Trends, Social Responsibility, and Ethics 3 Chapter © 2004 by Nelson, a division of Thomson Canada Limited.

2 Learning Goals 1.How is the trend of changing lifestyles affecting business? 2.How are changing demographic trends creating more opportunities for business? 3.Why is an understanding of demographic trends important for the marketing of goods and services?

3© 2004 by Nelson, a division of Thomson Canada Limited. Learning Goals (cont’d) 4.What philosophies and concepts shape personal ethical standards, and what are the stages of ethical development? 5.How can organizations influence organizational ethics? 6.What are the techniques for creating employee ethical awareness? 7.What is social responsibility?

4© 2004 by Nelson, a division of Thomson Canada Limited. Learning Goals (cont’d) 8.How do businesses meet their social responsibilities to various stakeholders? 9.What are the global and domestic trends in ethics and social responsibilities?

5© 2004 by Nelson, a division of Thomson Canada Limited. Learning Goal 1 How is the trend of changing lifestyles affecting business?

6© 2004 by Nelson, a division of Thomson Canada Limited. Changing Lifestyle Trends Component lifestyle Working women Healthier lifestyle Active lifestyle

7© 2004 by Nelson, a division of Thomson Canada Limited. Learning Goal 2 How are changing demographic trends creating more opportunities for business?

8© 2004 by Nelson, a division of Thomson Canada Limited. Demographics: the study of statistical characteristics of a population

9© 2004 by Nelson, a division of Thomson Canada Limited. Demographic Trends Generation Y –born from early 1980’s to mid 1990’s Generation X –born from mid-1960’s to the late 1970’s Baby Boomers –born late 1940’s to the mid-1960’s Older Consumers –mature persons over 50 years of age

10© 2004 by Nelson, a division of Thomson Canada Limited. Learning Goal 3 Why is an understanding of demographic trends important for the marketing of goods and services?

11© 2004 by Nelson, a division of Thomson Canada Limited. Importance of Demographics A knowledge of demographics aids in the marketing of goods and services and requires an understanding of: Ethnic markets Multiculturalism

Canada’s Ethnic Diversity Canadian11,682,680Portuguese357,690 English5,978,875Welsh350,365 French4,668,410Jewish348,605 Scottish4,157,210Russian337,960 Irish3,822,660Filipino327,550 German2,742,765Métis307,845 Italian1,270,370Swedish282,760 Chinese1,094,700Hungarian267,255 Ukrainian1,071,060American250,005 N.A. Indian1,000,890Greek215,105 Dutch923,310Spanish213,105 Polish817,085Jamaican211,720 East Indian713,330Danish170,780 Norwegian363,760Vietnamese151,410 Statistics Canada 2001 Census

13© 2004 by Nelson, a division of Thomson Canada Limited. Learning Goal 4 What philosophies and concepts shape personal ethical standards, and what are the stages of ethical development?

14© 2004 by Nelson, a division of Thomson Canada Limited. Ethics: a set of moral standards for judging whether something is right or wrong

15© 2004 by Nelson, a division of Thomson Canada Limited. Individual Business Ethics Utilitarianism –determining if an action is right or wrong by focusing on the consequences Individual Rights –Canadian Charter of Rights and Freedoms Justice –what is fair according to societal standards Stages of Ethical Development –preconventional/conventional/postconventional

16© 2004 by Nelson, a division of Thomson Canada Limited. Stages of Ethical Development StageBehaviour PreconventionalFollows rules to avoid (child)punishment. Acts in one’s own immediate interest. ConventionalGood behaviour is living up (adolescent) to what is expected by others. PostconventionalFollows self-chosen ethical (adult)principles of justice and right.

17© 2004 by Nelson, a division of Thomson Canada Limited. Learning Goal 5 How can organizations influence organizational ethics?

18© 2004 by Nelson, a division of Thomson Canada Limited. Influencing Ethical Conduct Recognizing Unethical Business Actions Resolving Ethical Problems in Business Ethics Training Establishing a Formal Code of Ethics

19© 2004 by Nelson, a division of Thomson Canada Limited. Learning Goal 6 What are the techniques for creating employee ethical awareness?

20© 2004 by Nelson, a division of Thomson Canada Limited. Resolving Ethical Problems Three–Questions Test –is it legal, is it balanced, how does it make me feel? Front Page of the Newspaper Test Leading by Example Ethics Training Establishing a Formal Code of Ethics

21© 2004 by Nelson, a division of Thomson Canada Limited. Learning Goal 7 What is social responsibility?

22© 2004 by Nelson, a division of Thomson Canada Limited. Social Responsibility: the concern of businesses for the welfare of society as a whole; includes concerns beyond legal and contractual obligations

23© 2004 by Nelson, a division of Thomson Canada Limited. Pyramid of Social Responsibility Be a good corporate Philanthropic citizenResponsibility Do what is fair Ethical Responsibility Obey the law Legal Responsibility Pursue profit Economic Responsibility

24© 2004 by Nelson, a division of Thomson Canada Limited. Two Dimensions of Social Responsibility 1.Legality –Does the action break a law? 2.Responsibility –Is the action responsible? –Does the action benefit society?

25© 2004 by Nelson, a division of Thomson Canada Limited. Learning Goal 8 How do businesses meet their social responsibilities to various stakeholders?

26© 2004 by Nelson, a division of Thomson Canada Limited. Stakeholder: any group or person within or outside the organization that has a stake in the organization’s performance

27© 2004 by Nelson, a division of Thomson Canada Limited. Responsibilities to Stakeholders Responsibility to Employees Responsibility to Customers Responsibility to Suppliers Responsibility to Governments Responsibility to the General Public Responsibilities to Investors

28© 2004 by Nelson, a division of Thomson Canada Limited. Learning Goal 9 What are the global and domestic trends in ethics and social responsibility?

29© 2004 by Nelson, a division of Thomson Canada Limited. Trends in Business Ethics Strategic Giving Social Contracts with Employees Maintaining Ethical Conduct into Global Markets