CSU Bus 220 Becker Final exam

ETHICAL CULTURE OF AN ORGANIZATION

the sum of explicit and implicit values, principles, and ethical reflections that underlie, and are expressed by, the interactions and actions of its members.

DIVERSITY (in organizations)

Representation and embrace of a broad variety of people with regard to gender, race, ethnicity, age, ability,sexual orientation, national origin, religion, and socioeconomic background, as well as a broad variety of ways of thinking, skills,experiences, perspectives, and insights

INCLUSION (in organizations)

Integration of all members into operations and decision-making to fully realize and support the potential of diversity and enable every member to participate equally

BUSINESS CASE for diversity and inclusion

Improves stakeholder relationships, Fosters innovation and creativity, Improves optimal decision-making, Reduces risks

SOCIETAL PERSPECTIVE for diversity and inclusion

Diversity and inclusion programs address larger underlying problems of social inequality, under representation, and injustice

ethics and compliance program

a formal internal mechanism that implements ethics and compliance throughout an organization

ELEMENTS OF AN ETHICS AND COMPLIANCE PROGRAM

Code of conduct, Ethics and compliance training, Mechanisms for members to raise concerns and speak up, Mechanisms to address and solve issues, Mechanisms for program evaluation, Oversight and leadership (CCO, CECO)

REASONS FOR IMPLEMENTING AN ETHICS AND COMPLIANCE PROGRAM

Minimizing risks of employee misconduct, Minimizing conflicts with stakeholders and society, Minimizing internal frictions and conflicts, Professionally dealing with issues concerns and conflicts, Legal expectations such as by the United States Sentencing Guidelines

MORAL RIGHTS Kantian

everyone has the right to be respected as ends in themselves and beings endowed with reason

MORAL RIGHTS Virtue

everyone has the right to flourish and develop the own potential toward excellence

MORAL RIGHTS ethics of care

Everyone has the right that his vulnerability and lack of power, ability, or knowledge is not ignored or abused, but cared for

IMPLICATIONS FROM THESE GENERAL RIGHTS FOR THE EMPLOYEE ROLE

Right to equal fair and respectful treatment in the workplace, Right to reason-based treatment, Right to participation, Right to privacy, Right to meaningful work and a supportive work environment, Right to not get harmed in person or property

DUE PROCESS

Guarantees fair, equal, and transparent treatment; provides reasons for actions

Effective Leadership

Successfully achieves ends of leadership, Makes people follow, Efficient

Ethical Leadership

1. Responsible,Trustworthy,Fair,Respectful,Caring

2. Ethical means, Ethical actions

3. Ethical ends

4. Enhancement of followers, Long-lasting positive impacts

Great Leadership

Effective Leadership + Ethical Leadership

PROFESSION

a well-defined vocation whose expertise serves a specific public interest. A profession is typically based on extensive qualification, develops own standards and criteria of exclusion, and is self-regulated.

PROFESSIONAL ETHICS

Specific professional expertise implies specific ethical responsibilities.

Competency

Stay up to date of professional knowledge; only work in areas of own competency

Objectivity

Adhere to established professional methods and norms; avoid personal bias and external influence

Responsibility

Use expertise in a responsible way with regard to all parties affected and professional standards

Integrity

Uphold professional principles and avoid conflicting and contradicting actions

Public interest

Consider public expectations and public welfare related to professional work

MARKETING

Linking the business to existing and potential markets / customers

FIELDS OF MARKETING

Advertising, Market research, Pricing, Sale, Internet and database marketing, Social media marketing

Greenwashing

Making false or deceptive claims about the environmental friendliness of a product or company

AREAS OF MARKETING AND RELATED ETHICAL ASPECTS

Advertising (truthfulness, proper targeting, no manipulation), Pricing (fairness, transparency), Sale (fairness, transparency, respect), Internet and database marketing (privacy), Social media (no manipulation, privacy, respect), Market research (transparency, respect)

Effectively addressing ethical issues

Analysis + Action = Solution

ANALYSIS

Identifying the ethical issue, Identifying solutions

ACTION

TYPE OF ISSUE: individual, organizational, global? Is the issue controversial / complex / difficult? , POSITION: management, consultant, employee, owner, etc.?, CONTEXT: organizational culture, policies, procedures?, COMMUNICATION AND PSYCHOLOGICAL ASPECTS: Whom to address? Ways to raise concerns?

