BUSINESS ETHICS: VITAL OR TRIVIAL?

                                   Hazelle May C. Andres

ABSTRACT

Business is the exchange of goods or services for valuable consideration, a benefit such as money. Yet, it can also mean an entity that offers goods or services intending to make profits.

Ethics in general is the study of standards of behaviour that promote human welfare and what is often called "the good."  Business ethics is the study of those standards of business behaviour that do the same thing, promote human welfare and the good. A business exists with a purpose and goal. Entrepreneurs conduct research and plan carefully for their business startup. Thus, all aspects of establishing a business must be studied.

KEYWORDS: Business, Business Ethics, Ethics

INTRODUCTION

Most entrepreneurs started their businesses with the mindset-being of the boss to create profits. A capitalist mindset may be profitable in the startup but may kill the business in the long run. Incorrect thinking and way of what and how a business should be done.

The real purpose of a business is not to create profits. A business cannot exist outside of society, and it must meet the needs and demands to stay in business, it has to create or add value to the community. Hence, the real purpose of a business is to create customers and improve society.

For a business to survive and stand out among others, it must implement appropriate business policies and practices. It must go beyond just a moral code of right and wrong; it must attempt to reconcile what companies must do legally against maintaining a competitive advantage over other businesses.

Yet nowadays, many businesses are gaining many profits, but are in news headlines or courtrooms due to unethical practices.

What’s a Business For?

“Businesses are organs of society. They do not exist for their own sake, but to fulfil a specific social purpose and to satisfy a specific need of a society, a community, or individuals.” -Peter Drucker

The purpose of a business is to offer value through products and/or services to customers, who pay for the value with cash or equivalents. Minimally, the money received should fund the costs of operating the business as well as provide for the life needs of the proprietor.

By creating new products, spreading technology and raising productivity, enhancing quality and improving service, the business has always been the active agent of progress. It helps make the good things in life available and affordable to even more people. This process is driven by competition and spurred on by the need to provide adequate returns to those who risk their money and their careers, but it is, in itself, a noble cause. Businesses should make more of it. As organizations do, measure success in terms of outcomes for others as well as for ourselves.

What is Business Ethics?

Business ethicists seek to understand the ethical contours of business activity. One way of advancing this project is by choosing a normative framework and teasing out its implications for business issues. In principle, it is possible to do this for any normative framework. Below are four that have received significant attention.

One influential approach to business ethics draws on virtue ethics. Moore (2017) develops and applies MacIntyre’s (1984) virtue ethics to business. For MacIntyre, there are goods internal to practices, and certain virtues are necessary to achieve those goods. Building on MacIntyre, Moore develops the idea that business is a practice (or contains practices) and thus has certain goods internal to it (or them), the attainment of which requires the cultivation of business virtues. Aristotelian approaches to virtue in business are found in Alzola (2012) and de Bruin (2015). Scholars have also been inspired by the Aristotelian idea that the good life is achieved in a community (Sison & Fontrodona 2012), and have considered how business communities must be structured to help their members flourish (Hartman 2015; Solomon 1993).

Another important approach to the study of business ethics comes from deontology, especially Kant’s version (Arnold & Bowie 2003; Bowie 2017; Scharding 2015; Hughes 2020). Kant's claim that humanity should be treated always as an end, and never as a means only, has proved especially fruitful for analyzing the human interactions at the core of commercial transactions. In competitive markets, people may be tempted to deceive, cheat, use, exploit, or manipulate others to gain an edge. Kantian moral theory singles out these actions as violations of human dignity (Hughes 2019; Smith & Dubbink 2011).

Ethical theory, including virtue theory and deontology, is useful for thinking about how individuals should relate to each other. But business ethics also comprehends the laws and regulations that structure markets and firms. Here political theory seems more relevant. Several business ethicists have sought to identify the implications of Rawls's (1971) justice as fairness for business. This is not an easy task, since while Rawls makes some suggestive remarks about markets and firms, he does not articulate specific conclusions or develop detailed arguments for them. But scholars have argued that justice as fairness: (1) is incompatible with significant inequalities of power and authority within firms (S. Arnold 2012); (2) requires people to have an opportunity to perform meaningful work (Moriarty 2009; cf. Hasan 2015); and requires alternative forms of (3) corporate governance (Berkey 2021; Blanc & Al-Amoudi 2013; Norman 2015; cf. Singer 2015) and (4) corporate ownership (M. O’Neill & Williamson 2012).

A fourth approach to business ethics is called the “market failures approach” (MFA). It originates with McMahon (1981), but it has been developed in most detail by Heath (2014) (for discussion see Moriarty 2020 and Singer 2018). According to Heath, the justification of the market is that it produces efficient—in the sense of Pareto-optimal— outcomes. But this only happens when the conditions of perfect competition obtain, such as perfect information, no market power, and no barriers to entry or exit. (When they don’t, markets fail—hence the market failures approach.) On the MFA, these conditions are the source of ethical rules for market actors. The MFA says that market actors, including sellers and buyers, should not create or take advantage of market imperfections. So, for example, firms should not deceive consumers (creating information asymmetries) or lobby governments to levy tariffs on foreign competitors (erecting barriers to entry).

Selecting a normative framework and applying it to a range of issues is an important way of doing business ethics. But it is not the only way. Indeed, the more common approach is to identify a business activity and then analyze it using “mid-level” principles or ideals common to many moral and political theories. Below I consider ethical issues that arise at the nexus of firms’ engagement with three important groups: consumers, employees, and society.

