Trends, Social Responsibility, and

Ethics

3Chapter

© 2004 by Nelson, a division of Thomson Canada Limited.

2 © 2004 by Nelson, a division of Thomson Canada Limited.

Learning Goals

1. How is the trend of changing lifestyles affecting business?

2. How are changing demographic trends creating more opportunities for business?

3. Why is an understanding of demographic trends important for the marketing of goods and services?

3 © 2004 by Nelson, a division of Thomson Canada Limited.

Learning Goals (cont’d)

4. What philosophies and concepts shape personal ethical standards, and what are the stages of ethical development?

5. How can organizations influence organizational ethics?

6. What are the techniques for creating employee ethical awareness?

7. What is social responsibility?

4 © 2004 by Nelson, a division of Thomson Canada Limited.

Learning Goals (cont’d)

8. How do businesses meet their social responsibilities to various stakeholders?

9. What are the global and domestic trends in ethics and social responsibilities?

5 © 2004 by Nelson, a division of Thomson Canada Limited.

Learning Goal 1

How is the trend of changing lifestyles affecting business?

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Changing Lifestyle Trends

• Component lifestyle

• Working women

• Healthier lifestyle

• Active lifestyle

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Learning Goal 2

How are changing demographic trends creating more opportunities for business?

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Demographics:

the study of statistical characteristics of a population

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Demographic Trends

• Generation Y– born from early 1980’s to mid 1990’s

• Generation X– born from mid-1960’s to the late 1970’s

• Baby Boomers– born late 1940’s to the mid-1960’s

• Older Consumers– mature persons over 50 years of age

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Learning Goal 3

Why is an understanding of demographic trends important for the marketing of goods and services?

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Importance of Demographics

A knowledge of demographics aids in the marketing of goods and services and requires an understanding of:

• Ethnic markets• Multiculturalism

Canada’s Ethnic Diversity

Canadian 11,682,680 Portuguese 357,690

English 5,978,875 Welsh 350,365

French 4,668,410 Jewish 348,605

Scottish 4,157,210 Russian 337,960

Irish 3,822,660 Filipino 327,550

German 2,742,765 Métis 307,845

Italian 1,270,370 Swedish 282,760

Chinese 1,094,700 Hungarian 267,255

Ukrainian 1,071,060 American 250,005

N.A. Indian 1,000,890 Greek 215,105

Dutch 923,310 Spanish 213,105

Polish 817,085 Jamaican 211,720

East Indian 713,330 Danish 170,780

Norwegian 363,760 Vietnamese 151,410Statistics Canada 2001 Census

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Learning Goal 4

What philosophies and concepts shape personal ethical standards, and what are the stages of ethical development?

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Ethics:

a set of moral standards for judging whether something is right or wrong

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Individual Business Ethics

• Utilitarianism– determining if an action is right or wrong by

focusing on the consequences

• Individual Rights– Canadian Charter of Rights and Freedoms

• Justice– what is fair according to societal standards

• Stages of Ethical Development– preconventional/conventional/postconventional

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Stages of Ethical Development

Stage Behaviour

Preconventional Follows rules to avoid

(child) punishment. Acts in one’s own immediate interest.

Conventional Good behaviour is living up (adolescent) to what is expected by

others.

Postconventional Follows self-chosen ethical

(adult) principles of justice and right.

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Learning Goal 5

How can organizations influence organizational ethics?

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Influencing Ethical Conduct

• Recognizing Unethical Business Actions

• Resolving Ethical Problems in Business

• Ethics Training

• Establishing a Formal Code of Ethics

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Learning Goal 6

What are the techniques for creating employee ethical awareness?

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Resolving Ethical Problems

• Three–Questions Test– is it legal, is it balanced, how does it

make me feel?

• Front Page of the Newspaper Test• Leading by Example• Ethics Training• Establishing a Formal Code of

Ethics

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Learning Goal 7

What is social responsibility?

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Social Responsibility:

the concern of businesses for the welfare of society as a whole; includes concerns beyond legal and contractual obligations

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Pyramid of Social Responsibility

Be a good corporate Philanthropiccitizen Responsibility

Do what is fair Ethical Responsibility

Obey the law LegalResponsibility

Pursue profit EconomicResponsibility

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Two Dimensions of Social Responsibility

1. Legality

– Does the action break a law?

2. Responsibility

– Is the action responsible?

– Does the action benefit society?

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Learning Goal 8

How do businesses meet their social responsibilities to various stakeholders?

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Stakeholder:

any group or person within or outside the organization that has a stake in the organization’s performance

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Responsibilities to Stakeholders

• Responsibility to Employees

• Responsibility to Customers

• Responsibility to Suppliers

• Responsibility to Governments

• Responsibility to the General Public

• Responsibilities to Investors

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Learning Goal 9

What are the global and domestic trends in ethics and social responsibility?

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Trends in Business Ethics

• Strategic Giving

• Social Contracts with Employees

• Maintaining Ethical Conduct into Global Markets