Section 1 Flashcards
CSR
Corporate Social Responsibility
What are 4 Ethic Lenses
Rights/Responsibilities (Duties)
Relationships (Fair Systems)
Result (Goals)
Reputation (Virtue)
What are Rights?
Rights or Responsibilities are to be honest and responsibly carry out duties
What are Relationships?
Be fair and consider those with no power
What are Results?
Be respectful as you do good and benefit others. Goals.
What is Reputation?
Be compassionate and virtuous
Name 2 hedge fund billionaires guilty of insider trading
Raj Rajaratnam (Galleon CEO) Rajat Gupta (Director of GS, Head of McKinsey)
How much did SAC Capital settle for
1.8 billion
What are some problems with CEO’s
Lack of Transparency, accountability
Huge bonuses
Greed
What did the peanut corporation of America do
Salmonella contamination
9 deaths and 700+ illnesses
Largest recall in the nation
Its president was sentenced to 28 years on 09/21/2015
Bernard Madoff’s Scheme
Pyramid scheme to expand money by offering higher rates
What is a dirty secret of Tesla
Falsification of pollution test
What did my boy martin shkreli do?
Raise aids drug price from 13.50 to 750
Name 4 considerations for Ethics
More than legality
Values/principles
Standards of moral behavior
Ethics begins with each of us
What is Social Responsibility
Consequence of an action
A businesses concern for the welfare of society as a whole
What are some Ethic check questions
Is it Legal? (first step)
Is it Balanced? (a win-win attitude)
How will it make me feel about myself?
Name a couple of U.S, ethical issues
Improper Accounting Practices Deceptive Sales/marketing practices Conflicts of Interest Lying on Reports Dishonesty with customers Lack of public trust Bribes and kickbacks Unfair treatment Bank Fraud Discrimination Unsafe products
What are ways to prevent unethical behavior?
Increasing penalties for offenders Employee education programs publicity about those being punished Code of conduct New laws
What are factors influencing managerial ethics
Individual (values, work background, personality)
Organizational (Reward system, philosophy,)
Environmental (competition, economy, social/culture)
How would you foster ethical behavior?
Leadership
Code of Ethics
Social Audit
Whistle Blowing
What are some steps to improve Business Ethics
Management support Employee understanding Management Training Ethics office Outsides must be informed enforcement of ethics code
How to curb growing income inequality
Capital tax
Banking Regulation
Education in poor countries
Corporate Social Responsibility
Why don’t we trust corporations?
Unethical business practices by accounting firms Under funding pension funds and 401(k) Misleading communications Under performing Board of directors Excessive compensation for Executives
What is your responsibility to society, investors, and suppliers?
Fairness Honesty - insider trading Timely Action Appropriate Compensation Corporate Philanthropy
How should a social audit be done?
By Company
By Outsiders
International Ethics and Social Responsibility
Not Unique to U.S.
Demand for social responsibility from global suppliers
Joint initiative for socially responsible behavior from global suppliers
What countries have top CR Corporate Responsibility
Japan UK France Germany US Italy Spain
Most Admired Global Companies
General Electric Toyota Proctor and Gamble FedEx Johnson and Johnson
