Business Ethics and Social Responsibility

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Business Ethics and Social Responsibility

• an oxymoron?!?!
• What is GOOD vs. What is Bad!
• behaviour of business and the treatment of
  stakeholders
• Code of Ethics
• Rule of Law

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Business Ethics and Social Responsibility

• International Companies often face a greater
  ethical dilemma because they operate in numerous
  countries where values and standards differ
• Example
• legal vs. ethical

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International Business Ethics Tough choices...

• an ethical dilemma arises when two or more
  right courses of action conflict
• Making the right choice usually means choosing
  what is right or acceptable, both according to a
  code and according to values that are shared with
  the parties in conflict

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International Business Ethics Tough choices
contd.

• Canadian companies that conduct business in other
  counties often discover that the laws, values,
  and ethical standards of Canada are not the same
  in the foreign locationCanadian values may not
  be generally accepted
• The ethical dilemma can effect the companies
  ability to compete and resultant profits and
  reputation in the marketplace

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STAKEHOLDERS
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CORPORATE SOCIAL RESPONSIBILITY (CSR)

• Meeting the needs and expectations of a
  companies stakeholders

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CONTINUUM OF ETHICAL BEHAVIOUR

• INDIVIDUAL
• Moralistic Situational Amoral
• CORPORATE
• Ethical imperialism Cultural relativism

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Factors Influencing Ones Ethics

• Business ethics does not equal personal ethics
  however, your personal ethics influences your
  business choices.

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Kohlbergs Stages of Moral Development

• 1. Fear of punishment and authority
• 2. Serving ones own needs
• 3. Looking for approval from family / society
• 4. Adherence to law and order (norms)
• 5. Concern for others
• 6. Concern for ethical principles

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Ethical Frameworks CORPORATE RESPONSIBILITY

• corporations have ethical responsibility to their
  stakeholders -
• is the action right
• corporations are (morally ?) responsible for
  business decisions
• responsible if the person caused or failed to
  prevent an act that causes harm to another

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Ethical FrameworksRELATIVISM

• no absolute morality, depends upon culture
  circumstances, situation etc.
• what are the societal norms ?
• no absolutes - anything can be acceptable

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Ethical FrameworksUTILITARIANISM

• greatest good for the greatest number
• Process
• must be alternatives
• determine cost / benefits of each alternative to
  the involved stakeholders
• select the alternative that produces the greatest
  good for the greatest number of individuals

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Ethical FrameworksKANTS CATEGORICAL IMPERATIVE

• only do something that would be OK if everyone
  did the same action
• Universality if everyone did it would it be OK
• Reversibility if the situation were reversed
  would you be willing to accept it ?
• The Golden Rule treat everyone with respect

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Ethical FrameworksMORAL RIGHTS

• actions morally right or wrong if it respects the
  rights of individuals affected by those actions
• moral rights are not granted by society or
  necessarily in law but exist merely because you
  are a human being - entitlement
• imply corresponding duties

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Ethical FrameworksJUSTICE OR FAIRNESS

• equitable distribution of the benefits and
  burdens imposed by an action or policy
• similar individuals should be given similar
  benefits and suffer similar burdens
• Criteria contribution, effort, needs, merit,
  equality
• very difficult to maintain in business
  (consistency ?)