9 - Business ethics and social responsibility Flashcards
Principle ethics vs situational ethics - difference
Principle ethics - little room for choice
Situational ethics - response will be based upon particular circumstances of situation with which we are faced
Define integrity
The quality of being honest and having strong principles
Define objectivity
Not being influenced by personal feelings or opinions in considering and representing facts
Define ethics
A code of behaviour considered correct, especially that of a particular group, profession or individual
Define moral
Concerned with or relating to human behaviour, the distinction between right vs wrong
Constance Bagley’s decision tree - whether a decision should be made - when should we decide to proceed with an action?
The proposed action is legal, maximises shareholder value, and is ethical.
or
The proposed action is legal, and it would be unethical not to take the action (even if not maximising shareholder value).
What can Bagley’s decision tree be used as the basis of in theory?
Ethics code
Constance Bagley’s decision tree - what happens in real world
If an action is unethical, look for a loophole, or do it anyway if the returns for shareholder value are sufficient
Chryssides and Kaler - 5 different views/dimensions of business ethics
Business is business - org is purely commercial and ethical dimensions are outweighed
Act consistently within the law - law should underpin ethical decision-making
Good ethics means good business - org sustainability is closely aligned with perception by stakeholders of good business ethics
Conventional morality - business will operate in line with prevailing moral codes of society within which they are based
Universal morality - people in business world should maintain standards of ethical behaviour in business as they would in private lives
Recognition of CSR, in its fundamental form, is a commitment:
to contribute to economic development from within an ethical framework, while seeking to improve the quality of life for employees and families, local community and society at large
What does CA 2006 require on CSR (indirectly)
- Directors have duty to ensure decision-making encompasses wider environment
- Director’s report requires companies to demonstrate to their members how they have fulfilled their duties
Carrol’s pyramid of CSR - 4 levels - give definitions and ______ by society
- Philanthropic responsibilities - be a good corporate citizen (desired by society)
- Ethical responsibilities - do what is just and fair; avoid harm (expected by society)
- Legal responsibilities - obey laws and regulations (required)
- Economic responsibilities - be profitable, survive (required)
4 ethical stances
Laissez-faire - focus on profits and shareholder value
Enlightened self-interest - commercial benefit of positive CSR stance recognised
Stakeholder interaction - org recognised benefit or working closely with wider stakeholder community, proactive in approach
Shaper of society - seen as visionaries with the ability to influence of social change
3 different perspectives on (types of) sustainability *triple bottom line
- Economic
- Social
- Environmental
Differentiation between CSR (the R) and sustainability?
Responsibility = our accountability to and impact upon others
Sustainability = our accountability to and impact upon ourselves and others
