business ethics week 5 lec 1

8/12/2019 Business Ethics Week 5 Lec 1

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Business Ethics

Week 5 Lecture 2


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CSR

To whom businesses have

responsibility??

If a firm is meeting all its responsibilities

to others why do ethical conflict arise?


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CSR

Ponder !!!

Protecting Privacy of employees/

empowerment/ Access

VS

Stealing


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Responsibilities ofBusiness Firm


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Friedmans traditional view

vsCarrolls four responsibilities of

business


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Friedmans Traditional View

There is only one and one social

responsibility of businessto use its

resources and engage in activitiesdesigned to increase its profits so long as

it says within the rules of the game, which

is to say, engages in open and freecompetition without deception of fraud


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According to Porter and Kramer

social and economic goals are not

inherently conflicting but integrally

connected

How, why, examples????


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How, Why , Examples !!!

Environmental Concerns may enable to changepremium prices and gain brand loyalty (e,g, benand jerrys)

Preference for working for responsible firm (e.g.P&G, Starbucks)

Welcomed in foreign country (Levis)

Utilize goodwill for support in difficult times (AlFateh mall)


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Carrolls View Economic responsibilitiesservices and

products

Legal responsibilitiesobeying law

Ethical responsibilitieslayoffs

Discretionary - voluntary


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Survey across the world in 2006, by

Mckinsey and Company revealed that only

16% felt that business should focus on

providing the highest returns to investorscontrasted with 84% who stated that

business should generate high returns to

investors but must balance it withcontribution to broader public good


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Common Business Ethical Challenges Conflict in interestbenefiting one

harming others e.g. advertising agencies,

representing competitors

Honesty and Integritystealing

companys resources, insurance cases ,making up personal credentials


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Common Business Ethical Challenges Loyalty VS Truththe conflict between

being loyal and truthful , the ugly situation

Whistle Blowingthe act and

consequences


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Shaping Ethical Conduct Ethical Awareness

Ethical Reasoning

Ethical Action - ref cards , unrealistic

goals

Ethical Leadership


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Define CSR


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Defining CSR

Managements acceptance of the obligationto consider profit, consumer satisfaction,

and societal wellbeing of equal value inevaluating the firms performance

Social audits

Regulations


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The Snap Shot

Public

Employees Investors

Customer

CSR


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To The Public


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To The Public Public Health Issuesthe tobacco companies


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To The Public Protecting the Environment- pollution,

recycling, green marketing


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To The Public Corporate philanthropydonations,

volunteerism


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To The Public Developing the quality work force - diversity,

minorities, disabled people, commitment,

innovation, personal and professional

development


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To The Customers


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To the Customers The Right to be Safedamage by products,

product liability , product testing e.g toys

parts and choking hazards


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To the Customers The Right to be Informed

Do not use

while sleeping This towel hasbeen tested to

withstand strong

winds but do not

use in hurricane

to protect yourself


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To the Customers

The Right to Choose the product


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To the Customers

The Right to Complain


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To the Employees


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To the Employees Workplace Safety - OSHA


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To the Employees Quality of life issuesQWL, Work life

balance, leaves (mandatory )


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To the Employees Equal Opportunity, age discrimination and

sexual harassment


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To Investors


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The Corporate Governance

Accountability

Oversight

Control


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Next lecture

Remember to pick up two cases

Who killed the electric car?

Starbucks mission responsibility and

growth

business ethics week 5 lec 1

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