(External) Whistleblowing

the intentional act of a member of an organization calling public attention to some wrongdoing of the organization.

ethical dilemma

a situation in which one must choose between two conflicting ethical values, norms,or principles.

WHEN IS WHISTLEBLOWING JUSTIFIED?

Checking the facts, checking other ways to address the issue, Checking ethical justification

ETHICAL ISSUES IN THE GLOBAL ECONOMY

Exploitation,Human rights violations,Environmental harm,Social and environmental injustice

UNDERLYING CAUSES ROOTED IN THE CHARACTERISTICS OF THE GLOBAL ECONOMIC SYSTEM:

Large asymmetries in power, capabilities, and wealth - Lack of proper regulation around the world - Complexity of the global economic system

BASIC GLOBAL BUSINESS ETHICS

Uphold global norms and fundamental rights

ADVANCED GLOBAL BUSINESS ETHICS

Use business to be a positive force in the world - Create win-win - Participation - Empowerment

- Development

Sustainability

he ability to maintain systems,processes, or entities that are essential to our future well being and the well being of people around the world, future generations, and nature

THE ETHICS OF SUSTAINABILITY

Sustainability is based on the underlying claim that we have ethical responsibilities toward future generations, people around the world, and nature

THE RELEVANCE OF SUSTAINABILITY

Economic and technological systems operate in a limited global environment and depend on limited environmental systems - Current global economic and technological activities overuse crucial environmental systems - Current economic and technological systems can not support the well being of humankind and nature in the long run

sustainable economy

an economy that serves the well being of contemporaries, future generations, and nature in a systematic and well-defined way and, by this, has the ability to continue in the long run without larger frictions or crises

sustainable business

a business that systematically considers all environmental, societal, global, and future impacts of its business operations and products and, by this,improves its competitiveness and long-term success

ETHICAL REASONS

Business needs to consider societal and global norms/values

Economic activities have been a major factor in causing sustainability issues

The economy and business should ideally be a positive force in the world, and we need to reconsider and reinforce this idea in the broader sustainability context

ECONOMIC REASONS

STRATEGIC MANAGEMENT, BUSINESS OPPORTUNITIES, BUSINESS CAPABILITIES AND SOCIETAL ROLE

MAIN CHARACTERISTICS OF BENEFIT CORPORATIONS

A benefit corporation must have a corporate purpose of creating public benefit. The public benefit can be specified by a certain societal or environmental purpose.

The directors of a benefit corporation have the duty to protect the interests of all core stakeholders and to uphold the purpose of the benefit corporation.

The benefit corporation has an obligation to issue annual reports on their progress in achieving its purpose.

REASONS FOR CHANGING THE LEGAL FRAME WORK AND ADDING THE OPTION OF THE BENEFIT CORPORATION

In the traditional corporate model the directors primarily have legal duties to protect the financial interests of shareholders

The traditional legal framework provides an insufficient legal basis for new business models, such as social enterprises or value-driven businesses

The benefit corporations enables such new business models to grow by using external capital and investors, without endangering the purpose of their company

CI METHOD A (universalizability)

Which way of action (of a given set of alternatives) can reasonably be universalized?

CI METHOD B (respect-for-persons formula)

Which action respects the dignity of all persons (as reasonable beings) involved in or affected by it?

Virtue method A

Which action/decision is consistent with who someone is, and wants to be, referring to reasonable concepts of excellence?

Virtue method B

Which action/decision best supports the development of personal or professional potential and ensures thriving of all affected?