Ethics and social
responsibility
WHAT IS ETHICS?

Take out a piece of paper, and take a moment to think
about what ethics means to you.

On that piece of paper, write down what it means to be
ethical
Turn to page 146

Read and answer the questions, then tally up your score

See if you rely on an ethic of justice or an ethic of care
Ethical management

Setting corporate ethical standards  having a code of
conduct

Compliance based ethics code – focuses on preventing
unlawful behavior through control and penalizing
wrongdoers

Integrity based ethics code – having guiding values and
creating an environment that supports ethical behavior.
Ethical management

Whistleblowers – people who report wrong doings
 There
needs to be a protective measure that prevents
whistleblowers from professional and personal harm
Ethical management

Corporate social responsibility – concern for the welfare of
society, not just for their owners
 Is
it unethical to not put money back into the society that
helped you make so much money?

Corporate philanthropy – donations to non-profit groups

Corporate responsibility – hiring minority workers, safe
products, minimizing pollution.
Social Corporate Responsibility

1. Strategic Approach – management’s primary goal is the
economic interest of shareholders.

2. Pluralist Approach – management’s goal is to optimize
profits, but not at the expense of the employees, suppliers, or
community.
Which one is more ethical?
Corporate responsibilities

Read pages 153 – 158

Make notes on corporate responsibilities
 1.
Responsibility to customers
 2.
Responsibility to investors
 3.
responsibility to employees
 4.
responsibility to society
 5.
responsibility to the environment
Social auditing

An evaluation for an organization’s progress towards
implementing programs that are socially responsible and
responsive

Triple bottom line – “People, planet, profit” a framework for
organizations to evaluate their:
1. economic, environmental and social contributions
2. negative environmental and social impacts
Ethical management