2: Business Ethics and Social Responsibility
- Page ID
- 3956
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\(\newcommand{\avec}{\mathbf a}\) \(\newcommand{\bvec}{\mathbf b}\) \(\newcommand{\cvec}{\mathbf c}\) \(\newcommand{\dvec}{\mathbf d}\) \(\newcommand{\dtil}{\widetilde{\mathbf d}}\) \(\newcommand{\evec}{\mathbf e}\) \(\newcommand{\fvec}{\mathbf f}\) \(\newcommand{\nvec}{\mathbf n}\) \(\newcommand{\pvec}{\mathbf p}\) \(\newcommand{\qvec}{\mathbf q}\) \(\newcommand{\svec}{\mathbf s}\) \(\newcommand{\tvec}{\mathbf t}\) \(\newcommand{\uvec}{\mathbf u}\) \(\newcommand{\vvec}{\mathbf v}\) \(\newcommand{\wvec}{\mathbf w}\) \(\newcommand{\xvec}{\mathbf x}\) \(\newcommand{\yvec}{\mathbf y}\) \(\newcommand{\zvec}{\mathbf z}\) \(\newcommand{\rvec}{\mathbf r}\) \(\newcommand{\mvec}{\mathbf m}\) \(\newcommand{\zerovec}{\mathbf 0}\) \(\newcommand{\onevec}{\mathbf 1}\) \(\newcommand{\real}{\mathbb R}\) \(\newcommand{\twovec}[2]{\left[\begin{array}{r}#1 \\ #2 \end{array}\right]}\) \(\newcommand{\ctwovec}[2]{\left[\begin{array}{c}#1 \\ #2 \end{array}\right]}\) \(\newcommand{\threevec}[3]{\left[\begin{array}{r}#1 \\ #2 \\ #3 \end{array}\right]}\) \(\newcommand{\cthreevec}[3]{\left[\begin{array}{c}#1 \\ #2 \\ #3 \end{array}\right]}\) \(\newcommand{\fourvec}[4]{\left[\begin{array}{r}#1 \\ #2 \\ #3 \\ #4 \end{array}\right]}\) \(\newcommand{\cfourvec}[4]{\left[\begin{array}{c}#1 \\ #2 \\ #3 \\ #4 \end{array}\right]}\) \(\newcommand{\fivevec}[5]{\left[\begin{array}{r}#1 \\ #2 \\ #3 \\ #4 \\ #5 \\ \end{array}\right]}\) \(\newcommand{\cfivevec}[5]{\left[\begin{array}{c}#1 \\ #2 \\ #3 \\ #4 \\ #5 \\ \end{array}\right]}\) \(\newcommand{\mattwo}[4]{\left[\begin{array}{rr}#1 \amp #2 \\ #3 \amp #4 \\ \end{array}\right]}\) \(\newcommand{\laspan}[1]{\text{Span}\{#1\}}\) \(\newcommand{\bcal}{\cal B}\) \(\newcommand{\ccal}{\cal C}\) \(\newcommand{\scal}{\cal S}\) \(\newcommand{\wcal}{\cal W}\) \(\newcommand{\ecal}{\cal E}\) \(\newcommand{\coords}[2]{\left\{#1\right\}_{#2}}\) \(\newcommand{\gray}[1]{\color{gray}{#1}}\) \(\newcommand{\lgray}[1]{\color{lightgray}{#1}}\) \(\newcommand{\rank}{\operatorname{rank}}\) \(\newcommand{\row}{\text{Row}}\) \(\newcommand{\col}{\text{Col}}\) \(\renewcommand{\row}{\text{Row}}\) \(\newcommand{\nul}{\text{Nul}}\) \(\newcommand{\var}{\text{Var}}\) \(\newcommand{\corr}{\text{corr}}\) \(\newcommand{\len}[1]{\left|#1\right|}\) \(\newcommand{\bbar}{\overline{\bvec}}\) \(\newcommand{\bhat}{\widehat{\bvec}}\) \(\newcommand{\bperp}{\bvec^\perp}\) \(\newcommand{\xhat}{\widehat{\xvec}}\) \(\newcommand{\vhat}{\widehat{\vvec}}\) \(\newcommand{\uhat}{\widehat{\uvec}}\) \(\newcommand{\what}{\widehat{\wvec}}\) \(\newcommand{\Sighat}{\widehat{\Sigma}}\) \(\newcommand{\lt}{<}\) \(\newcommand{\gt}{>}\) \(\newcommand{\amp}{&}\) \(\definecolor{fillinmathshade}{gray}{0.9}\)- 2.1: Misgoverning Corporations- An Overview
- This page emphasizes the critical role of business ethics, illustrated by scandals like Enron and the Madoff Ponzi scheme, which erode trust in corporations. It argues that ethical behavior transcends legal compliance, focusing on honesty and fairness as key values. Ethical companies experience loyalty from customers and employees, while unethical practices lead to diminished trust and financial repercussions. The text encourages reflection on fostering ethical conduct in business.
- 2.2: The Individual Approach to Ethics
- This page outlines the process of making ethical business decisions, emphasizing moral character and self-assessment. It discusses the Tylenol crisis faced by James Burke and highlights key steps for addressing ethical dilemmas: identifying the problem, assessing options, understanding stakeholder effects, setting criteria, and choosing the best option, prioritizing public safety over financial interests.
- 2.3: Identifying Ethical Issues
- This page outlines ethical challenges in business, focusing on moral dilemmas employees might face, such as accepting gifts and insider information disclosure. It categorizes these challenges into bribes, conflicts of interest, and loyalty issues. Emphasizing honesty and integrity, it advises employees to understand company policies and the consequences of their actions.
- 2.4: The Organizational Approach to Ethics
- This page highlights the significance of an ethical organizational culture, driven by leadership and shared values. It discusses how individual and organizational influences shape ethical behavior. Effective leaders communicate policies, model integrity, and ensure accountability. Many companies establish formal codes of conduct to define behaviors and reporting processes for misconduct.
- 2.5: Corporate Social Responsibility
- This page discusses corporate social responsibility (CSR), emphasizing the need for organizations to balance obligations to stakeholders and uphold ethical standards. It highlights legislation that ensures accountability and equity in employee treatment. Companies are encouraged to recruit diverse workforces to enhance creativity and market reach while complying with minimum wage laws and offering benefits.
- 2.6: Environmentalism
- This page highlights the growing recognition among businesses of their duty to operate sustainably, emphasizing the importance of responsible waste management and the protection of natural resources amidst challenges like pollution and urban sprawl. Leading companies such as Patagonia and DuPont are implementing sustainable practices, while the "triple bottom line" approach evaluates success through profit, social impact, and environmental protection.
- 2.7: Stages of Corporate Responsibility
- This page outlines five stages of corporate responsibility—Defensive, Compliant, Managerial, Strategic, and Civil—showing how companies respond to public criticism over time. It highlights McDonald's transition from a defensive stance against obesity criticisms to adopting health-focused menu changes, reflecting this evolution. However, McDonald's has yet to achieve the Civil stage due to a lack of collaboration with other companies on public health initiatives.
- 2.8: Cases and Problems
- This page discusses Nike's ethical responsibilities towards workers tied to its production, particularly after refusing to pay severance, which prompted student protests. Although Nike complied partially by contributing to relief funds and committing to employee support, the situation underscores the complexities of corporate ethics and the impact of activism on labor rights.