1. © 2006 Pearson Education Canada Inc.Chapter 3 - 1 Chapter 3 Practising Ethical Behaviour and Social Responsibility

2. © 2006 Pearson Education Canada Inc.Chapter 3 - 2 Two Important Concepts SocialResponsibilitySocialResponsibilityEthicalBehaviourEthicalBehaviour

3. © 2006 Pearson Education Canada Inc.Chapter 3 - 3 What Is Ethical Behaviour? Competing Fairly and Honestly CommunicatingTruthfully Not Causing Harm to Others

4. © 2006 Pearson Education Canada Inc.Chapter 3 - 4 Factors Influencing Ethical Behaviour Cultural Differences Knowledge OrganizationalBehaviour

5. © 2006 Pearson Education Canada Inc.Chapter 3 - 5 Business Ethics Top-ManagementCommitment ReportingSystem Code of Ethics ComplianceOfficer

6. © 2006 Pearson Education Canada Inc.Chapter 3 - 6 Making Ethical Decisions Is It Ethical? PhilosophicalApproachesStakeholderIssues Outsiders Supervisors Employees Utilitarianism Individual, Legal and Human Rights Principles of Justice Legality and Balance Acceptability Feasibility

7. © 2006 Pearson Education Canada Inc.Chapter 3 - 7 Types of Ethical Situations Ethical Dilemma Ethical Lapse

8. © 2006 Pearson Education Canada Inc.Chapter 3 - 8 Social Responsibility in Business Early 20 th Century Middle Early 21 st Century MaximizeProfits Provide Jobs and Pay Taxes Balance Profits and Social Issues

9. © 2006 Pearson Education Canada Inc.Chapter 3 - 9 Percentage of Executives Who “Strongly Agree” or “Agree” That Companies Should: Percentage of Executives Who “Strongly Agree” or “Agree” That Companies Should: Be environmentally responsible Be ethical in operations Earn profits Employ local residents Pay taxes Encourage and support employee volunteering Contribute money and leadership to charities Be involved in economic development Be involved in public education Involve community representatives in business decisions Target a portion of purchasing toward local vendors Help improve quality of life for low-income populations Be environmentally responsible Be ethical in operations Earn profits Employ local residents Pay taxes Encourage and support employee volunteering Contribute money and leadership to charities Be involved in economic development Be involved in public education Involve community representatives in business decisions Target a portion of purchasing toward local vendors Help improve quality of life for low-income populations Percentage 100 96 94 89 85 75 73 62 61 54 100 96 94 89 85 75 73 62 61 54

10. © 2006 Pearson Education Canada Inc.Chapter 3 - 10 Balancing Business and Stakeholders’ Rights Business SafeProductsProductChoice Consumers InformedPurchase Employees Equity Health & Safety Investors Profits Fair Disclosure Society CleanEnvironment

11. © 2006 Pearson Education Canada Inc.Chapter 3 - 11 Efforts to Increase Social Responsibility SocialAuditSocialAuditPhilanthropyPhilanthropyCause-RelatedMarketingCause-RelatedMarketing

12. © 2006 Pearson Education Canada Inc.Chapter 3 - 12 Causes of Pollution Industrial Discharges Vehicle Emissions Chemical Spills

13. © 2006 Pearson Education Canada Inc.Chapter 3 - 13 Government Efforts to ReducePollution Canadian Environmental Protection Act (CEPA) Regulate Air and Water Reduce Automobile Emissions License Pesticides Control Toxic Substances Safeguard Drinking Water

14. © 2006 Pearson Education Canada Inc.Chapter 3 - 14 The Kyoto Protocol The goal of the Kyoto Protocol is to reduce Greenhouse Gas Emissions Canada’s commitment: –Reduce Canadian GHG’s to 6% below 1990 levels by 2012

15. © 2006 Pearson Education Canada Inc.Chapter 3 - 15 Business Efforts to Reduce Pollution Environmental Issues Environmental Staff Performance Expectations Performance Rewards Long-Term Cost Product Development Supplier Expectations Training and Awareness

16. © 2006 Pearson Education Canada Inc.Chapter 3 - 16 Responsibility Toward Consumers The Right to Safe Products The Right to Be Informed The Right to Choose The Right to Be Heard

17. © 2006 Pearson Education Canada Inc.Chapter 3 - 17 Responsibility Toward Investors SocialResponsibilitySocialResponsibilityBusinessEthicsBusinessEthics

18. © 2006 Pearson Education Canada Inc.Chapter 3 - 18 Responsibility Toward Employees Equal Employment Opportunity Employment Equity Act Occupational Health and Safety DiversityInitiatives

19. © 2006 Pearson Education Canada Inc.Chapter 3 - 19 Global Ethics and Social Responsibility Bribery Environmental Abuse Unscrupulous Business Practices