Presentation Chapter 10 Essay

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Business Ethics,
Social
Responsibility, and
Environmental
Sustainability

Chapter Ten
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1. Discuss the ethics of workplace romance.
2. Explain why concern for wildlife is a strategic issue for firms.
3. Explain why good ethics is good business in strategic management.
4. Explain how firms can best ensure that their code of business ethics guides decision making instead of being ignored.
5. Explain why whistle-blowing is important to encourage in a firm.
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6. Discuss the nature and role of corporate sustainability reports.
7. Discuss specific ways that firms can be good stewards of the natural environment.
8. Explain ISO 14000 and 14001.
9. Discuss recent trends in bribery law.

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►

Social responsibility
►

►

actions an organization takes beyond what is legally required to protect or enhance the wellbeing of living things

Sustainability
►

the extent that an organization’s operations and actions protect, mend, and preserve rather than harm or destroy the natural environment

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►

Business ethics
►

principles of conduct within organizations that guide decision-making and behavior

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To ensure that the code of ethics is read, understood, believed, and remembered, periodic ethics workshops are needed to sensitize people to workplace circumstances in which ethics issues may arise

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Whistle-blowing
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refers to policies that require employees to report any unethical violations they discover or see in the firm

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Ethics training programs should include messages from the CEO or owner of the business emphasizing ethical business practices, the development and discussion of codes of ethics, and procedures for discussing and reporting unethical behavior

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Bribery the offering, giving, receiving, or soliciting of any item of value to influence the actions of an official or other person in discharge of a public or legal duty ► is a crime in most countries of the world, including the United States
►

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► Workplace romance can be detrimental to morale and productivity
► favoritism complaints can arise
► confidentiality of records can be breached
► reduced quality and quantity of work
► personal arguments can lead to work arguments
► whispering secrets can lead to tensions
► sexual harassment charges may ensue
► conflicts of interest could arise

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Ralph Nader proclaims that organizations have tremendous social obligations. ►

Milton Friedman asserts that organizations have no obligation to do any more for society than is legally required. Copyright ©2015 Pearson Education, Inc

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Social policy
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concerns what responsibilities the firm has to employees, consumers, environmentalists, minorities, communities, shareholders, and other groups Firms should strive to engage in social activities that have economic benefits

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Employees, consumers, governments, and society are especially resentful of firms that harm rather than protect the natural environment Conversely people today are especially appreciative of firms that conduct operations in a way that mends, conserves, and preserves the natural environment

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Uniform standards defining environmentally responsible company actions are rapidly being incorporated into our legal landscape
It has become more and more difficult for firms to make “green” claims when their actions are not substantive, comprehensive, or even true
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