Ethics, Social Responsibility and Sustainable Development Flashcards
ethics
the code of moral principles and values that governs the behaviour of a person or a group with respect to what is right or wrong
examples of unethical and illegal organisation behaviour
- false or deceptive sales practices
- fabricating product quality data
- falsifying financial reports
- violating environmental standards
- violating contract terms
- discriminating against employees
- creating a hostile work environment
ethical dilemma
a situation where all alternative choices or behaviours have potentially negative consequences. Right or wrong cannot be clearly distinguished.
utilitarian approach
the ethical concept that moral behaviour produces the greatest good for the greatest number
individualism approach
the ethical concept that acts are moral when they promote the individual’s best long-term interests, which ultimately leads to the greater good
moral rights approach
the ethical concept that moral decisions are those that best maintain the rights of those people affected by them
justice approach
the ethical concept that moral decisions must be based on standards of equity, fairness and impartiality
practical approach
bases decisions on prevailing standards of the profession and larger society, taking the interests of all stakeholders into account
stage of moral development
at the preconventional level, individuals are concerned with external rewards and punishments and obey authority to avoid detrimental personal consequences
at the conventional level, people learn to conform to the expectations of good behaviour as defined by colleagues, family, friends and society
at the postconventional level, individuals are guided by an internal set of values based on universal principles of justice and right and will even disobey rules and laws that violate these principles
corporate social responsibility (CSR)
corporate social responsibility involves going above and beyond legal requirements in order to produce an overall positive impact on the community through operating in an economically, socially and environmentally sustainable manner whilst balancing the interests of diverse stakeholders
stakeholder
a person or a group that has a vested interest in the activities of a business
sustainability
economic development that generates wealth and meets the needs of the current population while preserving the environment for the needs of future generations
triple botton line
refers to measuring an organisation’s social performance, environmental performance and financial performance
ethical leadership
managers are honest and trustworthy, fair in their dealings with employees and customers, and behave ethically in both their personal and professional lives
organisational mechanisms that can help employees and the company stay on an ethical footing
- code of ethics
- ethical structures
- implementing measures to protect whistleblowers
code of ethics
a formal statement of the organisation’s values regarding ethics and social issues
ethical structure
represent the various systems, positions and programs that a company can undertake to encourage and support ethical behaviour
whistleblowing
disclosure by an employee of the illegal, immoral or illegitimate practices by the organisation
advantages of CSR / why businesses should employ CSR practices
- businesses can create a favourable public image
- businesses can prevent criticism and discourage further government involvement or regulation
- businesses have the financial and human resources to support public and charitable projects that need assistance
- socially responsible companies tend to have more secure long-run profits
disadvantages of CSR / why businesses should not employ CSR practices
- pursuing social goals dilutes business’s primary purpose; which is to maximise profits
- it is not the responsibility of businesses but of the government to address social and environmental problems
- business leaders lack the necessary skills to address social issues
types of CSR initiatives
- cause promotion: increasing awareness and concern for social causes.
- cause related marketing: contributions to causes related to sales
- corporate philanthropy: donating directly to causes
- community volunteering: Employees donating time and talent in community
- socially responsible business practices: discretionary practices and investment to support causes
ways to build an ethical organisation
Structure
- Chief Ethics Officer and Ethics Committee
- Code of Ethics and Ethics training
- hotlines and support for whistle-blowers
Culture
- humble, moral leaders
- beware of incongruences between values and reward structures
Politics
- power to diverse individuals (diverse perspectives)
- build diverse networks (to avoid groupthink)
