Ethics and social responsibility
WHAT IS ETHICS? Take out a piece of paper, and take a moment to think about what ethics means to you. On that piece of paper, write down what it means to be ethical
Turn to page 146 Read and answer the questions, then tally up your score See if you rely on an ethic of justice or an ethic of care
Ethical management Setting corporate ethical standards having a code of conduct Compliance based ethics code – focuses on preventing unlawful behavior through control and penalizing wrongdoers Integrity based ethics code – having guiding values and creating an environment that supports ethical behavior.
Ethical management Whistleblowers – people who report wrong doings There needs to be a protective measure that prevents whistleblowers from professional and personal harm
Ethical management Corporate social responsibility – concern for the welfare of society, not just for their owners Is it unethical to not put money back into the society that helped you make so much money? Corporate philanthropy – donations to non-profit groups Corporate responsibility – hiring minority workers, safe products, minimizing pollution.
Social Corporate Responsibility 1. Strategic Approach – management’s primary goal is the economic interest of shareholders. 2. Pluralist Approach – management’s goal is to optimize profits, but not at the expense of the employees, suppliers, or community. Which one is more ethical?
Corporate responsibilities Read pages 153 – 158 Make notes on corporate responsibilities 1. Responsibility to customers 2. Responsibility to investors 3. responsibility to employees 4. responsibility to society 5. responsibility to the environment
Social auditing An evaluation for an organization’s progress towards implementing programs that are socially responsible and responsive Triple bottom line – “People, planet, profit” a framework for organizations to evaluate their: 1. economic, environmental and social contributions 2. negative environmental and social impacts
Ethical management