ABSTRACT

Once it is recognized that a business is a living organization, management's obligations become multidimensional. Profitability must share the spotlight with holistic values. Unwavering commitment to ethical behavior, heartfelt concern for the community at large, respect for differences of all kinds and the need for balanced and sustainable long-term growth are principles that provide a framework within which all parties find enrichment, growth and prosperity. We have previously shown how ethical/responsible corporate behavior can, in fact, bolster the bottom line. For further support of this position consider the following:

In 1996, Marriott International began offering its 185,000 employees (80% of whom earn about $7 an hour) a variety of services, almost none directly related to the performance of their jobs. The employees were given professional assistance with such things as immigration and domestic abuse issues, auto loans, elder care, and housing concerns. The company claims a minimum five-to-one return on the money spent on the counseling services in the form of reduced turnover, absenteeism and tardiness. In addition, they see significant 116positive, but unquantifiable, benefits such as increased morale, company loyalty and productivity. 1

Dow Chemical announced plans to spend $1 billion, through 2005, on a set of environmental initiatives. According to William Stavropoulos, Dow's president and chief executive officer: “Companies who want to thrive in the next century will manage for global competitiveness, in large part by reducing wastes, cutting emissions and preventing incidents. In the new world, where all markets are open, inefficient and poorly-managed plants will be obsolete … we expect a 30 to 40 percent return on this investment.” 2

In a study conducted by Cone Communications and Roper Starch Worldwide 31 percent of respondents felt that a company's sense of social responsibility was a major factor in their purchasing decisions. Fifty-four percent of adults stated they would pay more for a product that supported a cause in which they were interested. In addition, a survey of 2500 business students, conducted by Students for Responsible Business, found that two thirds would take lower salaries to work for socially responsible employers. 3