Demanding ethical and socially responsible behavior

Presentation onDemanding Ethical and Socially Responsible Behavior

Presented bySudeshna Das

Department of Banking And Insurance

ID. No.: 51325067Batch No.:25th

University of Dhaka

WHAT is ETHICS?• Ethics is the set of moral

principles or values that define right and wrong.

FACING ETHICAL DILEMMAS

Ask yourself these questions:- Is it legal?- Is it balanced?- How will it

make me feel about

myself?

ETHICS and YOUEthics begins with each of us

Plagiarizing from Internet materials is the most common form of cheating in schools todayStudies found a strong relationship between academic dishonesty and dishonesty at work

Fostering Ethical Behavior• Leadership• Codes of Conduct

–Compliance-based–Integrity-Based

• Social Audits• Whistle Blowing

Setting Corporate Ethical StandardsEthics Codes

• Compliance-Based Ethics Code:

Emphasize preventing unlawful behavior by increasing control and by penalizing wrongdoers.

Are long and specificAre usually accompanied by

increased “controls”

Integrity-Based Ethics Code

Define the organization’s guiding valuesAre short and generalAre accompanied by an environment that supports ethically sound behavior.

Social Auditing and whistle blowing• Social Audit – A systematic evaluation of an

organization’s progress toward implementing programs that are socially responsible and

responsive.

• Four Types of Social Audit Watchdogs

- Socially conscious investors- SRI (Social responsibity investing)

- Environmentalists- RAN (Rainforest Action Network)

- Union officials

- Customers

• Whistleblowers

Steps to Improve Business Ethics1. Top Management 4. Ethics office

2. Employees 5. outsiders

3. Managers 6. Enforcement

Corporate social responsibility

A business’s concern for the welfare of society as a whole. Three dimensions: Corporate philanthropyCorporate responsibilityCorporate policy

COMPANIES WHO HAVE EXCEEDED OUR EXPECTIONS OF SOCIAL RESPONSIBILTY

CORPORATE PHILANTHROPY AND SOCIAL INITIATIVES

• Corporate Philanthropy -- Includes charitable donations.

• Corporate Social Initiatives -- Include enhanced forms of corporate philanthropy.

CORPORATE RESPONSIBILITY and POLICY

• Corporate Responsibility -- Includes everything from hiring minority workers to making safe products, minimizing pollution, using energy wisely, and providing a safe work environment.

• Corporate Policy -- The position a firm takes on social and political issues.

PRESIDENT KENNEDY’S BASIC RIGHTS of CONSUMERS

Right To Safety . Right To Be InformedRight to ChooseRight To Be Heard

RESPONSIBILITY To EMPLOYEES

• Create jobs and provide a chance for upward mobility.

• Treat employees with respect.• Offer salaries and benefits that help

employees reach their personal goals.

Responsibility To Investors

Insider Trading – Insiders use private company information to further their own fortunes or those of their family and friends.

Unethical behavior does financial damage to a company and investors are cheated.

Responsibility To Society and Environment

• Over one-third of working Americans receive their salaries from nonprofits – who are dependent on funding from others.

• The green movement emerged as concern about global warming increased.

• Many companies are trying to minimize their carbon footprints – the amount of carbon released during an item’s production, distribution, consumption and disposal.

RESPONSIBILITY to the ENVIRONMENT

Environmental efforts may increase costs, but can offer good opportunities.

The emerging renewable-energy and energy-efficiency industries account for 9 million U.S. jobs.

By 2030, as many as 40 million “Green” jobs will be created

INTERNATIONAL ETHICS AND SOCIAL RESPONSIBILITY

• Many businesses want socially responsible behavior from their international suppliers.

• In the 1970s, the Foreign Corrupt Practices Act criminalized the act of paying foreign businesses or government leaders in order to get business.

THANK YOU

Happy New Year !!!