CSR Repetition Questions
What does the term "Greenwashing" refer to?
"Greenwashing refers to the practice of falsely promoting an organization's environmental efforts or spending more resources to promote the organization as green than are spent to actually engage in environmentally sound practices."
Which claim does Noreena Hertz make in her talk "Better to shop than to vote?"
"Unable and unwilling to take corporations to task themselves in fear of jeopardizing their relationships with them, recognizing their own inability to effect change on a global stage that lies outside their jurisdiction, politicians are sneakily endorsing consumer vigilantism and mimicking its language and demands.
Which factors can be used to prioritize stakeholder interests? Please give an example.
1) Legitimacy: is the claim legitimate? 2) Power: do they have the power to influence us? 3) (Urgency): How urgent is the claim?
What are the objectives of the UN Global Compact?
1. "Mainstream the ten principles in business activities around the world" and 2. "Catalyze actions in support of broader UN goals, such as the Millennium Development Goals (MDGs).
What are the problems of deontological ethics as, e.g., Kant's categorical imperative?
1. Complexity (can we expect individual decision makers to engage into cognitively complex reflections?) 2. Optimism (is Kant's optimistic idea of moral-guided human beings realistic?) 3. Undervaluing outcomes (should we really ignore the outcomes of our actions?)
How do companies usually set prices? When would we refer to price setting as "unfair"? How do innovative pricing mechanisms like pay what you want work?
1. Demand-based pricing (based on customer analyses) 2. Cost-based pricing (based on accounting and controlling information) 3. Competition-based pricing (based on pricing behavior of competitors) Price setting is unfair when customers in need of the product have to pay unjustifiably high prices (example: Daraprim at $750 per pill after $13.5 per pill with a different owner). In innovative pricing models, clients are paying self-determined non-zero prices, thus making purchase-votes. More and more businesses are successfully implementing innovative pricing mechanisms, such as, e.g.: • Name your own Price • Pay what you want/ Pay as you wish/ Pay what you can... Customers are voluntarily paying non-zero prices!
What are the main developments referred to as globalization?
1. Internationalization: increase in cross-border transactions. 2. Liberalization: increase in trade liberalization. 3. Universalization: global spread of products, lifestyles, and ideas. 4. Westernization: export of western culture to other, culturally different, world regions.
Name three archetypes of business models as developed by Bocken, Short, Rana, and Evans (2014). What could be exemplary companies implementing these business models?
1. Maximize material and energy efficiency (Annas Unverpackt) 2. Create value from "waste" (Tiffin Project) 3. Substitute with renewables and natural processes (Tesla) 4. Deliver functionality, rather than ownership (Zipcar) 5. Adopt a stewardship role (Maestrani, a Swiss chocolate producer) 6. Encourage sufficiency (Toyota) 7. Re-purpose the business for society/environment (Premium Cola) 8. Develop scale-up solutions (Kickstarter)
What are the three moral management types according to Carroll? In how far do they differ?
1. Moral: high standard of right behavior, high levels of professional conduct, moral managers want to be profitable but within the confines of legal and ethical behavior 2. Amoral: are neither moral nor immoral but are not sensitive to the fact that business decisions may have deleterious effects on others 3. Immoral: active opposition to what is deemed right or ethical, active negation of what is moral, they see legal standards as barriers or impediments to their goals
Please apply the Lange and Washburn framework to the case of the Volkswagen "Dieselgate" emission scandal.
1. Severity and relevance - Many Volkswagen owners are affected; the harm is reputational and environmental, no human lives lost (medium-high) 2. Corporate culpability - finding the single person in guilt is hard; it is questionable whether Martin Winterkorn new about the misconduct 3. Unexpectedness - very unexpected (Made in Germany brand has great reputation) 4.Concentration in time and space - high in time, low in space 5. Frames positioning the firm as causal - public apology and resignation of Winterkorn 6. Perceived disposition for irresponsible behavior - Volkswagen is not known for such irresponsibilities 7. Size and prominence - among the biggest employers in Germany 8. Intentionality and motivation - intentional harm that can be attributed to self-interests of the management (appear green, sell more) 9. Affected party non-compliance - the whole responsibility lies on the company
What are distinguishing factors of CSI incidents?
