Ethics and Corporate Responsibility

Topics: Ethics, Business ethics, Morality Pages: 7 (908 words) Published: June 28, 2013
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McGraw-Hill

© 2011 The McGraw-Hill Companies, Inc. All rights reserved.

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Chapter

5
McGraw-Hill

Ethics And Corporate Responsibility

© 2011 The McGraw-Hill Companies, Inc. All rights reserved.

Learning Objectives
After studying Chapter 5, you will know:

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how different ethical perspectives guide decision making how companies influence the ethics environment the options you have when confronting ethical issues the important issues surrounding corporate social responsibility how the political and social environment affects your firm’s competitive position and legitimacy the strategies corporations use to manage the political and social environment the role of managers in our natural environment McGraw-Hill © 2011 The McGraw-Hill Companies, Inc. All rights reserved.

Ethics
Ethics
the system of rules that governs the ordering of values

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affects people’s behavior and the ‘goods’ that are worth seeking values - principles of conduct ethics becomes more complicated when a situation dictates that one value overrules another

ethical issue - a situation, problem, or opportunity in which an individual must choose among several actions that must be evaluated as right or wrong business ethics - the moral principles and standards that guide behavior in the world of business McGraw-Hill © 2011 The McGraw-Hill Companies, Inc. All rights reserved.

Ethics (cont.)
Ethical systems

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moral philosophy - the principles, rules, and values people use in deciding what is right and wrong universalism - individuals should uphold certain values, regardless of the immediate result the important values are those that society needs to function

teleology - an act is morally right if it produces a desired result egoism - acceptable behavior maximizes consequences for the individual utilitarianism - seeks the greatest good for the greatest number of people, thereby maximizing total utility McGraw-Hill © 2011 The McGraw-Hill Companies, Inc. All rights reserved.

Ethics (cont.)
Ethical systems (cont.)
deontology - focuses on the rights of individuals
ensures that equal respect is given to all persons concentrates on means to particular ends

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relativism - ethical behavior defined by the opinions and behavior of relevant other people acknowledges the existence of different ethical viewpoints group consensus is sought positive consensus signifies that an action is right, ethical, and acceptable

McGraw-Hill

© 2011 The McGraw-Hill Companies, Inc. All rights reserved.

Ethics (cont.)
Ethical systems (cont.)

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virtue ethics - morality defined by what a mature person with ‘good’ moral character would deem right society’s rules provide a moral minimum
moral individuals can transcend rules by applying personal standards

Kohlberg’s model of cognitive moral development
preconventional stage - decisions based on concrete rewards, punishments, and immediate self-interest conventional stage - actions conform to societal expectations ethical behavior deemed appropriate by groups or institutions

principled stage - follow self-chosen ethical principle
see beyond authority, laws, and norms
McGraw-Hill © 2011 The McGraw-Hill Companies, Inc. All rights reserved.

Business Ethics

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Brands Artistic Control
Commercialism in Schools

Wages

CEO Pay

Current Ethical Issues Consumerism

Urban Sprawl

Sweatshops

Frankenfoods
McGraw-Hill

Globalization

Politics

© 2011 The McGraw-Hill Companies, Inc. All rights reserved.

Ethics (cont.)
The ethics environment

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Ethical climate - processes by which decisions are evaluated and made on the basis of right and wrong unethical corporate behavior may be the responsibility of an unethical individual often the company’s culture that is ethically lax

McGraw-Hill

© 2011 The McGraw-Hill Companies, Inc. All rights reserved.

Climate Factors Conducive To Unethical Behavior
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