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Ethics and Corporate Social Responsibility (CSR: the obligations of firms…
Ethics and Corporate Social Responsibility
CSR: the obligations of firms to society or more specifically to those affected by corporate policies and practices
Holmes - values set the minimum standards and ethics are the guidelines
Design and implement information systems to monitor environment impact (Shell Report: People, Plant, and Profit)
Design and implement incentives designed to promote sustainability
Contribute to institutions that promote good practice
Aim for fairness and equality in globalisation - don't leave the developing world behind
removal of protectionist boundaries
promote multilateral agreements that are of benefit to developing countries
Civil society is a big driver of corporate responsibility and more stable global environment/rules, as it pushes for policy reform
4 main issues within CSR
human rights
sustainable development
global citizenship
business ethics
Business Ethics: The critical, structured examination of how people and institutions should behave in the world of commerce.
Ethical Dilemma: Moral conflicts that occur when a morally right choice may generate a bad outcome or when a morally wrong choice may result in a good outcome.
Corruption: The abuse of entrusted power for private gain.
Causes of corruption:
Administrative resource allocation
Lack of institutional checks and balance of information
Insufficient funding of public services
Social and cultural factors
Natural resources
Direct effects of corruption
Discourages domestic and foreign indirect investment.
Skews public capital expenditure.
Reduces the productivity of public investments and the collection of tax.
Indirect effects of corruption
Reduction in work productivity as a result of discrimination
Dislocation of social fabric
Loss of integrity inside the bribe giving companies
Corrupt money being linked to criminal activities
Perceived Moral Intensity: Perceived moral intensity refers to an individual’s perception of the specific characteristics of the moral issue and therefore, has a direct impact on whether that individual will perceive an ethical problem in a situation.
Society’s moral climate has an impact on perceived moral intensity. For an example, American firms actively attempt to build ethics into their corporations and American business schools provide ethical training, while Malaysian businesses consider ethics as secondary and accept practices such as bribery and cheating of customers.
Organisational culture has an impact on perceived moral intensity. For an example, American firms distribute codes of ethics to all employees, and communicates these while Malaysian managers are unaware of formal written code of ethics within their companies and industries.
A country's culture has an impact on the perceived moral intensity. For an example, a America is characterised by high individualism and low power distance they are less likely to conform to informal pressures of ethical issues while low individualism and high power distance in Malaysian managers result in them being more sensitive to ethical dilemmas.
Global citizenship
the 'dos' of CSR
uncompromising integrity
engagement with a variety of external stakeholders
protect the privacy of customers, partners and employees
improve access to technology
environmentally sustrainable
Corruption:gifts become bribes
The causes of corruption
Adminnistrative resource allocation
Lack of institutional
Insufficient funding of public services
Social and cultural factors
Natural resources
The effects of corruption
Direct
It discourages domestic and foreign indirect investment
It skews public capital expenditure
It reduces the productivity of public investments and reduces the collection of taxes
Indirect
Reduction in work productivity as a result of demotivation
Dislocation of social fabric
Loss of integrity inside the bribe-giving companies
Corruption money is often linked to criminal and terrorist activities
The anti-corruption initiatives
Genetal Assembly
International Chambers of commerce
World Back
Council of Europe
The Caux Round Table
Sustainable Development:
Meets the needs of the present, without compromising the ability of future generations to meet their own needs.
Global Warming & CO2 Emissions
Cap-and-trade:
sets a limit on the amount of CO2 that companies are allowed to emit.
Control of Suppliers
Out sourcing
Green Purchasing (EPP):
Environmental Preferable Purchasing.
Selection & acquisition of product and services that minimize the negative environmental impact.
Energy & water conservation
Reduction of waste and pollutants
use of recycled materials
Human resources practices
Forced Labour
Child Labour
Discriminatory employment
Eco-Friendly Capital Investments
Elements taken into consideration:
Inputs:
Energy, building materials,
water, machines, chemicals, land, supplies
Outputs:
CO2, Waste, Products, Recycling, Packaging
Waste Disposal in the Developing World:
Lack of financial resources,
quest for international currencies.
Dismantling of electronic equipment
Effects on monocultures, deforestation &
intensive agriculture