Ethics Module 4

7/28/2019 Ethics Module 4

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1. CORPORATE SOCIAL

RESPONSIBILITY

2. SOCIAL AUDIT

3. ETHICS ANDGOVERNMENT

4. INTERNATIONAL

BUSINESS ETHICS


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CORPORATE SOCIALRESPONSIBILITY CSR

Corporate social responsibility (CSR, also

called corporate conscience, corporate

citizenship, social performance, or sustainable

responsible business) is a formof corporate self-regulation integrated into

a business model.

CSR policy functions as a built-in, self-regulating mechanism whereby business

monitors and ensures its active compliance

with the spirit of the law, ethical standards, and

international norms.
http://en.wikipedia.org/wiki/Corporatehttp://en.wikipedia.org/wiki/Self-policinghttp://en.wikipedia.org/wiki/Business_modelhttp://en.wikipedia.org/wiki/Norm_(sociology)http://en.wikipedia.org/wiki/Norm_(sociology)http://en.wikipedia.org/wiki/Business_modelhttp://en.wikipedia.org/wiki/Business_modelhttp://en.wikipedia.org/wiki/Business_modelhttp://en.wikipedia.org/wiki/Self-policinghttp://en.wikipedia.org/wiki/Self-policinghttp://en.wikipedia.org/wiki/Self-policinghttp://en.wikipedia.org/wiki/Corporate


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The term "corporate social responsibility"

came in to common use in the late 1960's and

early 1970's, after many multinational

corporations formed CSR is titled to aid an organization's mission

as well as a guide to what the company stands

for and will uphold to its consumers


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ISO 26000 is the recognized international

standard for CSR (currently a Draft

International Standard).
http://en.wikipedia.org/wiki/ISO_26000http://en.wikipedia.org/wiki/ISO_26000


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Preliminary definitions of CSR

The impact of a companys actions on society

Corporate social responsibility (CSR) is the

process by which businesses negotiate their

role in society

Although the two are linked in most firms, CSR

activities are no guarantee of ethical behavior


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Corporate Citizenship Concepts

Corporate social responsiveness

emphasizes action, activity

Corporate socialperformance

emphasizes outcomes, reCorporate social

responsibility emphasizes obligation and

accountability to society

sults


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n qua on orm s e umof:

Economic Responsibilities (Make a profit)

Legal Responsibilities (Obey the law)

Ethical Responsibilities (Be ethical)

Philanthropic Responsibilities (Good corporate

citizen)


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ays ompan es n egra eEthics

Company codes of ethics

Supply chain codes

Develop, monitor, enforce ethical behavior

Seek external assistance


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Four Challenges to a Global Ethics

Global rules may be viewed as an end ratherthan a beginning

Rules can depress innovation and creativity

Rules are static but globalization is dynamic


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SOCIAL AUDITING

The concept of a social audit was formed

much earlier in the 1940s.


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A social audit is a process in which the people

work with the government to monitor and

evaluate the planning and implementation of ascheme or programme, or indeed of a policy or

law.

Social audit - conducted jointly by the

government and the people, especially by those

people who are affected by, or are the intended

beneficiaries of, the scheme being audited.


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Social Auditing is a management tool and

accountability mechanism which can

enhance an organizations capacity to: Evaluate their impact on stakeholders

Determine how well they are living up to the values

they espouse.

Improve their strategic planning process byidentifying potential problems before they come up;

and

Increase their accountability to the groups they

serve and depend on.

To permit the enterprise to effectively monitor

performance.


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A social audit is a systematic assessment of a

firms objectives, strategies, and performance

in terms of social responsibility.

The social audit may be performed routinelyby internal or external consulting groups, as

part of regular internal audits.

These evaluations consider social andenvironmental impacts of business activities.


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The Scope of a Social Audit

A social audit is conducted over the life span

of a scheme or programme, and not just in one

go or at one stage. It audits the process, the outputs and the

outcome.

It audits planning, implementation, monitoringand evaluation.


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Benefits of Social Audit

Reduction of corruption.

Increased effectiveness of a program or

project or scheme.

Benefits reach the people.

Government becomes more responsible and

accountable.

Power in hands of the public.


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III. ETHICS & GOVERNMENT


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ETHICS IN

INTERNATIONALBUSINESS


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www.worldassemblyforethics.org

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MultiethicsAs we are Multilingual, So

we are multiethnic

And as we are Multiethnic,

so we are multiethical.


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Ethical Issues in InternationalBusiness

EMPLOYMENT PRACTICES Work conditions: hot weather around toxic

chemicals - # of hours and pay salaries in developing

countries.

HUMAN RIGHTS Freedom is not universally accepted. South

Africa white rule until 1994

investment inChina

corporate downsizing, punitive actions against"whistleblowers,"
http://www.answers.com/topic/downsizing-1http://www.answers.com/topic/downsizing-1


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ENVIRONMENTAL POLLUTION The emission of pollutants, the dumping of

toxic chemicals

Amoral management might moveproduction to a developing nation preciselybecause costly pollution controls are notrequired.

No one owns the atmosphere or the oceans,

but polluting both, no matter where thepollution originates, harms all.


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CORRUPTION Economic advantages by making payments to corrupted

government officials.

$12.5 million payment to Japanese agents and governmentofficials

MORAL OBLIGATIONS BP, one of oil companies, has made social investments in Algeria,

the desert town of Salah. it built two desalination plants to providedrinking water for the local

Ethical Dilemmas in a poor nation, a 12-yearold girl works in a factory.


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Nike code of ethics with

subcontractors

behaving ethically required going beyond the

requirements of the law.

establishment and enforcement of rules thatadhere to accepted moral principles of right

and wrong.


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Recommendations

We have to find effective policies to:

counter corruption,

reduce greed and self-centeredness,

encourage honor and honesty,

promote parental guidance to establish a sense of values,

encourage respect for legitimate authority,

support the identification and success of the influence of rolemodels,

implement cost-effective strategies for global education for amore enlightened world,

and find ways to make behavior match the values people saythey believe in.


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Documents

Ethics Module 4