ethics,csr & corporate behavior
TRANSCRIPT
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ETHICS,CSR & CORPORATE
BEHAVIOR
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Are you aware?
Colgate worldwidetoothpaste market share
is 44.4%
Colgate Total has a
formula which canprevent gingivitis
The top selling
toothpaste brand
Contains triclosan
Suspected to be an
endocrine disruptor
Source:http://business-ethics.com/2010/10/03/5050-controversial-chemical-poses-disclosure-
challen e-for-col ate- almolive/
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What would be your advice to Colgate?
Inform its customers that a key ingredient of itsproduct is facing questions?
Amend its marketing?
Play an active role in the scientific debate?
Publicly defend its turf?
Simply do nothing and wait?
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Going BANANAS
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Going BANANAS : The issue
ASDA : chain of super markets in U.K Part of Wal-Mart
In sep-oct 2009, ASDA cut its banana prices six
times in 6 weeks
Sold bananas at 38 pence a kilo (roughly 27 Rs perKg)
The bananas were sourced from Windward Islands
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If you are the consumer
Would you like to know the true cost of your product? Would you be willing to pay a higher price?
Will you boycott the product altogether as a protest
measure?
Or can you think off buycott?
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Based on the earlier highlighted issues
Do you think the actionsby the companies
involved are ethical?
What would you classify
as an ethical responsein these situations?
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Based on our understanding
What is ethics? When the company apply some set of standards or
norms as a part of their responsibility we can call them
ethical code of conduct of business.
Ethics shows a corporation how to behave properly in
their all business and operations.
Ethics is the set of rules prescribing what is good or evil,
or what is right or wrong for people.
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The essence of business ethics
Honesty Confidence
Respect and
Fair acting in all circumstances
Is business ethics
A natural phenomenon
Or a structured process
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Why ethical philosophies are in light?
Can we ever forget this?
All workers who were
involved in cleaning upExxon Valdez oil spill are
dead now
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Business Ethics & Corporate Social
Responsibility: The Moral View
Ethics is concerned with the following: Good vs Bad
Right vs Wrong
Fair vs Unfair
Praise vs Blame
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Business Ethics & Corporate Social
Responsibility: The Legal View
What are the differences between legal, social, andethicalresponsibility?
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Business Ethics & Corporate Social
Responsibility: The Legal View
What is implied by shareholder wealth maximization?
Specifically, what does this perspective 'mean' for the
interests of other stakeholders?
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Business Ethics & Corporate Social
Responsibility: The Moral View
Deontology: An ethical theory that holds that actions are right or wrong
independent of their consequences
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Business Ethics & Corporate Social
Responsibility: The Moral View
Does the contemplated action: Conform to important principles?
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Ethical Decision-making Model
principles
outcomes
fairness
caring
liberty
character
sustainability
1 2 3 4 5 6
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Business Ethics & Corporate Social
Responsibility: The Moral View
Problem: It is not clear on what basis non-humans can be
considered to have rights
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Business Ethics & Corporate Social
Responsibility: The Moral View
Utilitarianism: An ethical theory that holds that actions are right if they
produce, or tend to produce, the greatest amount of good
for the greatest number of persons
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Business Ethics & Corporate Social
Responsibility: The Moral View
Does the contemplated action: Conform to important principles?
Create more good than harm?
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Ethical Decision-making Model
principles
outcomes
fairness
caring
liberty
character
sustainability
1 2 3 4 5 6
B i E hi & C S i l
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Business Ethics & Corporate Social
Responsibility: The Moral View
Problem: This perspective only recognizes the instrumental
value of goods
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Business Ethics & Corporate Social
Responsibility: The Moral View
Justice: Consists in giving each person his or her due, treating
equals equally and unequals unequally
Distributive
Procedural
Compensatory
Retributive
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Business Ethics & Corporate Social
Responsibility: The Moral View
Does the contemplated action: Conform to important principles?
Create more good than harm?
Lead to fair outcomes?
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Ethical Decision-making Model
principles
outcomes
fairness
caring
liberty
character
sustainability
1 2 3 4 5 6
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Business Ethics & Corporate Social
Responsibility: The Moral View
Problem: Focus is on persons, and giving them what they
deserve based on merit
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Business Ethics & Corporate Social
Responsibility: The Moral View
Ethic of Care: Asks us to recognize and take seriously the moral worth of
relationships, particularly those characterized by caring
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Business Ethics & Corporate Social
Responsibility: The Moral View
Does the contemplated action: Conform to important principles?
Create more good than harm?
Lead to fair outcomes?
