Transcript Ethics Lesson 2

Business ethics and social
responsibility (chapt. 10)
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an oxymoron?!?!
What is GOOD vs. What is Bad!
behaviour of business and the treatment of
stakeholders
Code of Ethics:
– Stated rules that guide decision making
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Rule of Law
– None are above the law = equal
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Business ethics and social
responsibility (chapt. 10)
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International Companies often face a
greater ethical dilemma because they
operate in numerous countries where values
and standards differ
Example:
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legal vs. ethical
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International Business Ethics:
Tough choices...
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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… cont’d.
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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 location…Canadian 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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Employees
Shareholders (owners)
Natural Environment
Management
Suppliers
Customers
Community
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CORPORATE SOCIAL
RESPONSIBILITY (CSR)
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Meeting the needs and expectations of a
companies’ stakeholders
BUT…often stakeholder needs are in
conflict with one another
– examples:
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CONTINUUM OF ETHICAL BEHAVIOR
INDIVIDUAL:
Moralistic
Situational
CORPORATE:
Ethical imperialism
Amoral
Cultural relativism
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Factors Influencing One’s Ethics
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Religion
Society
Peers
Situation
Rules
Business ethics does not equal personal
ethics, however, your personal ethics
influences your business choice.
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Kohlberg’s Stages of Moral
Development
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5.
6.
Fear of punishment and authority
Serving one’s own needs
Looking for approval from family / society
Adherence to law and order (norms)
Concern for others
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 Frameworks:
RELATIVISM
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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 Frameworks:
UTILITARIANISM
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“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 Frameworks:
KANTS CATEGORICAL IMPERATIVE
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“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 Frameworks:
MORAL RIGHTS
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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 Frameworks:
JUSTICE OR FAIRNESS
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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 ?)
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