12 Principles of Business Ethics

1.      Leadership: The conscious effort to adopt, integrate, and emulate the other 11 principles to guide decisions and behaviour in all aspects of professional and personal life.

2.      Accountability: Holding yourself and others responsible for their actions. Commitment to following ethical practices and ensuring others follow ethics guidelines.

3.      Integrity: Incorporates other principles—honesty, trustworthiness, and reliability. Someone with integrity consistently does the right thing and strives to hold themselves to a higher standard.

4.      Respect for others: To foster ethical behaviour and environments in the workplace, respecting others is a critical component. Everyone deserves dignity, privacy, equality, opportunity, compassion, and empathy.

5.      Honesty: Truth in all matters is key to fostering an ethical climate. Partial truths, omissions, and under or overstating don't help a business improve its performance. Bad news should be communicated and received in the same manner as good news so that solutions can be developed.

6.      Respect for laws: Ethical leadership should include enforcing all local, state, and federal laws. If there is a legal grey area, leaders should err on the side of legality rather than exploiting a gap.

7.      Responsibility: Promote ownership within an organization, allow employees to be responsible for their work, and be accountable for yours.

8.      Transparency: Stakeholders are people with an interest in a business, such as shareholders, employees, the community a firm operates in, and the family members of the employees. Without divulging trade secrets, companies should ensure information about their financials, price changes, hiring and firing practices, wages and salaries, and promotions are available to those interested in the business's success.

9.      Compassion: Employees, the community surrounding a business, business partners, and customers should all be treated with concern for their well-being.

10.  Fairness: Everyone should have the same opportunities and be treated the same. If a practice or behaviour would make you feel uncomfortable or place personal or corporate benefit in front of equality, common courtesy, and respect, it is likely, not fair.

11.  Loyalty: Leadership should demonstrate confidentially and commitment to their employees and the company. Inspiring loyalty in employees and management ensures that they are committed to best practices.

12.  Environmental concern: In a world where resources are limited, ecosystems have been damaged by past practices, and the climate is changing, it is of utmost importance to be aware of and concerned about the environmental impacts a business has. All employees should be encouraged to discover and report solutions for practices that can add to damages already done.

Importance of Business Ethics

Businesses that practice business ethics guide them through decisions about finances, negotiations and deals, corporate social responsibility, and more. It ensures customers, employees, and other stakeholders that a company obeys the rules and does the right thing. When a brand loses trust, it can jeopardize sales and harm employee retention. It brings about more scrutiny from government agencies and has vendors questioning whether it's worth doing business with you. If other businesses don't trust you, they can buy products elsewhere or give their good deals to other buyers. Business ethics are critical to good financial planning and positive earnings.

Businesses need to operate with good business ethics to avoid legal and regulatory problems. However, it's also vital to exhibit strong ethical behaviour to maintain a positive reputation, both with the public and employees.

When a business enjoys a good reputation in the marketplace, attracts and retains a strong customer base, and maintains a talented workforce, it often sees a payoff in steady or increased revenues. Most people want to do business with a company that operates fairly with others. Just as the negative press can drive away customers, the positive press can draw in new customers

Business Ethics in the Modern Era

Business ethics are becoming more and more prevalent in today’s business world. Wherein it helps businesses to understand the ethical principles and moral or ethical problems that arise in a business environment.

There are an array of issues that have come under scrutiny, including community responsibility, pollution, whistle-blowing, and sustainability. Business ethics is the conduct that a business adheres to in its daily transactions with the world. The ethics of a particular business can be different. They pertain not only to how the business interacts with the world at large but also to their one-on-one transactions with a consumer. Many businesses have obtained a bad reputation just by being in business.

To most people, businesses are only concerned with making money, and that is the bottom line. Making money is not wrong in itself. It is the behaviour in which some businesses conduct themselves that brings up the issue of ethical behaviour.

Good business ethics should be a component of every business. There are many factors to consider. When a company does business with another that is considered unethical, they are usually considered unethical by association. The company has a responsibility to investigate the companies that they do business with.

Many worldwide businesses, including most of the major companies that we do business with, can be viewed as not practising good business ethics. Many major companies have been fined millions for breaches of ethical business laws. Money is the driving factor. If a company does not comply with business ethics and breaks the laws, they usually end up being fined

CONCLUSION

 In today's modern era, many businesses are just focused on providing goods and services just for the sake of making profits. Many, tend to intentionally and/or unintentionally commit unethical practices due to their short-sightedness. 

For a business to remain in the business, and to have a competitive advantage, it must widen its range of study, research, and implementation, and must give importance to business ethics. In that way, a business will able to establish a good reputation with its customers and society. Aside from that, it will also be able to retain and attract new talents, and will also limit the risk of going out of business.

Overall, business ethics is good for business. It is helpful for the growth of the business, and business owners to make ethical decisions, generate bigger profits, and lengthen and strengthen the existence of the business.

