Ethics and Corporate Social Responsibility Class 8 Thursday 9/22/11.
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Transcript of Ethics and Corporate Social Responsibility Class 8 Thursday 9/22/11.
Exploring Business © 2009 FlatWorld Knowledge
Idea of Business EthicsIdea of Business Ethics
What Is What Is EthicsEthics??
– Ethical Behavior [Right from Wrong]Ethical Behavior [Right from Wrong]
– Business Ethics [Obeying laws, rules, Business Ethics [Obeying laws, rules, regulations, being honest, competing fairly, not regulations, being honest, competing fairly, not putting your own interests first]putting your own interests first]
What Is What Is Social Responsibility?Social Responsibility?
– Corporate Social Responsibility – CSR: [balancing Corporate Social Responsibility – CSR: [balancing responsibilities toward different stakeholders]responsibilities toward different stakeholders]
– Decisions – legal, economic, ethical and socialDecisions – legal, economic, ethical and social
Exploring Business © 2009 FlatWorld Knowledge
Ethical Ethical Organizational ActivitiesOrganizational Activities
Treat People FairlyTreat People Fairly
Fairness = Top PriorityFairness = Top Priority
Everyone Accountable Everyone Accountable
Communicate Core Values to AllCommunicate Core Values to All
Demand/Reward Integrity from AllDemand/Reward Integrity from All
Exploring Business © 2009 FlatWorld Knowledge
Examples of Good Corporate CitizensExamples of Good Corporate Citizens
• Proctor & GambleProctor & Gamble• IntelIntel• AvonAvon• Herman MillerHerman Miller• TimberlandTimberland
• CiscoCisco• Southwest Southwest
AirlinesAirlines• AT & TAT & T• StarbucksStarbucks• MerckMerck• MedtronicMedtronic
Exploring Business © 2009 FlatWorld Knowledge
Employee Attitudes InEmployee Attitudes InUnethical CompaniesUnethical Companies
• Uneasy About WorkUneasy About Work
• Object To Way TreatedObject To Way Treated
• Uncomfortable About How Uncomfortable About How Co-Workers Treated Co-Workers Treated [discuss examples][discuss examples]
• Question Management Question Management Directives & PoliciesDirectives & Policies
Exploring Business © 2009 FlatWorld Knowledge
Why Study Ethics?Why Study Ethics?
? Ethics of future not Ethics of future not the same as the same as today/pasttoday/past
? Understand what is/isUnderstand what is/isnn ’’t t acceptable/unacceptaacceptable/unacceptableble
? Recognize/deal with Recognize/deal with ethical challengesethical challenges
? Know right/wrong = Know right/wrong = marketable job marketable job candidatecandidate
Exploring Business © 2009 FlatWorld Knowledge
EthicalEthicalSelf-Examination, Self-Examination, ““II’’m...m...
1)1) Always EthicalAlways Ethical
2)2) Mostly EthicalMostly Ethical
3)3) Somewhat EthicalSomewhat Ethical
4)4) Seldom EthicalSeldom Ethical
5)5) Never EthicalNever Ethical
Exploring Business © 2009 FlatWorld Knowledge
Ethical ChallengesEthical Challenges
Ethical Decisions - Ethical LapseEthical Decisions - Ethical Lapse
Ethical Dilemmas - morally Ethical Dilemmas - morally
problematic situationsproblematic situations
Example - Pick between alternatives that may be Important to different groups
Ethical Challenges: Ethical Challenges: ““…arise in...business …arise in...business organizations [because]…multiple organizations [because]…multiple
stakeholders…make conflicting demandstakeholders…make conflicting demands.s.””
Representative Anthony Weiner
How did he handle his situation from an ethical standpoint?
From a PR standpoint?
