NETA PowerPoint Presentations to accompany The Future of Business Fourth Edition Adapted by Norm Althouse, University of Calgary Copyright © 2014 by Nelson Education Ltd.

Social: Society, Corporate Responsibility, and Making Ethical Decisions Chapter 3 Copyright © 2014 by Nelson Education Ltd.Chapter 3

Copyright © 2014 by Nelson Education Ltd. Making the Connection

Learning Outcomes 1. Identify some of the current social factors that have an impact on business. 2. Illustrate how businesses meet their social responsibilities to stakeholders. 3. Explain corporate governance and why it is important. 4. Discuss the philosophies and concepts that shape personal ethical standards. 5. Show how organizations can encourage ethical business behaviour. 6. List some of the trends in society, corporate responsibility, and ethics. Copyright © 2014 by Nelson Education Ltd.4

Identify some of the current social factors that have an impact on business. Copyright © 2014 by Nelson Education Ltd.5

Basic Terms  Social trends – Social change and its impact on business.  Social responsibility – The responsibility a business has to its stakeholders.  Ethics – A set of moral standards for judging whether something is right or wrong.  Component lifestyle – A lifestyle made up of a complex set of interests, needs, and choices. Copyright © 2014 by Nelson Education Ltd.6

Current Social Factors Copyright © 2014 by Nelson Education Ltd.7  Social factors – Attitudes, values, and lifestyles.  Different lifestyles, different choices  Women’s contribution to the Canadian economy  Demographic trends – Age, race, ethnicity, and location

Diversity in Canada Copyright © 2014 by Nelson Education Ltd.8

Illustrate how businesses meet their social responsibilities to stakeholders. Copyright © 2014 by Nelson Education Ltd.9

Exhibit 3.2: The Pyramid of Corporate Social Responsibility Copyright © 2014 by Nelson Education Ltd.10

Stakeholders Copyright © 2014 by Nelson Education Ltd.11 Any person or organization with a vested interest or to who the company has a responsibility. Organizations are responsible to Employees Customers Investors Suppliers Governments and Society

Explain corporate governance and why it is important. Copyright © 2014 by Nelson Education Ltd.12

Corporate Governance The way in which an organization is governed, directed, and administered.  Board of directors is responsible for the organization being managed in the best interest of the corporation. Copyright © 2014 by Nelson Education Ltd.13

Discuss the philosophies and concepts that shape personal ethical standards. Copyright © 2014 by Nelson Education Ltd.14

Ethics Copyright © 2014 by Nelson Education Ltd.15 Ethics A set of moral standards for judging whether something is right or wrong.

Individual Business Ethics Copyright © 2014 by Nelson Education Ltd.16 Factors Influencing Individual Business Ethics Utilitarianism Individual Rights Justice

Basic Terms Copyright © 2014 by Nelson Education Ltd.17  Utilitarianism – The greatest good for the greatest number of people.  Individual rights – Human rights implies that certain rights are conveyed at birth and cannot be arbitrarily taken away.  Justice – The equitable distribution of the burdens and rewards that society has to offer.

Ethical Development Copyright © 2014 by Nelson Education Ltd.18 Stages of Ethical Development Preconventional (selfish) Conventional (social) Postconventional (principled)

Show how organizations can encourage ethical business behaviour. Copyright © 2014 by Nelson Education Ltd.19

Influencing Ethical Conduct Copyright © 2014 by Nelson Education Ltd.20 Lead by Example Offer Ethics Training Programs Establish a Formal Code of Ethics

List some of the trends in society, corporate responsibility, and ethics. Copyright © 2014 by Nelson Education Ltd.21

The Future of Society, CSR, and Ethics Copyright © 2014 by Nelson Education Ltd.22  Experienced workers in high demand.  Growth of CSR.  Occupy movements.  Global ethics and social responsibility.