1. Copyright ©2012 Pearson Education, Inc. Publishing as Prentice Hall 3-1  A Definition of Ethics Ethics can be viewed as catalysing to socially responsible actions for managers. Studies for ethics started at 1970’s and grew significantly in the 1980’s. Expected to grow in 21st century. Definition: Albert Schweitzer Humanitarian- Our concern for good behavior: We feel obliged to consider not only our own behaviors but also others.

2. What is Ethical Behavior? - We have ethical choices everyday. Dilemmas - (taking place in an exam on a place of others, accepting expensive presents, lies………………)

3. Copyright ©2012 Pearson Education, Inc. Publishing as Prentice Hall 3-3  A Definition of Ethics in Business: The capacity to reflect on values in the corporate decision making process, to determine how these values and decisions affect various stakeholder groups and to establish how managers can use these observations in day to day company management. Ethical managers strive for success within the confines of sound management practices that are characterised by fairness and justice.

4. Copyright ©2012 Pearson Education, Inc. Publishing as Prentice Hall 3-4  Why Ethics Is a Vital Part of Management Practices Ethics and competitiveness are insaparable. We compete as a society. No society can compete long with people stabbing each other in the back; with people trying to steal from one another. Ethical business practices can enhance; Productivity (special effort to ensure the health and wellfare of employees) Stakeholder relations (enhance corp. Health is by affecting outside stakeholders such as suppliers, customers, positive image is important – Johnson&Johnson) Government regulation

5. Copyright ©2012 Pearson Education, Inc. Publishing as Prentice Hall 3-5 A code of Ethics: Is a formal statement that act as a quide for the ethics of how people within a particular organization should act and make decision. It addresses issues ; - Conflict of interest - Competitors, - Privacy of information, - Gift giving, receiving - … So that people know what is right and wrong in the organization.

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9. Copyright ©2012 Pearson Education, Inc. Publishing as Prentice Hall 3-9  Creating an Ethical Workplace 1. The golden rule 2. The utilitarian principle 3. Kant’s categorical imperative 4. The professional ethic 5. The TV test 6. The legal test 7. The four-way test  Following the Law: Sarbanes–Oxley Reform Standards

10. Copyright ©2012 Pearson Education, Inc. Publishing as Prentice Hall 3-10  Creating an Ethical Workplace - creating, distributing and continually improving a company’s Code of Ethics is one common strip, - Companies create an athical workplace by appointing a chief ethics officer, - Furnish organization members with appropriate training - Teaching how ethical a certain action can be. - Pg.87

11.  Defining Sustainability  Defining a Sustainable Organization  Why Sustainability Increased profit: Profit, Sustainability today customers prefer sustainable org. Increased productivity: (sustainability increases employees productivity) Increased innovation (catalyst) Copyright ©2012 Pearson Education, Inc. Publishing as Prentice Hall 3-11

12.  Defining Sustainability The degree to which a person or entity can meet its present needs without compromising the ability of other people or entities to meet their needs in the future. (when en entity leaves their wastes by dumping it to river, if that toxic and unusability materials pollutes the river the entity is unsustainable. BUT if the entity purifies the waste prepare dumping it to protect the cleanliness of the river the entity is sustainable) Copyright ©2012 Pearson Education, Inc. Publishing as Prentice Hall 3-12

13.  Defining a Sustainable Organization Has the ability to meet its present needs without compromising the ability of future generations.. Should be sustainable in 3 ways 1. Economic: Min. Waste by not overproducing goods and generating a fair profit for stakeholders. 2. Society: Maintaining the well being and protection of the communities 3. Environment: akin to protect natural resources. This is called Triple-Buttom- Line Copyright ©2012 Pearson Education, Inc. Publishing as Prentice Hall 3-13

14.  Steps for achieving sustainability Set sustainability goals(Marks&Spencer) Hire expertise Reward employees Track progress Copyright ©2012 Pearson Education, Inc. Publishing as Prentice Hall 3-14

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16. Sustainability and Ethics should be consistent and both meaningful in the organization. Ethics and sustainability can only be achieved with ethical managers at all levels. Copyright @ 2010 Pearson Education, Inc. Publishing as Prentince Hall 16

17.  What happens? Discuss  If a company has a very successful management functions under control?  But not strong enough to make ethical decisions? How did we lose Bill Clinton, Berlusconi, from stage??

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19. 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. Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall