1. Ethics and social responsibility

2. WHAT IS ETHICS?  Take out a piece of paper, and take a moment to think about what ethics means to you.  On that piece of paper, write down what it means to be ethical

3. Turn to page 146  Read and answer the questions, then tally up your score  See if you rely on an ethic of justice or an ethic of care

4. Ethical management  Setting corporate ethical standards  having a code of conduct  Compliance based ethics code – focuses on preventing unlawful behavior through control and penalizing wrongdoers  Integrity based ethics code – having guiding values and creating an environment that supports ethical behavior.

5. Ethical management  Whistleblowers – people who report wrong doings  There needs to be a protective measure that prevents whistleblowers from professional and personal harm

6. Ethical management  Corporate social responsibility – concern for the welfare of society, not just for their owners  Is it unethical to not put money back into the society that helped you make so much money?  Corporate philanthropy – donations to non-profit groups  Corporate responsibility – hiring minority workers, safe products, minimizing pollution.

7. Social Corporate Responsibility  1. Strategic Approach – management’s primary goal is the economic interest of shareholders.  2. Pluralist Approach – management’s goal is to optimize profits, but not at the expense of the employees, suppliers, or community. Which one is more ethical?

8. Corporate responsibilities  Read pages 153 – 158  Make notes on corporate responsibilities  1. Responsibility to customers  2. Responsibility to investors  3. responsibility to employees  4. responsibility to society  5. responsibility to the environment

9. Social auditing  An evaluation for an organization’s progress towards implementing programs that are socially responsible and responsive  Triple bottom line – “People, planet, profit” a framework for organizations to evaluate their: 1. economic, environmental and social contributions 2. negative environmental and social impacts

10. Ethical management