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Ethics and Corporate Social Responsibility. Nicki Sheridan, Nalini Priya, Kendra Gallion. Overview of Ethics. Discussion Question: Define Ethics Ethics is about doing the right thing within a moral framework. The practical application of morality.

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ethics and corporate social responsibility

Ethics and Corporate Social Responsibility

Nicki Sheridan, Nalini Priya, Kendra Gallion

overview of ethics
Overview of Ethics
  • Discussion Question:
    • Define Ethics
  • Ethics is about doing the right thing within a moral framework.
  • The practical application of morality.
  • Not just determining what is right, but following through and doing what is right.
test of ethical behavior
Test of Ethical Behavior
  • Morning-After Test
    • How will you feel about this behavior tomorrow morning?
  • Front-Page Test
    • How would you like to see this behavior written up on the front page of your hometown newspaper?
  • Mirror Test
    • How will you feel about this behavior when you look in the mirror?
  • Role Reversal Test
    • How will you feel about being on the receiving end of this behavior?
  • Commonsense Test
    • What does everyday common sense say about this behavior?
trust total quality
Trust & Total Quality
  • “The total quality approach cannot be successfully implemented in an organization that fails to subscribe to high standards of ethical behavior” (Goetsch, 2010, p. 75).
  • Ethical behavior builds trust.
  • Trust is essential to total quality.
  • Managers need to build trust in the organization as well as between employees.
elements of total quality that depend on trust
Elements of Total QualityThat Depend on Trust
  • Communication
  • Interpersonal Relations
  • Conflict Management
  • Problem Solving
  • Teamwork
  • Employee Involvement and Empowerment
  • Customer Focus
values total quality
Values & Total Quality
  • An organization will not produce quality if the organizational values are not quality.
  • Ethical behavior begins with values
  • Values that lead to ethical behavior:
    • Fairness
    • Dependability
    • Integrity
    • Honesty
    • Truthfulness
integrity total quality
Integrity & Total Quality
  • Integrity combines dependability and honesty
  • Discussion Question:
    • Does ethical behavior automatically follow if the organization has integrity?
  • Managers in a total quality setting need to strive for integrity vs. honesty
responsibility total quality
Responsibility & Total Quality
  • Accepting responsibility is part of ethical behavior.
  • Modern society has evolved to focus on rights but ignores the responsibilities that accompany those rights.
  • Total quality settings assure people are responsible for their actions rather than passing the blame.
  • Accepting responsibility builds trust, integrity, and other elements of ethics that are important to total quality.
manager s role in ethics
Manager’s Role in Ethics
  • Must set consistent example of punctuality
  • Should be motivation and inspiration
  • Should be self disciplined, honest, and show commitment towards work
manager s role in ethics1
Manager’s Role in Ethics
  • Manager has three main responsibilities:
    • Responsible for setting example of ethical behavior
    • Responsible for helping employees make ethical choices
    • Responsible for helping employees follow through and exhibit ethical behavior after appropriate choice has been made
approaches to ethics
Approaches to Ethics
  • Best-Ratio Approach
  • Black and White Approach
  • Full-Potential Approach
organization s role in ethics
Organization’s Role in Ethics
  • Create internal environment that promotes ethical behavior
  • Set example of ethical behavior
ethical environment
Ethical Environment
  • Establish policies and practices
    • Enforce policies
  • Develop ethics philosophy with key concepts:
    • Honesty
    • Integrity
    • Truth
    • Fairness
setting an example
Setting an Example
  • Employees should be able to trust each other
  • Create ethical internal environment
handling ethical dilemmas
Handling Ethical Dilemmas
  • What solutions are most likely to build trust among those involved?
  • What solution fits best into company’s value system?
  • What solution is most likely to enhance the organization integrity?
  • What solution is the most responsible option?
ethics training
Ethics Training
  • Employee theft
  • Conflict of interest
  • Quality control
  • Misuse of company property
  • Environmental pollution
  • Method’s of gathering competitor’s information
ethics training1
Ethics Training
  • Inaccuracy of books and records
  • False or misleading advertising
  • Political contribution and activities
  • Improper relations with local and federal government representatives
  • Improper relations with foreign government officials
codes of business conduct
Codes of Business Conduct
  • Ethics training is becoming increasingly important as the pressures of succeeding is an intensely competitive global market place will frequently face ethical dilemmas.
  • Encourage two way communication
  • Make training practical
  • Avoid dogmatic statements
ethical decision making1
Ethical Decision Making
  • Decision making models
    • Categorical imperative
    • Full-disclosure
    • Doctrine of the mean
    • Golden rule
    • Market-ethic
    • Organizational ethic
    • Equal freedom
    • Proportionality ethic
    • Professional ethic
belief vs behaviors
Belief vs. Behaviors
  • Discussion Question:
    • What is dishonesty?
  • Self-Interest vs. Self-Protection
  • Conflicting values
    • i.e. Honesty vs. Loyalty
  • Tangible vs. Intangible
social responsibility
Social Responsibility
  • Four steps of Social Responsibility:
    • Philanthropic
    • Ethical
    • Economic
    • Legal
social responsibility and ethics
Social Responsibility and Ethics
  • Social responsibility
    • i.e. PNC Financial Services Group donates $28 million yearly in grants and scholarships for arts, community improvement, and education.
corporate social responsibility
Corporate Social Responsibility
  • Also known as CSR
  • Discussion Question:
    • What is corporate social responsibility (CSR)?
  • “A good company delivers excellent products and services; a great company delivers excellent products and services and strives to make the world a better place” (Ford Jr. as cited in Goetsch and Davis, 2010, p. 90).
case study
Case Study
  • Group Activity
    • Case Study
  • Treating your female employee differently based on her gender or in response to a harassment complaint may be considered discriminatory and unethical conduct.
  • Business Ethics Video
    • What should you learn from it?
  • Examples of Ethical Issues in Business. (n.d.). Small Business. Retrieved November 6, 2013, from http:// business-24464.html
  • Ferrell, O. C., Fraedrich, J., & Ferrell, L. (2011). Business ethics: ethical decision making and cases (8. ed.). Mason, OH: South-Western Cengage Learning.
  • Goetsch, D. L., & Davis, S. (2010). Quality management for organizational excellence: introduction to total quality(6th ed.). Upper Saddle River, N.J.: Prentice Hall.