BUSINESS ETHICS AND CORPORATE SOCIAL RESPONSIBILITY

Introduction

Definition of Business Ethics and CSR Why should companies behave

ethically? Difficulties faced by companies to act

ethically Initiatives to help companies to have

an ethical behaviour Cases of unethical and ethical

companies

Business ethics

Business ethics refers to:Principles and standards that guide

business behaviour What is wrong or right, unacceptable

and acceptable

Business Ethics

Ethics of conduct Ethics of character

Corporate Social Responsibility

The obligation a company has towards the society

Limitation of negative impact of the company’s activities on society and maximisation of the benefits for the society

Economic, legal, ethical and social responsibility

Stakeholders theory

Firm

Supplier

Customer

Employee

Local community

Government

Environment

Shareholder

Business ethics and CSR issues

These ethical challenges concern both domestic and international companies:

Human rights Labour Issues

Bribery/CorruptionEnvironmental protection

Reasons why companies should behave ethically: To keep a good reputation and avoid bad

publicity

Companies that behave ethically tend to make profits

Rise of ethical consumers and investors (Ex: Consumption of Fair Trade products)

Companies have responsibilities towards its stakeholders!

Difficulties that companies are facing to behave ethically

The link between culture and ethics

Which code of behaviour should adopt the companies?

No concert penalties

Initiatives to help companies to adopt an ethical behaviour

Code of ethics (code of conduct), there are different levels:

-Corporate level (related to a single organization)

-Professional level (related to medecine, law etc…)

-Industry level

Group Code of conduct

International set of principles that provide a framework and foundation for the development of individual company’s codes

Examples of Group codes: The Sullivan Principles The Caux Principles The United Nations Global

Compact

Cases of unethical and ethical companies : Nike and Sodexo

Nike’s unethical practices

Refusal of Nike to fully compensate its workers with fair wages in some factories

Unsafe and unsanitary work conditions in some of its factories

Use of child labour around the world

Boycott of the brand and bad publicity

Sodexo

French multinational coporation providing food services with 380 000 employees around the world

Among 2010 world’s most ethical companies especially and awarded for its diversity and inclusion policy regarding its employees

Ethical principles and practices of Sodexo

Respect for people

Transparency

Business Integrity The fight against hunger with the

movement « STOP HUNGER INITIATIVE » ( food donation, fund- raising…)

QUIZ

How ethical are you?

You just printed a 200-page document that used all the paper in the printer.

A. You refill the paper tray immediately.

B. You casually mention that the machine's out of paper to people around you so they know to refill it before they hit print.

C. Eh, they'll figure it out eventually.

Your boss hands you a stack of papers that accidentally includes confidential personnel files

A. Immediately return the files to the boss once you recognize the mistake.

B. Search through the pages just to find your own file.

C. Read everyone's files.

You find out your cubicle neighbor is having a secret affair with the intern in accounting.

A. You pretend you know nothing about it.

B. You tell your closest work friends because you know they won't tell anyone.

C. You tell anyone who will listen

You know the boss is in a terrible mood. You also know your co-worker is about to go ask the boss for a ridiculously large raise.

A. You quietly warn your colleague that the boss is probably going to throw scissors at him if he goes in there today.

B. You mind your own business because you don't want to get involved.

C. You don't mention the boss' bad mood and instead get your colleague fired up and encourage him to triple the salary request.

The boss loves the ideas you pitched to everyone and can't stop showering you with accolades. The problem is, the ideas were a joint effort between you and your colleague.

A. You say, "Thanks, but I didn't work alone. Sheila worked just as hard as I did.“

B. You take the praise, and eventually tell Sheila what happened and that you didn't know how to tell the boss.

C. You accept the accolades and try to get Sheila fired before she finds out you've stolen the spotlight

It's 3 p.m. the day before Thanksgiving and everyone is on vacation. The phone hasn't rung once and no e-mails have come in.

A. You stay at your desk until 5 p.m. because it's your job.

B. You wait 30 more minutes to make sure nothing comes up, and then you leave.

C. Ha! You've been gone since noon.

ResultsIf you scored:

All A's -- You're the poster child for ethics.

Mostly A's -- You're not perfect, but you're still a role model.

Mostly B's -- You've forgotten a few things your parents taught you.

C's -- You're far from perfect but could be worse.

All C's -- You'd steal candy from a baby. And laugh about it.

Thank you for your attention!