Ethics,Csr & Corporate Behavior

8/13/2019 Ethics,Csr & Corporate Behavior

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ETHICS,CSR & CORPORATE

BEHAVIOR


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Are you aware?

Colgate worldwidetoothpaste market share

is 44.4%

Colgate Total has a

formula which canprevent gingivitis

The top selling

toothpaste brand

Contains triclosan

Suspected to be an

endocrine disruptor

Source:http://business-ethics.com/2010/10/03/5050-controversial-chemical-poses-disclosure-

challen e-for-col ate- almolive/


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What would be your advice to Colgate?

Inform its customers that a key ingredient of itsproduct is facing questions?

Amend its marketing?

Play an active role in the scientific debate?

Publicly defend its turf?

Simply do nothing and wait?


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Going BANANAS


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Going BANANAS : The issue

ASDA : chain of super markets in U.K Part of Wal-Mart

In sep-oct 2009, ASDA cut its banana prices six

times in 6 weeks

Sold bananas at 38 pence a kilo (roughly 27 Rs perKg)

The bananas were sourced from Windward Islands


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If you are the consumer

Would you like to know the true cost of your product? Would you be willing to pay a higher price?

Will you boycott the product altogether as a protest

measure?

Or can you think off buycott?


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Based on the earlier highlighted issues

Do you think the actionsby the companies

involved are ethical?

What would you classify

as an ethical responsein these situations?


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Based on our understanding

What is ethics? When the company apply some set of standards or

norms as a part of their responsibility we can call them

ethical code of conduct of business.

Ethics shows a corporation how to behave properly in

their all business and operations.

Ethics is the set of rules prescribing what is good or evil,

or what is right or wrong for people.


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The essence of business ethics

Honesty Confidence

Respect and

Fair acting in all circumstances

Is business ethics

A natural phenomenon

Or a structured process


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Why ethical philosophies are in light?

Can we ever forget this?

All workers who were

involved in cleaning upExxon Valdez oil spill are

dead now


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Business Ethics & Corporate Social

Responsibility: The Moral View

Ethics is concerned with the following: Good vs Bad

Right vs Wrong

Fair vs Unfair

Praise vs Blame


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Responsibility: The Legal View

What are the differences between legal, social, andethicalresponsibility?


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What is implied by shareholder wealth maximization?

Specifically, what does this perspective 'mean' for the

interests of other stakeholders?


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Deontology: An ethical theory that holds that actions are right or wrong

independent of their consequences


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Does the contemplated action: Conform to important principles?


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Ethical Decision-making Model

principles

outcomes

fairness

caring

liberty

character

sustainability

1 2 3 4 5 6


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Problem: It is not clear on what basis non-humans can be

considered to have rights


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Utilitarianism: An ethical theory that holds that actions are right if they

produce, or tend to produce, the greatest amount of good

for the greatest number of persons


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Create more good than harm?


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principles

outcomes

fairness

caring

liberty

character

sustainability

1 2 3 4 5 6

B i E hi & C S i l


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Problem: This perspective only recognizes the instrumental

value of goods


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Justice: Consists in giving each person his or her due, treating

equals equally and unequals unequally

Distributive

Procedural

Compensatory

Retributive


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Lead to fair outcomes?


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principles

outcomes

fairness

caring

liberty

character

sustainability

1 2 3 4 5 6


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Problem: Focus is on persons, and giving them what they

deserve based on merit


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Ethic of Care: Asks us to recognize and take seriously the moral worth of

relationships, particularly those characterized by caring


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Promote caring relationships?


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principles

outcomes

fairness

caring

liberty

character

sustainability

1 2 3 4 5 6


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Problem: It is not clear what might be meant by caring for non-

humansor what it might mean for them to care for

us

B i Ethi & C t S i l


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Libertarianism: Suggest right action consists in maximizing the capacity for

free, informed personal choice



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Does the contemplated action:

Conform to important principles?



Promote caring relationships? Advance personal liberty?


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Problem: Non-humans are not considered to have choices in

the way in which humans do, and therefore are not

privileged with liberty



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Virtue theory: Focus is on achieving our personal ethical ideala matter of

who we are, not what we do



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Stimulate personal ideals?


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principles

outcomes

fairness

caring

liberty

character

sustainability

1 2 3 4 5 6


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Problem: Who we are in an ideal sense may have little or no relation

with the external world


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What isa corporation?



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Responsibility: The Social View

Corporations are not human beings. The differencesbetween human individuals and corporations, other

formal organizations, and nations are significant from a

moral point of view and from the point of view of moral

responsibility.


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Responsibility: The Social View

Because a corporation only acts through those who actfor it, it is the latter who must assume responsibility for

the corporation.

B i Ethi /C t S i l R ibilit


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Business Ethics/Corporate Social Responsibility

Overview

The exclusively economic definition of the purpose

of the corporation is a deadly oversimplification,

allowing overemphasis on self-interest at the

expense of consideration of others.

--Kenneth Andrews

B i Ethi /C t S i l R ibilit


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Business Ethics/Corporate Social Responsibility

Overview

Manought to regard himself, not as something

separated and detached, but as a citizen of the

world, a member of the vast commonwealth of

natureto the interest of this great community, he

ought at all times to be willing that his own little

interest should be sacrificed.

--Adam Smith



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Land Ethic: A thing is right when it tends to preserve the beauty,

stability, and integrity of the biotic community. It is wrong

when it tends otherwise.



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Does the contemplated action:

Conform to important principles?




Stimulate personal ideals?

Contribute to sustainability?


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principles

outcomes

fairness

caring

liberty

character

sustainability

1 2 3 4 5 6



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Responsibility: Mindwalk

Locke believes land that is left "wholly to nature" is"waste." How does this viewpoint compare with the

attitudes of today's American businesses? Give

examples.



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One of the distinguishing characteristics of any socialsystem is the way in which property is owned and

transferred from one party to another. What are the

socio-political implications of community property

ownership? Of private property ownership?



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If the best way to insure adequate treatment of theenvironment is through some form of communityownership, can we conclude socialism is a better politicalsystem for ensuring the protection of nature? Whatevidence do we have for this conclusion?

Perhaps a hybrid system would be a good framework forpreserving the environment. Either "community owned,individually managed" or "individually owned, managed forthe community." What type of system do you recommend?

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Ethics,Csr & Corporate Behavior