Copyright © 2008 McGraw-Hill Ryerson Ltd. 1 Chapter One The Relationship Between Business and Society Canadian Business and Society: Ethics & Responsibilities

Chapter 1 Copyright © 2008 McGraw-Hill Ryerson Ltd.2 January Introduction to the Course and Me Icebreaker Lecture Quiz Lecture Conclusions

Chapter 1 Copyright © 2008 McGraw-Hill Ryerson Ltd.3 Chapter Outline Complexity of Business and Society: Objectives Integrity in Business: Key Terminology Canadian Business System: Key Terminology Factors Influencing the Morality of Canadian Business The People Who Run Canadian Business Factors Influencing Attitudes Toward Business Academic Integrity

Chapter 1 Copyright © 2008 McGraw-Hill Ryerson Ltd.4 Business and Society – What is it?  A course on business ethics? Well that won’t take too long…  You’re taking a course on business ethics? So, what do you do after the first thirty seconds?  Business ethics? I didn’t think there were any  Business ethics, it has been claimed, is an oxymoron – bringing together of two apparently contradictory concepts such as ‘cheerful pessimist’ or a ‘deafening silence’.  To say that business ethics is an oxymoron suggests that there are not, or cannot be, ethics in business: that business is in some way unethical (i.e. that business is inherently bad) or that it is, at best, amoral (i.e. outside of our moral considerations).

Chapter 1 Copyright © 2008 McGraw-Hill Ryerson Ltd.5 The Complexity of Business and Society: Objectives Increase awareness of the Canadian business system Identify business’s response to its role in society Learn how business corporations have responded to environmental challenges Focus on the perspective of the manager or owner of a corporation

Chapter 1 Copyright © 2008 McGraw-Hill Ryerson Ltd.6 Integrity in Business: Key Terminology Ethics of business? Stakeholder? Corporate social responsibility (CSR)? Corporate sustainability? Triple-E (economic, ethical, and environmental)? Corporate citizenship?

Chapter 1 Copyright © 2008 McGraw-Hill Ryerson Ltd.7 Canadian Business System: Key Terminology Economic system Capitalism Free enterprise system Laissez-faire capitalism Responsible enterprise system Stakeholder capitalism

Chapter 1 Copyright © 2008 McGraw-Hill Ryerson Ltd.8 Factors Influencing the Morality of Canadian Business Diversity of business interests Foreign ownership and influence Resource-based economy Importance of trade The influence of small business “Bigness” in the business system Government pressure

Chapter 1 Copyright © 2008 McGraw-Hill Ryerson Ltd.9 The People Who Run Canadian Business Owners  Direct ownership (e.g., shareholders); or  Indirect ownership (e.g., mutual fund holders) Boards of Directors  Elected by shareholders  Must fulfill legal and fiduciary obligations Managers  Hired by boards of directors  Oversee operations of corporation

Chapter 1 Copyright © 2008 McGraw-Hill Ryerson Ltd.10 Factors Influencing Attitudes Toward Business Standard of living Decentralized decision making Allocation of resources Self-interest

Chapter 1 Copyright © 2008 McGraw-Hill Ryerson Ltd.11 Factors Influencing Attitudes Toward Business Inequities in society Business cycle Unemployment Innovation

Chapter 1 Copyright © 2008 McGraw-Hill Ryerson Ltd.12 Scandals Revelations of corporate mis-practice should not be interpreted to mean that thinking about the role of business in society and/or ethics in business situations is entirely redundant. Everyday business activities require the maintenance of basic ethical standards:  honesty,  trustworthiness and  co-operation.

Chapter 1 Copyright © 2008 McGraw-Hill Ryerson Ltd.13 Academic Integrity What percent of students cheat?  53 percent of students admit to cheating in written assignments (Maclean’s, 2007)  56 percent of business students admit to cheating (Maclean’s, 2007) Will the lack of academic integrity have an influence on business integrity?