1. Severity and relevance - how big is the harm done (severity)? Can I personally be affected (relevance)? 2. Corporate culpability - how easily guilt can be traced back to corporate behavior? 3. Unexpectedness - was the accident surprising? 4.Concentration in time and space - was the accident concentrated or spread spatially/temporally? 5. Frames positioning the firm as causal - are the Media positioning the manager as the bad guy? Has there been any public acknowledgement of guilt? 6. Perceived disposition for irresponsible behavior - is the firm known for similar misconduct? 7. Size and prominence - how big and publicly visible is this company? 8. Intentionality and motivation - was the harm intentional? Can it be attributed to selfinterested behavior? 9. Affected party non-compliance - does the affected party bear a share of guilt?
Which outcomes of corporate behavior does Wood (1991) propose as indicators of Corporate Social Performance?
1. Social policies - explicit and pronounced social policies stating the company's values, beliefs, and goals with regard to the social environment 2. Social programs: activities, measures, and instruments implemented to achieve social policies. 3. Social impacts: concrete changes a corporation has achieved through the programs implemented.
Which three different levels of stakeholder involvement are distinguished in the framework of Morsing and Schultz (2006)?
1. Stakeholder Information Strategy • The company merely informs stakeholders about their CSR activities. • One-way communication. 2. Stakeholder Response Strategy • The company informs stakeholders about their CSR activities and encourages them to give feedback. • Two-way asymmetric communication. 3. Stakeholder Involvement Strategy • There is an ongoing dialogue between company and stakeholders - the company takes stakeholders opinions into account, adapts their CSR strategy accordingly, and informs stakeholders about the changes. • Two-way symmetric communication.
What do we mean when we speak of a social business?
A social business is a financially independent self-sustainable business whose main aim is to make a social impact, although profits are desirable.
What does enlightened self-interest mean?
Acting in the interest of others ultimately serves your own self-interest (Example: a company caring about its clients well is likely to be profitable). The primary value of the company is to make profit, but it can by achieved in acting in a sustainable way. Companies pursue enlightened self-interest by: -securing and maintaining market share -attracting and retaining skilled workforce -ensuring that natural resources are available for the future
Which negative consequences can be caused by CSI for the firm? Which negative consequences does it incur for the general trust in business?
An organization's success—indeed its survival— depends, in part, on satisfying normative expectations from its environment. Thus when organizational action seems controversial to observers and constituents, the firm risks losing current and potential members, as well as outside endorsement and support, and it risks providing "ammunition for adversaries" Indeed, ample evidence from empirical research shows that counter-normative behavior can lead to such consequences for the firm as... - lawsuits, - financial losses through settlements and sales declines, - increases in the cost of capital, - market share deterioration, - network partner loss, - or other costs associated with a negative reputation. Trust in business is a critical ingredient for social cooperation and market efficiency.
When can we speak of "artificial demand"?
Artificial demand constitutes demand for something that, in the absence of exposure to the vehicle of creating demand, would not exist.
Why do consumers appreciate to be informed about company-internal CSR activities?
Because they can check if the company is respecting employees' right. If it does, consumers trust the company more and are therefore more willing to buy its products.
Why have codes of ethics been criticized?
Because they suppress individuals' moral instincts, emotions, and empathy in order to ensure bureaucratic conformity and consistency
How can CSI be defined? How does CSI relate to the CSR pyramid introduced by Carroll?
CSI is when a certain harm occurs through corporate activity and the behavior of the company infringed legal or social norms of acceptable behavior. CSI relates, therefore, to Carroll pyramid because it can be considered as a violation of legal or ethical responsibilities (which are part of the pyramid).