REFERENCES

Alan Weiss (2013, January 30). The Purpose of A Business. Retrieved from: https://alanweiss.com/the-purpose-of-a-business/

Alexandra Twin (2022, September 14). Business Ethics: Definition, Principles, Why They're Important. Retrieved from https://www.investopedia.com/terms/b/business-ethics.asp

Charles Handy (2002, December). The Magazine: What’s a Business For?. Retrieved from: https://hbr.org/2002/12/whats-a-business-for

Jeffrey Moriarty (2021). Business Ethics. Retrieved from:  https://plato.stanford.edu/entries/ethics-business/#ImpoFramForBusiEthi

Peter F. Drucker (1981). What is business ethics? Retrieved from: https://edisciplinas.usp.br/pluginfile.php/4221491/mod_resource/content/0/What%20is%20business%20ethics%20-%20Peter%20Ducker.pdf

Wayne Norman (2016). Business Ethics. Retrieve from: https://www.hbs.edu/faculty/Shared%20Documents/conferences/2016-newe/Norman%2C%20Business%20Ethics%2C%20IntEncycEthics.pdf

 

 

 

 

 

The Importance of Integrating CSR

 

            CATHERINE MAE J. SADIAN-BUMANGLAG

Abstract

In this article, " Integrating CSR," we explore the growing trend of companies integrating Corporate Social Responsibility (CSR) into their business models. Companies are realizing the need to not only make profits but also have a beneficial influence on society and the environment. Nowadays, consumers are becoming to be more socially and ecologically aware. This article will tackle into the reasons why companies are choosing to integrate CSR and the benefits that it might bring.

The main purpose of doing business is to generate profit. But a lot of companies have considered CSR as another reason for them to continue business. Because of CSR, businesses became more socially and environmentally aware. Businesses have claimed that CSR benefitted their companies in a lot of ways.  

However, others claim that there are also challenges that companies face when implementing CSR initiatives. This article will tackle both the benefits and challenges of implementing CSR. By providing a comprehensive overview of the topic, this article aims to serve as a valuable resource for companies looking to take their first steps towards integrating CSR into their business models. Ultimately, this article argues that CSR is no longer a choice but rather a requirement in doing business. Companies that don't embrace CSR risk falling behind in today's rapidly changing market.

Key Words: CSR, purpose of doing business, CSR importance, challenges of CSR

Introduction

In today's fast-paced and competitive business environment, it is easy to get caught up in the pursuit of profits and short-term gains. Some companies become so blinded in generating large profits that they turn to unethical and illegal ways of doing business. They fail to realize that this will stain the company’s name and might risk its’ existence.

However, an increasing number of companies are beginning to realize that there is more to business than just making money. They dig deeper to their purpose. These companies are turning to corporate social responsibility (CSR) to meet the needs of their stakeholders and differentiate themselves in the market. They realized that CSR can also build brand loyalty, and long-term value. But what exactly is CSR, and why is it important for businesses to integrate it into their operations? In this article, we will explore the concept of CSR and the many reasons why it is crucial for businesses to embrace it.

Brief History of CSR

During around mid-1800’s, issues on employment have risen. Growing criticisms of the emerging factory system, working conditions, and the employment of women and children were being brought to light, especially in the United States. Worker wellbeing and productivity became a growing concern among industrialists. 

Corporate Social Responsibility started as a mere act of giving something to other people for a certain purpose. During the late 1800’s, an industrialist from the steel industry business named Andrew Carnegie donated large portions of his wealth to help in the education and scientific research sector. Later, John D. Rockefeller of the oil industry business donated more than half billion dollars to religious, educational, and scientific causes.

In 1953, Howard R. Bowen coined the term “Corporate Social Responsibility in his publication “Social Responsibilities of the Businessman”. Bowen is referred to as the “Father of CSR”. He defined CSR as the obligations of businessmen to pursue those policies, to make those decisions, or to follow those lines of action which are desirable in terms of the objectives and values of our society."  

The 1990’s marked the beginning widespread approval of CSR. In the 1991, Donna J. Wood published Corporate Social Performance Revisited, which expanded and improved early CSR models by providing a framework for assessing the impacts and outcomes of CSR programs. In that same year, Georgia Archie B. Carroll published his article “The Pyramid of Corporate Social Responsibility” and expanded on areas he believed were crucial when implementing CSR in an organization. 

By the early 2000s, CSR had become an essential strategy for many organizations, with multi-million-dollar companies, such as Wells Fargo, Coca-Cola, Walt Disney, and Pfizer incorporating this concept into their businesses processes. 

Other Definitions of CSR

Aside from the earliest and most prominent definitions of CSR by Howard Bowen and Caroll, Frederick (2006) summarizes what CSR stands for in the 50’s under three basic issues: corporate managers are appointed as public trustees, the need to balance competing stakeholders claims with corporate resources; and the acceptance of philanthropy as a humane philosophy and discretionary principle of the organization.

Moving onwards from then CSR has transformed from philanthropy to regulated practices and instrumentality or strategic CSR. Corporations are increasingly receiving more pressures on compliance with regulations on environmental protection, transparency, and the market is saturated with competitors thereby necessitating the introduction of CSR as a strategy to survive and be more efficient (Glan, 2006).

Researchers in this period are focusing on the impact of CSR on financial performance (Brammer & Millington, 2008; Ruf et al, 2001; Surroca et al, 2009). The focus of CSR conceptual review and empirical studies has shifted from an ethics orientation to a performance orientation. The essence of engaging in CSR in the new millennium is tagged as “doing good to do well” (Rosamaria & Robert, 2011). Institutional pressure for CSR improvement has increased necessitating introduction of CSR initiatives that focus beyond shareholders wealth maximization (Waddock, 2008).

Definitions of CSR shows that corporations are expected to contribute towards the welfare of the whole society.

Lei (2011) in his analysis on evolution of CSR definitions maintained that the area of focus to all analyzed definitions are; sustainability and social obligations like economic, legal, ethical and discretionary responsibilities.

(Dahlsrud, 2008) concluded that doing CSR is based on five dimensions; environmental; social, economic, stakeholder and charity dimension.

(Shafiq, 2011) gave a ten dimensional points on CSR definitions, which gives a full summary of all issues mentioned in various definitions of CSR, they are: obligation to the society, stakeholders involvement, improving the quality of life, economic development, ethical business practice, law abiding, voluntariness, human rights, environmental protection, transparency and accountability.

