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Study this tutorial letter carefully and keep it safe as you will need it for examination preparation. Refer to the errata on tutorial letter MNH202C/201/1/2010 in this tutorial letter.


2 By now you should have received a study guide and the following tutorial letters for MNH202C: Tutorial letter MNH202C/101/3/2010 Content of tutorial letter A word of welcome, purpose and outcomes of the module, where to start, important notice, communication with the University, student support system, prescribed book and enquiries, tutorial matter, additional sources of information, assignments, examination, discussion classes, study plan, frequently asked questions, compulsory assignments, self-assessment assignments, guidelines for answering assignment and examination questions, comments on Assignments 03 and 04 Introduction, myUnisa, the examination, prescribed book, answers to assignments for both semesters, additional sources of information, errata study guide, feedback on Assignment 01, concluding remarksIntroduction, myUnisa, the examination, prescribed book, answers to assignments for both semesters, additional sources of information, errata study guide, feedback on Assignment 01, conclusion Introduction, the examination, comments on Assignment 02, marking schedule, new legislation, corporate citizenship, conclusion


MNH202C/202/2/2010 (this tutorial letter)

If you have not received all these tutorial letters and the study guide please contact the Department of Despatch on 086 167 0411. The study material for this module (study guide and tutorial letters) is also available on the Internet (myUnisa). We strongly recommend, therefore, that you register for and utilise this system if you have not yet done so. Information about the system can be obtained from section 2.5 in the booklet Your service guide @ Unisa which you received at registration. This booklet is also available from Click on Study at Unisa then on Downloadable documents. Unfortunately, lecturers do not have the facilities to send students duplicate copies of study material that were lost in the mail. Remember that tutorial letters are the Universitys principal means of communication and teaching; therefore, you need to check and ensure that you received all the tutorial letters for your course. Please read and study tutorial letters carefully and keep them in a safe place!


Dear Student


The main purpose of this tutorial letter is to provide you with feedback on Assignment 02, to make you aware of new legislation and also to provide additional interesting information regarding corporate citizenship. Keep this tutorial letter as you will need it to prepare for the examination.


Examples of examination questions

The multiple-choice questions will be similar in format to those in Assignment 01, which appears in Tutorial Letter MNH202C/101/3/2010. An example of a more theoretical essay-/paragraph-type question from a previous examination paper appears below:


Name and briefly discuss five external recruitment methods that the human resources (HR) manager can use during the recruitment process. (10) When answering such a question you may choose any five external recruitment methods as discussed in your prescribed material and discuss each of them briefly. In your discussion you should ensure that you explain each method clearly by stating what each entails. Do not make the mistake of including the internal recruitment methods in your discussion. 2.2 General information

We have in the past received requests from students for examination hints and tips. Please refer to Tutorial Letters MNH202C/101/3/2010 and MNH202C/201/1/2010 in which we provide extensive information regarding the examination and also the myUnisa course page for this module. We cannot provide any additional information, but you are welcome to contact us if you are struggling to master the content of the module for the examination.

This assignment refers to study units 5, 6, 7, 9 and 10 of the study guide and the corresponding chapters in the prescribed book.

