2: Making Ethical Decisions and Managing a Socially Responsible Business
- Page ID
- 2473
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\(\newcommand{\avec}{\mathbf a}\) \(\newcommand{\bvec}{\mathbf b}\) \(\newcommand{\cvec}{\mathbf c}\) \(\newcommand{\dvec}{\mathbf d}\) \(\newcommand{\dtil}{\widetilde{\mathbf d}}\) \(\newcommand{\evec}{\mathbf e}\) \(\newcommand{\fvec}{\mathbf f}\) \(\newcommand{\nvec}{\mathbf n}\) \(\newcommand{\pvec}{\mathbf p}\) \(\newcommand{\qvec}{\mathbf q}\) \(\newcommand{\svec}{\mathbf s}\) \(\newcommand{\tvec}{\mathbf t}\) \(\newcommand{\uvec}{\mathbf u}\) \(\newcommand{\vvec}{\mathbf v}\) \(\newcommand{\wvec}{\mathbf w}\) \(\newcommand{\xvec}{\mathbf x}\) \(\newcommand{\yvec}{\mathbf y}\) \(\newcommand{\zvec}{\mathbf z}\) \(\newcommand{\rvec}{\mathbf r}\) \(\newcommand{\mvec}{\mathbf m}\) \(\newcommand{\zerovec}{\mathbf 0}\) \(\newcommand{\onevec}{\mathbf 1}\) \(\newcommand{\real}{\mathbb R}\) \(\newcommand{\twovec}[2]{\left[\begin{array}{r}#1 \\ #2 \end{array}\right]}\) \(\newcommand{\ctwovec}[2]{\left[\begin{array}{c}#1 \\ #2 \end{array}\right]}\) \(\newcommand{\threevec}[3]{\left[\begin{array}{r}#1 \\ #2 \\ #3 \end{array}\right]}\) \(\newcommand{\cthreevec}[3]{\left[\begin{array}{c}#1 \\ #2 \\ #3 \end{array}\right]}\) \(\newcommand{\fourvec}[4]{\left[\begin{array}{r}#1 \\ #2 \\ #3 \\ #4 \end{array}\right]}\) \(\newcommand{\cfourvec}[4]{\left[\begin{array}{c}#1 \\ #2 \\ #3 \\ #4 \end{array}\right]}\) \(\newcommand{\fivevec}[5]{\left[\begin{array}{r}#1 \\ #2 \\ #3 \\ #4 \\ #5 \\ \end{array}\right]}\) \(\newcommand{\cfivevec}[5]{\left[\begin{array}{c}#1 \\ #2 \\ #3 \\ #4 \\ #5 \\ \end{array}\right]}\) \(\newcommand{\mattwo}[4]{\left[\begin{array}{rr}#1 \amp #2 \\ #3 \amp #4 \\ \end{array}\right]}\) \(\newcommand{\laspan}[1]{\text{Span}\{#1\}}\) \(\newcommand{\bcal}{\cal B}\) \(\newcommand{\ccal}{\cal C}\) \(\newcommand{\scal}{\cal S}\) \(\newcommand{\wcal}{\cal W}\) \(\newcommand{\ecal}{\cal E}\) \(\newcommand{\coords}[2]{\left\{#1\right\}_{#2}}\) \(\newcommand{\gray}[1]{\color{gray}{#1}}\) \(\newcommand{\lgray}[1]{\color{lightgray}{#1}}\) \(\newcommand{\rank}{\operatorname{rank}}\) \(\newcommand{\row}{\text{Row}}\) \(\newcommand{\col}{\text{Col}}\) \(\renewcommand{\row}{\text{Row}}\) \(\newcommand{\nul}{\text{Nul}}\) \(\newcommand{\var}{\text{Var}}\) \(\newcommand{\corr}{\text{corr}}\) \(\newcommand{\len}[1]{\left|#1\right|}\) \(\newcommand{\bbar}{\overline{\bvec}}\) \(\newcommand{\bhat}{\widehat{\bvec}}\) \(\newcommand{\bperp}{\bvec^\perp}\) \(\newcommand{\xhat}{\widehat{\xvec}}\) \(\newcommand{\vhat}{\widehat{\vvec}}\) \(\newcommand{\uhat}{\widehat{\uvec}}\) \(\newcommand{\what}{\widehat{\wvec}}\) \(\newcommand{\Sighat}{\widehat{\Sigma}}\) \(\newcommand{\lt}{<}\) \(\newcommand{\gt}{>}\) \(\newcommand{\amp}{&}\) \(\definecolor{fillinmathshade}{gray}{0.9}\)After reading this chapter, you should be able to answer these questions:
- What philosophies and concepts shape personal ethical standards?
- How can organizations encourage ethical business behavior?
- What is corporate social responsibility?
- How do businesses meet their social responsibilities to various stakeholders?
- What are the trends in ethics and corporate social responsibility?
- 2.0: Introduction
- Hasbro is dedicated to corporate social responsibility, aiming to positively impact children's lives. Ranked among the "100 Best Corporate Citizens," it emphasizes product safety, environmental sustainability, human rights, and community involvement. Key efforts include rigorous quality assurance, reducing energy and waste, and philanthropy, contributing nearly $15 million to charity in 2016.
- 2.1: Understanding Business Ethics
- This page explores the influence of ethical philosophies on business standards, highlighting dilemmas faced in choosing between ethical and unethical actions. It categorizes unethical behavior and discusses the impact of personal ethics shaped by societal obligations. Additionally, it addresses legal rights in wartime, asserting the need for equal application regardless of individual differences.
- 2.2: How Organizations Influence Ethical Conduct
- This page discusses the importance of fostering an ethical environment in organizations through leadership, ethics training, and formal codes of ethics. It highlights case studies of unethical behavior, emphasizes effective training to handle dilemmas, and showcases Campbell Soup Company's commitment to social responsibility.
- 2.3: Managing a Socially Responsible Business
- This page discusses corporate social responsibility (CSR), highlighting its voluntary actions by businesses to enhance societal welfare beyond legal obligations. It mentions examples like Starbucks and Salesforce engaging in CSR initiatives, while the W.S. Badger Company emphasizes ethical practices. However, it notes that some companies still act irresponsibly, leading to negative repercussions.
- 2.4: Responsibilities to Stakeholders
- This page discusses how businesses fulfill social responsibilities towards stakeholders, ensuring safe workplaces, customer satisfaction, and ethical practices. Companies generate jobs and contribute to society, sometimes pursuing B Corp certification and engaging in corporate philanthropy. Social investing is on the rise, with over $7 trillion in assets focusing on ethical values.
- 2.5: Trends in Ethics and Corporate Social Responsibility
- This page discusses three key trends in ethics and corporate social responsibility: the strategic alignment of corporate philanthropy with company goals, a redefined employer-employee relationship centered on mutual commitment and flexible compensation, and the growth of global ethics among multinational corporations. These corporations must maintain ethical standards while honoring local customs, engaging stakeholders, and addressing complex social issues.