Lesson 5 - Ethics and Corporate Social Responsibility

Question 1

What are ethics?

Answer 1

• Set moral standards as to what is good or bad or right or wrong in ones conduct

Question 2

What is ethical behaviour?

Answer 2

• Ethical behaviour is accepted as “right or good” in the context of a governing moral code

Question 3

What is ethical leadership?

Answer 3

• Is always “good and right” by moral standards

Question 4

What is ethical training?

Answer 4

• Seeks to help people better understand the ethical aspects of decision making and how to incorporate these standards into their daily behaviour

Question 5

What is corporate social responsibility?

Answer 5

• Obligates organizations to act in ways that serve both its own interests and the interests of society at large

Question 6

What are typical organizational stakeholders?

Answer 6

• Employees
• Customers
• Suppliers
• Owners
• Competitors
• Regulators
• Interest groups

Question 7

2 diff perspectives on corporate social responsibility

Answer 7

1. Classical view - managers only responsibility is to maximize profits
2. Socioeconomic view: management must be concerned over the broader social welfare, not just profits

Question 8

What are the criteria for evaluating corporate social perofrmance?

Answer 8

Zone of compliance:
1. Economic Responsibility: Be profitable
2. Legal responsibility: Obey the law

Zone of conviction:
1. Ethical responsibility: (do what is right)
2. Discretionary responsibility: Contribute to community

Question 9

What are the strategies for perusing SCR

Answer 9

• Obstructionist: meets economic responsibilities
• Defensive: meets economic and legal responsibilities
• Accommodative: meets economic, legal and ethical responsibilities
• Proactive: Meets economic, legal, ethical, and discretionary responsibilities