chapter 3 copyright © 2011 by nelson education ltd. 1 social trends, social responsibility, and...
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Copyright © 2011 by Nelson Education Ltd.1
Social Trends, Social Responsibility, and Making Ethical Decisions in Business
Social Trends, Social Responsibility, and Making Ethical Decisions in Business
Prepared byNorm Althouse
University of Calgary
Prepared byNorm Althouse
University of Calgary
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Learning Outcomes
Copyright © 2011 by Nelson Education Ltd.2
1. Identify some of the current social factors that have the greatest impact on business.
2. Explain how demographic shifts are creating both challenges and new opportunities for business.
3. Discuss the philosophies and concepts that shape personal ethical standards.
4. Show how organizations can encourage ethical business behaviour.
5. Define social responsibility.
6. Illustrate how businesses meet their social responsibilities to various stakeholders.
7. List some of the global and domestic trends in ethics and social responsibility.
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Social Trends and Responsibility and Ethics
Copyright © 2011 by Nelson Education Ltd.3
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SOCIAL TRENDS
4Copyright © 2011 by Nelson Education Ltd.
SocialFactors
SocialFactors
AttitudesAttitudes
ValuesValues
LifestylesLifestyles
Growth of Component Lifestyles
Increase in Two-Income Families
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DEMOGRAPHIC TRENDS
5Copyright © 2011 by Nelson Education Ltd.
DemographyDemography
AgeAge
RaceRace
EthnicityEthnicity
LocationLocation
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Diversity in Canada
Copyright © 2011 by Nelson Education Ltd.6
The fundamental belief in Canada that all citizens
are equal regardless of their racial or ethnic
backgrounds
The fundamental belief in Canada that all citizens
are equal regardless of their racial or ethnic
backgrounds
MulticulturalismMulticulturalism
Immigration versusmigrant workers
Immigration versusmigrant workers
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Copyright © 2011 by Nelson Education Ltd. 7
Canadian 11,682,680 Portuguese 357,690
English 5,978,875 Welsh 350,365
French 4,668,410 Jewish 348,605
Scottish 4,157,210 Russian 337,960
Irish 3,822,660 Filipino 327,550
German 2,742,765 Métis 307,845
Italian 1,270,370 Swedish 282,760
Chinese 1,094,700 Hungarian 267,255
Ukrainian 1,071,060 American 250,005
N.A. Indian 1,000,890 Greek 215,105
Dutch 923,310 Spanish 213,105
Polish 817,085 Jamaican 211,720
East Indian 713,330 Danish 170,780
Norwegian 363,760 Vietnamese 151,410
Statistics Canada 2001 Census
Canada’s Ethnic Diversity
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Ethics
Copyright © 2011 by Nelson Education Ltd.8
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Individual Business Ethics
Copyright © 2011 by Nelson Education Ltd.9
Recognizing Unethical Business Activities
Recognizing Unethical Business Activities
JusticeJustice
Individual RightsIndividual Rights
UtilitarianismUtilitarianism
FactorsFactorsInfluencingInfluencingIndividualIndividualBusinessBusiness
EthicsEthics
FactorsFactorsInfluencingInfluencingIndividualIndividualBusinessBusiness
EthicsEthics
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Copyright © 2011 by Nelson Education Ltd.10
UtilitarianismUtilitarianism The greatest good for the greatest number.
The greatest good for the greatest number.
Individual RightsIndividual RightsHuman rights implies that certain rights are conveyed atbirth and cannot be arbitrarily taken away.
Human rights implies that certain rights are conveyed atbirth and cannot be arbitrarily taken away.
JusticeJusticeEquitable distribution of the burdens and rewards that society has to offer.
Equitable distribution of the burdens and rewards that society has to offer.
Wrong!
Fair
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Ethical Development
Copyright © 2011 by Nelson Education Ltd.11
StagesStagesStagesStages
Preconventional(selfish)
Conventional(social)
Postconventional(principled)
Reward and punishment
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HOW ORGANIZATIONS INFLUENCE ETHICAL CONDUCT
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Establish a Formal Code of Ethics Establish a Formal Code of Ethics
Offer Ethics Training ProgramsOffer Ethics Training Programs
Lead by ExampleLead by Example
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SOCIAL RESPONSIBILITY
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EthicalEthical
LegalLegal
EconomicEconomic
PhilanthropicPhilanthropic
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Understanding Social Responsibility
Copyright © 2011 by Nelson Education Ltd.14
LegalityLegality ResponsibilityResponsibility
What are some examples by companies of legal but socially irresponsible acts?
What are some examples by companies of legal but socially irresponsible acts?
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Understanding Social Responsibility
Copyright © 2011 by Nelson Education Ltd.15
Responsible IrresponsibleLe
gal
Illeg
al Harms society, and breaks laws
Follows laws, but harms society
Follows laws, and benefits society
Benefits society,but breaks laws
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RESPONSIBILITIES TO STAKEHOLDERS
Copyright © 2011 by Nelson Education Ltd.16
ResponsibilitiesResponsibilitiesof aof a
BusinessBusiness
ResponsibilitiesResponsibilitiesof aof a
BusinessBusiness
InvestorsInvestors
General PublicGeneral Public
CustomersCustomers
EmployeesEmployees
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More Stakeholders
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TRENDS IN ETHICS & SOCIAL RESPONSIBILITY
18Copyright © 2011 by Nelson Education Ltd.
More protection for whistle blowersMore protection for whistle blowers
A new social contract between employer and employeeA new social contract between employer and employee
Growth of global ethics and social responsibilityGrowth of global ethics and social responsibility
Strategic giving in corporate philanthropyStrategic giving in corporate philanthropy
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Trends in Global Ethics
Respect local practices and customsEnsure harmony between staff and host
populationProvide management leadershipDevelop local managers who will be a credit to
the communityImplement ethical guidelines within the
organization in the host country
19Copyright © 2011 by Nelson Education Ltd.
Responsibilities of a Multinational Corporation
Responsibilities of a Multinational Corporation
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