European Union’s Official Definition Of CSR

The European Union, in an attempt to offer a framework for companies wishing to invest in sustainable development, published in 2001 a Green Paper on Corporate Social Responsibility defining CSR as:

“The voluntary integration of companies’ social and ecological concerns into their business activities and their relationships with their stakeholders. Being socially responsible means not only fully satisfying the applicable legal obligations but also going beyond and investing ‘more’ in human capital, the environment, and stakeholder relations.”

ISO 2600 Official Definition Of CSR

The International Organization for Standardization (ISO) is an international standard-setting body that also addressed the definition of CSR through its ISO 26000 standards on Corporate Social Responsibility. In these guidelines, ISO defines CSR as:

“The responsibility of an organization for the impacts of its decisions and activities on society and the environment, resulting in ethical behavior and transparency which contributes to sustainable development, including the health and well-being of society; takes into account the expectations of stakeholders; complies with current laws and is consistent with international standards of behavior; and  is integrated throughout the organization and implemented in its relations.”

The Growing Importance of Social Responsibility In Business

1.    CSR can help you attract and retain employees. 

One of the major reasons people apply to various companies is because of their CSR projects. CSR demonstrates that a business is caring and treats everyone fairly, including its employees. A company that is dedicated to making the world a better place is likely to draw in more talent. This demonstrates how seriously employees consider social responsibility. CSR initiatives also support the development of a more effective and enjoyable workplace for employees. It encourages workers to put out good work and volunteer.

2.    CSR can save money. 

Because of CSR, employees might stay longer in the company. They perceive that they are helping the community while doing their job because of the CSR initiatives of the company where they work. This helps cut money since employee turnover will be low and there would be lesser expenses for hiring new employees. 

3.    CSR can improve customers' perception of your brand.

The competition in the business world of today is stiff, and it can be quite challenging for a company to set itself apart in the eyes of customers. However, companies who take social responsibility seriously may attract customers and provide a platform for marketing and grabbing the interest of their target market. CSR may make a firm appear to be a force of good in the community advancing general welfare. The CSR projects can help raise awareness for important causes and keep the business on top of the minds of customers or potential customers. Consumer loyalty goes a long way in helping a business stay afloat. 

4.    CSR shows a sign of accountability to investors. 

Businesses that are socially responsible can also appear more attractive to investors. A business that is able to manage finances while still helping its’ community is perceived as accountable and transparent. According to a 2016 report by Aflac, investments in CSR are not typically viewed by investors as a waste of money, but rather an "indicator of a corporate culture less likely to produce expensive missteps like financial fraud." The study said 61% of investors consider CSR a sign of "ethical corporate behavior, which reduces investment risk." 

5.    CSR can enable you to better engage with customers.

CSR can help your business have better connection with customers. Some CSR activities requires businesses to interact directly with members of society, who may also be customers or potential customers. With directly interacting with customers, the business will have direct feedback on what the company is doing right and what the company needs to improve on. Word-of-mouth is still an effective form of advertising, and customers who have been part of the social responsibility created by a company are able to tell other potential customers about the business.

Famous Companies with good CSR practices

Jollibee Foods Corporation and Ayala Corporation are two of the companies that have committed to using their business to make a positive impact on society, in addition to generating profits.

Jollibee Foods Corporation is a Filipino multinational company that operates a chain of fast food restaurants. Jollibee is famous with its “Busog, Lusog, Talino” program which aims to aid children who are identified as undernourished.

The company's corporate social responsibility (CSR) program known as "Busog, Lusog, Talino" and focuses on three main areas: Busog (Nourishment), Lusog (Well-being), Talino (Knowledge). Jollibee believes that if they help children receive enough physical nutrients, it will contribute a lot to their overall well-being, physically, emotionally, socially, and mentally. In turn it will be more possible for them learn at school and accumulate more knowledge for them to be successful in the future. Overall, Jollibee's CSR program is focused on promoting nourishment, well-being, and knowledge in the communities in which it operates.

Jollibee Group Foundation (JGF) first became involved in school-based feeding in 2007, when it launched its Busog, Lusog, Talino (BLT) School Feeding Program to address shortterm hunger and malnutrition among public elementary pupils in different parts of the country. By SY 2015-2016, BLT school feeding had reached 165,000 pupils in 1,567 public schools together with over 200 partners.

In 2016, the Department of Education’s (DepEd) budget for its School-Based Feeding Program (SBFP) was increased to cover all undernourished pupils in public elementary schools in the country. With this development, JGF shifted its approach from direct school feeding to building BLT School Feeding Kitchens. Each BLT Kitchen serves as a commissary or a central site for food preparation and distribution to surrounding schools, feeding hundreds of children daily with less time and effort. The model was piloted in Tarlac in 2015 where the first kitchen served 5,000 pupils. With the proof of concept established, DepEd adopted the BLT Kitchen as a modality for SBFP implementation starting SY 2016-2017. Ten (10) more BLT Kitchens were constructed, reaching 7,700 undernourished pupils in 60 public schools in various municipalities and cities. As of SY 2018-2019, there are 33 BLT Kitchens across the country catering to more than 25,000 severely wasted and wasted pupils in 235 public schools.