Exploring Business © 2009 FlatWorld Knowledge
How To Face an Ethical DilemmaHow To Face an Ethical Dilemma
Exploring Business © 2009 FlatWorld Knowledge
How To AvoidHow To Avoidan Ethical Lapsean Ethical Lapse
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Basic SituationsBasic SituationsCausing Ethical IssuesCausing Ethical Issues
BribesBribes Conflicts of InterestConflicts of Interest Conflicts of LoyaltyConflicts of Loyalty Issues of Honesty and IntegrityIssues of Honesty and Integrity Whistle-blowingWhistle-blowing
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Bribes Vs. GiftsBribes Vs. Gifts
Cost of ItemCost of ItemGiftGift
•TimingTiming
•TypeType
ConnectionConnectionCheck Company PolicyCheck Company Policy
Exploring Business © 2009 FlatWorld Knowledge
2-14
Conflicts of InterestConflicts of Interest
• ““……individuals must choose individuals must choose between taking actions that between taking actions that
promote their personal interests promote their personal interests over the interests of others.over the interests of others.””
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Conflicts Of InterestConflicts Of Interest
* Interferes With Best Interest of * Interferes With Best Interest of
Company StakeholdersCompany Stakeholders
* Choice between promotion* Choice between promotion
of personal interest vs.theof personal interest vs.the
Interest of othersInterest of others
*Use of Private Information*Use of Private Information
Exploring Business © 2009 FlatWorld Knowledge
2-16How to MaintainHow to MaintainHonesty & IntegrityHonesty & Integrity
Exploring Business © 2009 FlatWorld Knowledge
2-17
Whistle-BlowingWhistle-Blowing
• Applauded or ShunnedApplauded or Shunned
Career SuicideCareer Suicide
Sarbanes-Oxley [Sarbanes-Oxley [regulation of corporate governance and financial practices]]
Exploring Business © 2009 FlatWorld Knowledge
Common Rationalizations for Common Rationalizations for Unethical BehaviorUnethical Behavior
1)1) My Behavior IsnMy Behavior Isn’’t t Really Illegal or Really Illegal or ImmoralImmoral
2)2) My Action Is In My Action Is In EveryoneEveryone’’s Best s Best InterestsInterests
3)3) No One Will Find Out No One Will Find Out What IWhat I’’ve Doneve Done
4)4) The Company Will The Company Will Condone My Action Condone My Action And Protect MeAnd Protect Me
Exploring Business © 2009 FlatWorld Knowledge
Ethics InfluencersEthics Influencers
Members of OrganizationMembers of Organization
Top Managers & SupervisorsTop Managers & Supervisors
Co-Workers & SubordinatesCo-Workers & Subordinates
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FormalFormalCode Of Conduct:Code Of Conduct:
Stated Principles & GuidelinesStated Principles & Guidelines TopicsTopics- Use Of Corporate Funds & ResourcesUse Of Corporate Funds & Resources- Conflict Of InterestConflict Of Interest- Protection Of Proprietary InformationProtection Of Proprietary Information
EnforcementEnforcement Encourages & Provides Instructions for Encourages & Provides Instructions for
ReportingReporting
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CorporateCorporateSocial ResponsibilitySocial Responsibility
• ““……the approach…an organization the approach…an organization takes in balancing its takes in balancing its
responsibilities responsibilities toward...stakeholders when toward...stakeholders when
making…decisions.making…decisions.””
Exploring Business © 2009 FlatWorld Knowledge
Stakeholders & ResponsibilityStakeholders & Responsibility
Owners- FiduciaryOwners- Fiduciary EmployeesEmployees
• Safety & HealthSafety & Health• Free from Sexual HarassmentFree from Sexual Harassment• Equal Opportunity & DiversityEqual Opportunity & Diversity• Wages & BenefitsWages & Benefits
CustomersCustomers CommunitiesCommunities
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Workplace Deaths by Event / ExposureWorkplace Deaths by Event / Exposure
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Workplace Deaths by OccupationsWorkplace Deaths by Occupations
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Median Annual Earnings by Gender Median Annual Earnings by Gender and Race and Race
Exploring Business © 2009 FlatWorld Knowledge
Median Annual Earnings by Gender, Median Annual Earnings by Gender, Age, and Degree Level Age, and Degree Level
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ResponsibilitiesResponsibilitiesto Customersto Customers
Right To Safe ProductsRight To Safe Products
Right To Be InformedRight To Be Informed
Right To ChooseRight To Choose
Right To Be HeardRight To Be Heard
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ResponsibilitiesResponsibilitiesto Communityto Community
Financial ContributionsFinancial Contributions VolunteerismVolunteerism Supporting Social CausesSupporting Social Causes