand
challenged, and the uninvited.
© 2018 Cengage
39
The Future of Business:
Greening and/or Growing?
• The salient environmental question:
• How much is enough?
•
•
How much economic growth?
How much materials and energy?
• Limits on growth are not popular. But the
problem with unrestrained economic
growth is that, unless technology or
people change significantly within a
generation, environment problems will
change in degree from significant to
severe.
© 2018 Cengage
40
Key Terms (1 of 2)
• acid rain
• air pollution
• Biodiversity
• COP19
• COP21
• cap and trade
• carbon neutral
• carbon positive
• CERES’ Roadmap to
Sustainability
• clean air act
• Clean Water Act
© 2018 Cengage
• circular economy
• climate change
• cost-benefit
analysis
• deforestation
• ecosystems
• emissions trading
• Endangered Species
Act (ESA)
• energy inefficiency
• environment
• Environmental
Impact Statements
(EISs)
41
Key Terms (2 of 2)
• Environmental
Protection Agency
(EPA)
• externalities
• fossil fuels
• global compact
• Global Reporting
Initiative (GRI)
• global warming
• greenhouse effect
• internal carbon tax
• Montreal Protocol
• NGOs
• NIMBY
• ozone
© 2018 Cengage
• recycling
• superfund
• sustainable apparel
coalition
• sustainability
• toxic substances
• Toxic Substances
Control Act
• tragedy of the
commons
• triple bottom line
• Warsaw International
Mechanism
• watershed
• wicked problems
42
Business & Society
Ethics, Sustainability & Stakeholder
Management
10th Edition
© 2018 Cengage
1
Chapter 16
Business and
Community
Stakeholders
© 2018 Cengage
2
Learning Outcomes
1. Discuss reasons for community involvement,
various types of community projects, and
management of community stakeholders.
2. Explain the pros and cons of corporate
philanthropy, provide a brief history of
corporate philanthropy, and explain why and to
whom companies give.
3. Differentiate between strategic philanthropy,
cause-related marketing, and cause branding.
4. Characterize the loss of jobs in the contexts of
offshoring, reshoring, and plant closings.
© 2018 Cengage
3
Chapter Outline
• Community Involvement
• Corporate Philanthropy or Business Giving
• Detrimental Impacts on Communities
• Summary
• Key Terms
© 2018 Cengage
4
•
•
•
•
Business and
Community Stakeholders
The actions of a business affect a range of
communities. Managers must be aware of these
impacts, and manage in a way that respects
community stakeholders.
We focus on the immediate locale, but instant
communication means that the relevant
community includes the region, nation, or the
world.
For business and community stakeholders, there
are two major kinds of relationships:
• The positive contributions business can make
to the community.
• The harm business can cause to community
stakeholders.
We discuss here community involvement and
corporate philanthropy
© 2018 Cengage
5
Community Involvement
•
Business involvement in the community
represents enlightened self-interest, because
businesses help themselves in the process of
helping others.
Volunteer Programs – such programs reflect the
resourcefulness and responsiveness to
communities, and are essential for attracting
and retaining the best talent in the workforce.
Employees want to work for the “good guys.”
Managing Community Involvement – focuses on
the contribution of managerial and employee
time and talent.
© 2018 Cengage
6
Standards of Excellence
in Corporate Community Involvement
1. Leadership
2. Strategy
3. Integration
4. Infrastructure
5. Performance Measurement
6. Communication
7. Community Relationships
© 2018 Cengage
7
Benefits of Employee Volunteerism
Benefits to the
employee
Improves morale
Benefits to the
corporation
Builds company
image and
reputation
Increases
Improves employee
meaningfulness of
attraction and
work
retention
Develops teamwork Develops employee
and leadership skills skills
Improves mental
and physical health
Builds relationship
with and loyalty
from consumers
© 2018 Cengage
Benefits to the
community
Addresses
community needs
Saves community
resources
Builds pool of
future volunteers
and contributors
Builds awareness of
community needs
8
Developing a Community Action Plan
1. Knowing the community.
2. Assess the company’s resources.
3. Design a community action program
making the community needs and
resources available.
4. Monitor performance of the community
actions program and make adjustments.
© 2018 Cengage
9
Corporate Community Involvement
© 2018 Cengage
10
Corporate Philanthropy
or Business Giving
Philanthropy – a desire to help mankind as
indicated by acts of charity; love of mankind.
Corporate Philanthropy – Business giving, the
motive for which can be difficult to assess.
A Brief History of Corporate Philanthropy –
• Community chest efforts dominated early
giving
• Since 1960, giving has grown to address a
variety of initiatives
• Now, the watchword is “strategic
philanthropy” which benefits both society and
the business.
© 2018 Cengage
11
A Call for Transparency
•
•
Companies need not disclose direct donations
to charities, but proposed legislation would
require disclosure.