Promote caring relationships?
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Ethical Decision-making Model
principles
outcomes
fairness
caring
liberty
character
sustainability
1 2 3 4 5 6
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Business Ethics & Corporate Social
Responsibility: The Moral View
Problem: It is not clear what might be meant by caring for non-
humansor what it might mean for them to care for
us
B i Ethi & C t S i l
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Business Ethics & Corporate Social
Responsibility: The Moral View
Libertarianism: Suggest right action consists in maximizing the capacity for
free, informed personal choice
B i Ethi & C t S i l
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Business Ethics & Corporate Social
Responsibility: The Moral View
Does the contemplated action:
Conform to important principles?
Create more good than harm?
Lead to fair outcomes?
Promote caring relationships? Advance personal liberty?
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B i Ethi & C t S i l
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Business Ethics & Corporate Social
Responsibility: The Moral View
Problem: Non-humans are not considered to have choices in
the way in which humans do, and therefore are not
privileged with liberty
B i Ethi & C t S i l
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Business Ethics & Corporate Social
Responsibility: The Moral View
Virtue theory: Focus is on achieving our personal ethical ideala matter of
who we are, not what we do
B i Ethi & C t S i l
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Business Ethics & Corporate Social
Responsibility: The Moral View
Does the contemplated action: Conform to important principles?
Create more good than harm?
Lead to fair outcomes?
Promote caring relationships? Advance personal liberty?
Stimulate personal ideals?
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Ethical Decision-making Model
principles
outcomes
fairness
caring
liberty
character
sustainability
1 2 3 4 5 6
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Business Ethics & Corporate Social
Responsibility: The Moral View
Problem: Who we are in an ideal sense may have little or no relation
with the external world
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Business Ethics & Corporate Social
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Business Ethics & Corporate Social
Responsibility: The Legal View
What isa corporation?
Business Ethics & Corporate Social
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Business Ethics & Corporate Social
Responsibility: The Social View
Corporations are not human beings. The differencesbetween human individuals and corporations, other
formal organizations, and nations are significant from a
moral point of view and from the point of view of moral
responsibility.
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Business Ethics & Corporate Social
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Business Ethics & Corporate Social
Responsibility: The Social View
Because a corporation only acts through those who actfor it, it is the latter who must assume responsibility for
the corporation.
B i Ethi /C t S i l R ibilit
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Business Ethics/Corporate Social Responsibility
Overview
The exclusively economic definition of the purpose
of the corporation is a deadly oversimplification,
allowing overemphasis on self-interest at the
expense of consideration of others.
--Kenneth Andrews
B i Ethi /C t S i l R ibilit
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Business Ethics/Corporate Social Responsibility
Overview
Manought to regard himself, not as something
separated and detached, but as a citizen of the
world, a member of the vast commonwealth of
natureto the interest of this great community, he
ought at all times to be willing that his own little
interest should be sacrificed.
--Adam Smith
Business Ethics & Corporate Social
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Business Ethics & Corporate Social
Responsibility: The Moral View
Land Ethic: A thing is right when it tends to preserve the beauty,
stability, and integrity of the biotic community. It is wrong
when it tends otherwise.
Business Ethics & Corporate Social
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Business Ethics & Corporate Social
Responsibility: The Moral View
Does the contemplated action:
Conform to important principles?
Create more good than harm?
Lead to fair outcomes?
Promote caring relationships? Advance personal liberty?
Stimulate personal ideals?
Contribute to sustainability?
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Ethical Decision-making Model
principles
outcomes
fairness
caring
liberty
character
sustainability
1 2 3 4 5 6
Business Ethics & Corporate Social
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Business Ethics & Corporate Social
Responsibility: Mindwalk
Locke believes land that is left "wholly to nature" is"waste." How does this viewpoint compare with the
attitudes of today's American businesses? Give
examples.
Business Ethics & Corporate Social
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Business Ethics & Corporate Social
Responsibility: Mindwalk
One of the distinguishing characteristics of any socialsystem is the way in which property is owned and
transferred from one party to another. What are the
socio-political implications of community property
ownership? Of private property ownership?
Business Ethics & Corporate Social
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Business Ethics & Corporate Social
Responsibility: Mindwalk
If the best way to insure adequate treatment of theenvironment is through some form of communityownership, can we conclude socialism is a better politicalsystem for ensuring the protection of nature? Whatevidence do we have for this conclusion?
Perhaps a hybrid system would be a good framework forpreserving the environment. Either "community owned,individually managed" or "individually owned, managed forthe community." What type of system do you recommend?