Management of Business HOMEWORK (URGENT!!!)
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Principles of Management
Topic 03 – Implementing Ethics and Corporate Social Responsibility
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Topic 03 – Learning Outcomes
1. Understand ethics and business ethics.
2. Review ethical issues in business.
3. Apply the four key ethical criteria that managers and employees should use when making business decisions.
4. Recognize morally challenging situations where ethical decisions should be made.
5. Identify important categories of stakeholders for approaches to corporate social responsibility.
6. Review benefits and challenges of corporate social responsibility.
PRINCIPLES OF MANAGEMENT
KHE-LCD-SGD-00038
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Ethics
Principles that explain what is right or wrong, good or bad, and what is appropriate or inappropriate in various settings.
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Business Ethics
Standards or guidelines for the conduct and decision making of employees and managers
Business ethics
is about being honest to your customers, society, employer, and employees. Source: https://businesszeal.com/importance-of-business-ethics
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Ethical Issues in Business
• Enron – corporate fraud • McDonalds – Big Mac • Sanlu –baby milk formula • Nike – “sweatshops” • Coca-Cola • Volkswagen – illegal software designed to mask emissions
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Skills for Managing Ethics and Corporate Social Responsibility
Ethical decision-
making skills
Analyzing stakeholder
concerns
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Ethics Approaches
• Decisions should be made on the basis of what is good for the greatest number of people
Utilitarianism
• Personal self-interests should be promoted as long as they do not harm others
Individualism
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Ethics Approaches (Cont’d)
• The belief that each person has fundamental human rights that should be respected and protected
Rights Approach
• Treating all people fairly and consistently in decision making • Distributive justice • Procedural justice
Justice Approach
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Ethics Approaches (Cont’d)
Class Activity1
Rights approach
Individualism approach
Justice approach
Utilitarianism approach
LibertarianEgalitarian
Community matters
Individuals matter
How much do individuals matter?
Economic freedom
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Business Transmission of Ethics
Refer to your notes on example of code of ethics.
Code of ethics
A written set of guidelines issued by an organization to its workers and management to help them conduct their actions…
PRINCIPLES OF MANAGEMENT
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Business Transmission of Ethics (Cont’d)
Refer to your notes on example of corporate credo.
Corporate credo
A set of fundamental beliefs / mission statement or guiding principles
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Business Transmission of Ethics (Cont’d)
Refer to your notes on example of ethical policy statements.
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Managing & Sustaining Ethics
• Messages from top executives • Discussion of codes of ethics
Ethics Training
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Managing & Sustaining Ethics (Cont’d)
• A division or department to oversee the guidelines: • Ethics officer or Ethics committee
Ethical Structures
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Managing & Sustaining Ethics (Cont’d)
• Protect the employees who report unethical behavior in the company
Whistleblower Policies
Class Activity2
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Corporate Social Responsibility The duty a company has to conduct its affairs ethically in a manner that benefits both employees and the larger society
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Stakeholder Theory - CSR
External Stakeholders
Suppliers Society
Government
Creditors
Shareholders Customers
Internal Stakeholders
Employees
Managers
Owners
Company
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Benefits of CSR
Improved financial
performance
Enhanced brand image &
reputation
Increased sales and customer
loyalty
Increased ability to attract
and retain employees
Easier access to capital
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Challenges of CSR
It requires higher costs
It can create shareholder resistance
It promotes greenwashing
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Approaches to CSR
Class Activity3
Confrontation approach
Damage control approach
Accommodation approach
Proactive approach
Social Responsibility
Low High
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