Which arguments do Crane et al. (2014) use to criticize Porter & Kramer's CSV approach? Critically discuss whether you think that they have a point.
CSV in unoriginal; CSV ignores tensions between social and economic goals; CSV is naive about the challenges of business compliance; CSV is based on a shallow conception of the social role of corporations in the society. Positives: CSV successfully appeals to practitioners and scholars CSV elevates social goals to a strategic level CSV articulates a clear role for governments in responsible behavior CSV adds rigor to ideas of „conscious capitalism" and provides an umbrella construct for loosely connected concepts.
Which cultural issues to companies face whose activities cross borders?
Companies operating cross borders may find it difficult to operate in contradicting ethical demands. Certain habits perfectly acceptable in some countries (child labor, etc.) may be taboo in other cultures. Moral values often get questioned. This may lead to public protests and even legal controversies (case of Playboy in Indonesia).
Who are the most important company-internal versus company-external stakeholders?
Company - internal: employees, managers, owners. Company - external: suppliers, society, government, investors, shareholders, customers.
What is a corporation? And why can we say that corporations should be morally responsible for their actions over and above the responsibility of their individual members?
Corporation: separate entity from who works in it, with perpetual succession (they survive the death of investors), regarded as artificial persons by the law, owned by shareholders. Managers have a fiduciary responsibility to protect the investments of shareholders. They should be morally responsible because: ● They have a corporate internal decision structure and it is difficult to trace a decision to a single individual ● They have an organizational culture which strongly influences individual decision processes
What are the main arguments of Porter & Kramer's (2006, 2011) Creating Shared Value (CSV) approach? How do the authors define shared value?
Creating shared value suggests that competitiveness of a company and the health of the communities around it are mutually dependent. Recognizing and capitalizing on these connections has the power to redefine capitalism and unleash a new wave of global growth. Main argument: Current CSR efforts don't reach their full potential because they fail to realize that business and society are interdependent and pressure companies to do CSR in generic ways instead of specializing on what is most appropriate to each firm
How did the "Brundtland Commission" define sustainable development?
Development that meets the needs of the present without compromising the ability of future generations to meet their own needs.
Which provocative claim does Banerjee (2008) make?
Discourses of corporate citizenship, corporate social responsibility, and sustainability are ideological movements that are intended to legitimize and consolidate the power of large corporations."
Name three of the biggest problems facing humanity. How can companies contribute to remedying these adversities?
Economic collapse, Peak Oil, Global Water Crisis, Species Extinction, Rapid Climate Change.
Why can greed be viewed as a destructive force for human societies?
Erich Fromm views greed as the endless effort to satisfy the need without reaching satisfaction. Greed often hinders cooperation and results in pointless consumption. Endless profit seeking results in negative externalities, as well as social and environmental harm.
How does Alexander Osterwalder define the term business model? Please discuss whether you think that according to this definition the startup you described in (4) can be seen as a business model innovation. You may also use the elements of the business model canvas to argue for your position.
Fundamental structures for how companies create, deliver, and capture value. This definition is too vague to apply it to a particular case - for this reason, it is better to use the business model canvas. The value proposition of Annas Unverpacktes can be considered innovative - by providing products without using unsustainable packaging, the company manages to add value.
Define ethical absolutism, relativism, and pluralism. To what extent is each perspective useful for studying and practicing business ethics?
Ethical absolutism: claims that there are eternal, universally applicable moral principles; right and wrong are objective qualities that can be rationally determined. Ethical relativism: claims that morality is context-dependent and subjective; right and wrong cannot be rationally determined, they depend on the person who is making the decision. Ethical pluralism: accepts different moral convictions and backgrounds while at the same time suggesting that a consensus on basic principles and rules should be reached. Ethical absolutism is too idealistic to be applied to reality, especially in the business world. It is obvious that, when we consider business ethics, we must always adapt our decision to the context and situation in which we are operating. For example: decision whether to invest in oil plants in Africa; it is beneficial for the population because it increases job offers but is it beneficial for the environment? The decision between wrong and right is not clear.
