Ethics and Corporate Social Responsibility Class 8 Thursday 9/22/11.

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


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


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


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


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


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


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?


How To Face an Ethical DilemmaHow To Face an Ethical Dilemma


How To AvoidHow To Avoidan Ethical Lapsean Ethical Lapse


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


Bribes Vs. GiftsBribes Vs. Gifts

Cost of ItemCost of ItemGiftGift

•TimingTiming

•TypeType

ConnectionConnectionCheck Company PolicyCheck Company Policy


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.””


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


2-16How to MaintainHow to MaintainHonesty & IntegrityHonesty & Integrity


2-17

Whistle-BlowingWhistle-Blowing

• Applauded or ShunnedApplauded or Shunned

Career SuicideCareer Suicide

Sarbanes-Oxley [Sarbanes-Oxley [regulation of corporate governance and financial practices]]


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


Ethics InfluencersEthics Influencers

Members of OrganizationMembers of Organization

Top Managers & SupervisorsTop Managers & Supervisors

Co-Workers & SubordinatesCo-Workers & Subordinates


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


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.””


The Corporate Citizen The Corporate Citizen


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


Workplace Deaths by Event / ExposureWorkplace Deaths by Event / Exposure


Workplace Deaths by OccupationsWorkplace Deaths by Occupations


Median Annual Earnings by Gender Median Annual Earnings by Gender and Race and Race


Median Annual Earnings by Gender, Median Annual Earnings by Gender, Age, and Degree Level Age, and Degree Level


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


ResponsibilitiesResponsibilitiesto Communityto Community

Financial ContributionsFinancial Contributions VolunteerismVolunteerism Supporting Social CausesSupporting Social Causes


Business CommunityBusiness Community& Environmental Issues& Environmental Issues

Land PollutionLand Pollution

Air PollutionAir Pollution

Water PollutionWater Pollution

Ethics and Corporate Social Responsibility Class 8 Thursday 9/22/11.

Documents

flatworld knowledge2

allexploring business

socialexploring business

flatworld knowledgehow

flatworld knowledgebribes

flatworld knowledgeconflicts

ethical standpoint

wrongbusiness ethics