1. Chapter 14: ethics, social responsibility, and sustainability
Business Leadership: Management Fundamentals John R. Schermerhorn, Jr., Barry Wright, and Lorie Guest
© John Wiley & Sons Canada, Ltd.

2. Video: Ben & Jerry’s Ben & Jerry’s: The Greenest Ice Cream Around
(external link)
Link:

3. What is Ethical Behaviour?
Ethics:
Code of moral principles
Set standards of “good” or “bad” or “right” or “wrong” in one’s conduct
Ethical behaviour:
What is accepted as good and right in the context of the governing moral code
© John Wiley & Sons Canada Ltd.

4. What is Ethical Behaviour? (cont’d)
Law, values, and ethical behaviour:
Legal behaviour is not necessarily ethical behaviour
BRAINSTORM: CAN YOU THIN OF AN EXAMPLE?
Personal values help determine individual ethical behaviour
Values span broad beliefs:
beliefs and attitudes that help determine your behaviour
Terminal values: preferences about desired ends
Instrumental values: preferences regarding the means to desired ends
© John Wiley & Sons Canada Ltd.

5. Alternate Views of Ethics
Utilitarian view of ethics:
Greatest good to the greatest number of people.
Individualism view of ethics:
Primary commitment is to one’s long-term self-interests.
Moral-rights view of ethics:
Respects and protects the fundamental rights of all people.
Justice view of ethics:
Fair and impartial treatment of people according to legal rules and standards
Procedural justice: policies and rules fairly applied
Distributive justice: equal treatment for all people
Interactional justice: people treated with dignity and respect

6. Figure 14.1 Four views of ethical behaviour

7. Ethics in the Workplace

8. Ethics in the Workplace
An ethical dilemma occurs when certain choices may be considered unethical, despite possible potential for personal and/or organizational benefit
Ethical dilemmas include:
Discrimination
Sexual harassment
Conflicts of interest
Customer confidence
Organizational resources

9. You be the judge ethical or not?!
What do you think of the outcome?

10. Ethical Decision Making
Checklist for dealing with ethical dilemmas:
Recognize the ethical dilemma
Get the facts
Identify your options
Test each option: Is it legal? Is it right? Is it beneficial?
Decide which option to follow
Double-check decision by asking “spotlight” questions:
“How would I feel if my family found out about my decision?”
“How would I feel about this if my decision were in the local news?”
Take action

11. how do we convince ourselves that unethical behaviour is okaY?
Unethical behaviour can be rationalized by convincing yourself that:
The behaviour is not actually illegal
The behaviour is truly in everyone’s best interests
Nobody will ever find out
The organization will “protect” you
HAVE YOU EVER FOUND YOURSELF FALLING INTO THIS TRAP?

12. Maintaining High Ethical Standards
Whistleblowers:
Expose the misdeeds of others in order to:
Preserve ethical standards
Protect against wasteful, harmful, or illegal acts
Laws protecting whistleblowers may vary
THINK – PAIR – SHARE:
WOULD YOU EVER EXPOSE SOMEONE ELSE? WHY/WHY NOT? or
WHAT WOULD SOMEONE HAVE TO DO FOR YOU TO STEP IN
AND SAY SOMETHING?

13. Social Entrepreneurship
A unique form of entrepreneurship that seeks novel ways to solve pressing social problems at home and abroad
Examples include:
Housing and job training for homeless
Bringing technology to poor families
Improving literacy among disadvantaged youth
Offering small loans to start minority-owned businesses

14. Social Responsibility
Corporate social responsibility:
Obligates organizations to act in ways that serve both its own interests and the interests of society at large
In 1988, Jeffery Hollender founded cleaning, paper, and personal care products company Seventh Generation. The company focuses on producing products that have a reduced environmental impact, avoiding the harsh chemicals that are part of many of today's leading cleaning and personal care products.

15. Stakeholder Issues and Analysis
Organizational stakeholders:
Those persons, groups, and other organizations directly affected by the behaviour of the organization and holding a stake in its performance

16. Figure 14.7 Sample Stakeholder Model

17. Perspectives on social responsibility
Classical view:
Management’s only responsibility is to maximize profits
Socioeconomic view:
Management must be concerned for the broader social welfare, not just profits
Examples:
Environment
People in Community
Employee Benefit

18. Evaluating Corporate Social Performance
Social Responsibility Audit: assesses organization’s accomplishments in areas of CSR
Asks: is the organization’s…
Economic responsibility met? Is it profitable?
Legal responsibility met? Does it obey the law?
Ethical responsibility met? Is it doing the right thing?
Discretionary responsibility met? Does it contribute to the broader community?

19. Fig. 14.8 Criteria for evaluating corporate social performance

20. Evaluating Corporate Social Performance (cont’d)
Strategies for pursuing social responsibility:
Obstructionist: meets only economic responsibilities
Defensive: meets economic and legal responsibilities
Accommodative: meets economic, legal, and ethical responsibilities
Proactive: meets economic, legal, ethical, and discretionary responsibilities

21. Figure 14.9 Four strategies of corporate social responsibility—from obstructionist to proactive behaviour

22. Ethics and the environment
How “green” is a business? How can a business be “green”? Why is it so important in today’s society for businesses to go “green”?

23. Group Work What does Eco Friendly mean?
What do you do to be Eco-friendly at home and at school?
Any ideas as to what you can do to improve yourself in terms of being eco-friendly?
Think of various ways in which companies can be more environmentally friendly and be prepared to present to t he class!

24. COPYRIGHT
Copyright © 2013 John Wiley & Sons Canada, Ltd. All rights reserved. Reproduction or translation of this work beyond that permitted by Access Copyright (The Canadian Copyright Licensing Agency) is unlawful. Requests for further information should be addressed to the Permissions Department, John Wiley & Sons Canada, Ltd. The purchaser may make back-up copies for his or her own use only and not for distribution or resale. The author and the publisher assume no responsibility for errors, omissions, or damages caused by the use of these programs or from the use of the information contained herein.
© John Wiley & Sons Canada Ltd.