CHAPTER 5: Ethics, Corporate Social Responsibility, and Sustainability

Introduction

Ethics - accepted principles of right or wrong that govern...

Ethical strategy - a strategy, or course of action, that does not violate these accepted principles

Business ethics - accepted principles of right or wrong governing the conduct of business people

Ethical Issues in International Business

Environmental pollution

Corruption

Human rights

Moral obligations of multinational companies

Employment practices

Ethical Dilemmas: situations in which none of the available alternatives seems ethically acceptable

The Roots of Unethical Behavior

Organization culture

Unrealistic performance expectations

Decision-making processes

Leadership

Personal ethics

Societal culture

Philosophical Approaches to Ethics

Utilitarian And Kantian Ethics

Rights Theories

Straw men

Justice Theories

The Friedman Doctrine

Cultural Relativism

The Righteous Moralist

The Naive Immoralist

Utilitarian ethics - the moral worth of actions or practices is determined by their consequences

Kantian ethics - people should be treated as ends and never purely as means to the ends of others

human beings have fundamental rights and privileges which transcend national boundaries and cultures

focus on the attainment of a just distribution of economic goods and services

Managers Make Ethical Decisions

Organizational culture and Leadership

Decision making process

Hiring and Promotion

Ethics officer

Moral courage

Hire and promote people with a well grounded sense of personal ethics

Build an organizational culture that places a high value on ethical behavior

Identify stakeholders

Make sure that leaders within the business articulate the rhetoric of ethical behavior and act in a manner that is consistent with that rhetoric

Determine whether a proposed decision would violate the fundamental rights

Establish moral intent

Engage in ethical behavior

Audit decisions and review

the members of a profession

the actions of an organization

the conduct of a person