Business Ethics Part II BOH4M

When faced with an ethical dilemma… How do managers know what’s right and wrong? Personal views Laws Societal mores Corporate Code of Ethics

Code of Ethics A code of ethics communicates the purpose, values, and objectives of a business and outlines expected behaviour for employees. Large corporations almost always have a formal, written code of ethics (or code of conduct).

With your partner… List 5 areas of consideration that should go into a company’s Code of Ethics

From Canadian Tire’s Code of Business Conduct Integrity, honesty, and respect are the Corporation’s core values and Canadian Tire expects that each employee and director will be guided by these values when dealing with each other or when conducting business on behalf of the Corporation.

From Sobeys Inc.’s Code of Business Conduct and Ethics In keeping with our core values: Always Place the Customer First Get it done with Passion and Integrity Stay Real Proudly Serve our Communities You are expected to read this Code carefully and apply the principles and follow the rules contained in this Code in performing your duties for the Company.

Enron’s Statement of Human Rights Respect: We treat others as we would like to be treated ourselves. We do not tolerate abusive or disrespectful treatment. Ruthlessness, callousness and arrogance don't belong here. Integrity: We work with customers and prospects openly, honestly and sincerely. When we say we will do something, we will do it; when we say we cannot or will not do something, then we won't do it.

Enron’s Statement of Human Rights We believe in respect for the rights of all individuals and are committed to promoting an environment characterized by dignity and mutual respect for employees, customers, contractors, suppliers, partners, community members and representatives of all levels of Government.

Enron’s Statement of Human Rights We are dedicated to conducting business according to all applicable local and international laws and regulations, including but not limited to, the U.S. Foreign Corrupt Practices Act, and with the highest professional and ethical standards.

Codes of Ethics What do they really mean? How do you know it’s not just “window dressing”? "But we must remember that good laws, if they are not obeyed, do not constitute good government. Hence there are two parts of good government; one is the actual obedience of citizens to the laws, the other part is the goodness of the laws which they obey..." (Aristotle)

Greenwashing Greenwashing is a term describing the deceptive use of green PR or green marketing in order to promote a misleading perception that a company's policies or products (such as goods or services) are environmentally friendly

Example: Exxon Yes, today's car has lower emissions of urban air pollutants (thanks to government regulation) but higher emissions of greenhouse gases ExxonMobil has done more than just about any other company to undermine efforts to achieve the greenhouse gas regulations that could lower those emissions. millions of dollars to fund the disinformation campaigns of the Competitive Enterprise Institute, the American Enterprise Institute, and the Heritage Foundation, all of which continue to advance unfactual attacks on Climate Change science

The Bottom Line Ethics and Social Responsibility as a PR or marketing campaign? How can we be sure companies behave ethically when no one’s looking?

Ethical Issues Fraud Conflict of Interest Kickbacks Whistleblowers

Framework for Solving an Ethical Dilemma When faced with an ethical dilemma, there are some basics questions that a manager should ask themselves: What are the ethical issues? Who are the stakeholders? What are the responsibilities and obligations of the parties involved? Can I identify alternatives and weigh impact of each alternative on stakeholders? What is the best and most ethical alternative?