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Concern for Ethical and Societal Issues Ethics: Ethics is the study dealing with what is the proper course of action for man. It answers the question, "What do I do?" It is the study of right and wrong in human endeavours. Business Ethics: Business ethics are moral principles that guide the way a business behaves. The same principles that determine an individual’s actions also apply to business.

Concern for Ethical and Societal Issues Social responsibility: The primary objective is the enhancement of society’s welfare through philosophies, policies, procedures and actions. –Businesses must find a balance between what’s right and what’s profitable. –Often no clear-cut choices. –Often shaped by the organization’s ethical climate.

Development of Individual Ethics*

Situation in which a business decision may be influenced for personal gain. Telling the truth and adhering to deeply felt ethical principles in business decisions. Business people expect employees to be loyal and truthful, but ethical conflicts may arise. Employee’s disclosure of illegal, immoral, or unethical practices in the organization. On-the-Job Ethical Dilemmas

How Organizations Shape Ethical Conduct

Code of Conduct Formal statement that defines how the organization expects and requires employees to resolve ethical questions. Ethical Awareness

Codes of conduct cannot detail a solution for every ethical situation, so corporations provide training in ethical reasoning. Ethical Education

Codes of conduct and ethical education help employees to recognize and reason through ethical problems. In addition, firms must also provide structures and approaches that allow decisions to be turned into ethical actions. Texas Instruments gives its employees a reference card to help them make ethical decisions on the job. The size of a standard business card, it lists the following guidelines: Is the action legal? Does it comply with our values? If you do it, will you feel bad? How will it look in the newspaper? If you know it’s wrong, don’t do it! If you’re not sure, ask. Keep asking until you get an answer. Ethical Action

Executives must demonstrate ethical behavior in their actions. Ethical Leadership

Social Responsibility It is the management’s consideration and acceptance of the obligation to consider profit, consumer satisfaction, and societal well-being of equal value in evaluating the firm’s performance. Contributions to the overall economy, job opportunities, and charitable contributions and service.. Acting Responsibly to Satisfy Society*

Areas of Responsibility

Public Health Issues. What to do about inherently dangerous products such as alcohol, tobacco, steroids, etc. Protecting the Environment. Using resources efficiently, minimizing pollution. Recycling. Reprocessing used materials for reuse. Developing the Quality of the Workforce. Enhancing quality of the overall workforce through education and diversity initiatives. Corporate Philanthropy. Cash contributions, donations of equipment and products, and supporting the volunteer efforts of company employees. Responsibilities to the General Public

The Right to Be Safe. Safe operation of products, not avoiding product liability. The Right to Be Informed. Avoiding false or misleading advertising and providing effective customer service. The Right to Choose. Ability of consumers to choose the products and services they want. The Right to Be Heard. Ability of consumers to express legitimate complaints to the appropriate parties. Responsibilities to Customers

Workplace Safety – providing a safe and healthy work place for employees. Quality-of-Life Issues. Balancing work and family through flexible work schedules, subsidized child care, etc. Ensuring Equal Opportunity on the Job. Providing equal opportunities to all employees without discrimination; many aspects regulated by law. Age Discrimination. Being unbiased towards employees with regards to their ages. Responsibilities to Employees

Obligation to make profits for shareholders. Expectation of ethical and moral behavior. Investors protected by regulation by the Securities and Exchange Commission (SEC) and state regulations. Securities and Exchange Commission Responsibilities to Investors

Organizational Stakeholders

Source: est_worst/worst4.html est_worst/worst4.html RankCompany 1Statoil 2Ferrovial 3Walt Disney 4Edison 5ENI 6Whole Foods Market 7Total 8*Hochtief 8*Nestlé 10*NextEra Energy 10*Weyerhaeuser World’s Best Companies in terms of Social Responsibility

Source: Company Gap Inc Ford Motor Company National Australia Bank Intel Corporation Colgate-Palmolive Company General Electric Co. American Express Kellogg Company L’ORÉAL Time Warner Inc. Tata Steel Ltd

REALITIES OF ETHICS......

A CSR INITIATIVE IN BANGLADESH....

Renata, DBL, Nestle BD receive StanChart-FE CSR Award Source: http:// A view of the 4th Standard Chartered - Financial Express CSR Award giving ceremony