ETHICS AND CORPORATE SOCIAL RESPONSIBILITY Read Pages and Answer the following questions:

1. What is ethical behaviour?  -behaviour that conforms to ethics – individual beliefs and social standards about what is right and good.

2. What are some examples of ethical dilemmas faced by Business??  - Business ethics are tied to both society’s ethics and the ethics of the individuals who work for and buy products from the company.  - City of Kitchener – free tickets to concerts, golf, hockey games

3. How can businesses resolve ethical dilemmas?  - Most companies choose to operate according to a code of ethics that explains how employees should respond in different situations.  It requires honesty, the ability to work co-operatively, respect for others, pride in one’s actions, integrity and loyalty  IE advertising, fraudulent practices, cybercrime, social responsibility, privacy

4. a)How can businesses end up with a bad reputation?  making poor ethical choices  IE. Using sweat shops to manufacture products, downsizing of staff, pollution, toxic waste, depletion of resources, discrimination, product safety  fraud  I.e. Schneider’s needles in ham, Maple Leaf – listeria virus

b) Are bad reputations always the businesses fault?  NO - Tylenol Tampering c) What can a company do to change a negative public image?  correct the problem and do what is best for society and the company to promote itself in a positive image

5) Define whistle-blowing.  - an employee that informs officials or the public about a legal or ethical violation, the employee discovers unethical, immoral or illegal actions at the workplace and has to make a decision about what to do.  IE – An Inconvenient Truth(global warming), Watergate, China Syndrome, Quiz Show

6) What happens when people don’t behave ethically? Give some examples  - fraud, accounting scandals, and insider trading  - bank, consumer contract, insurance, mail pyramid scheme, stock market, telemarketing and welfare fraud

7) What is an accounting scandal?  - when public accountants or senior executives alter accounting records for personal benefit

8) Explain what CSR is.  Corporate Social Responsibility – providing goods and services within society’s values

9) Identify the CSR Principles  Providing a safe and healthy work environment- daycare, fitness facilities  Adopting fair labour policies – more than min. wage, flex hours, benefits  Protecting the environment-more socially responsible  Being truthful in advertising – no inaccurate, deceptive claims  Avoiding price discrimination – one price only  Donating to charity-host events, payroll plans

10) Why do businesses practice business ethics and social responsibility?  satisfy shareholder expectations  protect the reputation of the business  build trust with those groups with which they work  guard against unethical employees and competitors  establish a working environment that matches their core values  maintain a safe working environment for employees  engage actively with local communities as a partner  maintain high standards of integrity  adhere to the practice of full disclosure on the quality of goods and services

10) Explain the term Duty to Report.  -they must disclose all important information to shareholders, business partners, lenders, insurers, communities, regulators, consumers, employees and investors.

11) Identify the six major areas covered under the laws that govern ethical behaviour in business.  -workplace safety  -Antidiscrimination issues  -harassment  -Accessibility issues for people with disabilities  -Environmental responsibility  -Labour practices

12) Why is fair trade necessary? Who benefits when fair trade practices are in place?  -helps producers in developing countries bypass expensive middlemen so they can sell their goods in other countries and receive a fair profit  - the producers/manufactures benefit – IE coffee bean growers

13. Why is fair trade necessary? Who benefits when fair trade practices are in place?  -helps producers in developing countries bypass expensive middlemen so they can sell their goods in other countries and receive a fair profit  - the producers/manufactures benefit – IE coffee bean growers