Good Gov Chapter 2 (Bus.

Ethics & CSR compared)

Chapter 1 (Bus. Ethics as foundation for CSR)
CSR- sense of responsibility towards community & environment in
Good governance- process for making & implementing decisions w/c it operates

Seal of Good Housekeeping- good performance in internal Similarities between CSR & Bus. Ethics
housekeeping, in areas of: 1. Beyond profit- address common public good beyond of
 Local legislation corporate interest
 Development planning 2. Beyond compliance- responds to higher standards &
 Resource generation principles beyond mere obedience to law
 Resource allocation 3. Beyond form- beyond public relations & image building

Assessment areas: Similarities existing between CSR & Bus. Ethics

 Disaster preparedness
 Social protection
 Business friendliness & competitiveness
 Peace & order
 Environmental mgmt.
 Financial administration
Main characteristics of Good gov
1. Accountable- fundamental requirement
-obligation to report, explain & be answerable for
consequences of decisions
2. Transparent- able to clearly see how & why decision was
made
3. Responsive- serve needs of entire community while
balancing competing interests
4. Equitable & inclusive- feeling their interests have been
considered by council in decision-making process
-opportunities to participate in process
5. Effective & efficient- implement decisions & follow
processes that make best use of available people,
resources & time
6. Participatory- have opportunity to participate in process
for making that decisions
7. Follows rule of law- consistent w/ relevant legislation or
common law
Ethics/ Moral philosophy- study of morality
Morality- beliefs about right & wrong, good & evil
Beliefs- set of values, rules, principles & theories of morality
Business ethics- moral principles act as guidelines for way a business
conducts
-oxymoron or self-contradiction
Ethical management- basic behavioral principles of business ethics
that corp must comply
-relevant to business survival & corporate reputation
Bio-prospecting- looks for useful products in nature to create
pharmaceutical products
Bio-piracy- development of these pharmaceutical products w/o
giving compensation to community
Bioprospect- search for substances produced by living organisms
Role of ethics in management
1. EM in workplace
2. EM regarding intellectual property rights
3. EM in sales, ads & marketing- issue on pricing & price
4. EM in Production- ensure that products & production
processes do not cause harm
5. EM in finance, acctg, & auditing- manipulation of financial
markets, bribery
 Beyond compliance w/ law
 Not tantamount w/ relativism
 Born w/ universal values
 Not utilitarian
 Pragmatic & practical
 About firm conviction
 Beyond public relations
 Centered on total human development
The true, the just, the fair, & the good- only 1 universal language for
all business pratitioners
Evolution of bus. Ethics
1. 1st phase- sees profit & only profit
2. 2nd phase- complies w/ laws & regulations
3. 3rd phase- conforms to ethical requirements to build its
image
4. Ultimate phase- CSR & ethical mgmt. because it is the right
thing to do
Chapter 3 (Ethical mgmt. of profit)
People go into business :
 Personal satisfaction
 Earn livelihood
 Serve society through goods & services they offer to
customers
 Make profit
Profit-Latin “pro” w/c means forward & “facere” w/c means to make
-to make progress, advance, to move
-residual between value of output & other costs
-measured in terms of money equivalent
Good sides of profit-motive
 Motivates people to do something meaningful
 Promotes ingenuity & cleverness
 Makes people productive
 Generates potential capital for business
Bad sides of profit-motive
 Promotes rivalry among competitors
 Makes people focus only on making money
 Turns businessman from being reflective & questioning
person
 Promotes self-interest rather common good
Chapter 4 (Business ethics is not Utilitarianism)
Utilitarianism- moral or good when it produces greatest result for
greatest number of people
 -actions are right in proportion as they tend to promote
happiness, wrong as they tend to to produce reverse of happiness
Jeremy Bentham- most moral thing to do is the thing provides
greatest benefit to greatest no. of people
-all pleasure are the same
John Stuart Mill- happiness, not pleasure, should be standard of
utility
-have higher & lower class
Chapter 5 (Business ethics is not Relativism)
Relativism- belief that there’s no absolute truth, only truths that
particular individual happen to believe
Guanxi- Chinese term meaning “relationships” or “connections”
-it’s not what you know, but who you know that’s important
4 notions comprises relativism
1. Ethical- right or wrong depends on moral norms of society
2. Situational – right or wrong based on particular situation
3. Cognitive- truth itself has no objective standard
4. Cultural- we must understand individuals in context of
their own culture
Chapter 6 (Business ethics is beyond Legal Compliance)
Law- ordinance of reason promulgated by someone in authority
-by nature, both persuasive & coercive
Important features of law
1. Must be morally acceptable
2. Must be just
3. Precepts of law must be physically & morally possible
4. Must be ordained for common good
3 points of convergence
1. Coincidence
2. Legal is the minimum requirement of ethics
3. Legal is not acceptable to ethics
Ethical Mgmt. mean going beyond legal compliance
1. Beyond profit
2. Beyond compliance
3. Beyond form
Chapter 7 (MP1)
Human dignity in priority of labor over capital
Man above other M’s- above materials, machines, methods, mgmt.
money
Human capital-human resource
Intellectual capital- human knowledge
Abraham Lincoln- capital is the fruit of labor
-16th president of USA
-preserved Union, abolished slavery, strengthened federal Govt. &
modernized economy
John paul II in Centessimus Annus- priority of ethics over things &
superiority of spirit over matter
Homo Sapiens- thinking being
Homo Politicus- equal to his being in society or involvement in
political party
Homo Economicus- equal only to his qualified materiality
Imago Dei- we are all created in image & likeness of God
Human labor- free, conscious & intelligent subj. of work
Chapter 8 (MP2)
Respect for Fundamental Human rights
Universal declaration of Human rights- civil, political, economic,
social & cultural rights
Rights that can never be suspended:
 Right to life
 Recognition as person before law
 Freedom from thought, conscience & religion
 Freedom from torture
 Freedom from slavery
 Freedom from imprisonment for debt or from retroactive
penal legislation
In’t labor organization conventions- concerned w/ human rights
Right- personal entitlement to something
Moral right- universal, inviolable & inalienable rights derived from
moral system
-personal right that connect creator of work to their work
-begin when work is created, continue for lifetime & 70 yrs after
death
Right of attribution- name is always shown w/ your work
Right of integrity- work is not treated in way that hurts your
reputation
Moral rights infringement- not have been properly named or
credited
Derogatory treatment- treated your work in way that hurts
reputation
Employment- labor conditions, recruiting & laying off employees
Security- ensuring security of facilities & personnel
Economic dev’t- deciding w/c countries they are going to invest &
operate
Environment- identifying & managing environmental risk
Community/ Social Responsibilities- making positive contribution to
societies
Chapter 9 (MP3)
Respect for Basic employee rights
Right to work- part & parcel of right to life & duty to sustain
-fundamental right
 People work to survive
 Natural obligation to support out dependents
 Psychological
1. Right to equal employment opportunities- embraces all
w/o discrimination
2. Right to just wage & compensation- not only enable
worker meet cost of living, but also provide means of
desirable improvements
3. Right to security of tenure- services of workers cannot just
be terminated except for just cause
4. Right to due process & grievance procedure
-objective evaluation of case
-fair hearing & chance to appeal
Due process- plea for fair treatment
Grievance machinery- alternative dispute settlement mechanism
5. Right to collective bargaining- right to have organizations