Beyond school feeding, BLT Kitchens are platforms for various members of the community to work together. DepEd facilitates school selection and provides funds for feeding. The principals and feeding coordinators oversee kitchen operations while parent volunteers prepare, cook, and serve the food. Local Government Units (LGUs) provide allowances for parent volunteers, facilitate their medical screening, and coordinate the pick-up and delivery of food. For its part, JGF leverages the strengths of Jollibee Foods Corporation (JFC) as a food company and provides kitchen equipment, facilitates food preparation and distribution system, as well as volunteer training. JGF’s publication of this recipe book forms part of its technical assistance and continuing support to the BLT Kitchens and DepEd’s SBFP.

Ayala Corporation is a Philippine conglomerate with a number of subsidiaries and businesses in various sectors, including real estate, banking, telecommunications, and water. The company's corporate social responsibility (CSR) programs are focused on three main areas namely: Environment, Education and Community.

Ayala Corporation is committed to supporting the communities in which it operates and has several initiatives in place to address social issues and improve the quality of life for people in these communities.

Ayala Corporation have seen the need for a drug rehabilitation center in Marawi. Along with its’ continued commitment to its community and as part of their CSR, they built “Siyapen”, the first community-based drug rehabilitation center. Siyapen is named after the Maranao word for “care”. Siyapen was built in partnership with the City Government of Marawi and the Autonomous Region of Muslim Mindanao (ARMM). The facility has a 60-bed capacity and amounts to around PHP30-million over to the local government unit in January 2018.

The facility seeks to provide a space that encourages physical wellness and social integration. Located within the community, the center allows drug dependents to have better access to family and other forms of social support, which are crucial to their recovery. In addition, its proximity to a mosque opens opportunities for spiritual counseling. The facility also allows for other therapeutic activities such as exercise and group sessions.

“The Siyapen Drug Rehabilitation Center is our way of addressing another challenge Mindanao faces, and of responding to the national government’s call for private sector support in addressing the drug problem,” said Jaime Augusto Zobel de Ayala, chair and chief executive officer of Ayala Corp. and co-chair of Ayala Foundation.

During the pandemic, Siyapen was converted as a quarantine facility housed locally stranded individuals (LSIs) who are tested positive for Covid-19 but asymptomatic. But only Marawi residents were allowed to be housed at Siyapen.

Challenges of Implementing CSR

1. Responsibility towards Shareholders only

            Some argue that a business is accountable only to its shareholders and not in the whole society. Some entrepreneurs claim that the sole aim of the business should be to gain profit for its stakeholders. Doing CSR violates this objective and does violates the basic rule of serving its stakeholders.

2. Failure of the public to recognize organizations through CSR

            Some communities sometimes neglect or put little attention to organizations that do CSR. While other communities are warm and are very conscious of companies that do CSR. Organizations that do CSR are not sometimes recognized eben though it benefits both the company and the society.

3. Input not equal to the output

            Doing CSR entails a lot of effort for a company. It uses its financial resources and allots time for it to successfully implement CSR for the betterment of the society. But sometimes the public fails to recognize this effort and denies the appropriate appreciation and acknowledgment that a company deserves.

4. Mentality of consumers

Some consumers always think that every move of a company is done solely for its own benefit. Because of this, the efforts of doing CSR by some companies become neglected. This upsets some organizations to do CSR as they see that there is no need to do CSR initiatives.

Conclusion

Over the years, CSR has grown to be of a more serious topic. Businesses have viewed it as a way that they could give back to the community where they operate. Businesses can no longer operate with the sole aim of making profits at the expense of the environment, society, economy, consumers, and employees. It led to a growing concern to take good care of their employees, the environment, comply with legal requirements set forth by the government and give back to the society. CSR became the balance between just merely gaining profit. CSR became a purpose to some businesses. That to give back to society, act ethically and be responsible in their business pursuits is a must. CSR lets business owners to rethink their purpose and realign their actions to what is right and ethical.

References: 

Abadilla, D. (2017, January 25). PH’s first Muslim community-based drug rehab center. Retrieved from https://business.inquirer.net/223448/phs-first-muslim-community-based-drug-rehab-center

Busog, Lusog, Talino Recipe Book. Jollibee Group foundation, Inc. Retrieved from https://www.jollibeefoundation.org/public/assets/pdf/publications/04%20-%20BLT%20Recipe%20Book.pdf

Business and Leisure. (2017, April 18). Ayala Foundation CSR [Video]. Youtube. Retrieved from https://www.youtube.com/watch?v=o-Pp0aOzH0A&t=78s 

Chandra, K. (2018, November 24). CSR Benefits And Challenges. Retrieved from https://csrinitiatives.com/csr-benefits-and-challenges

Jollibee Group Foundation. (2019). Busog, Lusog, Talino School Feeding Program on CNN Business Matters (Full) [Video]. Youtube. Retrieved from https://www.youtube.com/watch?v=_l-Gyzz3vts&t=319s 

Hamidu, A. et al. (2015). Corporate Social Responsibility: A Review on Definitions, Core Characteristics and Theoretical Perspectives. Retrieved from https://www.mcser.org/journal/index.php/mjss/article/viewFile/6905/6609

Heyward, C. (2020, November 18). The Growing Importance Of Social Responsibility In Business. Retrieved from https://www.forbes.com/sites/forbesbusiness                            council/2020/11/18/the-growing-importance-of-social-responsibility-in-business/?sh=14f4a8662283>

Suson, D. (2020). Marawi opens new patient care center. Retrieved from https://www.pna.gov.ph/articles/1107325

Thomas Insights. (2019). A Brief History of Corporate Social Responsibility (CSR). Retrieved from https://www.thomasnet.com/insights/history-of-corporate-social-responsibility/

You Matter. World Website (2020, March 3). Corporate Social Responsibility (CSR) – Definition, History and Evolution. Retrieved from https://youmatter.world/

en/definition/csr-definition/

 

Preventing Job Dissatisfaction in the Workplace

 

JAHMAI O. GRANDE

ABSTRACT

The employee behavior literature is very much dominated by studies on “good” or “positive” behaviors, but relatively little has been researched on the negative attitudes and behaviors of people within the workplace, in particular, job dissatisfaction and counterproductive work behavior.

