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CSR/Business Ethics/Sustainability Issues - Coggle Diagram
CSR/Business Ethics/Sustainability Issues
Definition
Business Ethics
the application of general ethical principles to the actions and decisions of businesses and the conduct of their personnel.
Sustainability issues
the relationship of a firm to its environment and its use of natural resources.
CSR
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.
Business Ethics
Sources for Ethical Standards
The School of Ethical Relativism
Integrated Social Contracts Theory
The School of Ethical Universalism
APPLICATION OF INTEGRATED SOCIAL CONTRACTS THEORY TO MULTINATIONAL BUSINESS
Effects on Ethical Standards:
Adherence to universal ethical norms takes precedence over local norms.
A local custom is not ethical if it violates universal ethical norms.
Application of codes of ethics should first follow universal standards with allowance for local ethical diversity and influence.
HOW AND WHY ETHICAL STANDARDS IMPACT THE TASKS OF CRAFTING AND EXECUTING STRATEGY
Is what we are proposing to do fully compliant with our code of ethics? Are there areas of ambiguity?
Is this action in harmony with our core values? Are any conflicts or potential problems evident?
Is this action ethically objectionable? Would our stakeholders, our competitors, the SEC under the Sarbanes-Oxley Act, or the news and social media view this action as ethically objectionable?
CSR
The Five Components of a Corporate Social Responsibility Strategy
Actions to protect and sustain the environment
Actions to enhance employee well-being and make the company a great place to work
Actions to support philanthropy, participate in community service, and better the quality of life worldwide
Actions to promote workforce diversity
Actions to ensure the company operates honourably and ethically
The Triple Bottom Line: Excelling on Three Measures
of Company Performance
social
environmental
economic
Sustainability issues
Sustainable Business Practices
Are those practices of a firm that meet the needs of the present without compromising the ability to meet the needs of the future.
Environmental Sustainability Strategy
Consists of the firm’s deliberate actions to:
Protect the environment.
Provide for the longevity of natural resources.
Maintain ecological support systems for future generations.
Guard against ultimate endangerment of the planet.
CRAFTING CORPORATE SOCIAL RESPONSIBILITY AND SUSTAINABILITY STRATEGIES
Moral Case: Stakeholder Benefits
Business Case: Competitive Advantage
THE BUSINESS CASE FOR CSR AND ENVIRONMENTALLY SUSTAINABLE BUSINESS PRACTICES
Increased reputation and buyer patronage
Reduced risk of reputation-damaging incidents
Lower turnover costs and enhanced employee recruiting and workforce retention
Increased revenue enhancement opportunities due to support of CSR and sustainability
CSR and sustainability best serve long-term interests of shareholders
THE MORAL CASE FOR CSR AND ENVIRONMENTALLY SUSTAINABLE BUSINESS PRACTICES
Operate ethically and legally
Provide good work conditions for employees
Be a good environmental steward
Display good corporate citizenship
The Implied Social Contract: “To Do the Right Thing”