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CHAPTER ONE
Business Ethics, The Changing
Environment, And Stakeholder Management
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Figure 1.2:Five Levels of Business Ethics
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Ethics and Compliance Programs
Employees believe that nothing will be done if they reportunethical behavior, or they are unsatisfied with the actions takenOnly 25% of employees:
are willing to seek advice about ethics questions that arise;feel they are prepared to handle situations that could lead tomisconduct;indicate that they are rewarded for ethical behavior;report that their company does not reward success obtained through
questionable means;say they feel positively about their company
Employees feel that reports will not be held confidentially
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FIG. 1 . 3BUSINESS Environmental Dimensions
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EconomicFactors
Increasingly global context for trade, markets,resourcesBusiness expansion, product expansionStock & bond market volatility andinterdependencyThe effects of the European Union (currency
exchange, negotiating power, etc .)The rise of China and India
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Political Environment
Rise of global terrorismChange in international coalitions ( NATO, EU)
Increased awareness of issues via electronictechnologyFall of communism/Soviet Union
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G overnmental and RegulatoryEnvironment
Constantly changing/updating laws andprocedurepermits, packaging requirements, etc .
U.S. Financial Regulations,
EU Anticompetition laws,Changing standards for products, processes (e .g. EUrequirements, green and sustainableInfluence of Russian and Romanian laws onMoldova
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Legal Environment
Parliament & PresidentRussia
E.U.Local G overnment???
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Demographic Environment
G lobalization-competing against products andpeople from China, India, Turkey, Chile, U.S.,G ermanyWorkforce diversity-ages, ethnic background,languages
Sexual harassment problems
Discrimination-economic, ethic, gender, ageYoung people leaving-emigrationAging workforce
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Figure 1 .4 : Stakeholders
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Secondary Stakeholders
Local community groupsSpecial Interest groups-bankers, real estate ownersConsumer groups-Environmental groupsMediaTV, Newspaper, Magazines, InternetSociety-at-large
NG O groupsShould managers pay attention to the needs of these groups?What priority should they have?
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Stakeholder Management Approach
Six Steps to developing win/win strategies:
1. Identify issues, threats, or opportunities
2. Mapping who the stakeholders are3. Identify their stakes, interests, and power sources4. Determine who the members of coalitions are or may become5. Show what each stakeholders ethics are and should be6. Develop collaborative strategies and dialogue