• Proponents say the money belongs to the
shareholders, and they should make the
decision, not managers giving to their
favorite charities, which would not benefit
the business
• Some fear that disclosure would result in
fewer donations, and would reveal
company strategy.
Non-disclosure has led to a rise in “dark
money” political funding to nonprofits from
undisclosed sources.
© 2018 Cengage
12
Giving to the Third Sector: Nonprofits
• Business and government – are supported
by profits and taxes
• The third sector – (churches, museums,
hospitals, libraries, colleges, and more)
depends on philanthropy.
• Why do companies give?
• Charitable – (no expected benefit for the
business)
• Community – (gifts support business goals)
• Commercial – (giving that benefits the
business)
© 2018 Cengage
13
To Whom Do Companies Give?
• During any budget year, firms receive
numerous requests for contributions from
a variety of applicants, and decide which
to honor.
Estimates of most business giving –
1. Health and human services
2. Education
3. Civic and community activities
4. Culture and the arts
© 2018 Cengage
14
Managing Corporate Philanthropy(1 of 3)
•
•
Two aspects to the pressure on businesses to
be more businesslike in their philanthropy:
•
Base giving on business skills, resources,
and capabilities to enhance philanthropic
outcomes.
•
Focus on philanthropy that will enhance
corporate profitability and also make a
difference in the community (a strategic
approach).
Community Partnerships – Broad response to
growing need to reconcile financial and social
goals.
© 2018 Cengage
15
Managing Corporate Philanthropy(2 of 3)
•
Strategic Philanthropy – corporate giving and
other philanthropic endeavors are designed in a
way that best fits overall mission, goals, or
objectives.
• Factor (Supply) Conditions – the available
inputs for production
• Demand Conditions – concerned with the
nature of the company’s customer and the
local market
• Context for Strategy and Rivalry – businesses
are helping to build a better competitive
environment—one that rewards fair
competition.
• Related and Supporting Industries – can also
be strengthened through strategic giving
© 2018 Cengage
16
Managing Corporate Philanthropy(3 of 3)
•
Cause-Related Marketing – a direct linking of
a firm’s product or service to a specified
charity; each time a consumer buys the
product, a donation is given to the charity by
the business (is this really philanthropy?)
•
Global Philanthropy – depends on the size of
the firm’s workforce in international markets
© 2018 Cengage
17
Detrimental Impacts on
Communities
•
A negative consequence of a firm’s actions;
has a detrimental impact on the community.
Offshoring and Reshoring –
• Offshoring – The relocation of business
processes to a different country.
• Popular when tech jobs became cheaper
to do overseas – thanks to high-speed data
and the Internet.
• Began with blue-collar, factory jobs, more
recently effected white-collar jobs
• Reshoring – returning of business processes
to their original location; the costs often
outweighed the benefits.
© 2018 Cengage
18
Business and Plant Closings (1 of 2)
• Business and plant closings have dramatic
impact in the community.
• What rights and responsibilities does
business have in relation to employee and
community stakeholders? Consider:
•
Before the Decision to Close is Made –
•
Is this the only option?
•
Diversification
•
New ownership or employee ownership
© 2018 Cengage
19
2-Business and Plant Closings
© 2018 Cengage
20
Business and Plant Closings (2 of 2)
•
After the Decision to Close is Made –
•
Community-Impact Analysis
•
Advance notice to employees or
community
•
Transfer, Relocation, and Outplacement
Benefits
•
Gradual Phase-Outs
•
Helping to Attract Replacement Industry
© 2018 Cengage
21
3-Business and Plant Closings (continued)
© 2018 Cengage
22
Community Impact Analysis
© 2018 Cengage
23
WARN Advance Notice
Worker Adjustment and Retraining
Notification Act (WARN)
• Requires firms with 100 or more workers
to provide 60 days advance notice before
shutting down or conducting layoffs.
• Regular federal, state, and local
government entities that provide public
services are not covered by WARN.
• Legislators have tried to strengthen the
law by closing loopholes.
© 2018 Cengage
24
Communicating With Employees
Who are Being Laid Off
• Be complete
• Be consistent
• Inform affected employees first
• Inform retained employees
Survivors: The Forgotten Stakeholders, need•
Emotional support
•
Directional support
•
Tactical support
•
Informational support
© 2018 Cengage
25
Survivors– The Forgotten Stakeholders
© 2018 Cengage
26
Key Terms
• CECP
• cause branding
• cause-related
marketing
• community action
program
• community
involvement
• community
partnerships
• Corporate philanthropy
• Company-wide day of
service
• Dollars for doers
• employee owned
© 2018 Cengage
•
•
•
•
•
•
•
offshoring
Outsourcing
Paid release time
Philanthropy
Philanthropy hackers
Reshoring
Skills-based pro bono
service
• strategic philanthropy
• third sector
• Worker Adjustment
and Retraining
Notification Act
(WARN)
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Formatting
Title Page
Citation
Outline