The questions in Assignment 02 were only based on some of the first few chapters you have to study for the examination because the assignments had to be submitted early in the semester. According to the study plan we provided you should have completed your study of these chapters by now. This does not imply that the other chapters are not important for the examination. Assignments 03 and 04 in Tutorial Letter MNH202C/101/3/2010 consist of a combination of different chapters in the prescribed book. Remember that we used a study icon in the study guide to indicate which sections you should study for the examination. Question 1 You have looked at the advertisement and realise that it cannot be placed as is. Make recommendations to improve the advertisement and explain why it cannot be used in its current format. Also indicate what the results may be if the advertisement is placed as it stands at present. Recommend a suitable newspaper in which to place the advertisement. (10) The answer to this question can be found in External recruitment methods in chapter 6 of the prescribed book, as well as in section 6.6 of the study guide. The following recommendations can be made to improve the advertisement: An advertisement must be attractive enough to encourage suitable and qualified candidates to respond. The goal of a newspaper advertisement is to recruit the unemployed person, as well as the underemployed person (who, if given the right opportunity, would welcome a change of jobs). Keeping this in mind, the advertisement should be eye-catching and striking in order to attract the best applicants for the position. The advertisement that the principal intends to place in a newspaper does not adhere to the principles of a good advertisement. For example, it is uninteresting and dull with no headings, words in bold or underlined words and the logo or emblem of the school is not included in the advertisement. The advertisement should be changed to be more attractive and interesting, keeping in mind the principles of a good advertisement as discussed in the prescribed book. The job description in an advertisement must be accurate and current, and the critical job duties and responsibilities should be included. The advertisement that the principal wants to place in the newspaper does not include a job description or duties and responsibilities; and thus the applicants will have no indication of what the position entails. If such an advertisement is placed in the newspaper the school might receive a large number of applications of unsuitable applicants and it can also expose the school to legal action if they decide to appoint an applicant based on these criteria. The advertisement should convey a certain message and tell the prospective applicants something about the culture and spirit of Murray High School. The job duties and minimum requirements for the position should also be included in the advertisement. The advertisement that the principal plans to place in a

4 newspaper has no job duties and minimum requirements included. This means that applicants will not know what the requirements of the position are and whether they meet these requirements or not. There is also nothing striking about the advertisement and thus the message about the school, which will be conveyed to the applicants, will not be a positive and attracting one and prospective employees might not see the school as a possible employer of choice. If the advertisement is placed as it is, there is a big chance that suitable and qualified applicants will not respond to the advertisement or that unsuitable applicants might apply, because: it is not attractive, eye-catching and interesting; there is no proper job description, information about the critical job functions, job duties and minimum requirements; and thus the applicants will not know what the position entails, whether they are qualified for this position or what the requirements for this position are; and the advertisement looks dull and uninteresting and therefore a positive message will not be conveyed to prospective applicants about the school. A newspaper is the correct form of advertising media to use in this case, because the school wants to limit recruiting to a specific area of specialisation (maths teacher). The appropriate newspaper to place the advertisement in would be Pretoria News, Sunday Times or the Citizen (or any other relevant widely read newspaper that places job advertisements).

Question 2 Use the information above and compile a new advertisement that can be used. (12)

To answer this question successfully you had to study External recruitment methods in chapter 6 of the prescribed book, especially the section on Advertising; and you had to look at job advertisements in newspapers. An example of a possible advertisement is shown below. You could have structured your advertisement in another way but it is important that you include all the information needed and that your advertisement complies with the guidelines for a good advertisement as discussed in your prescribed book:


is looking for a:


MURRAY HIGH SCHOOL is situated in Gauteng and has been operating for more than ten years. It caters for pupils from grade 8 to 12 and has an enrolment of 1 100 learners. This successful and results-driven school is looking for a dynamic senior mathematics teacher for grades 10 to 12. Job requirements:
Relevant four-year degree in the subject designated with at least five years mathematics teaching experience for grades 10 to 12; Experience of teaching, through the medium of English, children whose first language is not English, would be an advantage; and Proficiency in the use of ICT for both administrative and pedagogical purposes.

The successful applicant will be responsible for:

Developing and preparing course material; Classroom administration, which amongst other things, include preparing, administering and marking students work regularly as well as class and formal course assessments, communicating information on progress and performance to students and other appropriate persons, communicating course and programme-related information to students, etc; Developing knowledge and skills in contemporary learning, teaching and assessment models and strategies; Participating in school and community events; and Coaching one sports activity or cultural activity such as choir or drama.

Salary: Murray High School offers a market-related remuneration package as well as excellent benefits. If you want to become a part of the team at Murray High School, are looking for a challenging job and meet the above-mentioned requirements, forward your CV to: PO Box 3458911, Randburg, 0057; or Email to; or Fax to (011) 465 9933. For further information contact the principals secretary, Ms Arlene Moller, on (011) 465 9935. Closing date for application: 16 April 2010 If you are not contacted within two months after the closing date of this advertisement, please accept that your application was not successful.

