Ethics and Corporate Social Responsibility

1. Ethics and Corporate Social Responsibility Nicki Sheridan, Nalini Priya, Kendra Gallion

2. 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.

3. 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?

4. 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.

5. Elements of Total QualityThat Depend on Trust • Communication • Interpersonal Relations • Conflict Management • Problem Solving • Teamwork • Employee Involvement and Empowerment • Customer Focus

6. 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

7. 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

8. 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.

9. 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

10. 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

11. Approaches to Ethics • Best-Ratio Approach • Black and White Approach • Full-Potential Approach

12. Organization’s Role in Ethics • Create internal environment that promotes ethical behavior • Set example of ethical behavior

13. Ethical Environment • Establish policies and practices • Enforce policies • Develop ethics philosophy with key concepts: • Honesty • Integrity • Truth • Fairness

14. Setting an Example • Employees should be able to trust each other • Create ethical internal environment

15. 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?

16. Ethics Training • Employee theft • Conflict of interest • Quality control • Misuse of company property • Environmental pollution • Method’s of gathering competitor’s information

17. 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

18. 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

19. Ethical Decision Making

20. 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

21. Belief vs. Behaviors • Discussion Question: • What is dishonesty? • Self-Interest vs. Self-Protection • Conflicting values • i.e. Honesty vs. Loyalty • Tangible vs. Intangible

22. Social Responsibility • Four steps of Social Responsibility: • Philanthropic • Ethical • Economic • Legal

23. 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.

24. 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).

25. 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.

26. Closing • Business Ethics Video • What should you learn from it?

27. References • Examples of Ethical Issues in Business. (n.d.). Small Business. Retrieved November 6, 2013, from http:// smallbusiness.chron.com/examples-ethical-issues- 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.