Professional Documents
Culture Documents
WEEK 9 - Ethics and CSR
WEEK 9 - Ethics and CSR
RESPONSIBILITY
&
SUSTAINABILITY
Ethics
Rules and standards governing the conduct of a person or group
“Conception of right and wrong, moral and immoral, good and evil conduct”
Influenced by;
◦ Religious beliefs, society
◦ Family, upbringing, friends
◦ Schools, school teachers
◦ Colleagues, neighbors...
Business Ethics
◦ Refers to ethical or unethical behaviors by managers/
employees in the context of their jobs
Ethical Behavior
Businesses are expected to
Compete fairly and honestly
Communicate truthfully
Be transparent
Not cause harm to others
What is Unethical at the Workplace?
https://youtu.be/2OmRgNfEEE8?t=6
Strategies for Supporting Ethical Behaviour
Start from the Define Craft a code of Train and Practice Provide
top expectations ethics with support transparency feedback
and set an visible employees channels
example consequences
/
https://youtu.be/_nztjRpmOLQ
Ethical Decision Making
Ethical dilemma
◦ A situation in which an individual or a group makes a decision that is morally wrong,
illegal, or unethical
Conflicts of interest
◦ Situations in which competing loyalties can lead to ethical lapses, such as when a
business decision may be influenced by the potential for personal gain.
Case Study: Ford Pinto
https://www.youtube.com/watch?v=PAI5T8UecEY
Ethical Dilemma:
Milton Friedman - The Value of a Human Life
Debate
https://www.youtube.com/watch?v=faSa3r8WIU0
Finding the Right
Answer When Faced
Approach
Justice
Summary
Treat people equally or at least fairly in a way
with an Ethical Dilemma
that makes rational and moral sense.
QUESTIONS
1. What would be your key considerations in your approach to resolving the dilemma
presented?
2. What course of action would you take to resolve the dilemma?
* Monetary evaluation of the amount of resources and efforts that must be invested for the
production of a good or service.
Corporate Social
Responsibility (CSR)
The idea that business has obligations to society
beyond the pursuit of profits
◦ It covers social and environmental issues for all stakeholders
◦ CSR should not be separated from business strategy and
operations
◦ CSR is a voluntary concept.
The Relationship Between
Business and Society
◦ Consumers in contemporary societies enjoy and expect a wide range of
benefits, from education and healthcare to credit and products that are safe
to use.
• Financial contributions
Responsibility • Volunteerism
towards Community • Supporting social causes – education, art, science etc.
Pyramid of CSR ( Carroll, 1991)
Philanthropic Responsibilities
Be a good corporate citizen.
Ethical Responsibilities
Be ethical.
Legal Responsibilities
Obey the law.
Economic Responsibilities
Be profitable.
Philanthropy vs. Strategic CSR
Philanthropy
• Donating money, time, goods, or services to charitable, humanitarian, or
educational institutions.
• Bill & Melinda Gates Foundation - one of the largest private foundations in
the world ( $50 billion)
Strategic CSR
• Social contributions that are directly aligned with a company’s overall business
strategy.
• Social mission = company mission
The TOMS Story- a company that would match every pair of shoes purchased
with a pair of new shoes given to a child in need. One for One.™
Perspectives on Corporate Social Responsibility
Minimalist CSR
◦ Minimal social responsibility by
paying taxes and obeying the law
Cynical CSR
◦ Company accused of irresponsible
behavior promotes itself as being
environmentally responsible but not
making substantial business actions
Defensive CSR
◦ Nongovernmental Organisations
Proactive CSR
◦ Purpose-driven company aspires to
accomplish more than just making
money for owners and investors
SCHNEIDER ELECTRIC
Corporate Social
Responsibility Examples
8.118
scholarships
81 cities
264 schools
81 cities
7 different plays
2 million children
https://www.youtube.com/watch?v=hDXwpCl_tR0
A CSR Example: WeTransfer
During the pandemic, WeTransfer donated an additional
500 million ad impressions (equivalent to $5 million in
cash) on their highly-trafficked homepage wallpaper to
showcase the work of artists and organizations that support
them.
While you wait for your documents to load and be sent via
WeTransfer, you’re witnessing a subtle, but genius, CSR
example.
Pros Cons
• Balances corporate power with • Lowers economic efficiency and
responsibility profit
• Promotes long-term benefits • Imposes hidden costs passed on
to stakeholders
• Improves business value and
reputation • Requires skills business may lack
• Corrects social problems caused • Places responsibility on business
by business rather than individuals.
Sustainability
“Meeting the needs of the present generation without compromising the ability of future generations to meet
their needs.”
Brundtland (1987)
Sustainable
development
Operating business in a
manner that minimizes
pollution and resource
depletion, ensuring that
future generations will
have vital resources
Strategic CSR &
Sustainability
https://www.youtube.com/watch?v=3_fGtQ_Dd1g
Top 10 Environmental Issues
Climate Change
Energy
Water
Biodiversity and Land Use
Chemicals, Toxics, and Heavy
Metals
Air Pollution
Waste Management
Ozone Layer Depletion
Oceans and Fisheries https://www.youtube.com/watch?v=EtW2rrLHs08
Deforestation
Why companies adopt green practices?
Opportunities or competitive advantage
Corporate Social Responsibilities (CSR)
Government pressure
Public pressure
Shareholder pressure
Customer pressure
Competitive pressure
Cost or profit issues
Enhance quality
How companies go green?
Redesigning existing products or
services
Everything from ingredients to
packaging