Checklist for a successful advertisement Clear and thorough job description (job requirements and job responsibilities) Reference to the positions remuneration package Contact details Closing date of application

6 Question 3 How will the successful candidate know what is expected of him/her and what he/she need to do once he/she commences duty? Refer to the appropriate HR document(s) that should be in place. (6) The answer to this question can be found in Job descriptions in chapter 5 of the prescribed book; as well as in Objectives of induction in chapter 7 of the prescribed book. The successful candidate will find out exactly what is expected of him/her in the new job during the orientation process. During this process the new employee gets acquainted with the job procedures, the goals and standards of the organisation and is also informed of the preferred methods and behaviour that will lead to achievement of the organisations goals. The orientation process also gives the employee an indication of the basic responsibilities of the job, the required behaviour patterns and expected standards for effective job performance. The most important HR document that ensures the successful candidate knows what is expected of him/her in the job is the job description. A job description can be defined as a summary of the key tasks and responsibilities that an employee has to fulfil. It is thus important that this document should be up to date and that it should contain all the relevant information. A job description consists of the following elements that will provide the successful candidate with information about the position: Job identification this includes the title of the job, the location of the job, the title of the immediate supervisor, the job status and the pay grade/range. In this example it is a Senior Maths Teacher. Job summary a one- to three-line description of the essence of the job, the most common function and the primary output of the objective of the job. In this example it will be a short description of the essence of the Senior Maths Teachers job. Job duties and responsibilities this is the heart of the job description: the tasks may be grouped according to functional categories, such as supervision given or organisation of work and each duty should begin with a verb. The intention of the duties section is to give the reader a complete and concise account of what is being performed on the job. Job specifications/Minimum qualifications state the minimum qualifications that job applicants must possess to be considered for the job; these are grouped into three categories, namely skills (observable capabilities performed on the job), knowledge (the body of information in a particular subject area that is required by a new employee) and abilities (mental or physical activities required of a new employee). Job specifications may also include required education, experience, training and specific certification required for the job. The Senior Maths Teacher in this case needs a relevant four-year degree in the subject
designated with at least five-years mathematics teaching experience for grades 10 to 12, experience in teaching through the medium of English and a proficiency in the use of ICT for both administrative and pedagogical purposes.

The information in a job description can be used for the following other HR activities related to this case: Recruitment to develop advertisements and to provide applicants with additional information about job openings; Interviewing to provide the interviewer with concise, accurate information about the job, allowing the interviewer to better match the applicant to the job opening and to ensure that the minimum qualifications of the job are met by the applicant. The interviewer(s) can also prepare their questions based on this information; Orientation to spell out job requirements and areas to be evaluated; and Training to specify the training and development an employee requires for effective performance. If the successful candidate for the senior mathematics teacher position is in possession of the above information, which will be provided during the orientation process and will also be contained in the job description and job specification, he/she will know exactly what is expected of him/her and what he/she must do once he/she commences duty at the school. Question 4 It is six months later, they have employed a new teacher and the principal wants to check whether they have chosen the correct teacher to employ. Which HR activities will be involved and how will each one be used? (8)


