Business EthicsBusiness Ethics

structurestructure

1.1. RoleplayRoleplay2.2. FilmFilm3.3. Bhopal informationBhopal information4.4. Business Ethics – change in businessBusiness Ethics – change in business5.5. Ethics, Business Ethics, CSREthics, Business Ethics, CSR6.6. Is CSR possible?Is CSR possible?7.7. 10 commandments for business10 commandments for business8.8. Why should we change?Why should we change?

3. Bhopal information3. Bhopal information US company called US company called Union Carbide CorporationUnion Carbide Corporation moved moved

to Bhopal (India)to Bhopal (India) They produced fertilizers and other chemical productsThey produced fertilizers and other chemical products They moved to India to reduce their production costsThey moved to India to reduce their production costs Disaster happened on 3rd December 1984 (at night)Disaster happened on 3rd December 1984 (at night) The catastrophe happened because water got into a The catastrophe happened because water got into a

big tank of waste which produced a chemical reaction big tank of waste which produced a chemical reaction resulting in releasing toxic gasresulting in releasing toxic gas

The gas can cause death, blindness, cancer and other The gas can cause death, blindness, cancer and other diseasesdiseases

3787 people died immediately 3787 people died immediately 8.000-10.000 died within the next 72 hours8.000-10.000 died within the next 72 hours 25.000 during the next weeks25.000 during the next weeks 40.000 were disabled 40.000 were disabled Recent findings show that over 500.000 people have Recent findings show that over 500.000 people have

suffered in different way because of this catastrophesuffered in different way because of this catastrophe

traditional businesstraditional business

greed (fault)greed (fault)

money (value)money (value)

maximal profitmaximal profit

polluted environmentpolluted environment the growing gap between the growing gap between the poor and the richthe poor and the rich

socially reponsible socially reponsible businessbusiness

(virtue) (virtue) thirst of thirst of knowledgeknowledge

moderationmoderation

generositygenerosity

JUSTICEJUSTICE (value) (value)

stakeholdersstakeholders

enougth profitenougth profit

human rightshuman rights

• clear clear environmentenvironment

• growing middle growing middle classclass

5. Ethics, Business 5. Ethics, Business Ethics, CSREthics, CSR

ETHIC is the study of ETHIC is the study of moralitymorality..

Morality consist of: ethical principles, Morality consist of: ethical principles, values and personal examples.values and personal examples.

BUSINESS ETHICS is " ethics as it BUSINESS ETHICS is " ethics as it applies to business. Business ethics is the applies to business. Business ethics is the study of what constitutes right and wrong, study of what constitutes right and wrong, or good and bad, human conduct in a or good and bad, human conduct in a business context."  (William H. Shaw) business context."  (William H. Shaw)

  CSR (Corporate Social Responsibility) most CSR (Corporate Social Responsibility) most commonly known concept of business ethicscommonly known concept of business ethics..

"CSR is about all the ways in which a company relates "CSR is about all the ways in which a company relates to society: from purchasing to product disposal, from to society: from purchasing to product disposal, from human resources to human rights. Philanthropy and human resources to human rights. Philanthropy and image are therefore peripheral- social responsibility image are therefore peripheral- social responsibility is about how companies operate, how they exploit is about how companies operate, how they exploit resources and markets, how they make money and resources and markets, how they make money and even how much money they make. It is about how even how much money they make. It is about how employees are treated, the extent to which a company employees are treated, the extent to which a company insist on standards in the supply chain, the way insist on standards in the supply chain, the way directors behave with governments around the world, directors behave with governments around the world, and how seriously they are striving to reduce their and how seriously they are striving to reduce their company's impact on climate change and other company's impact on climate change and other environmental issues." (Roger Cowe)environmental issues." (Roger Cowe)

6. Is CSR possible?6. Is CSR possible?

Most companies realize that they Most companies realize that they should act in a socially responsible should act in a socially responsible way. Unfortunately, they treat it way. Unfortunately, they treat it very superficially, mainly as a part very superficially, mainly as a part of  PR. of  PR.

Ethical Activities Unethical activities

Employees• “fair company”• further education programmes• health programmes

Employees• very low wages• discrimination against coloured people

Society• Sport programmes in schools• Partnership with soccer organisation• Coca Cola Foundation

Society• several scandalsExample: poisoned water from the tap

7. 10 commandments for 7. 10 commandments for business peoplebusiness people

1.1. Be honest, trustful and sincere!Be honest, trustful and sincere!2.2. Money is not your God! Profit is not your only aim!Money is not your God! Profit is not your only aim!3.3. You shall respect everyone’s dignity!You shall respect everyone’s dignity!4.4. Love your employees, your customers and all Love your employees, your customers and all

stakeholders!stakeholders!5.5. Always be fair: Demonstrate a commitment to justice, with Always be fair: Demonstrate a commitment to justice, with

equal treatment of all! equal treatment of all! 6.6. Care for others when you are in charge!Care for others when you are in charge!7.7. All humans are equal no matter of their gender, race, All humans are equal no matter of their gender, race,

sexual orientation or beliefs! sexual orientation or beliefs! 8.8. Be responsible for natural environment!Be responsible for natural environment!9.9. Don’t cheat on your company!Don’t cheat on your company!10.10. Always act to protect sustainability!Always act to protect sustainability!

8. Why should we 8. Why should we change?change?

environmental pollution environmental pollution clearing of rainforestclearing of rainforest climate change climate change

globalization makes it dangerous to globalization makes it dangerous to all of usall of us

polluted rivers

save living spaces for animals protect animals from die-off

save humans and their health

growing povertygrowing poverty about 30,000 people die daily about 30,000 people die daily

from causes that are related to from causes that are related to povertypoverty

the gap between rich and poor is increasing rapidly

Defence of Socrates by Plato:Defence of Socrates by Plato:

““Virtue doesn´t come from money Virtue doesn´t come from money but money comes from virtue as but money comes from virtue as well as other goods both public well as other goods both public

and private.”and private.”