Copyright ©2015 Pearson Education, Inc Business Ethics, Social Responsibility, and Environmental Sustainability Chapter Ten 10-1.

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Copyright ©2015 Pearson Education, Inc Business Ethics, Social Responsibility, and Environmental Sustainability Chapter Ten 10-1

Copyright ©2015 Pearson Education, Inc 10-2

Copyright ©2015 Pearson Education, Inc ► Social responsibility ► actions an organization takes beyond what is legally required to protect or enhance the well- being of living things ► Sustainability ► the extent that an organization’s operations and actions protect, mend, and preserve rather than harm or destroy the natural environment 10-3

Copyright ©2015 Pearson Education, Inc ► Business ethics ► principles of conduct within organizations that guide decision-making and behavior 10-4

Copyright ©2015 Pearson Education, Inc ► To ensure that the code of ethics is read, understood, believed, and remembered, periodic ethics workshops are needed to sensitize people to workplace circumstances in which ethics issues may arise 10-5

Copyright ©2015 Pearson Education, Inc ► Whistle-blowing ► refers to policies that require employees to report any unethical violations they discover or see in the firm 10-6

Copyright ©2015 Pearson Education, Inc ► Ethics training programs should include messages from the CEO or owner of the business emphasizing ethical business practices, the development and discussion of codes of ethics, and procedures for discussing and reporting unethical behavior 10-7

Copyright ©2015 Pearson Education, Inc ► Bribery ► the offering, giving, receiving, or soliciting of any item of value to influence the actions of an official or other person in discharge of a public or legal duty ► is a crime in most countries of the world, including the United States 10-8

Copyright ©2015 Pearson Education, Inc ► Ralph Nader proclaims that organizations have tremendous social obligations. ► Milton Friedman asserts that organizations have no obligation to do any more for society than is legally required. 10-9

Copyright ©2015 Pearson Education, Inc ► Social policy ► concerns what responsibilities the firm has to employees, consumers, environmentalists, minorities, communities, shareholders, and other groups ► Firms should strive to engage in social activities that have economic benefits 10-10

Copyright ©2015 Pearson Education, Inc ► Employees, consumers, governments, and society are especially resentful of firms that harm rather than protect the natural environment ► Conversely people today are especially appreciative of firms that conduct operations in a way that mends, conserves, and preserves the natural environment 10-11

Copyright ©2015 Pearson Education, Inc ► Uniform standards defining environmentally responsible company actions are rapidly being incorporated into our legal landscape ► It has become more and more difficult for firms to make “green” claims when their actions are not substantive, comprehensive, or even true 10-12

Copyright ©2015 Pearson Education, Inc ► Environmental strategies can include: ► developing or acquiring green businesses ► divesting or altering environment-damaging businesses ► striving to become a low-cost producer through waste minimization and energy conservation ► pursuing a differentiation strategy through green- product features 10-13

Copyright ©2015 Pearson Education, Inc 1. Consumer demand for environmentally safe products and packages is high. 2. Public opinion demanding that firms conduct business in ways that preserve the natural environment is strong. 3. Environmental advocacy groups now have over 20 million Americans as members. 4. Federal and state environmental regulations are changing rapidly and becoming more complex

Copyright ©2015 Pearson Education, Inc 5. More lenders are examining the environmental liabilities of businesses seeking loans. 6. Many consumers, suppliers, distributors, and investors shun doing business with environmentally weak firms. 7. Liability suits and fines against firms having environmental problems are on the rise

Copyright ©2015 Pearson Education, Inc ► A proactive policy views environmental pressures as opportunities and includes such actions as developing green products and packages, conserving energy, reducing waste, recycling, and creating a corporate culture that is environmentally sensitive

Copyright ©2015 Pearson Education, Inc ► The ISO family of standards concerns the extent to which a firm minimizes harmful effects on the environment caused by its activities and continually monitors and improves its own environmental performance

Copyright ©2015 Pearson Education, Inc ► ISO is a set of standards adopted by thousands of firms worldwide to certify to their constituencies that they are conducting business in an environmentally friendly manner ► Results in an environmental management system 10-18