© 2006 Pearson Education Canada Inc. Chapter 3 - 1

Chapter 3Chapter 3 Practising Ethical

Behaviour and Social

Responsibility

© 2006 Pearson Education Canada Inc. Chapter 3 - 2

Two ImportantTwo ImportantConceptsConcepts

SocialSocialResponsibilityResponsibility

EthicalEthicalBehaviourBehaviour

© 2006 Pearson Education Canada Inc. Chapter 3 - 3

What Is Ethical What Is Ethical Behaviour?Behaviour?

Competing FairlyCompeting Fairlyand Honestlyand Honestly

CommunicatingCommunicatingTruthfullyTruthfully

Not Causing HarmNot Causing Harmto Othersto Others

© 2006 Pearson Education Canada Inc. Chapter 3 - 4

Factors InfluencingFactors InfluencingEthical BehaviourEthical Behaviour

Cultural DifferencesCultural Differences

KnowledgeKnowledge

OrganizationalOrganizationalBehaviourBehaviour

© 2006 Pearson Education Canada Inc. Chapter 3 - 5

Business EthicsBusiness Ethics

Top-ManagementTop-ManagementCommitmentCommitment

ReportingReportingSystemSystem

Code of EthicsCode of Ethics

ComplianceComplianceOfficerOfficer

© 2006 Pearson Education Canada Inc. Chapter 3 - 6

Making Ethical DecisionsMaking Ethical DecisionsIs It Ethical?Is It Ethical? PhilosophicalPhilosophical

ApproachesApproachesStakeholderStakeholder

IssuesIssues

OutsidersOutsiders

SupervisorsSupervisors

EmployeesEmployees

UtilitarianismUtilitarianism

Individual, LegalIndividual, Legaland Human Rightsand Human Rights

Principles Principles of Justiceof Justice

Legality Legality and Balanceand Balance

AcceptabilityAcceptability

FeasibilityFeasibility

© 2006 Pearson Education Canada Inc. Chapter 3 - 7

Types ofTypes ofEthical SituationsEthical Situations

Ethical Dilemma

Ethical Lapse

© 2006 Pearson Education Canada Inc. Chapter 3 - 8

Social Responsibility in Social Responsibility in BusinessBusiness

EarlyEarly2020thth Century Century

MiddleMiddle2020thth Century Century

EarlyEarly2121stst Century Century

MaximizeMaximizeProfitsProfits

Provide JobsProvide Jobsand Pay Taxesand Pay Taxes

Balance ProfitsBalance Profitsand Social Issuesand Social Issues

© 2006 Pearson Education Canada Inc. Chapter 3 - 9

Percentage of Executives Who “Strongly Agree” or “Agree” That Companies Should:

•Be environmentally responsible•Be ethical in operations•Earn profits•Employ local residents•Pay taxes•Encourage and support employee volunteering•Contribute money and leadership to charities•Be involved in economic development•Be involved in public education•Involve community representatives in business decisions•Target a portion of purchasing toward local vendors•Help improve quality of life for low-income populations

Percentage

10010096949489857573626154

© 2006 Pearson Education Canada Inc. Chapter 3 - 10

Balancing Business Balancing Business and Stakeholders’ Rightsand Stakeholders’ Rights

BusinessBusiness

Safe Safe ProductsProducts

Product Product ChoiceChoice

ConsumersConsumers

Informed Informed PurchasePurchase

EmployeesEmployees

EquityEquityHealth & SafetyHealth & Safety

InvestorsInvestors

ProfitsProfitsFair DisclosureFair Disclosure

SocietySociety

CleanCleanEnvironmentEnvironment

© 2006 Pearson Education Canada Inc. Chapter 3 - 11

Efforts to IncreaseEfforts to IncreaseSocial ResponsibilitySocial Responsibility

SocialSocialAuditAudit PhilanthropyPhilanthropyCause-RelatedCause-Related

MarketingMarketing

© 2006 Pearson Education Canada Inc. Chapter 3 - 12

Causes of Causes of PollutionPollution

Industrial Discharges

Vehicle Emissions

Chemical Spills

© 2006 Pearson Education Canada Inc. Chapter 3 - 13

GovernmentGovernmentEfforts toEfforts toReduce Reduce PollutionPollution

Canadian Environmental Canadian Environmental Protection Act (CEPA)Protection Act (CEPA)

Regulate Regulate Air and WaterAir and Water

ReduceReduceAutomobile EmissionsAutomobile Emissions

License PesticidesLicense Pesticides

Control Control Toxic SubstancesToxic Substances

SafeguardSafeguardDrinking WaterDrinking Water

© 2006 Pearson Education Canada Inc. Chapter 3 - 14

The Kyoto ProtocolThe Kyoto Protocol• The goal of the Kyoto

Protocol is to reduce Greenhouse Gas Emissions

• Canada’s commitment:– Reduce Canadian GHG’s to 6%

below 1990 levels by 2012

© 2006 Pearson Education Canada Inc. Chapter 3 - 15

Business EffortsBusiness Effortsto Reduce Pollutionto Reduce Pollution

Environmental IssuesEnvironmental Issues

Environmental StaffEnvironmental Staff

Performance ExpectationsPerformance Expectations

Performance RewardsPerformance Rewards

Long-Term CostLong-Term Cost

Product DevelopmentProduct Development

Supplier ExpectationsSupplier Expectations

Training and AwarenessTraining and Awareness

© 2006 Pearson Education Canada Inc. Chapter 3 - 16

ResponsibilityResponsibilityToward ConsumersToward Consumers

The Right to Safe ProductsThe Right to Safe Products

The Right to Be InformedThe Right to Be Informed

The Right to ChooseThe Right to Choose

The Right to Be HeardThe Right to Be Heard

© 2006 Pearson Education Canada Inc. Chapter 3 - 17

ResponsibilityResponsibilityToward InvestorsToward Investors

SocialSocialResponsibilityResponsibility

BusinessBusinessEthicsEthics

© 2006 Pearson Education Canada Inc. Chapter 3 - 18

Responsibility TowardResponsibility TowardEmployeesEmployees

Equal EmploymentEqual EmploymentOpportunityOpportunity

Employment Equity Employment Equity ActAct

OccupationalOccupationalHealth and SafetyHealth and Safety

Diversity Diversity InitiativesInitiatives

© 2006 Pearson Education Canada Inc. Chapter 3 - 19

Global Ethics and Social Global Ethics and Social ResponsibilityResponsibility

Bribery

Environmental Abuse

Unscrupulous Business Practices