Demonstrating Ethical Behavior and Social Responsibility

1. Demonstrating Ethical Behavior and Social Responsibility 1 Chapter 4

2. Define ethics. Understand the approaches and the process of making an ethical decision. Distinguish between compliance-based and integrity-based ethics codes, and list the five steps in setting up a corporate ethics code. Describe the indicators of corporate social responsibility. Examine corporate responsibility to various stakeholders. Describe how social responsibility can be measured. Discuss ethics and social responsibility on a global level. Learning Objectives

3. Right vs. wrong Sources – religion and culture The Golden Rule Legality Ethics Defined

4. Guide to making the right decisions Five main approaches Utilitarian Rights Fairness or justice Common good Virtue Personal Ethics

5. Center for Applied Ethics – Eight principles: Concern for the well-being of others. Respect for the autonomy of others. Trustworthiness and honesty. Willing compliance with the law (with the exception of civil disobedience). Basic justice; being fair. Refusing to take unfair advantage. Benevolence; doing good. Preventing harm to others and the world around us. Personal Ethics

6. Five step process to ethical decision making: Recognize an ethical issue. Get the facts. Evaluate alternative actions. Act on your decision. Reflect on your decision. Personal Ethics

7. Formal code of ethics: Compliance-based Integrity-based Five-step improvement process for America’s business ethics Sarbanes-Oxley Whistleblowers New penalties New overseeing agency Flaws of the act Corporate Ethics

8. Corporate philanthropy Charity Corporate responsibility Corporate policy Corporate Social Responsibility Defined

9. Responsibility to Stakeholders Customers • Importance of pleasing customers • 3 out of 5 businesses fail • Payoff for socially conscious behavior • Trust Investors • Insider trading • Honest bookkeeping • Doing the right thing

10. Responsibility to Stakeholders Employees • Business’ responsibilities • Create jobs • Pension • Retain employees • Diversity Society and the Environment • Create new wealth • Promote social justice • A public good

11. Profit motive Social audit 4 watchdogs: Socially conscious investors Environmentalists Union officials Customers Not enough to be ethical Measuring Social Responsibility

12. Ethical problems are not unique to the United States. Should everyone adhere to American ethical standard? Common global ethic Ethics and Social Responsibility Globally