WMGM 102

LECTURE 2.1: ONLINE SUBSTITUTE TO CLASS

ETHICS, SOCIAL RESPONSIBITY & SUSTAINABILITY
Prepared by Adrineh Mitchell

LESSON 2.1 BRIEF

NO FACE TO FACE CLASSES FOR 2.1 LECTURES
TUORIAL TESTS ARE SCHEDULED FOR TUESDAY FOR ALL STUDENTS
PLEASE SEE PREVIOUS iLearn ANNOUNCEMENT & ATTEND THE
TEST AT THE CORRECT TIME & IN THE CORRECT ROOM
STEP 1: REVIEW CHAPTER 3, PP83 99
STEP 2: VIEW THE SLIDES IN iLearn
COMPLETE ALL ACTIVITIES IN iLearn
This is essential for attendance
Students who complete ALL of the activities will earn a mark towards

participation
Activities will be available from Saturday 23/4
Activities must be completed no later than Wednesday 27/4

Defining ethics and values

Ethics
standards of right and wrong that influence
behaviour
It may vary from country to country

Values
relatively permanent and deeply held underlying
beliefs and attitudes that help determine a persons
behaviour

The ethical responsibilities of a

manager
Ethical dilemma
situation in which you have to decide
whether to pursue a course of action
that may benefit you or your
organisation but that is unethical or
even illegal

ACTIVITY 1:
GO TO iLearn AND COMPLETE THE FOLLOWING
ACTIVITY BY POSTING YOUR RESPONSE

To whom should a company be responsible?

Is a company right to argue
that its responsibilities are
solely to maximise shareholder
returns and that,
provided it does not break the
law, the side-effects of the
business on employees,
customers and the wider
community are not its concern?
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The social responsibilities

required of you as a manager
Social responsibility
managers duty to take actions that
will benefit the interests of society
as well as of the organisation

Corporate social
responsibility
notion that corporations are
expected to go above and beyond
following the law and making a
profit

Four approaches to
deciding ethical dilemmas
Justice
guided by respect for
impartial standards of
fairness and equity

Moral-rights
guided by respect for the
fundamental rights of
human beings

Utilitarian
guided by what will result
in the greatest good for
the greatest number of
people

Individual
guided by what will result
in the individuals best
long-term interests,
which ultimately are in
everyones self-interest

Carrolls global corporate

social responsibility pyramid

ACTIVITY 2: GO TO iLearn AND

COMPLETE THE FOLLOWING ACTIVITY
BY POSTING YOUR RESPONSE
Starbucks - Social responsibility and business success
After viewing the video answer the following and provide explanations for each
opinion:
1.The video suggests that Starbucks success is directly related to its sense of
social responsibility.What do you think?
2.Do you think a company has to be socially responsible to be successful?
3.Does the level of social responsibility exhibited by Starbucks have any affect
on how other coffee retailers are viewed?
4.Should consumers hold all of the competitors in this industry to the same
level of expectation?

Socially irresponsible behaviour

Bhopal gas tragedy (1984) - 558,125 injuries (=38,478 temporary partial +
3,900 severely & permanently disabling injuries), & 3,787 deaths
BHP Billiton Ok Tedi Mine (1987): destruction of natural environment,
pollution, damage to health of locals
Nike - Asian sweatshops
Financial institutions GFC (2008)
BP oil spill Deepwater Horizon (Gulf of Mexico) 2010
Pfizer has aggressively fought efforts to make HIV/AIDS drugs more
affordable, refusing to grant generic licenses for HIV/AIDS drugs to Brazil,
South Africa and other countries in need of them.
Monsanto on GM foods, use of PCBs & pesticides, attempting to
monopolise the worlds seed supply
Mossack Fonseca & Tax reduction by large business Panama Papers
FIFA corruption allegations - Sepp Blatter

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Example of CSR BHP

Zero tolerance to ..

Child labor:
Forced or compulsory labor
Inhumane treatment of employees
Corruption, bribery, extortion

Supports

Workplace Health & Safety

Freedom of Association
World Heritage sites & IUCN Protected Areas
Protection of environment
Indigenous rights

BUT, remember
their Oke Tedi
mining disaster !
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SUSTAINABILITY
PEOPLE, PLANET, PROFIT

We are launching ecomagination not because it is trendy

or moral, but because it will accelerate our growth &
make us more competitive
Jeff Immelt (GE CEO)

SUSTAINABILITY:
Triple Bottom Line
Ethical (PEOPLE)
Environmental
(PLANET)
Economic development
(PROFIT)

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Examples of sustainability by
business
https://www.youtube.com/watch?v=Doeb6QWJ5kA
Video on what is sustainability.
View this video to gain more understanding about sustainability

Activity 3: GO TO iLearn AND COMPLETE

THE FOLLOWING ACTIVITY BY POSTING
YOUR RESPONSE
Benefits and challenges: Ethics, social responsibility, sustainability and
the business response. Once you have completed this table share your
responses with your cohort by posting to the forum.
Aim for 3 arguments on each side.

BENEFITS OF ACTING WITH

SOCIAL RESPONSIBILITY

CHALLENGES OF ACTING WITH

SOCIAL RESPONSIBILITY

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STUDENT CHALLENGE:
How can organisations make sure business
operates with ethics?
Create a list. Refer to your textbook.

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Activity 4: GO TO iLearn AND COMPLETE

THE FOLLOWING ACTIVITY BY POSTING
YOUR RESPONSE:
Ethics and decision making scenario:
Your company is hoping to build a new overseas
manufacturing factory. You could save $5 million by not
installing standard pollution control equipment that is
required in Australia, but not in the overseas site. Your
factory will hire many local workers in a poor country
with high levels of unemployment. Your research shows
that pollutants from your factory could potentially
damage the local fishing industry, but building the plant
with the pollution control will be very costly and maybe
even too expensive.
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Lesson 2.1
TUTORIAL ACTIVITIES
Presentation topics & teams:
Next tutorial class after the test, you will be placed in a
presentation team to cover one of the following:
4:1 Topic: Management theory (Chapter 2)

Case: Fords Decision to end manufacturing in Australia

4: Topic: Changing environment (Chapter 3)
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Case: Planning and strategic management at Coca Cola
5:1 Topic: Decision making (Chapter 7)

Case: Take a risk on disruptive innovation

5:2 Topic: Organisational structure (Chapter 8)
Case: A new Orica
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