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Harvard Case - Assessing Corporate Impact: Danby's Response to Syrian Immigration

"Assessing Corporate Impact: Danby's Response to Syrian Immigration" Harvard business case study is written by Diane-Laure Arjalies, Pratima Bansal, Bobby Kaloty. It deals with the challenges in the field of Business Ethics. The case study is 13 page(s) long and it was first published on : May 29, 2020

At Fern Fort University, we recommend Danby Appliances embrace a proactive and transparent approach to integrating Syrian refugees into their workforce. This strategy should be guided by principles of corporate social responsibility, diversity and inclusion, and ethical leadership, ensuring the company benefits from the talent pool while contributing positively to the community.

2. Background

This case study focuses on Danby Appliances, a family-owned Canadian manufacturer facing a unique challenge: integrating Syrian refugees into their workforce. The company's founder, Danby, is driven by a strong sense of social responsibility and sees this as an opportunity to support the community while addressing labor shortages. However, this decision presents several challenges, including potential cultural clashes, language barriers, and concerns from existing employees.

The main protagonists are Danby, the company founder, and his son, Peter, who represents the next generation of leadership. They face the crucial decision of how to implement this initiative while navigating potential risks and ensuring the well-being of both the new employees and the existing workforce.

3. Analysis of the Case Study

This case study can be analyzed through the lens of stakeholder theory, recognizing the diverse interests involved. Danby must consider the needs of:

  • Internal stakeholders: Existing employees, who might feel threatened by the influx of new workers, and management, who must ensure smooth integration and operational efficiency.
  • External stakeholders: Syrian refugees seeking employment, the local community, and government agencies responsible for refugee resettlement.
  • The company itself: Danby needs to balance its social responsibility with its financial performance and long-term sustainability.

Ethical decision-making is paramount. Danby must navigate potential conflicts of interest arising from the desire to help refugees while ensuring fair treatment of existing employees. Transparency and open communication are crucial to address concerns and build trust.

Leadership development plays a key role. Danby and Peter must demonstrate ethical leadership by setting clear expectations, fostering a culture of diversity and inclusion, and promoting open dialogue. This requires understanding the cultural nuances of the Syrian workforce and implementing appropriate training and support programs.

4. Recommendations

  1. Develop a comprehensive integration plan: This plan should address key areas such as:
    • Recruitment and selection: Establish a clear process for recruiting and hiring Syrian refugees, ensuring fairness and transparency.
    • Training and development: Provide language training, cultural sensitivity workshops, and job-specific training to equip refugees for success.
    • Mentorship and support: Pair new employees with experienced mentors to facilitate integration and provide ongoing guidance.
    • Communication and transparency: Maintain open communication channels with both existing and new employees to address concerns and build trust.
  2. Engage with community stakeholders: Collaborate with refugee resettlement agencies, local community groups, and government agencies to ensure a smooth transition for new employees.
  3. Promote a culture of diversity and inclusion: Develop a company-wide code of conduct that emphasizes respect, inclusivity, and equal opportunities for all employees.
  4. Invest in technology and analytics: Utilize technology to facilitate communication and collaboration, including translation tools and online learning platforms.
  5. Measure and track impact: Implement metrics to assess the effectiveness of the integration program and identify areas for improvement.

5. Basis of Recommendations

These recommendations are grounded in the following considerations:

  • Core competencies and consistency with mission: Danby's commitment to social responsibility aligns with the company's mission and values, creating a positive brand image and attracting talent.
  • External customers and internal clients: The integration plan benefits both Syrian refugees by providing employment opportunities and existing employees by fostering a more diverse and inclusive workplace.
  • Competitors: Danby's proactive approach to integrating refugees sets them apart from competitors, attracting talent and gaining a competitive advantage.
  • Attractiveness ' quantitative measures: The financial benefits of a diverse and inclusive workforce are well-documented, including increased productivity, innovation, and customer satisfaction.

6. Conclusion

By embracing a proactive and transparent approach to integrating Syrian refugees into their workforce, Danby Appliances can leverage this opportunity to achieve significant social impact while strengthening its business operations. This strategy aligns with the company's values, fosters a more inclusive workplace, and positions Danby as a leader in corporate social responsibility.

7. Discussion

Alternative approaches include:

  • Passive integration: Waiting for refugees to apply for existing jobs without proactive recruitment efforts. This approach might be less impactful and could lead to missed opportunities.
  • Outsourcing: Contracting with a third-party agency to handle refugee integration. This option might be less cost-effective and could compromise control over the process.

Risks and key assumptions:

  • Cultural clashes: The integration plan needs to address potential cultural differences and ensure a harmonious work environment.
  • Language barriers: Providing language training and support is crucial for effective communication and collaboration.
  • Financial impact: The cost of integration programs needs to be carefully considered and balanced against potential benefits.

8. Next Steps

  1. Develop a detailed integration plan: This plan should be finalized within the next three months, outlining specific actions, timelines, and responsibilities.
  2. Engage with key stakeholders: Begin discussions with refugee resettlement agencies, local community groups, and government agencies within the next month.
  3. Pilot program: Implement a pilot program with a small group of Syrian refugees to test and refine the integration process.
  4. Ongoing evaluation and improvement: Continuously monitor the program's effectiveness and make adjustments as needed.

By taking these steps, Danby Appliances can successfully integrate Syrian refugees into their workforce, creating a positive impact on the community while strengthening the company's long-term sustainability.

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Case Description

In April 2018, more than one year after the chief executive officer (CEO) of Danby Appliances Inc. launched a private sponsorship program to support Syrian refugees in their integration into Canada, the CEO and others were starting to raise some questions. Although the program seemed to have had an overall positive impact on Syrian refugees, Danby's board of directors wondered about the impact of the program on the appliance business. The settlement program continued to take up a considerable amount of the CEO's time and may have even been a drain on other Danby resources, such as staff time. With competition intensifying in the appliance manufacturing industry, the board asked the CEO to assess the impact of the settlement program on Danby, the refugees, and the community, and to recommend whether the program should continue. The CEO knew it would be difficult to collect precise numbers and wondered how he should start to quantify the true impact of the settlement program.

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