Corporate Ethics

Ethics The code of moral principles and values that govern the behaviors of a person or group with respect to what is right or wrong. -Many values in society are reflected in our laws -Laws are meant to curb unethical behavior.

Ethical Dilemma A situation that arises when all alternative choices or behaviors have been deemed undesirable. Potentially negative ethical consequences, making it difficult to distinguish right from wrong.

Criteria for Ethical Decision Making Most ethical dilemmas involve A conflict between needs of the part & whole. The individual versus the organization. The organization versus society as a whole.

Four views on ethics: Utilitarian Approach Individualism Approach Moral-Rights Approach Justice Approach

Utilitarian Approach Focus on greater good Greatest good for the greatest number of people? Critics fear a “Big Brother” approach and ask if the common good is squeezing the life out of the individual.

Individualism Approach Acts are moral when they promote the individual's best long-term interests. Individual self-direction paramount. Individualism is believed to lead to honesty & integrity – Works best in the long run?

Moral-Rights Approach Focus on human rights – everyone has them. Moral decisions are those that best maintain the rights of those people affected by them. An ethical decision is one that avoids interfering with the fundamental rights of others.

Justice Approach Moral Decisions must be based on standards of equity, fairness, and impartiality. Treatment of individuals should not be based on arbitrary characteristics.

“Moral Rights” Considerations The right of free consent The right to privacy The right of freedom of conscience The right of free speech The right to due process The right to life & safety

Culture and Ethics Globalization: clashing with culture? Universalism: What is acceptable in Canada may not be in another Women in the work place in Muslim countries Working Friday vs. Sunday Corruption, bribes, working conditions, etc…. Universalism: Ethical standards apply across all cultures?

Cultural Relativism All cultures ethics are equal Local settings determine right and wrong “When in Rome, do as the Romans do” I.e…….. Ethical Imperialism Certain absolute truths apply everywhere Universal values transcend culture “Don’t do anything you wouldn’t do at home.”

Corporate Responses to Social Demands High Low Degree of Social/Ethical Responsibility Proactive Take social initiatives. Accommodation Accept ethical responsibility. Defense Do only what is legally required. Obstruction Fight all the way.

Types of Ethical Dilemmas Example Discrimination Denying promotions based on age, gender, etc… Sexual Harassment Unwanted approaches, intimidation, etc…. Conflict of Interest Bribe/gift in return for favorable decision Customer Confidence Privileged information being shared Organization Resources Using company resources for personal use.

Homework Read through the article found at this website and answer the following questions. http://www.canadianbusiness.com/blogs-and-comment/the-food-industry-when- ethics-just-isnt-enough/ Should the government impose regulations on junk food companies to limit consumer access to unhealthy products? If junk food companies are acting in the best interest of their stakeholders by increasing the additives/unhealthy elements in food, is it unethical? Agree or disagree with the authors perspective? Why/why not?