If a company you founded in a small town in the United States grew so quickly...

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If a company you founded in a small town in the United States grew so quickly that hiring candidates from the area still left you in need of more employees, what would you do? Hamdi Ulukaya, the founder of Chobani (which sells the top-selling brand of Greek yogurt in the US), decided in 2010 to contact a refugee center that was thirty miles away from his business in upstate New York. He figured he could solve his staffing shortage while also helping people in need. It was an experiment that started out with a few temporary workers. There were challenges to resolve: cultural differences, language barriers, and transportation needs. Eight years later, 30 percent of the company's 2,000 employees are immigrants, with more than twenty languages spoken at the company's plants in New York and Idaho.73 Part 2 Basics of Managing in Today's Workplace Ulukaya, who is a Turkish immigrant himself, explained his hiring strategy: "This was not about politics... this was about hiring from our community." There have been unexpected benefits of this hiring approach. First, the motiva- tion of the workforce at Chobani has helped the business. "These are the most hard- working, patriotic, honest people. They will give everything they have," according to Ulukaya. Also, there is a sense of community and high employee morale at Chobani since the company seems to be doing more than only increasing profits. Hiring immigrants is not Chobani's only uncommon business approach. Chobani has always given 10 percent of its post-tax profits to charitable causes.75 The average worker's wages are double the federal minimum wage. In 2016, Chobani began giv- ing employees shares of the company based on tenure in the company. Employees now own 10 percent of the company, which works out to an average of $150,000 per employee. "The staff was always proud, but this ownership piece was missing. This is probably one of the smartest, most tactical things you can do for a company. You're faster, you're more passionate. Your people are happier," Ulukaya says. In 2017. Chobani instituted a six-week parental leave for both mothers and fathers, including adoption and foster parents." Chobani's hourly employees get the same parental leave as salaried employees. That's unlike other companies, such as Netflix, that provide shorter parental leave for hourly employees. DISCUSSION QUESTIONS 6-12. Is Chobani a better example of social responsibility or social responsiveness? Provide reasons why. 6-13. What actions has Chobani taken that illustrate the socioeconomic view of social responsibility? What ways (if any) could Chobani be considered an example of the classical view of social responsibility? 6-14. Which of the arguments for and against social responsibility apply to Chobani (see Exhibit 6-1)? 6-15. Do you think Chobani's approaches to business would attract customers? Why or why not? Exhibit 6-1 Arguments For and Against Social Responsibility FOR AGAINST Public expectations Public opinion now supports businesses pursuing economic and social goals. Long-run profits Socially responsible companies tend to have more secure long-run profits. Ethical obligation Businesses should be socially responsible because responsible actions are the right thing to do. Public image Businesses can create a favorable public image by pursuing social goals. Better environment Business involvement can help solve difficult social problems. Discouragement of further governmental regulation By becoming socially responsible, businesses can expect less government regulation. Balance of responsibility and power Businesses have a lot of power and an equally large amount of responsibility is needed to balance against that power. Stockholder interests Social responsibility will improve a business's stock price in the long run. Possession of resources Businesses have the resources to support public and charitable projects that need assistance. Superiority of prevention over cures Businesses should address social problems before they become serious and costly to correct. Violation of profit maximization Business is being socially responsible only when it pursues its economic interests. Dilution of purpose Pursuing social goals dilutes business's primary purpose-economic productivity. Costs Many socially responsible actions do not cover their costs and someone must pay those costs. Too much power Businesses have a lot of power already; if they pursue social goals, they will have even more. Lack of skills Business leaders lack the necessary skills to address social issues. Lack of accountability There are no direct lines of accountability for social actions. If a company you founded in a small town in the United States grew so quickly that hiring candidates from the area still left you in need of more employees, what would you do? Hamdi Ulukaya, the founder of Chobani (which sells the top-selling brand of Greek yogurt in the US), decided in 2010 to contact a refugee center that was thirty miles away from his business in upstate New York. He figured he could solve his staffing shortage while also helping people in need. It was an experiment that started out with a few temporary workers. There were challenges to resolve: cultural differences, language barriers, and transportation needs. Eight years later, 30 percent of the company's 2,000 employees are immigrants, with more than twenty languages spoken at the company's plants in New York and Idaho.73 Part 2 Basics of Managing in Today's Workplace Ulukaya, who is a Turkish immigrant himself, explained his hiring strategy: "This was not about politics... this was about hiring from our community." There have been unexpected benefits of this hiring approach. First, the motiva- tion of the workforce at Chobani has helped the business. "These are the most hard- working, patriotic, honest people. They will give everything they have," according to Ulukaya. Also, there is a sense of community and high employee morale at Chobani since the company seems to be doing more than only increasing profits. Hiring immigrants is not Chobani's only uncommon business approach. Chobani has always given 10 percent of its post-tax profits to charitable causes.75 The average worker's wages are double the federal minimum wage. In 2016, Chobani began giv- ing employees shares of the company based on tenure in the company. Employees now own 10 percent of the company, which works out to an average of $150,000 per employee. "The staff was always proud, but this ownership piece was missing. This is probably one of the smartest, most tactical things you can do for a company. You're faster, you're more passionate. Your people are happier," Ulukaya says. In 2017. Chobani instituted a six-week parental leave for both mothers and fathers, including adoption and foster parents." Chobani's hourly employees get the same parental leave as salaried employees. That's unlike other companies, such as Netflix, that provide shorter parental leave for hourly employees. DISCUSSION QUESTIONS 6-12. Is Chobani a better example of social responsibility or social responsiveness? Provide reasons why. 6-13. What actions has Chobani taken that illustrate the socioeconomic view of social responsibility? What ways (if any) could Chobani be considered an example of the classical view of social responsibility? 6-14. Which of the arguments for and against social responsibility apply to Chobani (see Exhibit 6-1)? 6-15. Do you think Chobani's approaches to business would attract customers? Why or why not? Exhibit 6-1 Arguments For and Against Social Responsibility FOR AGAINST Public expectations Public opinion now supports businesses pursuing economic and social goals. Long-run profits Socially responsible companies tend to have more secure long-run profits. Ethical obligation Businesses should be socially responsible because responsible actions are the right thing to do. Public image Businesses can create a favorable public image by pursuing social goals. Better environment Business involvement can help solve difficult social problems. Discouragement of further governmental regulation By becoming socially responsible, businesses can expect less government regulation. Balance of responsibility and power Businesses have a lot of power and an equally large amount of responsibility is needed to balance against that power. Stockholder interests Social responsibility will improve a business's stock price in the long run. Possession of resources Businesses have the resources to support public and charitable projects that need assistance. Superiority of prevention over cures Businesses should address social problems before they become serious and costly to correct. Violation of profit maximization Business is being socially responsible only when it pursues its economic interests. Dilution of purpose Pursuing social goals dilutes business's primary purpose-economic productivity. Costs Many socially responsible actions do not cover their costs and someone must pay those costs. Too much power Businesses have a lot of power already; if they pursue social goals, they will have even more. Lack of skills Business leaders lack the necessary skills to address social issues. Lack of accountability There are no direct lines of accountability for social actions.