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Universitas Multimedia Nusantara (UMN) Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.

1 Jakarta Universitas Multimedia Nusantara (UMN) Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta

Week 4

Content : Intro .....

thics
Ethics in
the Workplace Business E
Social
Responsibility

Implementing
SR program
Jakarta, Septem
ber 2007

Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi e-mail: anna@unimedia.ac.id Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi e-mail: anna@unimedia.ac.id

Universitas Multimedia Nusantara (UMN) Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta Universitas Multimedia Nusantara (UMN) Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta

What is Ethics ? If…

“Beliefs about what is right and wrong or good and bad
in actions that affect others”
Content : (Griffin, 2007) Content :

Ethics in “The rules and principles that define right and wrong conduct”. Ethics in
the Workplace the Workplace
(Robbin, 2007)

Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi e-mail: anna@unimedia.ac.id Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi e-mail: anna@unimedia.ac.id

Universitas Multimedia Nusantara (UMN) Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta Universitas Multimedia Nusantara (UMN) Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta

Then ... By process…

Content : Content :

Ethics in Ethics in
the Workplace the Workplace

Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi e-mail: anna@unimedia.ac.id Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi e-mail: anna@unimedia.ac.id

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Universitas Multimedia Nusantara (UMN) Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta Universitas Multimedia Nusantara (UMN) Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta

Is there any gray area in ethics ? No…!!

Content : Content :

Ethics in Ethics in
the Workplace the Workplace

Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi e-mail: anna@unimedia.ac.id Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi e-mail: anna@unimedia.ac.id

Universitas Multimedia Nusantara (UMN) Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta Universitas Multimedia Nusantara (UMN) Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta

What is Business Ethics ?

• Ethical behavior is behavior conforming to
generally accepted social norms concerning
Ethical or unethical behaviors by a manager or employer
beneficial and harmful actions
of an organization
Content : Content :
• Unethical behavior is behavior that does not
conform to generally accepted social norms
Ethics in
concerning beneficial and harmful actions Ethics in
the Workplace the Workplace

Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi e-mail: anna@unimedia.ac.id Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi e-mail: anna@unimedia.ac.id

Universitas Multimedia Nusantara (UMN) Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta Universitas Multimedia Nusantara (UMN) Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta

Business and Managerial Ethics Steps in Making Ethical Judgments

Managerial ethics are standards of behavior that guide individual
managers in their work. Three broad categories:
– Behavior toward Employees
Content : – Behavior toward the Organization Content :
– Behavior toward Other Economic Agents

Ethics in Ethics in
the Workplace the Workplace

Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi e-mail: anna@unimedia.ac.id Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi e-mail: anna@unimedia.ac.id

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Universitas Multimedia Nusantara (UMN) Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta Universitas Multimedia Nusantara (UMN) Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta

Company Practices and Business Ethics Core Principles and Organizational Values

• Adopting Written Codes
– Many companies have written codes that formally announce
their intent to do business in an ethical manner.
Content : Content :

• Instituting Ethics Programs
Ethics in
the Workplace
– Ethical responses can be learned Ethics in
the Workplace
through experience.

Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi e-mail: anna@unimedia.ac.id Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi e-mail: anna@unimedia.ac.id

Universitas Multimedia Nusantara (UMN) Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta Universitas Multimedia Nusantara (UMN) Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta

Same blue taxi ? Coincidence or ... ?

Content : Content :

Ethics in Ethics in
the Workplace the Workplace

Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi e-mail: anna@unimedia.ac.id Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi e-mail: anna@unimedia.ac.id

Universitas Multimedia Nusantara (UMN) Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta Universitas Multimedia Nusantara (UMN) Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta

Expanded Model of Ethical Judgment Making
Stages of Moral and Ethical Development

Content : Content :

Ethics in Ethics in
the Workplace the Workplace

Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi e-mail: anna@unimedia.ac.id Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi e-mail: anna@unimedia.ac.id

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Universitas Multimedia Nusantara (UMN) Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta Universitas Multimedia Nusantara (UMN) Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta

Business Ethical Challenges What is a Whistle-Blower ?

Employee who detects and tries to put an end to
a company’s unethical, illegal or socially
Content : Content : irresponsible actions by publicizing them

Ethics in
the Workplace

Social
Responsibility

Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi e-mail: anna@unimedia.ac.id Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi e-mail: anna@unimedia.ac.id

Universitas Multimedia Nusantara (UMN) Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta Universitas Multimedia Nusantara (UMN) Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta

How Organizations Shape Ethical Conduct

Content : Content :

Ethics in Ethics in
the Workplace the Workplace

Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi e-mail: anna@unimedia.ac.id Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi e-mail: anna@unimedia.ac.id

Universitas Multimedia Nusantara (UMN) Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta Universitas Multimedia Nusantara (UMN) Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta

Johnson & Johnson’s Credo Johnson & Johnson’s Credo

Content : Content :

Ethics in Ethics in
the Workplace the Workplace

Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi e-mail: anna@unimedia.ac.id Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi e-mail: anna@unimedia.ac.id

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Universitas Multimedia Nusantara (UMN) Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta Universitas Multimedia Nusantara (UMN) Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta

What Are Organizational Stakeholders ? Major Corporate Stakeholders

Those groups, individuals and organizations
that are directly affected by the practices of an organization
Content : and who therefore have a stake in its performance Content :

Social Social
Responsibility Responsibility

Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi e-mail: anna@unimedia.ac.id Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi e-mail: anna@unimedia.ac.id