What is the difference between ethics of rights and ethics of duties? Which duty does the "golden rule" imply?
Ethics of rights: start by assigning a right to one party and then advocating a corresponding duty on another to protect that right. Ethics of duties: begin with assigning of a duty to act in a certain way to an actor. Golden rule states "Treat others as you wanted to be treated yourself". It is the basic rule of many religions and starts from a divine revelation of duties to god and god-given rights.
What are differences between company-internal and external CSR activities?
Firm-external CSR activities are... - often quick and easy to implement without changing the core of the organization (Barnett 2007). - frequently featured in CSR advertisements. - highly visible to firm-external stakeholders such as customers, investors, and the wider public (Burke and Logsdon 1996). Firm-internal CSR activities are... - in many cases targeting employees. - leading to real organizational change (Perez-Batres et al. 2012). - often incurring high costs for the company.
What are the two opposing views of corporate responsibility resulting from their positions?
Friedman: shareholder view, agent theory and narrow view of CSR (basic economic responsibilities) Carroll: stakeholder view, stakeholder theory and broad/extended view of CSR (wider societal responsibilities)
Which threefold distinction do they propose to prioritize social issues? What do they mean by responsive and strategic CSR? What are inside-out and outside-in linkages?
Generic Social Issues: Social issues that are not significantly affected by a company's operations nor materially affect it´s long-term competitiveness. Value Chain Social Impacts: Social issues that are significantly affected by a company's activities in the ordinary course of business. Social Dimensions of Competitive Context: Social issues in the external environment that significantly affect the underlying drivers of a company's competitiveness in the locations where it operates. By responsive CSR they mean a CSR that focuses on good citizenship and mitigates harm from value chain activities. By strategic CSR they mean a CSR that transforms value chain activities to benefit society and improves competitive context through strategic philanthropy. Inside-out linkages refer to the social influence of value chain activities, instead outside-in linkages refer to external social conditions influencing the market.
Why is it so hard to hold multinational corporations accountable for their actions?
Globalization: Multinational corporations are able to relocate major parts of their business into low-cost regions with lower regulation or enforcement.
Which actors can be addressed in the search for solutions for problems like global warming? Discuss how these parties can contribute to solving pressing problems and what the obstacles are to them making a real change.
Governments: can provide frameworks of what is right and wrong from a legal standpoint. NGOs: can put pressure on governments, private businesses, and society to support certain causes such as, e.g., prevention of climate change, malaria prevention, or a global ban on landmines... Consumers: can contribute to sustainable development via sustainable consumption, boycotts, or political action... Companies: can promote innovation for more sustainable products/ packaging and business models, voluntary adherence to environmental and social standards, fair trade, transparency...
What happens if companies focus on company-external CSR while neglecting the same ethical stance on the inside?
If there is an imbalance in favor of external CSR, employees will feel abandoned by the company and phenomena like emotional exhaustion and intention to quit could arise among employees.
In which way was the profit-motive viewed in the Christian tradition and in texts of medieval philosophers like Thomas Aquinas?
In the Sermon of the Mount, Jesus condemns the superficiality of materialism and calls the disciples not to worry about material needs, but to seek God's kingdom first. Thomas Aquinas describes striving for external prosperity that is necessary to support one's social standing. In his opinion, exceeding this limit is greed (a sin). Aquinas describes a duty of brotherly love (donating what is not necessary) to those in need.
Please name and explain an example for a trade-off between economic and social value-creation that could lead to corporate social irresponsibility (CSI).
Increasing profit through saving on environmental protection. Example: the decision whether to build a plant polluting drinking water supplies in Africa - there is a direct conflict between the social and the economic aspects of firm functioning. To earn profits, the company has to pollute the environment (or invest into a greener technology which would jeopardize its economic interest in the project).
