Demanding Ethical and Socially

Responsible Behavior

McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.
Ethic –
Standards of moral behaviour accepted by society (right
– wrong)

Legality
Fairness
Balance
Self recognition and acceptance
 BASIC MORAL VALUES
Right: Wrong:
• Integrity •Cheating
• Respect for human life •Cowardice
•Cruelty
• Self-control
• Honesty
• Courage
• Self-sacrifice

4-3
 ETHICS and YOU

• Plagiarizing from Internet

materials is the most
common form of cheating
in schools today.

• Studies found a strong

relationship between
academic dishonesty and
dishonesty at work.

4-4
 FACING ETHICAL DILEMMAS

Ask yourself these

questions:
- Is it legal?
- Is it balanced?
- How will it make me
feel about myself?

4-5
 ETHICS CODES

An increasing number of companies have adopted

written codes of ethics.

• Compliance-Based Ethics Code -- Emphasize

preventing unlawful behavior by increasing control
and by penalizing wrongdoers.

• Integrity-Based Ethics Code -- Define the

organization’s guiding values, create an environment
that supports ethically sound behavior and stress a
shared accountability.

• Book pages: 100-101

4-6
Strategies for Ethics Management

•Integrity-based ethics codes move

beyond legal compliance to create a ‘do
it right’ climate that emphasizes core
values such as honesty, fair play, good
service to customers, a commitment to
diversity, and involvement in the
community. These values are ethically
desirable, but not necessarily legally
mandatory.
 PROGRESS
ASSESSM
ENT -
HOMEWO
RK

• What are ethics?

• How do ethics differ from legality?

• When faced with ethical dilemmas, what

questions can you ask yourself that might help
you make ethical decisions?

4-8
 PROGRESS
ASSESSM
ENT -
HOMEWO
RK

• What are compliance-based and integrity-based

ethics codes?

4-9
 CORPORATE SOCIAL
RESPONSIBILITY

• Corporate Social Responsibility (CSR) -- The

concern businesses have for the welfare of society.

• CSR is based on a commitment to integrity,

fairness, and respect.

• CSR proponents argue that businesses owe

their existence to the societies they serve and
cannot exist in societies that fail.

4-10
 Corporate social responsibility –
a business concern for the welfare of society

Social performance of a company has dimensions:

Corporate responsibility – Corporate policy – refers

Corporate philanthropy -
includes everything from to the position a firm
charitable donations to
hiring minority workers takes on social and
nonprofit groups
to making safe products political issues
 Responsibility to Customers

BASIC RIGHTS of CONSUMERS

• The Right to Safety

• The Right to be Informed

• The Right to Choose

• The Right to be Heard

4-13
 RESPONSIBILITY TO INVESTORS

• Insider Trading -- Insiders using

private company information to further
their own fortunes or those of their
family and friends.

• Unethical behavior does financial

damage to a company and
investors are cheated.

4-14
 RESPONSIBILITY to
EMPLOYEES
• Create jobs and provide a chance for upward
mobility.
• Treat employees with respect.
• Offer salaries and benefits that help employees
reach their personal goals.

4-15
 RESPONSIBILITY to SOCIETY and
the ENVIRONMENT

• Over one-third of working Americans receive

their salaries from nonprofits – who are
dependent on funding from others.

• The green movement emerged as concern about

global warming increased.

• Many companies are trying to minimize their

carbon footprints – the amount of carbon
released during an item’s production, distribution,
consumption and disposal.
4-16
 RESPONSIBILITY to the
ENVIRONMENT
Going green means increasing one's initiatives toward a
concern for the environment.

• By 2030, as many as 40
million “Green” jobs will
be created.

4-17
SOCIAL AUDIT

•A systematic evaluation of an
organization’s progress toward
implementing socially responsible and
responsive programs.