Universitas Multimedia Nusantara (UMN) Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta Universitas Multimedia Nusantara (UMN) Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta

Responsibilities of Business Responsibilities to the General Public

Content : Content :

Social Social
Responsibility Responsibility

Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi e-mail: anna@unimedia.ac.id Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi e-mail: anna@unimedia.ac.id

Universitas Multimedia Nusantara (UMN) Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta Universitas Multimedia Nusantara (UMN) Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta

Areas of Social Responsibility

• Responsibility Toward the Environment

Content : Content : • Responsibility Toward Customers

• Responsibility Toward Employees

• Responsibility Toward Investors
Social Social
Responsibility Responsibility

Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi e-mail: anna@unimedia.ac.id Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi e-mail: anna@unimedia.ac.id

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Universitas Multimedia Nusantara (UMN) Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta Universitas Multimedia Nusantara (UMN) Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta

Responsibility Toward the Environment Responsibilities to Customer

What is Consumerism ?
Controlling pollution—the injection of harmful substances into
the environment—is a significant challenge to contemporary Form of social activism dedicated to protecting the rights of
business. consumers in their dealings with businesses
Content : Content :
• Air Pollution
• Water Pollution
Basic Consumer Rights Source: Griffin, 2007
• Land Pollution
 Toxic Waste Disposal 1. Consumers have a right to safe products.
Social  Recycling Social
Responsibility Responsibility 2. Consumers have a right to be informed about all relevant
aspects of a product.
3. Consumers have a right to be heard.
4. Consumers have a right to choose what they buy.
5. Consumers have a right to be educated about purchases.
6. Consumers have a right to courteous service.

Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi e-mail: anna@unimedia.ac.id Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi e-mail: anna@unimedia.ac.id

Universitas Multimedia Nusantara (UMN) Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta Universitas Multimedia Nusantara (UMN) Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta

Consumer Rights Source: Kurtz & Boone, 2007

Content : Content :

Social Social
Responsibility Responsibility

Source: Marketing Magazine, 2006

Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi e-mail: anna@unimedia.ac.id Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi e-mail: anna@unimedia.ac.id

Universitas Multimedia Nusantara (UMN) Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta Universitas Multimedia Nusantara (UMN) Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta

Unfair Pricing Ethics in Advertising23

• Food product labeling
• Collusion occurs when two or more firms agree to
collaborate on such wrongful acts as price fixing • Misleading product claims
Content : • Price gouging is a response to increased demand with Content : • Deceptive advertising
overly steep price increases • Morally objectionable advertising

Social Social
Responsibility Responsibility

Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi e-mail: anna@unimedia.ac.id Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi e-mail: anna@unimedia.ac.id

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Universitas Multimedia Nusantara (UMN) Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta Universitas Multimedia Nusantara (UMN) Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta

Warning Labels

Content : Content :

Source: Marketing Magazine, 2006
Social Social
Responsibility Responsibility

Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi e-mail: anna@unimedia.ac.id Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi e-mail: anna@unimedia.ac.id

Universitas Multimedia Nusantara (UMN) Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta Universitas Multimedia Nusantara (UMN) Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta

Legal and Social Commitments

• Businesses cannot practice illegal discrimination against
people in any facet of the employment relationship.
Content : Content :
• Businesses should provide employees with equal
opportunities for reward and advancement without regard
to race, sex or other irrelevant factors.

Social Social • Businesses should strive to ensure that the workplace is
Responsibility Responsibility
physically and socially safe.

Source: Marketing Magazine, 2006

Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi e-mail: anna@unimedia.ac.id Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi e-mail: anna@unimedia.ac.id

Universitas Multimedia Nusantara (UMN) Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta Universitas Multimedia Nusantara (UMN) Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta

Responsibility Toward Investors Implementing Social Responsibility Programs

• Improper Financial Management
• Critics of socially responsible business oppose any
– Check Kiting
business activity that threatens profits.
Content : – Insider Trading Content :
• Proponents of socially responsible business believe that
– Misrepresentation of Finances corporations are citizens and should help to improve the
lives of fellow citizens.

Social
Responsibility

Implementing
SR program

Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi e-mail: anna@unimedia.ac.id Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi e-mail: anna@unimedia.ac.id

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Universitas Multimedia Nusantara (UMN) Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta Universitas Multimedia Nusantara (UMN) Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta

Spectrum of Approaches to Social Responsibility Approaches to Social Responsibility

• Obstructionist stance involves the firm doing as little as
possible and may involve attempts to deny or cover up
violations
Content : Content :
• Defensive stance involves the firm meeting only minimum
legal requirements in its commitments to groups and
individuals in its social environment

• Accommodative stance involves the firm, if specifically
asked to do so, exceeding legal minimums in its
commitments to groups and individuals in its social
Implementing
SR program
Implementing
SR program
environment

• Proactive stance involves the firm actively seeking
opportunities to contribute to the well being of groups and
individuals in the firm’s social environment
Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi e-mail: anna@unimedia.ac.id Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi e-mail: anna@unimedia.ac.id

Universitas Multimedia Nusantara (UMN) Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta Universitas Multimedia Nusantara (UMN) Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta

Top 15 Corporate Foundations Establishing a Social Responsibility Program

Content : Content :

Implementing Implementing
SR program SR program

Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi e-mail: anna@unimedia.ac.id Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi e-mail: anna@unimedia.ac.id

Universitas Multimedia Nusantara (UMN) Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta

thank you

Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi e-mail: anna@unimedia.ac.id

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