What is meant by an inside-out approach to the design of CSR strategies and an outside-in approach to the involvement of external stakeholders?
Inside-out approach to the design of CSR strategies is represented by a process in which the company develop its interactions from within the organization, first to the external stakeholders, and afterwards to the entire society. Outside-in approach to the involvement of external stakeholder is represented by the reverse process of the previous approach. This means that the company should involve society and external stakeholders into its own decision process.
What is the moral reasoning behind the duty to act in a responsible way?
Intergenerational fairness: It would be unfair if our current consumption would compromise our children's abilities to meet their future needs. Intragenerational fairness: It would be unfair if our current consumption would compromise our fellow human's abilities to meet their needs; fair allocation of resources (e.g., world poverty problem).
Why is it so hard to measure the value created by CSR activities? What are the specific problems of CSR Ratings like the Dow Jones Sustainability Index?
It is hard because ratings never accurately reflect corporate social impact and are usually not fairly measured. They are just used to increase reputation of the firm. Problems with ratings are: - criteria used in the ratings differ significantly - weightings of criteria differ - judgment of when a criterion is met is unclear - ratings are based usually only on easily available data - data is frequently unreliable - companies that want to hide something usually don't respond to surveys
Why do stakeholders matter?
Legal perspective: many stakeholder groups have ongoing legal contracts with the company and thus have a legitimate claim (e.g., employees, customers, suppliers...). Economic perspective (new institutional economics): - Problem of externalities: company actions have considerable effects on groups which are not linked to the company via legal contracts. - Agency problem: shareholders are traditionally seen as the „owners" of the organization; however, in many cases, investments in shares are not done to „own" a company, but for speculative reasons (short term financial gains). - Should these highly speculative interests really preside over more long-term interests of employees, customers, and suppliers?
What are factors that increase the power of private business?
Liberalization and deregulation of markets: more liberty, choice, and power of private businesses. Privatization of formerly public services and publicly owned companies: e.g., media, telecommunications, transportation... Employment: decisions on employment, relocation, and lay-off are made by companies. Globalization facilitates this process and potentially makes companies able to engage governments in a „race to the bottom" (continuous relocation to low-cost regions with lower regulation or at least enforcement)
Which main three factors in the attribution of CSI does the framework of Lange and Washburn (2012) propose?
Main factors: 1. effect undesirability 2. corporate culpability 3. affected party non-compliance
Why did Mandeville's fable of the bees represent such a strong contrast to this ascetic morale? What was Mandeville's basic proposition in the fable?
Mandeville argued that the more self-interested the people of a nation are, the better off that nation will be. "The economy thrives to the same extent to which moral values are corrupt". Not the virtues, but vices stimulate the nation for the better living.
What is the basic idea behind Adam Smith's invisible hand and how does it relate to Mandeville's fable of the bees?
Mandeville's ideas formed the basis for economic liberalism and Adam Smith's ideas of the invisible hand, which stipulates that pure self-interest leads to increases in the common good.
Please juxtapose the positions of Milton Friedman and Archie B. Carroll on corporate responsibilities. What is their common core? And how do they differ?
Milton Friedman: businesses should increase their profits while respecting the rules of the game (open competition, no deception and fraud). Managers act only in the interest of shareholders Carroll's Pyramid: ● Economic responsibilities (make profits) ● Legal responsibilities (act legally) ● Ethical responsibilities (not harm stakeholders) ● Philanthropic responsibilities (proactive behavior that benefits the firm and society) The first two responsibilities are shared with Friedman. The difference lies in the second two.
What are ethical theories and why do we need them? Is ethical theory of any practical use to managers?
Morality is concerned with the norms, values, and beliefs embedded in social processes which define right and wrong for an individual or a community. Ethics is concerned with the study of morality and the application of reason to elucidate specific rules and principles that determine right and wrong for a given situation. These rules and principles are called ethical theories.
