Ethics and Corporate Social
Responsibility
Nicki Sheridan, Nalini Priya, Kendra Gallion

Overview of Ethics
 Discussion Question:
 Define Ethics
 Ethics is about doing the right thing within a moral
framework.
 The practical application of morality.
 Not just determining what is right, but following
through and doing what is right.
Test of Ethical Behavior

Morning-After Test


Front-Page Test


How will you feel about this behavior when you look in the mirror?
Role Reversal Test


How would you like to see this behavior written up on the front
page of your hometown newspaper?
Mirror Test


How will you feel about this behavior tomorrow morning?
How will you feel about being on the receiving end of this behavior?
Commonsense Test

What does everyday common sense say about this behavior?
Trust & Total Quality
 “The total quality approach cannot be successfully
implemented in an organization that fails to
subscribe to high standards of ethical behavior”
(Goetsch, 2010, p. 75).
 Ethical behavior builds trust.
 Trust is essential to total quality.
 Managers need to build trust in the organization as
well as between employees.
Elements of Total Quality
That Depend on Trust
 Communication
 Interpersonal Relations
 Conflict Management
 Problem Solving
 Teamwork
 Employee Involvement and Empowerment
 Customer Focus
Values & Total Quality
 An organization will not produce quality if the
organizational values are not quality.
 Ethical behavior begins with values
 Values that lead to ethical behavior:
 Fairness
 Dependability
 Integrity
 Honesty
 Truthfulness
Integrity & Total Quality
 Integrity combines dependability and honesty
 Discussion Question:
 Does ethical behavior automatically follow if the
organization has integrity?
 Managers in a total quality setting need to strive for
integrity vs. honesty
Responsibility & Total Quality
 Accepting responsibility is part of ethical behavior.
 Modern society has evolved to focus on rights but
ignores the responsibilities that accompany those
rights.
 Total quality settings assure people are responsible
for their actions rather than passing the blame.
 Accepting responsibility builds trust, integrity, and
other elements of ethics that are important to total
quality.
Manager’s Role in Ethics
 Must set consistent example of punctuality
 Should be motivation and inspiration
 Should be self disciplined, honest, and show
commitment towards work
Manager’s Role in Ethics
 Manager has three main responsibilities:
 Responsible for setting example of ethical behavior
 Responsible for helping employees make ethical
choices
 Responsible for helping employees follow through
and exhibit ethical behavior after appropriate choice
has been made
Approaches to Ethics
 Best-Ratio Approach
 Black and White Approach
 Full-Potential Approach
Organization’s Role in Ethics
 Create internal environment that promotes ethical
behavior
 Set example of ethical behavior
Ethical Environment
 Establish policies and practices
 Enforce policies
 Develop ethics philosophy with key concepts:
 Honesty
 Integrity
 Truth
 Fairness
Setting an Example
 Employees should be able to trust each other
 Create ethical internal environment
Handling Ethical Dilemmas
 What solutions are most likely to build trust among
those involved?
 What solution fits best into company’s value
system?
 What solution is most likely to enhance the
organization integrity?
 What solution is the most responsible option?
Ethics Training
 Employee theft
 Conflict of interest
 Quality control
 Misuse of company property
 Environmental pollution
 Method’s of gathering competitor’s information
Ethics Training
 Inaccuracy of books and records
 False or misleading advertising
 Political contribution and activities
 Improper relations with local and federal
government representatives
 Improper relations with foreign government
officials
Codes of Business Conduct
 Ethics training is becoming increasingly important
as the pressures of succeeding is an intensely
competitive global market place will frequently face
ethical dilemmas.
 Encourage two way communication
 Make training practical
 Avoid dogmatic statements
Ethical Decision Making
Ethical issue intensity
Individual factors
Business ethics evaluations
and intentions
Organizational factors
Opportunity
Ethical or unethical
behavior
Ethical Decision Making
 Decision making models
 Categorical imperative
 Full-disclosure
 Doctrine of the mean
 Golden rule
 Market-ethic
 Organizational ethic
 Equal freedom
 Proportionality ethic
 Professional ethic
Belief vs. Behaviors
 Discussion Question:
 What is dishonesty?
 Self-Interest vs. Self-Protection
 Conflicting values
 i.e. Honesty vs. Loyalty
 Tangible vs. Intangible
Social Responsibility
 Four steps of Social Responsibility:
 Philanthropic
 Ethical
 Economic
 Legal
Social Responsibility and Ethics
 Social responsibility
 i.e. PNC Financial Services Group donates $28
million yearly in grants and scholarships for arts,
community improvement, and education.
Corporate Social Responsibility
 Also known as CSR
 Discussion Question:
 What is corporate social responsibility (CSR)?
 “A good company delivers excellent products and
services; a great company delivers excellent
products and services and strives to make the world
a better place” (Ford Jr. as cited in Goetsch and
Davis, 2010, p. 90).
Case Study
 Group Activity
 Case Study
 Treating your female employee differently based on
her gender or in response to a harassment
complaint may be considered discriminatory and
unethical conduct.
Closing
 Business Ethics Video
 What should you learn from it?
References
 Examples of Ethical Issues in Business. (n.d.). Small
Business. Retrieved November 6, 2013, from http://
smallbusiness.chron.com/examples-ethical-issuesbusiness-24464.html
 Ferrell, O. C., Fraedrich, J., & Ferrell, L. (2011). Business
ethics: ethical decision making and cases (8. ed.).
Mason, OH: South-Western Cengage Learning.
 Goetsch, D. L., & Davis, S. (2010). Quality management
for organizational excellence: introduction to total
quality (6th ed.). Upper Saddle River, N.J.: Prentice Hall.