BUS 220 Becker Final Exam

CSR

Corporate (Social) Responsibility- defined as addressing the interests of all company stakeholders and the surrounding community on issues such as environmental, social and economics.

- Its ethics obligations on these issues

CSR Analysis

Critical Evaluation of 3 criteria

-Economical

-Ethical

-Formal

Good CSR strategy consists of:

1.Basics about the company and the business

2. Crucial elements and operationalization of the CR

3.Critical evaluation of the CR-strategy

Lessons learned from the Enron case

Ethics matters for business success

Ethics matters on different levels: organizational ethics, leadership ethics, professional ethics, individual ethics, proper ethical framework (regulation; checks and balances)

Crucial interconnections: leadership - ethical culture -individual behavior

Business is a combination of competition and cooperation; competition means fair competition

compliance

following laws, rules and regulations

Two main reasons behind laws that regulate business practice

economic reasons: establishing and maintaining a competitive, free, capitalistic market economy - efficiency arguments (ex. Sherman Antitrust Act)

ethical reasons: justice, fairness, protection of vulnerable groups, distributive aspects, etc.

Ethics Program

An ethics program is a formal, internal mechanism that implements ethics and compliance throughout an organization

Employee Rights

-Right to work

-Due process in the workplace (respect and fairness)

-Participation

-Safety and health

-Privacy

Employee Responsibilties

-Performance

-Professionalism

-Ethical and legal conduct

-Avoid harm to the organization

-Support the success of the organization

Good leadership

effective and ethical

Professional Ethics

Specific professional expertise implies specific ethical responsibilities. If you are an expert in a certain field, others rely on you and trust you. You are responsible for properly using your expertise.

Core principles of professional ethics (applies to accounting ethics)

-Competency ( stay up to date on professional knowledge)

-Objectivity (adhere to professional methods)

-Responsibility

-Integrity

-Public Interest

Marketing ethics

-Advertising (truthfulness, proper targeting)

-Pricing (fairness, transparency)

-Sale (issues: bribery, problematic sales practices)

-Internet and database marketing (privacy)

-Social media (manipulation, privacy)

-Market research (transparency, respect)

-Product safety (well-being, no harm principle)

-Ethical Branding

greenwashing

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

Addressing ethical issues

Action (identify ethical issue and business solutions) + analysis = solution

Whistleblowing

is an intentional act of calling public attention to the wrongdoing of an organization. The act is done by a member of the organization and supports the public interest, but it is in conflict with the interests of the organization.

ethical dilemma

is a situation in which one must choose between two conflicting ethical values (norms, principles)

Basic global ethics

-Respect fundamental rights and globals norms

-Respect other cultures and different cultural values

Advanced Global Business Ethics

-Use business as a positive force for the global world

-Improve conditions for all involved

-Participation

-Empowerment

-Development

Ethical challenges of the global economy

-Lack of, or inadequate, regulation

-Bribery and corruption

-Extreme asymmetries in power and capabilities (risk of exploitation)

-Complex systems (supply chain; product life cycles, etc.)

-Justice issues (e.g. burdens of climate change, environmental justice)

-Participation and Distribution (e.g. fair share in economic development and wealth)

-Respect of cultural values and universal rights

Literal meaning of sustainability

the ability to maintain something

Normative meaning of sustainability

"its good to be sustainable", "one ought to be sustainable"

Relational meaning of sustainability

relationships with contemporaries, future generations, and nature

Sustainability ethics

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

sustainable economy

an economy that not only contributes to individual and societal welfare, but also to the wellbeing of all contemporaries, future generations, and nature, and, by this, is able to continue over time in a stable way

sustainable business

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