Which three perspectives on stakeholder theory can be differentiated? In how far are they different?
Normative stakeholder theory: attempts to provide a reason why corporations should take into account stakeholder interests. Descriptive stakeholder theory: attempts to tell whether corporations actually take into account stakeholder interests. Instrumental stakeholder theory: attempts to answer the question whether it is beneficial for corporations to take into account stakeholder interests.
What is the relationship between Kantian deontological ethics and stakeholder theory?
Right and wrong are not dependent on the characteristics of a situation. Morality is a question of certain eternal, abstract, and unchangeable principles - a priori moral laws - that humans should apply to all moral problems. Human beings do not need God, the church or other authorities to identify these principles (humans as independent moral actors). Actions can only be called moral if they are done out of obligation. Stakeholder theory is based on Kantian deontological ethics: • Treat your stakeholders (employees, customers, suppliers, local communities) not as means (of production, sources of income) but as constituencies with goals and priorities of their own. • Companies have a duty to allow these stakeholders some degree of influence in the corporation (Evan and Freeman 1993)
Which new role for management does a stakeholder approach to corporate responsibility imply? Please provide an example for conflicting stakeholder interests.
Rather than being simply agents of shareholders, management has to take into account the rights and interests of all legitimate stakeholders. Management must balance the interests of shareholders with the competing interests of other stakeholders for the long-term survival of the corporation.
Which three ways to create shared value do Porter & Kramer (2011) propose? Why do the authors criticize the fair trade movement?
Reconceiving products and markets, redefining productivity in the value creation, enabling local cluster development. Porter and Kramer view Fairtrade as a measure of redistribution, slightly increasing farmers' income. Shared value investments aimed at improving efficiency or supporting local institutions help to increase their incomes dramatically.
How can self-interest and greed be differentiated?
Self-interest refers to the desire to satisfy one's own needs or desires, while greed is the desire to acquire and possess more than one actually needs.
What are ethical impacts of globalization on the levels of different stakeholder groups?
Shareholders: Potential for greater profitability, but also greater risk through lack of regulation Employees: Outsourcing production to developing countries, provides jobs in those regions but also raises the potential for exploitation Consumers: Cheaper prices, greater choice of products, but also criticism of westernization and exploitation of vulnerable consumer groups in developing countries Suppliers and competitors: Small scale indigenous competitors exposed to powerful global players, suppliers in developing countries face regulation from MNCs through supply chain management Civil society (NGOs, local communities): Possible erosion of traditional community life, increased power of MNCs where governments are weak Government and regulation: Weakening of government power and increasing power of private businesses in political realm
What does consumerism refer to? What does the "degrowth" movement intend to do?
Socioeconomic ideology that encourages acquisition of goods and services in ever-increasing amounts. The degrowth movement disregards the value of growth and encourages to change the economy model to consume less and share more, thus providing good quality of life to more people.
What are "sustainable business models"? Please name examples of characteristics that these business models should have.
Sustainable business models incorporate a triple bottom line approach and consider a wide range of stakeholder interests, including environment and society. (Business Model Innovation has not only been identified as a means of uncovering new growth potential and new markets, but also to address the current sustainability and responsibility problems that businesses are facing.) Such business models: - Minimize consumption - Employ closed loop systems where resources are reused and not wasted - Maximize societal and environmental benefits rather than prioritizing pure economic growth - Offer functionality and experience rather than product ownership - Provide fulfilling, rewarding work experience for all and enhance human creativity and skills - Enhance collaboration and sharing rather than competitions
Why do we need a change in our current business models?
The current way of consuming products is not sustainable - we own too many things we do not use; a shift in business models will allow the western societies to live in a sustainable way.
What did the World III simulation model, presented in „Limits to growth", predict?
The earth's limit will be reached within the next 100 years if the growth in human population, industrialization, environmental pollution, food production, and use of natural resources is continuing at the same pace.
