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Jan 14, 2016
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> > > > > > > > Chapter 2
Concern for Ethical
and Societal Issues
Ethics:Ethics is the study dealing with what is the proper course of action for man. It answers the question, "What do I do?" It is the study of right and wrong in human endeavours.
Business Ethics:Business ethics are moral principles that guide the way a business behaves. The same principles that determine an individual’s actions also apply to business.
Concern for Ethical
and Societal Issues
Social responsibility: The primary objective is the enhancement of society’s welfare through philosophies, policies, procedures and actions.
– Businesses must find a balance between what’s right and what’s profitable.
– Often no clear-cut choices.– Often shaped by the organization’s ethical climate.
Development of
Individual Ethics*
Situation in which a business decision may be influenced for personal gain.
Telling the truth and adhering to deeply felt ethical principles in business decisions.
Business people expect employees to be loyal and truthful, but ethical conflicts may arise.
Employee’s disclosure of illegal, immoral, or unethical practices in the organization.
On-the-Job Ethical
Dilemmas
How Organizations
Shape Ethical
Conduct
Code of Conduct Formal statement that
defines how the organization expects
and requires employees to resolve
ethical questions.
Ethical Awareness
Codes of conduct cannot detail a solution
for every ethical situation, so
corporations provide training in ethical
reasoning.
Ethical Education
Codes of conduct and ethical education help employees to recognize and reason through ethical problems. In addition, firms must also provide structures and approaches that allow decisions to be turned into ethical actions.
Texas Instruments gives its employees a reference card to help them make ethical decisions on the job. The size of a standard business card, it lists the following guidelines: • Is the action legal? • Does it comply with our values? • If you do it, will you feel bad? • How will it look in the newspaper? • If you know it’s wrong, don’t do it! • If you’re not sure, ask. • Keep asking until you get an answer.
Ethical Action
Executives must demonstrate ethical
behavior in their actions.
Ethical Leadership
Social Responsibility
• It is the management’s consideration and acceptance of the obligation to consider profit, consumer satisfaction, and societal well-being of equal value in evaluating the firm’s performance.
• Contributions to the overall economy, job opportunities, and charitable contributions and service.
.
Acting Responsibly
to
Satisfy Society*
Areas of
Responsibility
• Public Health Issues. What to do about inherently dangerous products such as alcohol, tobacco, steroids, etc.
• Protecting the Environment. Using resources efficiently, minimizing pollution.
• Recycling. Reprocessing used materials for reuse.
• Developing the Quality of the Workforce. Enhancing quality of the overall workforce through education and diversity initiatives.
• Corporate Philanthropy. Cash contributions, donations of equipment and products, and supporting the volunteer efforts of company employees.
Responsibilities to
the General Public
• The Right to Be Safe. Safe operation of products, not avoiding product liability.
• The Right to Be Informed. Avoiding false or misleading advertising and providing effective customer service.
• The Right to Choose. Ability of consumers to choose the products and services they want.
• The Right to Be Heard. Ability of consumers to express legitimate complaints to the appropriate parties.
Responsibilities to
Customers
• Workplace Safety – providing a safe and healthy work place for employees.
• Quality-of-Life Issues. Balancing work and family through flexible work schedules, subsidized child care, etc.
• Ensuring Equal Opportunity on the Job. Providing equal opportunities to all employees without discrimination; many aspects regulated by law.
• Age Discrimination. Being unbiased towards employees with regards to their ages.
Responsibilities to
Employees
• Obligation to make profits for shareholders.
• Expectation of ethical and moral behavior.
• Investors protected by regulation by the Securities and Exchange Commission (SEC)and state regulations.
Responsibilities to
Investors
Organizational Stakeholders
Source: http://money.cnn.com/magazines/fortune/mostadmired/2011/best_worst/worst4.html
Rank Company
1 Statoil
2 Ferrovial
3 Walt Disney
4 Edison
5 ENI
6 Whole Foods Market
7 Total
8* Hochtief
8* Nestlé
10* NextEra Energy
10* Weyerhaeuser
World’s Best Companies in terms of
Social Responsibility
Source: http://ethisphere.com/wme/
CompanyGap Inc
Ford Motor Company
National Australia Bank
Intel Corporation
Colgate-Palmolive Company
General Electric Co.
American Express
Kellogg Company
L’ORÉAL
Time Warner Inc.
Tata Steel Ltd
REALITIES OF ETHICS......
A CSR INITIATIVE
IN BANGLADESH....
Renata, DBL, Nestle BD receive StanChart-FE CSR Award 2010-11
Source:http://www.thefinancialexpress-bd.com/more.php?news_id=121960&date=2012-03-02
A view of the 4th Standard Chartered - Financial Express CSR Award giving ceremony
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