Practical 9 +10 Flashcards
Fraud is
a very serious variant of unethical behaviour
How to handle fraud:
- Acting promptly as soon as fraudulent activity is detected
(Do not try to cover up) - Comunicate effectively and transparently with stakeholders
- Identify individuals directly responsible and communicate
with authorities - Review and improve existing oversight / control mechanisms and evaluate the
responsabilities of middle/senior management (were signs ignored?)
Organizations
where hierarchy plays an
important role are more prone to
attributing responsabilities to the
Top.
True or False
True
Normativism:
Universal values accepted across all countries, cultures and regions
Relativism:
adaptation (“in
Rome, do as Romans”)
Being illegal brings fines but
being unethical and/or not
social responsible does what?
damages reputation.
Best practices for acting ethical
- Code of Conduct
- Recruitment (hire people with similar values/principles)
- Corporate certification and reporting
- Individual behaviour in a given situation
- Whistle blower policy
- Ethics Commission
- limit grey areas
- Top leads with good example
Ethical MNE:
VW
adopts the right business conduct,
with positive impact on reputation.
Socially Responsible MNE:
Patagonia
integrates social and environmental concerns in business operations (voluntary), aiming to create win-win solution for the company and stakeholders.
Philantropical MNE:
Bill& Melinda gates foundation
promotes wellness of others with no direct link with business operations (eg. donations for humanitarian causes).
Risk management approach
Avoid bad reputation
Perception of unethical behaviour can “kill” corporate reputation and/or a brand
Sustainability approach
Build a source of competitive advantage Environment friendly and socially responsible businesses can make consumers opt for the Brand
Can fast fashion brands adopt CRS in their business models?
yes, they are
UN Sustainable Development Goals provide….
”.. a shared blueprint for peace and prosperity for people and the planet, now and into the future.”
17 Sustainable Development Goals Objectives:
- End poverty
- Improve health and education
- Reduce inequality
- Promote economic growth
- Tackle climate change
- Preserve oceans and forests
ESG- Environmental
“Conservation of the natural
world”
ESG- Social
“Consideration of people & relationships”
ESG- Governance
“Standards for running a
company”
ESG- Social factors
- Consumer satisfaction
- Data protection
- gender and diversity
- Community relations
- Human rights
- Labour standards
ESG- Governance factors
- Board composition
- Audit committe structure
- Bribery and corruption
- Executive compensation
- Lobbying
- Political contributions
- Whistleblower schemes
Why do companies engage in IB?
- sales expansion
- resource acquisition
- Risk reduction
Social stratification:
etermines an individual’s class, status, and financial rewards within a culture.
Ascribed group memberships:
based on gender, family, age, caste, ethnic, racial or national origin
Acquired group memberships:
based on religion, political affiliation, professional association