To answer this question successfully you had to study chapter 9 of your prescribed book, focussing specifically on the introductory part of the chapter and The appraisal process. Also keep chapter 6 (Recruitment and selection), chapter 7 (Induction, motivation and retention) and chapter 10 (Training and development) in mind when answering this question. The first step is to determine whether the new teacher is performing up to standard or not, and this can be achieved by means of a performance appraisal. In the event that the job incumbent is not performing as he/she should, the school will have to investigate why this is not the case. Some of the causes could be that the right person was not appointed and that the person does not have the correct qualifications and experience (in which case they will have to relook their recruitment and selection processes). The newcomer could perhaps not have been orientated properly or the expectations might not have been clear. Another question to be asked would be whether this person needs additional training and whether the provision of additional training would solve the problem. Firstly, a performance appraisal needs to be conducted to establish whether the teachers performance is up to standard or not. A performance appraisal is the process of evaluating and managing both the behaviour and outcomes in the workplace. The principal will evaluate specific aspects such as quantity of output, quality of output, timeliness of output, presence at work and cooperativeness. In general the principal will be looking at the key performance areas of the teacher and how the person performed in each area. It is important that the teacher should understand the process of performance appraisal, the system used and the expectation of the school. The results of the performance appraisal will give the principal an indication of the following: 1. The teachers work is not up to standard (the following HR activities will then follow): The schools recruitment and selection process needs to be investigated and revised if the right person was not appointed. The school must revisit their recruitment methods, the criteria that they set; they should also investigate the selection process to determine if there are any aspects that need improvement to ensure better results. The orientation process that the teacher was subjected to when he/she commenced duty also needs to be scrutinised to establish whether the teacher was acquainted properly with his/her duties, tasks, goals and the job requirements. The principal needs to determine if the teacher may need any additional training and/or development to improve certain skills and/or knowledge in order to improve his/her performance. His/Her training needs have to be identified, the appropriate training intervention should be chosen and the job incumbent should attend this training, after which his/her performance should be assessed to establish if there is any improvement. The teachers work is up to standard and he/she meets the performance requirements. This may be an indication that the correct person was appointed. In order to ensure that the teacher continuously performs up to standard he/she will have to keep abreast with the latest information in his/her field by means of conference and workshop attendance, reading the latest information in this field or attending training as and when required.


Question 5 Make the assumption that you are the principal of Murray High School and that you have appointed an excellent maths teacher who chose to teach drama as an extramural activity to the pupils in the afternoons. The teacher has previous drama teaching experience but there have been new developments in this field. How are you going to ensure that these developments are incorporated into the curriculum for the students and how would you ensure that the correct intervention is chosen for the new teacher to update his/her skills? (14) You will find the answer to this question in Purposes of training and development and A systems approach to training and development in chapter 10 of the prescribed book. The activity that needs to be executed to sure that the teacher incorporates the latest developments in the field of drama into the curriculum is a training and development programme. A training and development (T&D) programme has the following purposes to equip the teacher to become aware of the new developments and to include them in the students curriculum: 1. Improving performance the teachers performance is not satisfactory, because he/she has lost track of new developments in the field of drama; thus, a T&D programme will be instrumental in minimising his/her performance problems and in improving his/her performance as extramural drama teacher.

8 2. 3. 4. 5. Updating employees skills a T&D programme will update the teachers skills in the field of drama and advances will be integrated into his/her performance. Avoiding obsolescence this is the failure to keep pace with new methods and processes that enable the teacher to remain effective. Solving organisational problems a T&D programme will provide the teacher with skills to solve problems within the students current curriculum and to attain the goals the school set for him/her. Orienting new employees the teacher is new at the school and a T&D programme will help the teacher in his/her search for information and reduce uncertainty. Although the drama teaching is only an extramural activity for the students, it is still important for the teacher to be oriented and given the skills to perform his/her tasks effectively, especially regarding the new developments in the field of drama. Satisfying personal growth needs a T&D programme will result in both greater effectiveness and increased personal growth for the teacher.


