PHI 4302 VII

BUS 4302, Business Policy and Strategy 1

Course Learning Outcomes for Unit VII Upon completion of this unit, students should be able to:

4. Evaluate policy creation strategies. 4.3 Examine the role of ethics in organizations. 4.4 Discuss corporate social responsibility and environmental sustainability in organizations.”

Required Unit Resources Chapter 10: Business Ethics, Environmental Sustainability, and Corporate Social Responsibility In order to access the following resources, click the links below. Christian, L. (2011, June 27). A richer shade of green. The Nation, 292(26), 22–23.

https://libraryresources.columbiasouthern.edu/login?url=https://search.ebscohost.com/login.aspx?dire ct=true&db=asn&AN=61138861&site=ehost-live&scope=site

Podgers, J. (Ed.). (2015, August). Corporations have a role (and a gain) in promoting the rule of law. ABA

Journal, 101(8), 67. https://libraryresources.columbiasouthern.edu/login?url=https://search.ebscohost.com/login.aspx ?direct=true&db=asn&AN=108693936&site=ehost-live&scope=site

Unit Lesson Chapter 10 describes the importance of business ethics, environmental sustainability, and social responsibility in strategic management, including such topics as workplace romance, bribery, pollution abatement, whistleblowing, and philanthropy. Issues related to these topics can significantly bolster or derail the best strategic plan, so Chapter 10 explains how these topics can best be managed. This unit will focus on an organization’s ethics, social responsibilities, and environmental sustainability. Social responsibility is what an organization does (to be preventive rather than reactive) to protect living things. Living things are considered as people, animals, and plants. Sustainability is what the organization does to preserve and protect rather than destroy or harm the environment. Examples of damage include pollution and contamination of a local area where the organization produces goods. Organizations can make efforts to prevent damages and maintain a safe and efficient work environment for their employees, community, and customers.

Business Ethics Good business ethics should be one of the main pillars within any organization. Ethics can impact an organization’s image, reputation, reliability, and overall business. The textbook describes good ethics as “good business” (David et al., 2020, p. 301). Thus, bad ethics can cause an organization to fail, even with an effectively planned strategy. Business ethics is defined as the conduct within an organization that guides decision-making and procedures. There are seven ethical principles listed in Table 10-1 in your textbook. Think about how these principles are utilized day-to-day within your favorite product or service.

UNIT VII STUDY GUIDE

Ethics and Social Responsibility

BUS 4302, Business Policy and Strategy 2

UNIT x STUDY GUIDE

Title

Examples of each are listed below:

Principle Description

Trustworthy Ensure you have a positive image that reflects honesty and is welcoming.

Open-minded Ensure you consider ethical implications both internally and externally.

Honor commitments Ensure all commitments, warranties, and advice is honored.

Do not mislead Avoid false advertisements, exaggeration, and lying to stakeholders.

Responsible Show your community that you care about them.

Eliminate questionable activity

Be transparent and upfront internally and externally to your stakeholders.

Treat others as you would want to be treated.

Simply put, treat others with dignity and respect.

When you have a moment, search the Internet for large corporations that have faced large class action law suits due to legal and moral conduct. Some of these corporations have paid billions of dollars in settlements, some of which are no longer existent. Companies such as Enron and WorldCom (parent company of MCI) are no longer operating due to their legal breaches and misconduct. These organizations failed due to corporate greed, poor management, and lack of industry oversight. These failed entities were enormous and created secondary and tertiary effects that affected the U.S. and global economy for many years. Other products or services that often mislead consumers are anti-aging and weight loss products. Ethical issues in this area include false credentials, such as educational attainments or experiences. Transparency is critical, especially with a social-media-driven society that can receive instant news and updates. Social media is extremely effective because it is relatively inexpensive, readily available, and easy to use. Social media can be used to promote a product in a positive or negative manner.

Whistleblowing and Bribes Whistleblowing is the legal requirement that states every employee has the legal obligation to report unethical behavior. Sometimes, a whistleblower can receive up to 25% of litigation fines if the organization is found guilty and penalized. One such example was a whistleblower who alerted the IRS regarding offshore accounts that were not being taxed appropriately. The IRS awarded over $100 million to this individual. Other cases included 10s of millions of dollars to whistleblowers. Bribery is offering, giving (including kickbacks), receiving, or influencing an individual or organization with services or products in exchange for influence related to a person’s action. Bribes are considered illegal in the United States, while in some countries, this is normal business and perfectly legal. An example would be a defense corporation bribing a government-contracting officer to ensure they receive direct source funding. This would mean that because the oversight leader is being bribed, he or she is influenced to not allow competing entities the ability to also compete for specific government contracts.

BUS 4302, Business Policy and Strategy 3

UNIT x STUDY GUIDE

Title

Social and Environmental Responsibility Social and environmental responsibility is an organization’s ability to promote a positive impact within their community. This can be accomplished through charitable support and protective measures that protect the environment. Each year, Fortune magazine publishes a list of companies that are admired or unadmired globally. When you have a moment, conduct a simple Internet search, and locate the most recent list. Do you recognize any of the companies? Are you surprised by how they are rated? An example of a corporation that has been socially responsible is the Wal-Mart Corporation. During most major disasters, they have leveraged their mass transportation network to quickly transport needed goods to affected areas. An example of this can be seen in the way that Wal-Mart responded during the aftermath of Hurricane Katrina; Wal-Mart was able to transport food and water to areas that the local and state governments had trouble supporting due to exhausting all support services. Corporations are also adapting to more environmentally-friendly products and services. This can include lower emission vehicles, green products becoming commercially available, and supporting wildlife.

Reference

David, F. R., David, F. R., & David, M. E. (2020). Strategic management: A competitive advantage approach,

concepts and cases (17th ed.). Pearson. https://online.vitalsource.com/#/books/9780135203736

Suggested Unit Resources In order to access the following resources, click the links below. The chapter presentation below will provide you with additional information on this unit’s concepts. Access the Chapter 10 Presentation. Access for PDF version of the Chapter 10 Presentation.