Business Ethics

Week 5 Lecture 2

CSR

To whom businesses have
responsibility??

If a firm is meeting all its responsibilities
to others why do ethical conflict arise?


CSR
Ponder !!!

Protecting Privacy of employees/
empowerment/ Access
VS
Stealing


Responsibilities of
Business Firm

Friedmans traditional view
vs
Carrolls four responsibilities of
business

Friedmans Traditional View

There is only one and one social
responsibility of business to use its
resources and engage in activities
designed to increase its profits so long as
it says within the rules of the game, which
is to say, engages in open and free
competition without deception of fraud
According to Porter and Kramer

social and economic goals are not
inherently conflicting but integrally
connected

How, why, examples????

How, Why , Examples !!!
Environmental Concerns may enable to change
premium prices and gain brand loyalty (e,g, ben
and jerrys)

Preference for working for responsible firm (e.g.
P&G, Starbucks)

Welcomed in foreign country (Levis)

Utilize goodwill for support in difficult times (Al
Fateh mall)


Carrolls View

Economic responsibilities services and
products

Legal responsibilities obeying law

Ethical responsibilities layoffs

Discretionary - voluntary
Survey across the world in 2006, by
Mckinsey and Company revealed that only
16% felt that business should focus on
providing the highest returns to investors
contrasted with 84% who stated that
business should generate high returns to
investors but must balance it with
contribution to broader public good

Common Business Ethical Challenges

Conflict in interest benefiting one
harming others e.g. advertising agencies,
representing competitors

Honesty and Integrity stealing
companys resources, insurance cases ,
making up personal credentials


Common Business Ethical Challenges

Loyalty VS Truth the conflict between
being loyal and truthful , the ugly situation

Whistle Blowing the act and
consequences

Shaping Ethical Conduct

Ethical Awareness

Ethical Reasoning

Ethical Action - ref cards , unrealistic
goals

Ethical Leadership







Define CSR

Defining CSR

Managements acceptance of the obligation
to consider profit, consumer satisfaction,
and societal wellbeing of equal value in
evaluating the firms performance

Social audits

Regulations

The Snap Shot
Public


Employees Investors



Customer
CSR


To The Public

To The Public
Public Health Issues the tobacco companies




To The Public
Protecting the Environment- pollution,
recycling, green marketing



To The Public
Corporate philanthropy donations,
volunteerism



To The Public
Developing the quality work force - diversity,
minorities, disabled people, commitment,
innovation, personal and professional
development





To The Customers


To the Customers
The Right to be Safe damage by products,
product liability , product testing e.g toys
parts and choking hazards





To the Customers
The Right to be Informed










Do not use
while sleeping
This towel has
been tested to
withstand strong
winds but do not
use in hurricane
to protect yourself


To the Customers
The Right to Choose the product



To the Customers
The Right to Complain



To the Employees

To the Employees

Workplace Safety - OSHA



To the Employees
Quality of life issues QWL, Work life
balance, leaves (mandatory )

To the Employees
Equal Opportunity, age discrimination and
sexual harassment


To Investors


The Corporate Governance

Accountability
Oversight
Control
Next lecture

Remember to pick up two cases

Who killed the electric car?
Starbucks mission responsibility and
growth