The objective of this paper is intended to enumerate the influence on job dissatisfaction among staff as well as its causes and vital components as shown in the relevant literature. This paper also provides several potential schemes in preventing job dissatisfaction and keeping the employee productive and efficient.

Thus, this paper has conversed significant factors in enlightening the incidence of job dissatisfaction and discusses potential schemes to manage these concerns.

KEYWORDS: Job Dissatisfaction, Enthusiasm, Procrastination, Tardiness, Performance, Motivation, Employee Turnover, Management Limitation, Employee Engagement.

INTRODUCTION

Job dissatisfaction is usually, but not necessarily an undesirable phenomenon for organizations (Zhou and George, 2001). Although researchers have linked job dissatisfaction to many negative outcomes in the workplace, such as employee turnover (e.g., Hom et al., 1992), it has been demonstrated that job dissatisfaction is related to some positive outcomes, such as employee creativity (e.g., Zhou and George, 2001). Recently, the economic crisis led to growing stress and severe mental health problems in the workplace, which would exacerbate employees’ job dissatisfaction (Mucci et al., 2016). Not surprisingly, given its importance and prevalence in organizations, identifying the antecedents of job dissatisfaction has attracted great interest from researchers (e.g., Amundsen and Martinsen, 2014; Arenas et al., 2015). Some scholars have focused their attention on the dynamic role of supervisors in decreasing employees’ job dissatisfaction. Some studies focused mainly on the role of positive leadership (e.g., empowering leadership, Amundsen and Martinsen, 2014; transformational leadership, Top et al., 2015).

In the context of job dissatisfaction, abusive supervision may have the potential to escalate into more dangerous, destructive leadership (Avey et al., 2015), which in turn may make job dissatisfaction more serious. Indeed, as a typical manifestation of destructive leadership at work, abusive supervision seems to have natural links with employees’ job dissatisfaction (e.g., Breaux et al., 2008; Hobman et al., 2009; Bowling and Michel, 2011; Haggard et al., 2011; Kernan et al., 2011; Lin et al., 2013; Martinko et al., 2013). Although abusive supervision has been conceptually linked to job dissatisfaction (Tepper, 2000; Tepper et al., 2004), the empirical evidence is rare.

Job dissatisfaction is a common manifestation of employees’ attitudes in the workplace (Zhou and George, 2001). Job dissatisfaction is when employees’ expectations for their job are not met. This leaves them with negative perception and lack of motivation and commitment to their work and the organization. This, in turn, affects the performance of the organization and ultimately, its bottom line. Discontent can arise from many factors, including a negative work environment, poor management, lack of recognition, and low wages. (https://www.aihr.com/blog/job-dissatisfaction/)

Job dissatisfaction is when an employee does not feel content in their job. This can be due to various professional and personal reasons such as lack of advancement, poor management, limited work-life balance, and more. (https://www.bamboohr.com/resources/hr-glossary/job-dissatisfaction, 2022).

When job stress becomes increasingly difficult to control, it often leads to job dissatisfaction. The most commonly used definition of job dissatisfaction is given by Locke (1975) who defined it as “a pleasurable or positive emotional state resulting from the appraisal of one’s job or job experiences. This definition implies that not only do we evaluate satisfaction as an emotional state but that we think about those aspects of the job that make us satisfied and dissatisfied.

Work takes up a significant percentage of one’s life, and people have expectations of what their job should be like. When these expectations are not met, it brings feelings of disappointment, bitterness, and lack of interest, leading to job dissatisfaction. There are many behaviors that employees can display when they are dissatisfied with their jobs.

TYPICAL INDICATORS OF JOB DISSATISFACTION

Lack of interest and enthusiasm – People will seem disinterested in their jobs and not put much energy into completing their tasks. You may notice that they are easily distracted by their phones, chatting with coworkers, wandering from their workspace, or even daydreaming. Texting friends, browsing through social media, or simply staring at the ceiling can illustrate a lack of interest in one’s work. They may also spend extra time attending to personal business while at work or express a sense of boredom with their duties. One of the early signs of job dissatisfaction, disinterest progressively grows worse over time and can impact work performance.

Procrastination – Employees who avoid their work may be silently wishing it would just go away. Someone who is dissatisfied with their job may wait until the last minute to complete tasks and then make excuses for why they didn’t do it earlier. When someone invests minimal time into preparing for and carrying out their work, the results will likely be mediocre.

Tardiness and absenteeism – People who aren’t satisfied with their jobs aren’t motivated to carry out their responsibilities. You might notice that an employee has irregular arrivals and departures from work or often calls in sick. Instead of being at work and on time, a dissatisfied employee may wish to stay home and escape what they don’t enjoy. All of this translates into increased absenteeism rates.

Declining performance – When employees aren’t devoted to their jobs, they are bound to put in less effort, resulting in less output. Without investing their full knowledge and abilities into their work, it can take them an hour to do what they used to do in 30 minutes. Instead of putting their best foot forward, they may take on a nonchalant attitude and do only the bare minimum.

Stress and negativity – Every job will have tense moments, but dissatisfied employees are likely to be stressed out on a regular basis. Those with low contentment will feel negative about their jobs and the workplace and become irritable. They may complain more often about projects, managers, clients, or coworkers.

