Chapter 3: Business Ethics, Environmental Sustainability and Corporate Social Responsibility Flashcards
principles of conduct within organizations that guide decision making and behavior
Business Ethics
Define Business Ethics
principles of conduct within organizations that guide decision making and behavior
actions an organization takes beyond what is legally required to protect or enhance the well-being of living things
Social Responsibility
Define Social Responsibility
actions an organization takes beyond what is legally required to protect or enhance the well-being of living things
the extent that an organization’s operations and actions protect, mend, and preserve rather than harm or
destroy the natural environment
Sustainability
What are the Seven Principles of Admirable Business Ethics
- Be trustworthy; no individual or business wants to engage in
business with an organization it does not trust - Be open-minded, continually asking for “ethics-related feedback”
from all internal and external stakeholders. - Honor all commitments and obligations.
- Avoid misrepresenting, exaggerating, or misleading with print
materials, actions, or words. - Visibly be a responsible community citizen.
- Use your accounting practices to identify and eliminate questionable
activities. - Follow the Golden Rule: “Do unto others as you would have them do
unto you.”
To ensure that the code of ethics is read, understood, believed, and remembered, periodic ethics workshops are
needed to sensitize people to workplace circumstances in
which ethics issues may arise.
Code of Business Ethics
Define Code of Business Ethics
To ensure that the code of ethics is read, understood, believed, and remembered, periodic ethics workshops are
needed to sensitize people to workplace circumstances in
which ethics issues may arise.
How to Establish an Ethics Culture
Follow the Code of Business Ethics
What are the Business Ethics Topics That Have
Become Important?
- Whistle-blowing
- Bribery
- Workplace romance
This refers to employees reporting any unethical violations they discover or see in the firm
Whistle-Blowing
the offering, giving, receiving, or soliciting of any item of value to influence the actions of an official or other person
in discharge of a public or legal duty
Bribery
Define Bribery
- the offering, giving, receiving, or soliciting of any item of
value to influence the actions of an official or other person
in discharge of a public or legal duty - a crime in most countries of the world, including the United States
a crime in most countries of the world, including the United States
Bribery
Define Whistle-Blowing
This refers to employees reporting any unethical violations they discover or see in the firm
Workplace romance can be detrimental to morale and productivity:
- favoritism complaints can arise
- confidentiality of records can be breached
- reduced quality and quantity of work could result
- personal arguments can lead to work arguments
- whispering secrets can lead to tensions
- sexual harassment charges may ensue
- conflicts of interest could arise
Define Environmental Sustainability
- Employees, consumers, governments, and society are especially resentful of firms that harm rather than protect the natural environment.
- Conversely, people today are especially appreciative of firms that conduct operations in a way that mends, conserves, and preserves the natural environment.
Employees, consumers, governments, and society are especially resentful of firms that harm rather than protect the natural environment.
Environmental Sustainability
Conversely, people today are especially appreciative of firms that conduct operations in a way that mends, conserves, and preserves the natural environment.
Environmental Sustainability
Sustainability report:
- reveals how a firm’s operations impact the natural environment
- discloses to shareholders information about the firm’s labor practices, product sourcing, energy efficiency, environmental impact, and business ethics practices
- reveals how a firm’s operations impact the natural environment
Sustainability report
- discloses to shareholders information about the firm’s labor
practices, product sourcing, energy efficiency, environmental impact, and business ethics practices
Sustainability report
The ISO 14000 family of standards concerns ____
The ISO 14000 family of standards concerns the extent to which a firm minimizes harmful effects on the environment
caused by its activities and continually monitors and
improves its own environmental performance.
This is a set of standards adopted by thousands of firms worldwide to certify to their constituencies that they are conducting business in an environmentally friendly
manner
ISO 14001
Define ISO 14001
- ISO 14001 is a set of standards adopted by thousands of firms worldwide to certify to their constituencies that they are conducting business in an environmentally friendly
manner - Results in an Environmental Management System (EMS)
What does EMS stands for?
Environmental Management System (EMS)
Reasons Why Preserving the Environment Should Be a Permanent Part of Doing Business
- Consumer demand for environmentally safe products and packages is high.
- Public opinion demanding that firms conduct business in ways that preserve the natural environment is strong.
- Environmental advocacy groups now have more than 20 million Americans as members.
- Federal and state environmental regulations are changing rapidly and becoming more complex.
- Many lenders are examining the environmental liabilities of
businesses seeking loans. - Many consumers, suppliers, distributors, and investors shun doing business with environmentally weak firms.
- Liability suits and fines against firms having environmental
problems are on the rise.
Ralph Nader proclaims ___that organizations have tremendous social obligations.
Ralph Nader proclaims that organizations have
tremendous social obligations.
Milton Friedman asserts ________
Milton Friedman asserts that organizations have no
obligation to do any more for society than is legally
required.
Who proclaims that organizations have
tremendous social obligations?
Ralph Nader
Who asserts that organizations have no
obligation to do any more for society than is legally
required.
Milton Friedman
Provide an example of a Corporate Social Responsibility
- Ralph Nader proclaims that organizations have
tremendous social obligations. - Milton Friedman asserts that organizations have no
obligation to do any more for society than is legally
required.
What does CSR stands for?
Corporate Social Responsibility
Provide an example of a Corporate Social Responsibility (CSR)
and Performance
- Research reveals a u-shaped relationship between CSR and corporate financial performance, whereby firms with the greatest CSR are generally also the firms with the highest financial performance; firms with the lowest CSR tend to have higher performance than those with moderate
social responsibility. - Important to know that no social need can be met if the firm fails.
- Consumers expect humane treatment of animals.
- Consumers are flocking to organic products.
Food Suppliers and Livestock Welfare
Consumers globally are becoming increasingly intolerant of any business or nation that directly or indirectly destroys
wildlife, especially endangered wildlife, such as tigers, elephants, whales, songbirds, and coral reefs.
Wildlife Welfare
10 Companies With The Best CSR Reputation as Rated by Consumers
- The Lego Group
- Microsoft
- Walt Disney Company
- B MW Group
- Intel
- Robert Bosch
- Cisco Systems
- Rolls-Royce Aerospace
- Colgate-Palmolive
