1. Ethics and Corporate Social Responsibility Class 8 Thursday 9/22/11

2. Exploring Business © 2009 FlatWorld Knowledge Idea of Business Ethics  What Is Ethics ? –Ethical Behavior [Right from Wrong] –Business Ethics [Obeying laws, rules, regulations, being honest, competing fairly, not putting your own interests first]  What Is Social Responsibility? –Corporate Social Responsibility – CSR: [balancing responsibilities toward different stakeholders] –Decisions – legal, economic, ethical and social

3. Exploring Business © 2009 FlatWorld Knowledge Ethical Organizational Activities Treat People Fairly Treat People Fairly Fairness = Top Priority Fairness = Top Priority Everyone Accountable Everyone Accountable Communicate Core Values to All Communicate Core Values to All Demand/Reward Integrity from All Demand/Reward Integrity from All

4. Exploring Business © 2009 FlatWorld Knowledge Examples of Good Corporate Citizens Proctor & GambleProctor & Gamble IntelIntel AvonAvon Herman MillerHerman Miller TimberlandTimberland CiscoCisco Southwest AirlinesSouthwest Airlines AT & TAT & T StarbucksStarbucks MerckMerck MedtronicMedtronic

5. Exploring Business © 2009 FlatWorld Knowledge Employee Attitudes In Unethical Companies Uneasy About WorkUneasy About Work Object To Way TreatedObject To Way Treated Uncomfortable About How Co-Workers Treated [discuss examples]Uncomfortable About How Co-Workers Treated [discuss examples] Question Management Directives & PoliciesQuestion Management Directives & Policies

6. Exploring Business © 2009 FlatWorld Knowledge Why Study Ethics? ? Ethics of future not the same as today/past ? Understand what is/isn ’ t acceptable/unacceptable ? Recognize/deal with ethical challenges ? Know right/wrong = marketable job candidate

7. Exploring Business © 2009 FlatWorld Knowledge Ethical Self-Examination, “I’m... 1)Always Ethical 2)Mostly Ethical 3)Somewhat Ethical 4)Seldom Ethical 5)Never Ethical

8. Exploring Business © 2009 FlatWorld Knowledge Ethical Challenges Ethical Decisions - Ethical Lapse Ethical Dilemmas - morally problematic situations Example - Pick between alternatives that may be Important to different groups Ethical Challenges: “ …arise in...business organizations [because]…multiple stakeholders…make conflicting demands. ”

9. Representative Anthony Weiner How did he handle his situation from an ethical standpoint? From a PR standpoint?

10. Exploring Business © 2009 FlatWorld Knowledge How To Face an Ethical Dilemma

11. Exploring Business © 2009 FlatWorld Knowledge How To Avoid an Ethical Lapse

12. Exploring Business © 2009 FlatWorld Knowledge Basic Situations Causing Ethical Issues  Bribes  Conflicts of Interest  Conflicts of Loyalty  Issues of Honesty and Integrity  Whistle-blowing

13. Exploring Business © 2009 FlatWorld Knowledge Bribes Vs. Gifts  Cost of Item  Gift Timing Timing Type Type  Connection  Check Company Policy

14. Exploring Business © 2009 FlatWorld Knowledge 2-14 Conflicts of Interest “ …individuals must choose between taking actions that promote their personal interests over the interests of others. ”“ …individuals must choose between taking actions that promote their personal interests over the interests of others. ”

15. Exploring Business © 2009 FlatWorld Knowledge Conflicts Of Interest * Interferes With Best Interest of Company Stakeholders * Choice between promotion of personal interest vs.the Interest of others *Use of Private Information

16. Exploring Business © 2009 FlatWorld Knowledge 2-16 How to Maintain Honesty & Integrity

17. Exploring Business © 2009 FlatWorld Knowledge 2-17Whistle-Blowing Applauded or Shunned Applauded or Shunned  Career Suicide  Sarbanes-Oxley [ ]  Sarbanes-Oxley [regulation of corporate governance and financial practices]

18. Exploring Business © 2009 FlatWorld Knowledge Common Rationalizations for Unethical Behavior 1) My Behavior Isn’t Really Illegal or Immoral 2) My Action Is In Everyone’s Best Interests 3) No One Will Find Out What I’ve Done 4) The Company Will Condone My Action And Protect Me

19. Exploring Business © 2009 FlatWorld Knowledge Ethics Influencers Members of Organization Members of Organization Top Managers & Supervisors Top Managers & Supervisors Co-Workers & Subordinates Co-Workers & Subordinates

20. Exploring Business © 2009 FlatWorld Knowledge Formal Code Of Conduct:  Stated Principles & Guidelines  Topics - Use Of Corporate Funds & Resources - Conflict Of Interest - Protection Of Proprietary Information  Enforcement  Encourages & Provides Instructions for Reporting

21. Exploring Business © 2009 FlatWorld Knowledge Corporate Social Responsibility “ …the approach…an organization takes in balancing its responsibilities toward...stakeholders when making…decisions. ”“ …the approach…an organization takes in balancing its responsibilities toward...stakeholders when making…decisions. ”

22. Exploring Business © 2009 FlatWorld Knowledge The Corporate Citizen

23. Exploring Business © 2009 FlatWorld Knowledge Stakeholders & Responsibility  Owners- Fiduciary  Employees Safety & Health Safety & Health Free from Sexual Harassment Free from Sexual Harassment Equal Opportunity & Diversity Equal Opportunity & Diversity Wages & Benefits Wages & Benefits  Customers  Communities

24. Exploring Business © 2009 FlatWorld Knowledge Workplace Deaths by Event / Exposure

25. Exploring Business © 2009 FlatWorld Knowledge Workplace Deaths by Occupations

26. Exploring Business © 2009 FlatWorld Knowledge Median Annual Earnings by Gender and Race

27. Exploring Business © 2009 FlatWorld Knowledge Median Annual Earnings by Gender, Age, and Degree Level

28. Exploring Business © 2009 FlatWorld Knowledge Responsibilities to Customers  Right To Safe Products  Right To Be Informed  Right To Choose  Right To Be Heard

29. Exploring Business © 2009 FlatWorld Knowledge Responsibilities to Community  Financial Contributions  Volunteerism  Supporting Social Causes

30. Exploring Business © 2009 FlatWorld Knowledge Business Community & Environmental Issues  Land Pollution  Air Pollution  Water Pollution