1. Strategic Management: Concepts & Cases
Chapter 10 Business Ethics/ Social Responsibility/ Environmental Sustainability
Strategic Management: Concepts & Cases
13th Edition
Fred David
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2. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

3. Social Responsibility
Business Ethics
Social Responsibility
Environmental Sustainability
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4. Business Ethics
Principles of conduct within organizations that guide decision making and behavior
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5. Business Ethics Code of Business Ethics
A document that provides behavioral guidelines that cover daily activities and decisions within the organization
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6. Ethics Culture Ethics training should include: A message from the CEO
Development and discussion of codes of ethics
Procedures for discussing and reporting unethical behavior
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7. Ethics Culture To align ethical and strategic decision making:
Incorporate ethical considerations into long-term planning
Incorporate ethical considerations into performance appraisals
Encourage whistle-blowing
Monitor department and corporate performance regarding ethical issues
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8. Bribes A gift bestowed to influence a recipient’s conduct
Illegal in many countries, acceptable in others
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9. Social Responsibility
Business Ethics
Social Responsibility
Environmental Sustainability
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10. Social Responsibility
Actions an organization takes beyond what is legally required to protect or enhance the well-being of living things
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11. Social Policy
Concerns what responsibilities the firm has to its employees, consumers, environmentalists, minorities, communities, shareholders, and other groups
Should be considered during each stage of strategy formulation, implementation, and evaluation
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12. Social Policies on Retirement
Worker shortages in countries around the world are leading to changes in retirement and immigration policies
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13. Social Responsibility
Business Ethics
Social Responsibility
Environmental Sustainability
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14. Environmental Sustainability
The extent that an organization’s operations and actions protect, mend, and preserve rather than harm or destroy the natural environment
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15. Environmental Sustainability
Strategies of companies are scrutinized and evaluated from a natural environment perspective
Employees, consumers, governments, and society are resentful of firms that harm rather than protect the natural environment
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16. Sustainability Report
Reveals how a firm’s operation impact the natural environment
These reports are not required, but are a good business practice
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17. Lack of Standards Changing
Making a claim that a product or process is “green” is becoming more difficult as standards are put into place
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18. Obama Regulations New “clean technology” business start ups Solar Wind
Biofuels
Insulation
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19. Managing Environmental Affairs in the Firm
Managers must formulate strategies that preserve and conserve natural resources and control pollution
Environmental strategies could include
Developing or acquiring green businesses
Divesting or altering environment-damaging businesses
Striving to become a low-cost producer through waste minimization and energy conservation
Pursuing a differentiation strategy through green product features
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20. Students and Environmental Training
Companies prefer to hire graduates with training in environmental issues
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21. Reasons Why Firms Should “Be Green”
Consumer demand
Public opinion
Environmental advocacy groups
Federal and state environmental regulations
Lenders
Consumers, suppliers, distributors, and investors
Liability suits and fines
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22. Be Proactive, Not Reactive
Proactive – do more than the bare minimum
Reactive – changing only when forced to by the law or consumer pressure
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23. ISO 14000/14001 Certification
International Organization for Standardization (ISO)
A network of standards institutes of 147 countries
Largest developer of sustainability standards in the world
Compliance is voluntary
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24. ISO 14000/14001 Certification
ISO a series of voluntary standards in the environmental field
ISO – a set of standards included within ISO 14000
Adopted by thousands of firms worldwide to certify that they are conducting business in an environmentally friendly manner
Results in an environmental management system (EMS)
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25. Electric Car Networks Government funding for manufacturing
Recharging stations being installed in many cities
Extensive research and development within the auto industry
Companies are replacing gasoline powered vehicles with hybrid electric-natural gas vehicles
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26. March 2009 Copenhagen Meeting
Scientists warned that global warming is worse than expected
Companies and governments encouraged to vigorously implement strategies to cut greenhouse gases
Kyoto Protocal expires in 2012
Results of March 2009 Copenhagen Meeting are expected to replace the Kyoto Protocal
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27. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.
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