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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… cont’d.

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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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 One’s Ethics

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

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Kohlberg’s Stages of Moral Development

1. Fear of punishment and authority

2. Serving one’s 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 Frameworks:RELATIVISM

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

“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

“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

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

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 ?)