Professional Documents
Culture Documents
337 Ethical Issues
337 Ethical Issues
Spring 2007
Spring 2007
Spring 2007
Spring 2007
Spring 2007
Rights?
Free consent Privacy Freedom of conscience Free speech Due process Life and safety
The problem arises with how these are to be put into action
Spring 2007
Spring 2007
Spring 2007
Spring 2007
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Leadership
Managers by definition are (or should be) role models
Ethical training
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Redemption-May-Be-Possible
Large organizations exploit those without power (especially multinational firms and indigenous peoples) Dont abolish business firms, but major reform is needed
Businesses have done a lot to earn their bad reputation Responsible business leaders must begin cleaning out the stables
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2004 Revenues ($B) Saudi Arabia 1) 2) 3) 4) 5) 6) 7) 8) WalMart BP Exxon / Mobil Royal Dutch / Shell General Motors Portugal DaimlerChrysler Toyota Motor Ford Motor Czech Republic $310.2 $288.0 $285.1 $270.8 $286.7 $193.5 $188.7 $176.7 $172.6 $172.2 $172.2
9)
General Electric
Finland
$152.9
$152.6 $151.2
Social Responsibility
Social Obligations School Maximize profits Stay within boundaries of law
The Friedman view
Ensure the organizations survival by responding to "currently prevailing social norms, values, and performance expectations." Social Responsiveness School Corporations should prevent and solve social problems Corporations can prevent and solve social problems
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Milton Friedman
The Social Responsibility of Business is to Increase its Profits
1) A corporation is an artificial person thus, unlike a real person, it has no ethical or moral obligations 2) Managers are responsible to owners: That responsibility is to conduct the business in accordance with their desires, which generally will be to make as much money as possible while conforming to the basic rules of the society, both those embodied in law and those embedded in ethical custom
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5)
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Friedman, Finale
6) Further, if business social spending (the specific expenditures) were a good ides (accepted by society), it would be a public responsibility and funded through taxes However, an organization may legitimately spend money on what may be perceived as social responsibility, but where there is a benefit to the firm (for example, funding education) Thus, corporations are judged solely by financial performance, as defined by the owners / shareholders
7)
8)
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Taking a Stand
Looking at costs
Short term vs. the long term
Examples:
Doing well by doing good: Costco Public relations: Sara Lee Environmental cost savings
Obligation to just the stockholders or to employees, and society as a whole ?????? Management values
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Proactive
Take social initiatives Accommodating
Defensive
Do only what is legally required
Values-Based Management
Using shared values as a basis for management decision-making Examples
Levi Strauss Body Shop ServiceMaster
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