ETHICS, CORPORATE SOCIAL RESPONSIBILITY, ENVIRONMENTAL SUSTAINABILITY AND…
ETHICS, CORPORATE SOCIAL RESPONSIBILITY, ENVIRONMENTAL SUSTAINABILITY AND STRATEGY
Sources for ethical standards
The school of ethical universalism
The school of ethical relativism
Integrated social contracts theory
When strategies fail the ethical litmus test
Sizable civil fines and stakeholder lawsuits
Devastating image and public relations hits
Sharp stock price drops as investors lose confidence
Criminal indictments and convictions
Unethical strategies and business behaviors
Faulty oversight and self dealing
Pressure for short term performance
A weak or corrupt ethical environment
Why should a firm's strategies be ethical?
Because a strategy that is unethical is morally wrong and reflects badly on the character of the firm's personnel.
Because an ethical strategy can be both good business and serve the self interest of shareholders.
Corporate Social Responsibility (CSR)
Is a firm's duty to operate in an honorable manner, provide good working conditions for employees, encourage workforce diversity, be a good steward of the environment and actively work to better the quality of life in the local communities where it operates and in society at large.
Pursuing a sustainable CSR Strategy in the firm's value chain activities
The implied social contract:
"To do the right thing"
Operate ethically and legally
Provide good work conditions for employees
Be a good environmental steward
Display good corporate citizenship