Business%20Ethics%20Part%20II

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Business Ethics Part II

• BOH4M

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When faced with an ethical dilemma

• How do managers know whats right and wrong?
• Personal views
• Laws
• Societal mores
• Corporate Code of Ethics

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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).

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With your partner

• List 5 areas of consideration that should go into
  a companys Code of Ethics

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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.

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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.

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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.

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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.

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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.

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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)

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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

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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

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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?

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Ethical Issues

• Fraud
• Conflict of Interest
• Kickbacks
• Whistleblowers

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Framework for Solvingan 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?