To ensure that the correct T&D programme is chosen the following three phases will have to be implemented by the principal of the school: Before they decide which intervention will be suitable, they need to determine the need. Phase 1: Needs assessment The needs assessment can be done on three levels: Organisational analysis: An analysis of organisation-wide performance criteria, which would be unnecessary in this situation; the problem is not with the entire school, only with the new teachers knowledge regarding new developments in the field of drama, operations analysis and person analysis; Operations analysis: Also called job/task analysis to determine how a job should be performed, in other words, the desired level of performance this is applicable to the situation regarding the teacher, because the new developments in the field of drama need to be determined and how to incorporate them into the curriculum of the students before a T&D programme can be developed; and Individual analysis: There are two purposes of individual analysis: 1 Who currently needs training? (It does not need to be determined in this case, because the teacher has already been identified as having a lack of knowledge and skills regarding the new developments in the field of drama.); and 2 Which skills, knowledge, abilities or attitudes need to be acquired or strengthened now and in the future? (The needs assessment for the new teacher needs to focus on this.) The individual analysis can be done in numerous ways; the following would be applicable in the situation with the teacher (you could have chosen any technique that you thought would be applicable for the teachers needs assessment): Skills test (to establish on what level the teachers knowledge of the developments in the field of drama is); and Group discussions (to discuss the teachers current knowledge of the developments in the field of drama, and to discuss a possible T&D programme with the teacher). After the teachers individual and operational needs have been determined, the T&D objectives need to be established to reflect what the teacher needs to be able to do or know on completion of training. These objectives should indicate the kinds and levels of skills, knowledge, abilities and attitudes the teacher should possess after the T&D programme has been completed. Secondly, the school has to establish what the best method would be to update the skills of the teacher; they will therefore have to look at the second phase in the training and development cycle. Phase 2: Design and delivering of T&D After the needs assessment has identified the performance gap (the difference between the desired and actual performance of the teacher) and the objectives of the T&D programme have been set, the principal is ready to design a T&D programme.

An effective training design considers the following principles of learning: Motivation (the teacher must understand the need for the T&D programme); Participation (the teacher must be able to participate in the T&D process and not be a passive bystander); Feedback (it is important that the teacher gets feedback on his/her performance in the T&D programme and how it relates to the T&D objectives); Organisation (the teachers training must be presented/conducted in such a way that segments of materials build on each other and that gaps, contradictions or ambiguities in the material are avoided);

9 -


Repetition (frequent practice during the teachers T&D programme will help the learning process); and Application (the teacher must be able to apply the techniques and/or information learned during the T&D programme in the drama class). Once the T&D has been designed, the T&D technique for the programme must be chosen and then delivered. There are numerous training techniques, and any one or a combination of them could have been used for the teachers T&D programme, if well motivated. The use of an away-from-the-job training technique, and not an on-the-job technique, is recommended, as there is no one at the school to provide the teacher with training on the new developments in the field of drama. The recommended T&D techniques that can be used in combination with each other are: o LECTURE A lecture is a suitable method of T&D because the information regarding the new developments in the field of drama can be communicated to the teacher in a clear and organised manner. o CONFERENCE/DISCUSSION Discussing problems and new developments in the field of drama permits a dialogue between the teacher and the trainer and leads to better understanding of the learning material. Innovative ideas for the implementation of these new developments can also be developed during a discussion. o ROLE PLAY Role play is also a good technique to use at the end of the T&D programme to practise the application of the new developments practically as it would be in the realistic setting during a drama class. o MEMBERSHIP OF PROFESSIONAL ORGANISATIONS An effective way for the teacher to stay abreast of new developments, theories, principles, methods and techniques in the field of drama, is through the membership of a professional organisation. This will ensure that the teacher keeps up to date with any developments after the T&D programme has finished and in the future.

Lastly, the school will only be able to determine whether the intervention chosen was the correct one and whether it had the desired impact by evaluating it. This is the last phase. Phase 3: Evaluation After the delivery of the T&D, the principal needs to determine whether the teacher actually learned new skills and knowledge regarding the new developments in the field of drama. Evaluation of the T&D process can be done by using several strategies such as cost-benefit analysis as well as the most applicable strategy in the case of the teacher to assess to what extent the objectives of the training were met. Another evaluation strategy that can be used to evaluate the T&D processs success includes the following four different levels of evaluation, namely: 1. How did the participant (the teacher) react? 2. What did the participant (the teacher) learn? 3. How did the participants (the teachers) behaviour change? 4. What organisational (the schools) goals were affected? 5. Another aspect can also be added when the school evaluates their performance in drama against those of other schools.


