Legal Behavior = Ethical Behavior?

Ethics code of moral principles and values that governs the behaviors of a person with respect to what is right or wrong. Ethical Behavior- right/ good in the context of governing moral code.

Relationship Between Ethical Standards and Legal Requirements

LEGAL REQUIREMENTS

ROBBER ETHICAL STANDARDS Y MURDER

Four Views of Ethical Behavior

Utilitarian *delivers the greatest good to the most people Procedural - policies and rules

Justice Individuali *treats people sm Distributive impartially and *advances -Equal treatment fairly long term according to legal self-interest Interactional rules and -Dignity and standards Moral Rights respect *respects and protects fundamental Commutative rights of the people - Fairness to all in terms of transactions

Cultural Issues in Ethical Behavior

Cultural Relativism When in Rome do as the Romans do Universalism Behavior unacceptable in ones home should not be acceptable anywhere else. Ethical Imperialism Do not do anything you would not do at home

How do ethical dilemmas complicate the workplace?

Ethical dilemmas
Discrimination Sexual harassment Conflict of interest Product Safety Organizational Resources

Rationalization of Unethical Behavior

Convincing Oneself that: Behavior is not really illegal. Behavior is in everyones best interest. Nobody will ever find out. The organization will protect you.

How to Maintain High Ethical Standards

Ethics Training Whistleblower Protection Code of Ethics-Formal statement of an organizations values and ethical principles regarding how to behave in situations susceptible to the creation of ethical dilemmas. Moral Management:
Immoral manager (intentional) Amoral manager (unintentional) Moral manager

Areas Often Covered by Code of Ethics

Bribes and Kickbacks Political Contributions Honesty of books or records Customer/ Supplier Relationships Confidentiality of Corporate Information

Definitions
CSR is seriously considering the impact of the companys action on society (Baver). CSR is the obligation of decision makers to take actions which protect and improve the welfare of society as a whole along with their own interest (David and Blomstrom).

Definitions
Not only economic and legal obligations but also certain responsibilities to society (McGuire). Relates primarily to achieving outcomes from organizational decisions concerning specific issues on problems which have beneficial effects upon pertinent corporate stakeholders (Epstein).

Corporate Social Responsibility

Obligates organizations to act in ways that serve both its own interests and the interests of society at large. Stakeholders may hold differing views.

Local Communiti es

Typical Organizational Stakeholders Employe

es Government

Supplier s

COMPANY

Custome rs

Business Partners Owners

Competito rs

CSR Perspectives
Classical View
Managements only responsibility in running a business is to maximize profits.

Socioeconomic View
Management must be concerned for the broader social welfare, not just profits.

Evaluating Corporate Social Performance

Social Responsibility Audit: Economic (profitability) Legal (compliance with law) Ethical ( doing what is right) Philanthropic (broader community)

Strategies for pursuing CSR

Economic Obstructionist Strategies

Legal

Defensive Strategies

Ethical

Accommodative Strategies

Discretionar y

Proactive Strategies

In a Nutshell
Ethics is not the same as following the law. Ethical decisions are influenced by managements personal background, organizational culture and systems. When in doubt, dont do it. One who is dishonest in very small matters is dishonest in great ones.