1. 1 Business ethics and social responsibility (chapt. 10) an oxymoron?!?! What is GOOD vs. What is Bad! behaviour of business and the treatment of stakeholders Code of Ethics: –Stated rules that guide decision making Rule of Law –None are above the law = equal

2. 2 Business ethics and social responsibility (chapt. 10) International Companies often face a greater ethical dilemma because they operate in numerous countries where values and standards differ Example: legal vs. ethical

3. 3 International Business Ethics: Tough choices... an ethical dilemma arises when two or more “right” courses of action conflict Making the right choice usually means choosing what is right or acceptable, both according to a code and according to values that are shared with the parties in conflict

4. 4 International Business Ethics: Tough choices… cont’d. Canadian companies that conduct business in other counties often discover that the laws, values, and ethical standards of Canada are not the same in the foreign location…Canadian values may not be generally accepted The ethical dilemma can effect the companies ability to compete and resultant profits and reputation in the marketplace

5. 5 STAKEHOLDERS Employees Shareholders (owners) Natural Environment Management Suppliers Customers Community

6. 6 CORPORATE SOCIAL RESPONSIBILITY (CSR) Meeting the needs and expectations of a companies’ stakeholders BUT…often stakeholder needs are in conflict with one another –examples:

7. 7 CONTINUUM OF ETHICAL BEHAVIOR INDIVIDUAL: Moralistic Situational Amoral CORPORATE: Ethical imperialism Cultural relativism

8. 8 Factors Influencing One’s Ethics Religion Society Peers Situation Rules Business ethics does not equal personal ethics, however, your personal ethics influences your business choice.

9. 9 Kohlberg’s Stages of Moral Development 1. Fear of punishment and authority 2. Serving one’s own needs 3. Looking for approval from family / society 4. Adherence to law and order (norms) 5. Concern for others 6. Concern for ethical principles

10. 10 Ethical Frameworks: CORPORATE RESPONSIBILITY Corporations have ethical responsibility to their stakeholders: - is the action “right” corporations are (morally ?) responsible for business decisions responsible if the person caused or failed to prevent an act that causes harm to another

11. 11 Ethical Frameworks: RELATIVISM no absolute morality, depends upon culture circumstances, situation etc. “what are the societal norms ? no absolutes - anything can be acceptable

12. 12 Ethical Frameworks: UTILITARIANISM “greatest good for the greatest number” Process: –must be alternatives –determine cost / benefits of each alternative to the involved stakeholders –select the alternative that produces the greatest good for the greatest number of individuals

13. 13 Ethical Frameworks: KANTS CATEGORICAL IMPERATIVE “only do something that would be OK if everyone did the same action” –Universality: if everyone did it would it be OK –Reversibility: if the situation were reversed would you be willing to accept it ? –The Golden Rule: treat everyone with respect

14. 14 Ethical Frameworks: MORAL RIGHTS actions morally right or wrong if it respects the rights of individuals affected by those actions moral rights are not granted by society or necessarily in law but exist merely because you are a human being - entitlement imply corresponding duties

15. 15 Ethical Frameworks: JUSTICE OR FAIRNESS equitable distribution of the benefits and burdens imposed by an action or policy “similar individuals should be given similar benefits and suffer similar burdens –Criteria: contribution, effort, needs, merit, equality very difficult to maintain in business (consistency ?)