The following marking schedule was used to evaluate students unique answers to this assignment:
Points addressed Marks allocated

Note: A theoretical discussion would not have been sufficient in answering question 1. You were required to provide practical examples of solutions to the problem. Question 1 Make recommendations to improve the advertisement and explain why the advertisement cannot be used in its current format. Also indicate what the results may be if the advertisement is placed as it stands at present. Recommend a suitable newspaper for the placement of the advertisement. Recommendations to improve the advertisement Why the advertisement cannot be used in its current format 3 3

Points addressed Results if the advertisement is used in its current format Recommend a suitable newspaper in which to advertise Marks allocated 3 1

The question did not have to be structured under the above sub-headings, but all of the above aspects needed to be included in your answer. Question 2 Use the information above and compile a new advertisement that can be used. An example of the advertisement: the following should have been included: Company logo Title of job Duties and responsibilities Skills, experience and educational qualifications required Indication of package or benefits Details to submit CV Closing date The advertisement should be attractive and professional and it should adhere to the requirements for successful advertisements 1 1 2 2 1 1 1 3

Students could have provided their own advertisement, and they would have earned marks if the advertisement complied with these important criteria. Question 3 How will the successful candidate know what is expected of him/her and what he/she needs to do once he/she commences duty? Refer to the appropriate HR document(s) that should be in place. The HR document that is used is a job description Job descriptions uses Elements of a job description Question 4 Which HR activities are involved if the principal wants to check the teachers performance? Performance appraisal needs to be done to determine the teachers performance Definition and description of a performance appraisal Other HR activities that need to follow if the performance appraisal shows that the teachers performance is not up to standard: Revision of the recruitment and selection process Revision of the orientation process Identifying whether the teacher has training and/or development needs Question 5 How will you ensure that these developments are incorporated into the curriculum for the students and the correct intervention is chosen for the new teacher to update his/her skills? A training and development programme will ensure that the developments are incorporated. Purpose of a T&D programme The correct intervention is chosen through a needs assessment T&D objectives need to be established Effective training design The recommended T&D techniques Evaluation of the T&D process Total mark for Assignment 02 1 1 3 1 2 3 3 50 2 3 1 2 3

1 1 1

11 Remember that a scientific answer should include at least the following: A table of contents An introduction A discussion A conclusion A bibliography


Refer to Tutorial Letter MNH202C/101/3/2010 for detailed information regarding the format of written assignments.


Kindly replace the information for question 15 in assignment 01 with the following: Correct answer Question 15 The correct answer is alternative 2. Refer to chapter 6 (Introduction) in the prescribed book. Selection is the process of choosing from a group of applicants the individual best suited for a particular position. Recruitment is the process of acquiring applicants who are available and qualified to fill positions in organisations. Orientation is a process of integrating the new employee into the organisation and acquainting him/her with the details and requirements of the job. Job evaluation is the process of systematically analysing jobs to determine their relative worth within organisations. Discussion


The President of South Africa has agreed to the National Qualifications Framework Act 67 of 2008. The Act was published for general information on 17 February 2009. Although you will not be examined on this Act; we uploaded a link to it on myUnisa under additional study material if you would like to familiarise yourself with the content. If you do not have access to myUnisa you may also obtain this information from the Government Printers or from the government website

Please note that this section is NOT for examination purposes. We would simply like to provide you with the latest information in the human resource management field!

As citizens of South Africa we have certain rights. At the same time, we must adhere to a few basic rules our obligations. In the corporate sector, the same basic principles apply. Corporations, just like ordinary citizens, have particular rights and responsibilities. 7.1 Introduction

Corporate citizenship involves corporations becoming more informed and enlightened members of society and understanding that they are both public and private entities. They are created by society and derive their legitimacy from the societies in which they operate. They need to be able to articulate their role, scope and purpose as well as to understand their full social and environmental impacts and responsibilities (McIntosh, 2008:16). Abiding by the laws of a country is an important component of corporate citizenship. But corporate citizenship goes beyond legal compliance. Being a citizen means being part of a community. As a good citizen, you want to contribute to the welfare of people in your community, because you realise that your life will be better if people around you are living better lives. The idea of corporate citizenship is similar; it suggests that companies will benefit if they contribute to the lives of their employees and people living in surrounding communities. Corporate

