Ethics
and
Corporate Social Responsibility
Class 8
Thursday 9/22/11
Idea of Business Ethics
 What Is Ethics?
– Ethical Behavior [Right from Wrong]
– Business Ethics [Obeying laws, rules, regulations,
being honest, competing fairly, not putting your own
interests first]
 What Is Social Responsibility?
– Corporate Social Responsibility – CSR: [balancing
responsibilities toward different stakeholders]
– Decisions – legal, economic, ethical and social
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Ethical
Organizational Activities
 Treat People Fairly
 Fairness = Top Priority
 Everyone Accountable
 Communicate Core Values to All
 Demand/Reward Integrity from All
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Examples of Good Corporate Citizens
•
•
•
•
•
Proctor & Gamble
Intel
Avon
Herman Miller
Timberland
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• Cisco
• Southwest
Airlines
• AT & T
• Starbucks
• Merck
• Medtronic
Employee Attitudes In
Unethical Companies
• Uneasy About Work
• Object To Way Treated
• Uncomfortable About How
Co-Workers Treated [discuss
examples]
• Question Management
Directives & Policies
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Why Study Ethics?
? Ethics of future not the
same as today/past
? Understand what is/isn’t
acceptable/unacceptable
? Recognize/deal with
ethical challenges
? Know right/wrong =
marketable job candidate
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Ethical
Self-Examination, “I’m...
1)
Always Ethical
2)
Mostly Ethical
3)
Somewhat Ethical
4)
Seldom Ethical
5)
Never Ethical
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Ethical Challenges
Ethical Challenges: “…arise in...business
organizations [because]…multiple
stakeholders…make conflicting demands.”
Ethical Dilemmas - morally
problematic situations
Example - Pick between
alternatives that may be
Important to different groups
Ethical Decisions - Ethical Lapse
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Representative Anthony Weiner
How did he handle his situation from an
ethical standpoint?
From a PR standpoint?
How To Face an Ethical Dilemma
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How To Avoid
an Ethical Lapse
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Basic Situations
Causing Ethical Issues





Bribes
Conflicts of Interest
Conflicts of Loyalty
Issues of Honesty and Integrity
Whistle-blowing
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Bribes Vs. Gifts
Cost of Item
Gift
• Timing
• Type
Connection
Check Company Policy
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Conflicts of Interest
2-14
• “…individuals must choose between
taking actions that promote their
personal interests over the interests of
others.”
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Conflicts Of Interest
* Interferes With Best Interest of Company
Stakeholders
* Choice between promotion
of personal interest vs.the
Interest of others
*Use of Private Information
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How to Maintain
Honesty & Integrity
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2-16
Whistle-Blowing
• Applauded or Shunned
Career Suicide
 Sarbanes-Oxley [regulation of corporate
governance and financial practices]
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2-17
Common Rationalizations for
Unethical Behavior
1) My Behavior Isn’t
2)
3)
4)
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Really Illegal or
Immoral
My Action Is In
Everyone’s Best
Interests
No One Will Find Out
What I’ve Done
The Company Will
Condone My Action
And Protect Me
Ethics Influencers
Members of Organization
Top Managers & Supervisors
Co-Workers & Subordinates
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Formal
Code Of Conduct:
Stated Principles & Guidelines
Topics
- Use Of Corporate Funds &
Resources
- Conflict Of Interest
- Protection Of Proprietary
Information
Enforcement
Encourages & Provides Instructions for
Reporting
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Corporate
Social Responsibility
• “…the approach…an organization
takes in balancing its responsibilities
toward...stakeholders when
making…decisions.”
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The Corporate Citizen
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Stakeholders & Responsibility
 Owners- Fiduciary
 Employees
•
•
•
•
Safety & Health
Free from Sexual Harassment
Equal Opportunity & Diversity
Wages & Benefits
 Customers
 Communities
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Workplace Deaths by Event / Exposure
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Workplace Deaths by Occupations
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Median Annual Earnings by Gender
and Race
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Median Annual Earnings by Gender,
Age, and Degree Level
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Responsibilities
to Customers
Right To Safe Products
Right To Be Informed
Right To Choose
Right To Be Heard
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Responsibilities
to Community
Financial Contributions
Volunteerism
Supporting Social Causes
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Business Community
& Environmental Issues
Land Pollution
Air Pollution
Water Pollution
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