Signs of Job Dissatisfaction

We talked about what happens when an employee is dissatisfied. Here are some additional signs to look out for.

Slack

An employee who is not satisfied at work will start slacking on their performance. They may show up to work late, miss deadlines, make simple errors and fail to communicate. They may break rules or spend little time actually working. This is the point when the employee does not care about the future of his or her job. Let’s take care of our employees before they get to that point!

Lack of Engagement

If an individual who is normally engaged and talkative in meetings is suddenly withdrawn and distracted, you could have a dissatisfied employee. Perhaps they stop attending company events and activities. They may stop speaking up about things that are important to them or volunteering for opportunities they would normally jump on. This is where it’s important to know your employees. Look out for changes in behavior and be empathetic to what an employee might have going on.

Job Searching

When an employee is dissatisfied, they will most likely not want to stay in their current work environment. They will begin to look for other employment. If an employee is suddenly missing work for many appointments, they could be interviewing for a new job. They may be curious about other companies and other opportunities. They may put some feelers out to see what their potential for growth is at your company.

COMMON CAUSES OF JOB DISSATISFACTION AND WAYS TO ADDRESS THEM

The reasons for job dissatisfaction are numerous. Nonetheless, if you confront potential sources with corrective action, you can work toward preventing the problem altogether. Being alert to and seeking remedies for the following job dissatisfaction factors will help your organization build a satisfying work environment.

Lack of appreciation - All human beings have an inherent longing to feel appreciated in both our personal and professional lives. Feeling valued at work goes beyond just recognition for performance. People want to believe they have worth as employees and colleagues because they are esteemed for who they are as a person. Without knowing their presence matters, they can lose their sense of purpose within the organization and become dissatisfied with their job. A Glassdoor survey showed that 53% of employees believe that receiving more appreciation from their boss would make them stay longer with their employer

Here are some ideas for creating a culture of appreciation in your workplace: First, encourage managers to express a friendly and attentive interest toward their staff and be willing to genuinely listen. Routinely checking in with them lets them know they are noticed. Managers should show appreciation for employees with in-the-moment verbal praise to honor each person’s skills, ideas, and opinions and root out favoritism. Second, implement an employee appreciation program or re-evaluate your existing one. Include methods for peers to nominate and highlight each other. Periodic rewards, such as free lunches, workplace events, or group outings, will acknowledge employees and promote camaraderie.

Being or feeling underpaid - While pay rate alone doesn’t guarantee contentment, believing you are underpaid can contribute to job dissatisfaction. If an employee thinks their compensation doesn’t match their work performance, they will feel undervalued. They may also blame their job for any financial difficulties they’re facing. A new opportunity with higher pay can easily entice someone to leave their current job.

Does your organization offer competitive salaries that are at least at the market rate? If not, it’s time to propose a new pay structure and consider salary increases. Devise a payroll and compensation strategy that offers performance bonuses and promotions to support employees’ career trajectories.

If your organization is not in a position to raise wages, you could look for creative ways to reward employees, such as: Bonuses tied to targets and profitability, Employee discounts for your product or service, Flexible work days/hours, longer lunch breaks and Extra vacation day

Inadequate management - The relationship employees have with management is a significant contributor to how they feel about their jobs. When employees don’t like how they’re being supervised or don’t trust their managers, their loyalty starts to unravel. Then they are less likely to be satisfied in their roles and can even become dissident. Managers who have poor leadership skills can harm the success of your business. People want to be led with straightforward instructions. Uncertainty and lack of direction are often sources of frustration in the workplace. Conversely, employees who are inspired by their leaders will be more invested in their work.

Supporting managers’ development should be a high priority for every organization. Be sure to have policies in place and training for your managers that include an emphasis on these areas: Setting clear short and long-term goals with instructions for meeting expectations, Practicing and promoting open, inclusive communication and being transparent with information, Championing professional growth of employees, Providing consistent individual feedback that emphasizes positive attributes and coaches problem areas, Offering autonomy and trusting employees while refraining from micromanagement and Limited career growth prospects

The hope of career advancement lies within most people’s work aspirations. Interest in a current job will increase when it offers some potential to look forward to. On the other hand, when employees see their growth opportunities stall or vanish, it can foster job dissatisfaction. Feeling stagnant can send workers right out the door to better prospects.

HOW DO YOU OVERCOME JOB DISSATISFACTION?

Overcoming job dissatisfaction requires tapping into employee issues and enhancing their experience. There are a number of ways your team can boost employee experience:

Provide recognition: Celebrate milestones and praise employees for their hard work during company meetings. Consider incorporating a reward system where workers receive some sort of compensation (money, more paid time off, team outings, etc.).

Are you paying your employees well? Great. But do you have a payroll and compensation strategy that keeps your employees productive and satisfied? Consider an employee’s career trajectory and tie that into compensation to boost motivation, morale, and productivity.

Provide training and mentoring: Nine in ten workers who have mentors say they are happy with their jobs. Mentoring can provide an opportunity for employees to train well in their roles, be given candid yet caring feedback, and be offered tips on climbing the ladder.

Hourly workers have an annual turnover rate of 49 percent. By providing accurate compensation and efficient communication, you can effectively meet the unique needs hourly employees require.

Listening and responding: We mentioned earlier that the most constructive response an employee can take to job dissatisfaction is to be vocal and bring up their concerns to management. Accordingly, managers can respond positively to that feedback. It will help if the employee feels heard and if management takes steps to address the needs that aren’t being met.