Information obtained from Tutorial Letter PHRMALA/306/2008, used with permission from the Centre for Business Management

12 citizenship is the business strategy that shapes the values underpinning a companys mission and the choices made every day by its executives, managers and employees as they engage with society. 7.2 Aim of corporate citizenship

According to Freemantle and Rockey (2004:1), a good corporate citizen aims to: Characterise and define the citizenship imperative Summarise underlying citizenship elements Benchmark local practices through primary research Contribute to a growing body of knowledge Showcase examples of leading company practices Influence the citizenship landscape in South Africa Promote the image of companies as good citizens Present specialist and divergent views Provide a full range of useful tools and resources Reach an influential readership Share valuable lessons and experiences Refer readers to topics of interest

In the field of corporate citizenship, five core principles are recognised as its essence: minimising harm, maximising benefit, accountability, experience and support (Jennings, 1990). It is believed that every company should apply them in a manner appropriate to its distinct needs: 1. Minimise harm: Work to minimise the negative consequences of business activities and decisions on stakeholders, including employees, customers, communities, ecosystems, shareholders and suppliers. Examples include operating ethically, supporting efforts to stop corruption, championing human rights, preventing environmental harm, enforcing good conduct from suppliers, treating employees responsibly, ensuring the safety of employees, ensuring that marketing statements are accurate, and delivering safe, high-quality products. Maximise benefit: Contribute to societal and economic wellbeing by investing resources in activities that benefit shareholders as well as broader stakeholders. Examples include ensuring stable employment, paying fair wages, and producing a product with social value. Be accountable and responsive to key stakeholders: Build relationships of trust that involve becoming more transparent and open about progress and setbacks. Obtain business experience in an effort to operate ethically. Create mechanisms to include the voice of stakeholders in governance, produce social reports assured by third parties, operate according to a code of conduct, and listen to and communicate with stakeholders. Support strong financial results: The responsibility of a company to return a profit to shareholders must always be considered as part of its obligation to society. The importance of corporate citizenship


3. 4.



Sir John Harvey-Jones, one of the best-known and most admired industrialists, stated: No company exists in a vacuum. Each of us is dependent upon goodwill and support of the members of the community in which we exist. It is only by constantly striving to maintain high ethical and environmental standards that we can renew this license to operate on which our future depends. Therefore, it is important that businesses, who own much of the essential resources, become involved in solving the problems faced by society, such as poverty, unemployment and pollution. 7.4 Achievements through corporate citizenship

By mobilising the company's assets, businesses can address social issues and support social wellbeing beyond creating jobs and paying taxes. This can range from simple philanthropy to participation in multi-stakeholder social issue partnerships engaging a range of corporate resources. Through responsible business practices, the company can minimise potentially negative impacts on society and maximise positive impacts. This dimension addresses the way a company manages and reports to internal and external stakeholders on a broad range of issues, from health and safety to sustainable environmental practices to respect for human rights in the supply chain. Another benefit is by addressing societal needs with marketplace solutions that return a profit to the company. This can range from adapting existing products and services to be more eco-efficient or socially beneficial, to a fundamental reinvention of a company's product line or services.

