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Business Ethics Part II

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Business Ethics Part II BOH4M When faced with an ethical dilemma How do managers know what s right and wrong? Personal views Laws Societal mores Corporate Code ... – PowerPoint PPT presentation

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Title: Business Ethics Part II


1
Business Ethics Part II
  • BOH4M

2
When faced with an ethical dilemma
  • How do managers know whats right and wrong?
  • Personal views
  • Laws
  • Societal mores
  • Corporate Code of Ethics

3
Code of Ethics
  • A code of ethics communicates the purpose,
    values, and objectives of a business and outlines
    expected behaviour for employees.
  • Large corporations almost always have a formal,
    written code of ethics (or code of conduct).

4
With your partner
  • List 5 areas of consideration that should go into
    a companys Code of Ethics

5
From Canadian Tires Code of Business Conduct
  • Integrity, honesty, and respect are the
    Corporations core values and Canadian Tire
    expects that each employee and director will be
    guided by these values when dealing with each
    other or when conducting business on behalf of
    the Corporation.

6
From Sobeys Inc.s Code of Business Conduct and
Ethics
  • In keeping with our core values
  • Always Place the Customer First
  • Get it done with Passion and Integrity
  • Stay Real
  • Proudly Serve our Communities
  • You are expected to read this Code carefully and
    apply the principles and follow the rules
    contained in this Code in performing your duties
    for the Company.

7
Enrons Statement of Human Rights
  • Respect We treat others as we would like to be
    treated ourselves. We do not tolerate abusive or
    disrespectful treatment. Ruthlessness,
    callousness and arrogance don't belong here.
  • Integrity We work with customers and prospects
    openly, honestly and sincerely. When we say we
    will do something, we will do it when we say we
    cannot or will not do something, then we won't do
    it.

8
Enrons Statement of Human Rights
  • We believe in respect for the rights of all
    individuals and are committed to promoting an
    environment characterized by dignity and mutual
    respect for employees, customers, contractors,
    suppliers, partners, community members and
    representatives of all levels of Government.

9
Enrons Statement of Human Rights
  • We are dedicated to conducting business according
    to all applicable local and international laws
    and regulations, including but not limited to,
    the U.S. Foreign Corrupt Practices Act, and with
    the highest professional and ethical standards.

10
Codes of Ethics
  • What do they really mean?
  • How do you know its not just window dressing?
  • "But we must remember that good laws, if they are
    not obeyed, do not constitute good government.
    Hence there are two parts of good government one
    is the actual obedience of citizens to the laws,
    the other part is the goodness of the laws which
    they obey..." (Aristotle)

11
Greenwashing
  • Greenwashing is a term describing the deceptive
    use of green PR or green marketing in order to
    promote a misleading perception that a company's
    policies or products (such as goods or services)
    are environmentally friendly

12
Example Exxon
  • Yes, today's car has lower emissions of urban air
    pollutants (thanks to government regulation) but
    higher emissions of greenhouse gases
  • ExxonMobil has done more than just about any
    other company to undermine efforts to achieve the
    greenhouse gas regulations that could lower those
    emissions.
  • millions of dollars to fund the disinformation
    campaigns of the Competitive Enterprise
    Institute, the American Enterprise Institute, and
    the Heritage Foundation, all of which continue to
    advance unfactual attacks on Climate Change
    science

13
The Bottom Line
  • Ethics and Social Responsibility as a PR or
    marketing campaign?
  • How can we be sure companies behave ethically
    when no ones looking?

14
Ethical Issues
  • Fraud
  • Conflict of Interest
  • Kickbacks
  • Whistleblowers

15
Framework for Solving an Ethical Dilemma
  • When faced with an ethical dilemma, there are
    some basics questions that a manager should ask
    themselves
  • What are the ethical issues?
  • Who are the stakeholders? What are the
    responsibilities and obligations of the parties
    involved?
  • Can I identify alternatives and weigh impact of
    each alternative on stakeholders?
  • What is the best and most ethical alternative?
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