Employees feel empowered when their employer demonstrates a nurturing environment for career growth and success. Managers should set aside time with their staff specifically for getting to know what each person envisions for their career. They should also help map out a plan for attaining their goals. Within your organization, you can reinforce career development by providing the following types of opportunities: Internal mobility, Training and development offerings, supporting side projects, Promoting from within, Mentoring programs and Lack of training and development options.

Many people purposely seek employment with a company that is willing to invest in the learning and development of its employees. Helping staff grow can motivate them to do better in their jobs and be more devoted to the organization. In addition, feeling encouraged and set up for career advancement can help employees feel more satisfied with their current role.

Successful companies understand the value of a training and development plan, so they allocate the required resources. For example, you may see the need for more training at your organization, but a generous budget isn’t feasible. In that case, there are methods for developing employees that don’t require substantial funds, such as:

Online learning: Training sessions and webinars are available for a vast number of topics and allow people the flexibility of working at their own pace during the most suitable time for them.

Peer-to-peer learning: This option allows employees to learn skills from their peers with direct and personal support during in-person, phone, or online sessions.

Cross-training: Employees can be exposed to different roles and learn new techniques as they learn how to perform their colleagues’ tasks.

Job shadowing: This opportunity allows people to explore a particular job that they are interested in by following and observing someone already in the role as they go about their duties.

Performance coaching: This on-the-job collaboration between employees and their managers or among employees promotes learning and improving skills while discussing the interactions that occur within the scope of their job.

Workplace relationships - The correlation between work relationships and employee satisfaction cannot be overstated. Even if the job itself isn’t ideal, a tight-knit team can make people happy to come to work. On the other hand, a toxic workplace can ruin an otherwise fulfilling job. Coworkers don’t have to be best friends, but they should at least be relaxed and comfortable with each other.

Take a close look at your workplace culture to identify potential improvements, especially if employees are making complaints. For example, do managers address tensions between staff members? Does an employee’s rude or bullying behavior toward others need to be confronted?

Teambuilding activities or scheduling time to play games and just hang out can encourage employees to bond, find commonalities, and form trustworthy, positive relationships. Finding ways for employees to connect as people will liven up the environment, promote teamwork, and contribute to your employees’ overall job satisfaction.

Work-life balance - Full-time workers spend most of their day at work, but everyone needs time to focus on their family, friends, hobbies, and other responsibilities. Employees can feel overwhelmed if there isn’t a clear-cut distinction between their work and personal lives. If your organization doesn’t recognize how important it is for employees to maintain a healthy work-life balance, you’ll be dealing with burnout and low job dissatisfaction.

Showing people that the business cares enough to prioritize their well-being goes a long way in preventing employee job dissatisfaction. Try these ideas that can better accommodate your staff’s lives outside of work: Limit overtime expectations, Ask for volunteers before allocating travel, holiday work, and special assignments, Provide consistency with fixed scheduling for hourly workers, Offer people choices with flexible hours and remote work options, Encourage everyone to take advantage of their paid time off benefits, and Job isn’t interesting or meaningful.

People seek employment that is inspiring and fulfilling. They can easily lose interest in a job they believe isn’t challenging enough or doesn’t make a significant contribution.

Tedious tasks are often job dissatisfaction factors. When technology can help streamline or modernize record-keeping and other processes, it reduces the time employees must devote to dull job duties. This leaves more room for the work employees find worthwhile.

Revamping certain positions is another remedy. When you employ job design strategies like job enrichment and job rotation and utilize the job characteristics model, it is possible to create innovative roles that both support business goals and satisfy employees.

A sense of pride is instilled when employees believe they are personally responsible for contributing to the organization in a meaningful way.

HOW DO I ADDRESS JOB DISSATISFACTION IN THE WORKPLACE?

Job dissatisfaction is a hard issue to navigate and one that requires patience, caution, humility and empathy. Remember that even though it may seem like just one disgruntled employee, that employee could be the future success of your company.

TRANSPARENCY

One characteristic of a great company culture is transparency. Companies that are open and honest about their decisions, policy changes, layoffs and metrics have employees who trust the company and trust their leaders. Employees won’t have to question their job security and will ask for clarification about policies they may not fully understand.

Open Door Policy

An open door policy is so important for a healthy company culture. Employees want to have a voice and they want to feel that their voice will be heard. Always be compassionate and empathetic when an employee explains a concern, even if it’s something you don’t agree with. Try to put yourself in the shoes of the individual. Although you may not be able to change the circumstances of a situation, you can help an employee feel that they are valued. Offer to help them in any way that you can. Try for compromises and solutions and give them the benefit of the doubt.

THIRD PARTY

When problems arise with an employee that you cannot solve, consider asking for the help of a third party. The HR department can often act as this third party. If necessary, companies can enlist the help of an arbitrator outside of the company to come in and help resolve an issue. Learn to identify when the situation needs another perspective.

OFFER OPPORTUNITIES FOR GROWTH

Give your employees answers to their many questions about their future. Discuss their personal goals with them and tell them about the opportunities you see for them in the future. Take chances to compliment them on their achievements and give feedback as often as you can. Allow them to learn from each other and work in other departments when possible. Provide learning initiatives to read books and take classes. Show your employees that you care about them even if they decide to leave the company.

CONCLUDING THOUGHTS

Employers don’t always get it right, and job dissatisfaction is a common workplace problem. However, once you take the initiative to determine what causes job dissatisfaction at your organization, you can prepare and implement strategies to overcome it. Don’t forget to always gather your employees’ feedback to make sure you’re using the right methods to combat job dissatisfaction.

Striving for a fully engaged and satisfied workforce is the best way HR leaders can support business success.

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