13 7.5 The impact of corporate citizenship on other business functions


When looking at corporate citizenship from various business functions, it seems that it has an impact on every single business terrain and management function. We will briefly discuss some of the areas of impact of corporate citizenship on the different business functions. 7.5.1 CEO/Top management These people are responsible for managing issues that pertain to the whole corporation, such as strategy, financial performance, mergers and acquisitions, and governance. Good corporate citizenship practices can create market opportunities and increase competitiveness of companies that use innovation to develop products or services based on sustainability criteria. Recognising and responding to emerging niche markets allow companies to translate good corporate citizenship into corporate social opportunity. 7.5.2 Total quality management (TQM) TQM forms an integral part of the operations function and focuses on the development and delivery of quality products by involving the entire company. Total quality should not be defined only with reference to financial considerations, but should include products, social and environmental characteristics. 7.5.3 Finance When it comes to the role of the financial function with regard to investment decisions, one must acknowledge that access to capital is critical for any company wanting to invest and grow. Good corporate citizenship practices, particularly corporate governance structures and risk management systems, provide important opportunities for unlocking capital. Investors, financial institutions and multilateral lenders will invest in and lend to companies that have a good reputation. This reputation is built up not only through sound financial performance, but also through demonstrated transparency, disclosure, integrity concerning shareholder rights, strong stakeholder relations and sound risk management practices. 7.5.4 Procurement Suppliers are external stakeholders that have a very close relationship with the business. Companies need to select their suppliers not only on the criterion of best price, but also on what is the right, ethical and legal thing to do. After all, by buying from them the organisation is keeping its suppliers in business and adding its vote of confidence to its suppliers business practices. 7.5.5 Risk management The management of organisational risk has become more difficult since companies are competing in a global environment, with risks coming at them from multiple sources and multiple geographies. More groups with more diverse agendas than ever before are also watching companies. Consumers, labour and communities require an increase in transparency; demanding to know more about what a company is doing and how it affects them. 7.5.6 Marketing and public relations Organisations should use their marketing function in a responsible and ethical manner to ensure maximum benefit to the business, customers/clients, employees and the wider community. The companys brand should promote social and environmental wellbeing. A recent trend is for business and charities to form partnerships to market an image, product or brand for mutual benefit thus using the power of the brand to make a difference in society. 7.5.7 Supply chain Organisations need to monitor their supply chains continually to check that business partners are responsible citizens. Organisations should start with detailed stakeholder mapping to describe the supply chain. They also need to audit their supply chains regularly to ensure compliance with internationally recognised social and environmental standards and local legislative prescriptions.

14 7.6 The impact of corporate citizenship on human resources, labour relations and training and development

The real value of a company lies in its most important asset, its people. Without sound HR practices, any organisation will eventually find itself in big trouble. Corporate citizenship can help to increase employee satisfaction and loyalty, improve recruitment and retention, and build the long-term pipeline of employees. Businesses should have proper policies and procedures in place that address the real needs of their employees. Management should promote sound health and safety measures in the workplace. Staffs involvement in corporate citizenship should not be a separate or optional aspect of an entity; the assessment of the social and environmental impact of employees activities should form an integral part of their key performance areas and performance evaluation. Groupwide, sound relationships with recognised unions and employee representative forums should be sustained. Employees should adhere to a code of conduct as well as a corporate culture that is against corruption and bribery. Employees are further encouraged to participate in volunteer programmes within the communities in which they operate. Some relevant legislation for labour relations: Labour Relations Act 66 of 1995 and Basic Conditions of Employment Act 75 of 1997 Employment Equity Act 55 of 1998 Basic Conditions of Employment Act 75 of 1997 Occupational Health and Safety Act 85 of 1993 National Black Economic Empowerment Act 53 of 2003 Management and labour representatives must pay close attention to meet the challenges of accelerated employee growth and development as set out in the Department of Labours National Skills Development Strategy. In terms of the Skills Development Act, incentives are offered to employers who systematically train and develop their staff, especially previously disadvantaged individuals. BIBLIOGRAPHY Freemantle, A. & Rockey, N. 2004. The good corporate citizen: pursuing sustainable business in South Africa. Cape Town: Trialogue. Jennings, M. 1990. The guide to good corporate citizenship. Cambridge, UK: Director Books. McIntosh, M., Leipziger, D., Jones, K. & Coleman, G. 1998. Corporate citizenship: successful strategies for responsible companies. London: Pitman.


We trust that these guidelines are clear and that you found the additional information interesting. Should you have any questions regarding the content of this module, please do not hesitate to contact us. Please ensure that you start preparing for the examination well in advance and read the questions in the examination carefully! GOOD LUCK WITH THE EXAMINATION!

Mrs. A Snyman and Mrs. S. Wrnich MNH202C Lecturers DEPARTMENT OF HUMAN RESOURCE MANAGEMENT Unisa