ethics and corporate social responsibility
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Ethics and Corporate Social Responsibility. Nicki Sheridan, Nalini Priya, Kendra Gallion. Overview of Ethics. Discussion Question: Define Ethics Ethics is about doing the right thing within a moral framework. The practical application of morality. - PowerPoint PPT PresentationTRANSCRIPT
Ethics and Corporate Social Responsibility Nicki Sheridan, Nalini Priya, Kendra Gallion
Overview of Ethics Discussion Question:
Define Ethics
Ethics is about doing the right thing within a moral framework.
The practical application of morality.
Not just determining what is right, but following through and doing what is right.
Test of Ethical Behavior Morning-After Test
How will you feel about this behavior tomorrow morning?
Front-Page Test How would you like to see this behavior written up on the front page of
your hometown newspaper?
Mirror Test How will you feel about this behavior when you look in the mirror?
Role Reversal Test How will you feel about being on the receiving end of this behavior?
Commonsense Test What does everyday common sense say about this behavior?
Trust & Total Quality “The total quality approach cannot be successfully
implemented in an organization that fails to subscribe to high standards of ethical behavior” (Goetsch, 2010, p. 75).
Ethical behavior builds trust.
Trust is essential to total quality.
Managers need to build trust in the organization as well as between employees.
Elements of Total QualityThat Depend on Trust
Communication
Interpersonal Relations
Conflict Management
Problem Solving
Teamwork
Employee Involvement and Empowerment
Customer Focus
Values & Total Quality An organization will not produce quality if the
organizational values are not quality.
Ethical behavior begins with values
Values that lead to ethical behavior: Fairness Dependability Integrity Honesty Truthfulness
Integrity & Total Quality Integrity combines dependability and honesty
Discussion Question: Does ethical behavior automatically follow if the
organization has integrity?
Managers in a total quality setting need to strive for integrity vs. honesty
Responsibility & Total Quality Accepting responsibility is part of ethical behavior.
Modern society has evolved to focus on rights but ignores the responsibilities that accompany those rights.
Total quality settings assure people are responsible for their actions rather than passing the blame.
Accepting responsibility builds trust, integrity, and other elements of ethics that are important to total quality.
Manager’s Role in Ethics Must set consistent example of punctuality
Should be motivation and inspiration
Should be self disciplined, honest, and show commitment towards work
Manager’s Role in Ethics Manager has three main responsibilities:
Responsible for setting example of ethical behavior Responsible for helping employees make ethical
choices Responsible for helping employees follow through
and exhibit ethical behavior after appropriate choice has been made
Approaches to Ethics Best-Ratio Approach
Black and White Approach
Full-Potential Approach
Organization’s Role in Ethics Create internal environment that promotes ethical
behavior
Set example of ethical behavior
Ethical Environment Establish policies and practices
Enforce policies
Develop ethics philosophy with key concepts: Honesty Integrity Truth Fairness
Setting an Example Employees should be able to trust each other
Create ethical internal environment
Handling Ethical Dilemmas What solutions are most likely to build trust among
those involved?
What solution fits best into company’s value system?
What solution is most likely to enhance the organization integrity?
What solution is the most responsible option?
Ethics Training Employee theft
Conflict of interest
Quality control
Misuse of company property
Environmental pollution
Method’s of gathering competitor’s information
Ethics Training Inaccuracy of books and records
False or misleading advertising
Political contribution and activities
Improper relations with local and federal government representatives
Improper relations with foreign government officials
Codes of Business Conduct Ethics training is becoming increasingly important
as the pressures of succeeding is an intensely competitive global market place will frequently face ethical dilemmas.
Encourage two way communication
Make training practical
Avoid dogmatic statements
Ethical Decision Making
Ethical issue intensity
Business ethics evaluations and intentions
Ethical or unethical behavior
Individual factors
Organizational factors
Opportunity
Ethical Decision Making Decision making models
Categorical imperative Full-disclosure Doctrine of the mean Golden rule Market-ethic Organizational ethic Equal freedom Proportionality ethic Professional ethic
Belief vs. Behaviors Discussion Question:
What is dishonesty?
Self-Interest vs. Self-Protection
Conflicting values i.e. Honesty vs. Loyalty
Tangible vs. Intangible
Social Responsibility Four steps of Social Responsibility:
Philanthropic Ethical Economic Legal
Social Responsibility and Ethics Social responsibility
i.e. PNC Financial Services Group donates $28 million yearly in grants and scholarships for arts, community improvement, and education.
Corporate Social Responsibility Also known as CSR
Discussion Question: What is corporate social responsibility (CSR)?
“A good company delivers excellent products and services; a great company delivers excellent products and services and strives to make the world a better place” (Ford Jr. as cited in Goetsch and Davis, 2010, p. 90).
Case Study Group Activity
Case Study
Treating your female employee differently based on her gender or in response to a harassment complaint may be considered discriminatory and unethical conduct.
Closing Business Ethics Video
What should you learn from it?
References Examples of Ethical Issues in Business. (n.d.). Small
Business. Retrieved November 6, 2013, from http://smallbusiness.chron.com/examples-ethical-issues-business-24464.html
Ferrell, O. C., Fraedrich, J., & Ferrell, L. (2011). Business ethics: ethical decision making and cases (8. ed.). Mason, OH: South-Western Cengage Learning.
Goetsch, D. L., & Davis, S. (2010). Quality management for organizational excellence: introduction to total quality (6th ed.). Upper Saddle River, N.J.: Prentice Hall.