Describe the "trolley problem" and the "transplant problem". Discuss the problems from the perspectives of non-consequentialist as well as consequentialist ethics. Which problems of utilitarianism do these thought experiments reveal?
The trolley problem: you are driving a trolley without breaks down a track; five workers are on the track and will be killed if you do not turn - if you do, you will kill one worker. Is it moral to turn? This arouses the problem of taking a decision about whether that one worker should live or die in order to save the five workers. The surgeon problem: you are a surgeon treating a number of people with lethal diseases of different organs. A healthy young man comes for a check-up. You ask him if he volunteers to be a donor, and he says no. Would it be permissible to operate anyway, killing the man and saving the ill patients? These problems illustrate: a) subjectivity of utilitarianism b) even actions with a good cost-benefit effect can be categorically wrong
What are the two main families of western modernist ethical theories? Explain the differences between these two approaches to ethical theory.
The two main families are non-consequentialist (deontological) (concerned with what motivation/principles lead to action) and consequentialist (teleological) theories (concerned with what taken actions lead to what outcomes).
Please describe examples of startup companies that try to address the problem of the proliferation of plastic in consumer products.
There are small local supermarkets in Germany that sell unpackaged food - an example is Annas Unverpacktes in Heidelberg. Another example is Tiffin Project, a startup that offers reusable plastic-free containers from partnering restaurants.
What is the main proposition of stakeholder theory?
There is a whole range of groups, which have interest in the company. Corporations have the obligation not to violate the rights of others and take responsibility for the effects of their actions.
Why do you think are many companies reluctant to communicate their price structure transparently?
Transparency is the degree to which corporate decisions, policies, activities, and impacts are acknowledged and made visible to relevant stakeholders (Matten and Crane 2004). Nike long claimed that the identity and location of their suppliers could not be revealed because it was commercially sensitive information that their competitors could exploit. Many companies still closely guard their cost structure, thereby veiling potential artificially inflated prices.
What does the triple bottom line approach to sustainability refer to?
Triple bottom line (TBL, 3BL) is an accounting framework with three parts: social, environmental (or ecological), and financial performance (= PPP, People, Planet, Profit)).
Name three instruments of CSR management on the level of the organization and describe how they help to enhance the company's CSR performance.
Typical instruments: 1. Ethics managers, officers, and committees = Specific individuals or groups appointed to coordinate and/or take responsibility for managing ethics in their organization. 2. Ethics consultants 3. Risk analysis and management 4. Mission or value statements = General statements about corporate aims, beliefs, and values 5. Ethics education and training 6. Codes of ethics = Explicit outlines of what type of conduct is desired and expected of employees from an ethical point of view within a certain organization, profession, or industry. 7. Reporting/ advice channels 8. Auditing, accounting, and reporting
Which ethical theory do you think is most commonly used in business? Provide evidence to support your assertion and give reasons explaining why this theoretical approach is more likely than others to dominate business decisions.
Utilitarianism (an action is morally right when it leads to the greatest amount of good for the greatest number of people affected) is among the most commonly used concepts in business. Businesses often have to make sacrifices and tradeoffs (e.g.,Winterkorn resigned to save VW's reputation). This theory is likely to be dominant in big companies because their actions often affect a big number of people; the task of the company is thus to maximize returns to the majority of those affected.
What are the basic relations of responsibility?
What are the basic relations of responsibility? Object (for what?) - Subject (Who?) - Authority (in front of whom?) Object ("for what": self, others, environment) < -action/result - > Subject ("who": society, group, person) < - justification - > Authority ("in front of whom": law, religion, moral)
What is meant by the "Consumer Paradox" referred to by Devinney (2008)?
When asked in surveys, consumers say that they care about ethical shopping, but at the checkout they only care about the money.
What are typical questions that managers face in stakeholder management?
Who are our stakeholders? What are their stakes? What opportunities and challenges are presented by them? What corporate social responsibilities do we have towards them? What strategies/actions should we take to deal with those responsibilities?
