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


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


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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


DemographyDemography

AgeAge

RaceRace

EthnicityEthnicity

LocationLocation

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Diversity in Canada


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


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Individual Business Ethics


Recognizing Unethical Business Activities

Recognizing Unethical Business Activities

JusticeJustice

Individual RightsIndividual Rights

UtilitarianismUtilitarianism

FactorsFactorsInfluencingInfluencingIndividualIndividualBusinessBusiness

EthicsEthics

FactorsFactorsInfluencingInfluencingIndividualIndividualBusinessBusiness

EthicsEthics

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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


StagesStagesStagesStages

Preconventional(selfish)

Conventional(social)

Postconventional(principled)

Reward and punishment

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HOW ORGANIZATIONS INFLUENCE ETHICAL CONDUCT


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


EthicalEthical

LegalLegal

EconomicEconomic

PhilanthropicPhilanthropic

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Understanding Social Responsibility


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


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


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


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


Responsibilities of a Multinational Corporation

Responsibilities of a Multinational Corporation

chapter 3 copyright © 2011 by nelson education ltd. 1 social trends, social responsibility, and...

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