prsi int pr conf 2011 - day 2 - ethic and social responsibilities by wijaya kusuma
TRANSCRIPT
Wijaya Kusuma S – Sindotv.Com.
Ethics and Social Responsibility
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Wijaya Kusuma S – Sindotv.Com.
Ethics and Social Responsibility
l Ethical values
l Social responsibility
l Fundamental approaches to ethical issues
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Wijaya Kusuma S – Sindotv.Com.
Ethics
l The code of moral principles and values
that govern the behaviors of a person or
group with respect to what is right or
wrong.
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Wijaya Kusuma S – Sindotv.Com.
Ethical Dilemma
l A situation that arises when all alternative choices or behaviors have been deemed undesirable because...
l potentially of negative ethical consequences, making it difficult to distinguish right from wrong
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Wijaya Kusuma S – Sindotv.Com.
Criteria For Ethical Decision Making
Most ethical dilemmas involve
Conflict between needs of the part & whole
- Individual versus the organization
- Organization versus society as a whole
Managers use normative strategies to guide their decision making - norms and values
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Wijaya Kusuma S – Sindotv.Com.
Copyright O.C. and Linda Ferrell, 2002
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l “Suddenly, investors are obsessed with lies, greed and dodgy accounting. It began with the scandal that toppled Enron. Now it has engulfed big and small companies, eroding the markets, investor confidence and America’s image as the economy to emulate.”
-MSNBC “A Guide to Corporate Scandals: Companies Under the Microscope,” http://www.msnbc.com/news/corpscandal_front.asp?odm=C2ORB. Accessed 9/24/2002.
Corporate Responsibility Crisis...
Wijaya Kusuma S – Sindotv.Com.
Individualism Approach
● Acts are moral when they promote the individual's best long-term interests, which ultimately leads to the greater good
● Individual self-direction paramount
● Individualism is believed to lead to honesty & integrity since that works best in the long run
● Examples: Top executives from WorldCom, Enron, Tyco demonstrate flaws of approach
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Wijaya Kusuma S – Sindotv.Com.
Moral-Rights Approach
l Moral decisions are those that best maintain the rights of those people affected by them.
l An ethical decision is one that avoids interfering with the fundamental rights of others
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The Ethical Organization
● Ethical individuals = honest, have integrity, strive for a high level of moral development
● Ethical leadership = provides the necessary actions, committed to ethical values and helps others to embody those values
● Organizational structure = embodies a code of ethics, and methods to implement ethical behavior
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Wijaya Kusuma S – Sindotv.Com.
Levels of Personal Moral Development
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Wijaya Kusuma S – Sindotv.Com.
Social Responsibility
l Organization’s obligation to make choices and take actions that will contribute to the welfare and interests of society and organization
l Being a good corporate citizen
l Difficulty in understanding –issues can be ambiguous with respect to right and wrong
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Wijaya Kusuma S – Sindotv.Com.
Environmental Responsibility Commitment
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Activist Approach
StakeholderApproach
Market Approach
Legal Approach
The Shades of Corporate Green
Wijaya Kusuma S – Sindotv.Com.
Total Corporate Responsibility
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Economic Responsibility
Legal Responsibility
EthicalResponsibility
Discretionary Responsibility
Ethical Dilemma: Should We Go Beyond the Law?
Wijaya Kusuma S – Sindotv.Com.
Copyright O.C. and Linda Ferrell, 2002
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How does ethical decision making occur in organizations?
l The #1 influencer of ethical/unethical behavior is the influence of significant others & the corporate culture
l Business ethics in an organization relates to a corporate culture of values, programs, enforcement & leadership
l Stakeholders must support organizational ethics initiatives—it’s good business– Stop focusing on the short term!!!
Wijaya Kusuma S – Sindotv.Com.
Copyright O.C. and Linda Ferrell, 2002
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Developing Trust & Confidence in Business...
– Board members
– Top management
– Attorneys
– Accounting firms
– Securities analysts
– Regulators
– Politicians
– Mass media
– Investors
– Colleges of business
4 Individuals alone did not cause our current crisis
4Many stakeholders were involved in supporting deception, fraud & destruction
Wijaya Kusuma S – Sindotv.Com.
The implementation in TV Industries
l Rules from KPI, P3SPS
– No violation
– No sexual harashment, program classification,
– Door stepping pushing to get information
– Enforcing
l Chief Editor in command
– No bribe, exp. election
– Grease bribe,
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Wijaya Kusuma S – Sindotv.Com.
Improving Global Business Ethics
l Inflict no intentional or direct harm
l Produce more good than bad for the host country
l Contribute to host country’s development
l Respect the human rights of their employees
l Pay their fair share of taxes
l Respect local cultural beliefs that do not violate moral norms
l Cooperate with the government to develop and enforce background institutions
Seven Moral Guidelines for MNCs