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Chapter 3Chapter 3Practising Practising

Ethical Ethical Behaviour Behaviour and Socialand Social

ResponsibilityResponsibility

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Two ImportantTwo ImportantConceptsConcepts

SocialSocialresponsibilityresponsibility

SocialSocialresponsibilityresponsibility

EthicalEthicalbehaviourbehaviour

EthicalEthicalbehaviourbehaviour

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What Is Ethical What Is Ethical Behaviour?Behaviour?

Competing fairlyCompeting fairlyand honestlyand honestly

CommunicatingCommunicatingtruthfullytruthfully

Not causing harmNot causing harmto othersto others

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Factors InfluencingFactors InfluencingEthical BehaviourEthical Behaviour

Cultural differencesCultural differences

KnowledgeKnowledge

OrganizationalOrganizationalbehaviourbehaviour

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Business EthicsBusiness Ethics

Top-managementTop-managementcommitmentcommitment

Top-managementTop-managementcommitmentcommitment

ReportingReportingsystemsystem

ReportingReportingsystemsystem

Code of ethicsCode of ethicsCode of ethicsCode of ethics

Ethics OfficerEthics OfficerEthics OfficerEthics Officer

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Making Ethical DecisionsMaking Ethical Decisions

Is It Ethical?Is It Ethical? PhilosophicalPhilosophicalApproachesApproaches

StakeholderStakeholderIssuesIssues

OutsidersOutsidersOutsidersOutsiders

SupervisorsSupervisorsSupervisorsSupervisors

EmployeesEmployeesEmployeesEmployees

UtilitarianismUtilitarianismUtilitarianismUtilitarianism

Individual, legalIndividual, legaland human rightsand human rightsIndividual, legalIndividual, legal

and human rightsand human rights

Principles Principles of justiceof justice

Principles Principles of justiceof justice

Legality Legality and balanceand balance

Legality Legality and balanceand balance

AcceptabilityAcceptabilityAcceptabilityAcceptability

FeasibilityFeasibilityFeasibilityFeasibility

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Types ofTypes ofEthical SituationsEthical Situations

Ethical dilemma

Ethical lapse

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Social Responsibility in Social Responsibility in BusinessBusiness

EarlyEarly2020thth Century Century

MiddleMiddle2020thth Century Century

EarlyEarly2121stst Century Century

MaximizeMaximizeprofitsprofits

Provide jobsProvide jobsand pay taxesand pay taxes

Balance profitsBalance profitsand social issuesand social issues

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Percentage of Executives Who “Strongly Agree” or “Agree” That Companies Should:Percentage of Executives Who “Strongly Agree” or “Agree” That Companies Should:

•Be environmentally responsible

•Be ethical in operations

•Earn profits

•Employ local residents

•Pay taxes

•Encourage and support employee volunteering

•Contribute money and leadership to charities

•Be involved in economic development

•Be involved in public education

•Involve community representatives in business decisions

•Target a portion of purchasing toward local vendors

•Help improve quality of life for low-income populations

•Be environmentally responsible

•Be ethical in operations

•Earn profits

•Employ local residents

•Pay taxes

•Encourage and support employee volunteering

•Contribute money and leadership to charities

•Be involved in economic development

•Be involved in public education

•Involve community representatives in business decisions

•Target a portion of purchasing toward local vendors

•Help improve quality of life for low-income populations

PercentagePercentage

100

100

96

94

94

89

85

75

73

62

61

54

100

100

96

94

94

89

85

75

73

62

61

54

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Balancing Business Balancing Business and Stakeholders’ Rightsand Stakeholders’ Rights

BusinessBusiness

Safe Safe ProductsProducts

Product Product ChoiceChoice

ConsumersConsumers

Informed Informed PurchasePurchase

EmployeesEmployees

EquityEquityHealth & SafetyHealth & Safety

InvestorsInvestors

ProfitsProfitsFair DisclosureFair Disclosure

SocietySociety

CleanCleanEnvironmentEnvironment

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Efforts to IncreaseEfforts to IncreaseSocial ResponsibilitySocial Responsibility

SocialSocialAuditAuditSocialSocialAuditAudit PhilanthropyPhilanthropyPhilanthropyPhilanthropyCause-relatedCause-related

MarketingMarketingCause-relatedCause-related

MarketingMarketing

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Causes of Causes of PollutionPollution

Industrial discharges

Vehicle emissions

Chemical spills

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GovernmentGovernmentEfforts toEfforts toReduce Reduce PollutionPollution

Canadian Environmental Canadian Environmental Protection Act (CEPA)Protection Act (CEPA)

Regulate Regulate air and waterair and water

ReduceReduceautomobile emissionsautomobile emissions

License pesticidesLicense pesticides

Control Control toxic substancestoxic substances

SafeguardSafeguarddrinking waterdrinking water

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The Kyoto ProtocolThe Kyoto Protocol

• The goal of the Kyoto Protocol is to reduce greenhouse gas emissions

• Canada’s commitment:– Reduce Canadian GHG’s to 6%

below 1990 levels by 2012– In 2007, Canada was above 1990

levels by 27 percent

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Business EffortsBusiness Effortsto Reduce Pollutionto Reduce Pollution

Environmental issuesEnvironmental issues

Environmental staffEnvironmental staff

Performance expectationsPerformance expectations

Performance rewardsPerformance rewards

Long-term costLong-term cost

Product developmentProduct development

Supplier expectationsSupplier expectations

Training and awarenessTraining and awareness

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ResponsibilityResponsibilityToward ConsumersToward Consumers

The Right to Safe ProductsThe Right to Safe ProductsThe Right to Safe ProductsThe Right to Safe Products

The Right to Be InformedThe Right to Be InformedThe Right to Be InformedThe Right to Be Informed

The Right to ChooseThe Right to ChooseThe Right to ChooseThe Right to Choose

The Right to Be HeardThe Right to Be HeardThe Right to Be HeardThe Right to Be Heard

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ResponsibilityResponsibilityToward InvestorsToward Investors

SocialSocialresponsibilityresponsibility

SocialSocialresponsibilityresponsibility

BusinessBusinessethicsethics

BusinessBusinessethicsethics

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Responsibility TowardResponsibility TowardEmployeesEmployees

Equal employmentEqual employmentopportunityopportunity

Employment Equity Employment Equity ActAct

OccupationalOccupationalhealth and safetyhealth and safety

Diversity Diversity initiativesinitiatives

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Global Ethics and Social Global Ethics and Social ResponsibilityResponsibility

Bribery

Environmental abuse

Unscrupulous business practices