Ethics and Corporate Social Responsibility BBI2O1

Learning Goal #1: Students will describe various ethical dilemmas (common frauds and unethical behaviour)

Do you push the button? The box – If you push the button on the box you will receive 1 million dollars. However, if you push the button then someone in the world will die? Could be someone you know or even you? Would you still push the button? The Box Trailer: https://www.youtube.com/watch?v=wFm-6N4QbBQ

What is Ethical Behaviour? Ethics Code of moral principles. Set standards of good and bad and right and wrong. Ethical Behaviour What is accepted as good and right in the context of the governing moral code.

What is Ethics? Ethical behaviour should also be legal in a just and fair society Legal behaviour is not necessarily ethical behaviour Personal values help determine individual ethical behaviour

What is Business Ethics? Business ethics is concerned with the behaviour of businesses in the treatment of employees, society, stockholders and consumers. A business’ ethical code outlines the appropriate actions of its employees

The Ontario Code of Conduct Code of Student Behaviour The Ontario Code of Conduct sets clear provincial standards of behaviour for students, teachers, parents, volunteers and other members whether they are on school property, on school buses or at school-authorized events or activities. The following standards of behaviour have been adopted by the York Region District School Board and Aurora High School: All school members must: Respect and comply with all applicable laws and Board policies Treat one another with dignity and respect at all times Respect the rights and property of others Take appropriate measures to help those in need Respect persons who are in a position of authority respect the need of others to work in an environment of learning and teaching.

What influences business ethics? Society’s ethics Individual’s ethics Business ethics

Ethical Dilemmas Arises when two or more “right” courses of action conflict When a choice between two or more options must be made. In pairs, come up with an ethical dilemma you have either experienced or one you might. Share your dilemma with the rest of the class

Profitability and competitiveness? Business Ethics How can businesses resolve ethical dilemmas? A choice needs to be made between Values and morals? Profitability and competitiveness? OR

Case Study A student in your business class comes to you at lunch asking you if you wanted a copy of the next business test that your teacher was giving the class. You asked the student where they got the test. They told you that they saw it sitting on the corner of the teacher’s desk and took a copy when no one was looking. Your friend tells you that most of the students in your class already have a copy of the test. Take a few moments to think about what you would do and why. Share with a partner. Share your responses with the class.

Business Ethics How can businesses resolve ethical dilemmas? Some dilemmas: downsizing, pollution, toxic waste disposal, resource depletion, laws, employee rights, product safety, workplace safety…

BBC Documentary – Trafigura (Ivory Coast Toxic Waste Dump) http://www.youtube.com/watch?v=ocwLgilzmV8

The following questions should be asked when seeking a resolution? Who will be helped by what you do? Who will be hurt? What are the benefits and problems of such a decision? Will the decision survive the test of time?

Bre-X Gold Mining Scandal Think about the questions on the previous slide while watching the following video: Masterminds E016 Fool’s Gold http://www.dailymotion.com/video/x2ph8n8

Bre-X Was the behaviour at Bre-X ethical? Why or why not? Why do people behave unethically? Consider the questions that were presented earlier?

Business Ethics How can businesses resolve ethical dilemmas? Whistleblowing: an employee informing officials or public about a legal/ethical violation False financial practices, ignoring safety & health codes Enron is a example where the issues were brought to light by whistleblowing

Activity Use your textbook to complete common frauds and unethical behaviours

Learning Goal #2: Students will recognize the various areas of CSR (Corporate Social Responsibility)

Insider Trading – Martha Stewart https://www.youtube.com/watch?v=CT31I9uCspw

Business Ethics: “Raging Bull” Answer the questions on the handout while watching Raging Bull Be prepared to share your answers with the class

Business Ethics Published on Oct 15, 2012: Baumgartner reached an estimated speed of 1,357.6 km/h or 843.6 mph(Mach 1.25) jumping from the stratosphere, which when certified will make him the first man to break the speed of sound in freefall and set several other records while delivering valuable data for future space exploration

Red Bull Stratos – World Record Freefall http://www.youtube.com/watch?v=dOoHArAzdug

Ethics & Corporate Social Responsibility

CSR Definition Conducting business in a way that is in line with society’s values

Corporate Social Responsibility (CSR) World Business Council’s definition: “Corporate Social Responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large.” http://www.mallenbaker.net/csr/definition.php

Corporate Social Responsibility Providing a safe and healthy work environment Adopting fair labour policies Protecting the environment CSR Principles Being truthful in advertising Avoiding price discrimination Donating to charity

C.S.R. Duty to report Corporations must disclose all important information to shareholders, business partners, lenders, insurers, communities, regulators, consumers, employees, and investigators SOX

C.S.R. Laws that Govern Corporate Ethics There are laws that govern how a business can interact with others.

C.S.R. - Laws that govern how a business can interact with others. 1. Workplace Safety In Ontario, the Occupational Health and Safety Act (OHSA) was instituted to ensure workplace safety and health. → defines rights and responsibilities of workers Workers have the right: to refuse unsafe work; to participate in H&S activities; and to know about the hazards of their workplace.

C.S.R. 2. Antidiscrimination Issues Gender discrimination is less of an issue. However, some companies still discriminate. Women or disabled workers face a glass ceiling (invisible barrier to promotions).

C.S.R. 3. Harassment Refers to behaviour that is threatening, disturbing, or unacceptable. Businesses must protect employees from this.

C.S.R. 4. Accessibility Issues Businesses have a duty to accommodate workers to eliminate discrimination (it’s in the Canadian Human Rights Act). Help must be provided to disabled employees.

C.S.R. 5. Environmental Responsibility As a result of several large disasters in the 1980s and 1990s, Canada introduced the Canadian Environmental Protection Act in 1999. Some companies still don’t comply—for some it is more costly to comply than it is to pay the fines.

C.S.R 6. Labour Practices In Ontario, the Employment Standards Act establishes conditions for employment. → hours of work, overtime pay, minimum wage, holidays, benefits, leaves, termination

C.S.R. Fair Trade “Voluntary” ethical behaviour. Fair trade is the practice of helping producers in developing countries bypass expensive middlemen so they can sell their goods for a fair profit. http://fairtrade.ca/sitecore/content/fairtrade/home/what-is-fairtrade/facts-and-figures

Dragon’s Den – Ten Tree Apparel http://www.tentree.com/ca/dragons-den?___store=en_ca

Corporate Social Responsibility Activity Complete the CSR chart

Homework Answer the remaining questions on the handout. Exit card