ITM Bridging Topic 07 – Ethics CSR: Introduction To Management, Assignment, KU, Singapore

Learning Objectives

LO1 Describe how different ethical perspectives guide decision making

LO2 Explain how companies influence their ethics environment

LO3 Outline a process for making ethical decisions

LO4 Summarize the important issues surrounding corporate social responsibility

LO5 Discuss reasons for businesses’ growing interest in the natural environment

LO6 Identify actions managers can take to manage with the environment in mind

Ethics

•  Ethics
  -The system of rules that governs the ordering of values
  -Doing all the right things and not doing the wrong things.

It’s a Personal Issue

• Most of us believe we are ethical but most have unconscious biases that favor ourselves and their own group.
  • Is it ethical to:
  – Shop online during company time?
  – Using office equipment for personal use?
  – Read personal emails while at work?
• Managers often:
  – Hire people who are like them
  – Lie depending on situation
  – Participate in bribery (corruption)

Business Ethics

Skills for Managing Ethics and Social Responsibility

Ethics Approaches

Business Transmission of Ethics

Corporate Credo

Managing Ethics

Ethical Dilemmas / Issues in Business

1. Enron Scandal – Revealed in October 2001. $90/share in mid
2000 to $1/share by Nov 2001
2. Sanlu – Milk scandal in 2008
3. North American government failing to sign the Kyoto protocol
4. Fashion houses using animal fur for clothing and accessories
5. Tobacco companies manufacturing tobacco products
6. Torrent websites providing free music, movies etc. downloads
7. Sweat shop labour employed by Nike
8. Doctors charging clients sky high prices for consultation
9. Etc.
10. Etc.
11. Etc

Social Responsibility

• The duty a company has to conduct its affairs ethically in a manner that benefits both employees and the larger society

Social Responsibility – Examples

•  Donating to charities
•  Making affordable products
• Making green products
•  Making safe products
•  Alternative energy sources
• Recycling

Organizational Stakeholders

Strategies for Managing Stakeholders

Approaches to Social Responsibility

Tutorial: Group Discussion Questions

Choose any company and answer the following:
1. Which of the following ethical decision making does the
company approaches.
a) Utilitarianism
b) Individualism
c) Rights approach
d) Justice approach
2. Which of the following social responsibility does the
company approaches.
a) Confrontation
b) Damage Control
c) Accommodation
d) Proactive