Understanding business 10th chapter 4b demanding ethical and socially responsible behavior

Demanding Ethical and
Socially Responsible
Behavior

McGraw-Hill/Irwin

Copyright © 2010 by the McGraw-Hill Companies, Inc. All rights reserved.


Ethics
&
Social Responsibility

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WHAT are ETHICS?

• Ethics ­­ The standards of moral behavior. 

Behaviors that are accepted by society as right 
versus wrong.

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Ethics

Doing What Is Right…

As You Know It To Be Right.

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BASIC MORAL VALUES
Right:
• Integrity 
• Respect for human life 
• Self control 

Wrong:
•Cheating
•Cowardice
•Cruelty

• Honesty 
• Courage
• Self­sacrifice
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Ethics
Ethics Begins With Each
of Us

Stem From Individual

More Than Legality

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Ethical Dilemma
A situation requiring a choice between
equally undesirable alternatives.

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Ethics Begins 
with Each of Us

FACING ETHICAL DILEMMAS

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• Ask yourself these 
questions:
- Is it legal?
- Is it balanced?
- How will it make 
me feel about 
myself?

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Ethics Begins 
with Each of Us

ETHICS and YOU

• Plagiarizing from Internet 
materials is the most 
common form of 
cheating in schools 
today.
• Studies found a strong
relationship between
academic dishonesty
and dishonesty at work.
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R
T
 
a
• tTrust between workers and 
managers must be based on 
 fairness, honesty, openness 
tand moral integrity.
h
• eLeadership can help instill 
 corporate values in 
employees.

T
O
P
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ETHICS CODES

• An increasing number of companies have 
adopted written codes of ethics.

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Texas Instruments
The TI Ethics Quick Test
- Is the action legal?
- Does it comply with our values?
- If you do it, will you feel bad?
- How will it look in the newspaper?
- If you know it's wrong, don't do it!
- If you're not sure, ask.
- Keep asking until you get an
answer.
For copies of the card or further
information, contact the TI Ethics
Office at 1-800-33-ETHIC.
(This information is provided to TI
employees on a business-card size minipamphlet to carry with them.)

ETHICS CODES
• Compliance­Based Ethics Code ­­ Emphasize 
preventing unlawful behavior by increasing control 
and by penalizing wrongdoers.

• Integrity­Based Ethics Code ­­ Define the 

organization’s guiding values, create an environment 
that supports ethically sound behavior and stress a 
shared accountability among employees.

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HOW to IMPROVE AMERICA’S 
BUSINESS ETHICS
1. Top management must adopt and 
unconditionally support an explicit corporate 
code of conduct.
2. Employees must understand that senior 
management expects all employees to act 
ethically.
3. Managers and others must be trained to consider 
the ethical implications of all business decisions.
(continued)

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HOW to IMPROVE AMERICA’S 
BUSINESS ETHICS, cont.
4. An ethics office must be set up with which 
employees can communicate anonymously. 
Whistleblowers ­­ People who report illegal or 
unethical behavior. 
5. Involve outsiders such as
suppliers, subcontractors,
distributors and customers.
6. The ethics code must be
enforced.
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* Setting 
Corporate 

HOW to PREVENT UNETHICAL 
BEHAVIORS

Ethical 
Standards
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*

1. Managers must communicate the organization’s 
vision on ethical behavior.
2. Organizations must have a code of ethics.
3. Policies have to be enforced regarding ethical 

offences.
4. Ethical responsibility must be taught to all 
employees.
Source: James Gehrke, Magnify Leadership & Development, November 2008.

(continued)
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* Setting 
Corporate 

HOW to PREVENT UNETHICAL 
BEHAVIORS

Ethical 
Standards
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*

5. Discussions of ethics must be included in the 
decision­making process.
6. Accountability must be taken seriously at all 
levels in the organization.
7. Organizations must act fast when a crisis occurs.
8. Employees must know they have to defend and 
maintain the company’s reputation.
Source: James Gehrke, Magnify Leadership & Development, November 2008.

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Social Responsibility

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Social Responsibility
Social responsibility is
management’s obligation to
make choices and take actions
that contribute to the welfare
and interests of society as well
as to those of the
organization.


CORPORATE SOCIAL 
RESPONSIBILITY

*Corporate 

Social 
Responsibility
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*

• Corporate Social Responsibility (CSR) ­­ The 

concern businesses have for the welfare of society.

• CSR is based on a commitment 
to integrity, fairness, and 
respect.
• CSR proponents argue that 
businesses owe their existence 
to the societies they serve and 
cannot exist in societies that 
fail.

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CORPORATE RESPONSIBILITY 
and POLICY
• Corporate Responsibility ­­ Includes everything 

from hiring minority workers to making safe products, 
minimizing pollution, using energy wisely, and 
providing a safe work environment.

• Corporate Policy ­­ The position a firm takes on 
social and political issues.

• Corporate Philanthropy ­­ Includes charitable 
donations.

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POSTIVE IMPACTS 
                      of COMPANIES
• Xerox offers a Social Service Leave program.

• Citizen Corps encourages volunteers to help 
strengthen homeland security by helping in their 
community.
• Two­thirds of MBA students surveyed reported 
they would take a lower salary to work for a 
socially responsible company.

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HELPING HANDS – Most Generous Celebrities
Who?

For?

Taylor Swift

Nashville Symphony and Centrepoint homeless.

One Direction

Helping African and UK’s living in severe poverty or
injustice, & cancer research.

Beyonce

London’s charity concert for women’s rights: ‘Chime For
Change’

Paul Walker

Founded: Reach Out WorldWide (ROWW)

Macklemore & Ryan Lewis

Adopting a culture of acceptance.

Sandra Bullock

Mothers Who Make a Difference Award and People’s
Choice Award: “Favorite Humanitarian” for ongoing
efforts in disaster relief & education.

Kerry Washington

President Obama’s President’s Committee on the Arts &
Humanities, advocating nationally for arts education in
low-income areas

Ian Somerhadler

Ian Somerhalder Foundation “to empower, educate, and
collaborate with people and projects to positively impact
the planet and its creatures.”

Ryan Seacrest

The Ryan Seacrest Foundation to give kids in hospitals a
chance to feel like a star for day.

www.dosomething.org 2013
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GENEROUS GUYS
World’s Biggest Givers

Who?

How Much?

What For?

 Bill Gates

$28B

Malaria, public health, education

Warren Buffett

$8.3B

Gates Foundation

George Soros

$8B

Human rights, democracy

Gordon Moore

$6.8B

Environment

Carlos Slim

$4B

Education, healthcare

Eli Broad

$2.6B

Education, arts

Azim Premji

$2.1B

Education

James Stowers

$2B

Genetic research

Michael Bloomberg

$1.8B

Antismoking, transportation

Li Ka­Shing

$1.6B

Education, healthcare

Source: Forbes, June 6, 2011.
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