MGMT 478 Ch.10
Seven principles of admirable business ethics
1. Be trustworthy; no individual or business wants to engage in business with an organization it does not trust 2. Be open-minded, continually asking for "ethics-related feedback" from all internal and external stakeholders. 3. Honor all commitments and obligations. 4. Avoid misrepresenting, exaggerating, or misleading with print materials, actions, or words. 5. Visibly be a responsible community citizen. 6. Use your accounting practices to identify and eliminate questionable activities. 7. Follow the Golden Rule: "Do unto others as you would have them do unto you."
10 Companies With The Best CSR Reputation as Rated by Consumers
1. The Lego Group 2. Microsoft 3. Google 4. Walt Disney Company 5. BMW Group 6. Intel 7. Robert Bosch 8. Cisco Systems 9. Rolls-Royce Aerospace 10. Colgate-Palmolive
Bribe
A gift bestowed to influence a recipient's conduct.
Wildlife Welfare
Consumers globally are becoming increasingly intolerant of any business or nation that directly or indirectly destroys wildlife, especially endangered wildlife, such as tigers, elephants, whales, songbirds, and coral reefs.
Which product-labeling term has come under increased scrutiny?
Green
When Life is Good's Chief Executive Optimist, Bert Jacobs, refers to the actions his organization takes to help children beyond writing a check or simply supporting a cause, he is describing his company's focus on______.
Social responsibility
Sustainability Reports
Sustainability report: • reveals how a firm's operations impact the natural environment • discloses to shareholders information about the firm's labor practices, product sourcing, energy efficiency, environmental impact, and business ethics practices
ISO 14000/14001 Certification
The ISO 14000 family of standards concerns the extent to which a firm minimizes harmful effects on the environment caused by its activities and continually monitors and improves its own environmental performance. • ISO 14001 is a set of standards adopted by thousands of firms worldwide to certify to their constituencies that they are conducting business in an environmentally friendly manner Results in an Environmental Management System (EMS )
What is meant by Life is Good's branding strategy, "Knowing who you are and acting like it?"
a company should know its mission a this may be the reason its customers believe in the company and its brand
Which of the following is NOT considered sexual harassment?
a workplace romance
The Institute of Business Ethics (IBE) recently conducted a study and concluded that companies displaying a "clear commitment to ethical conduct" ______.
consistently outperform companies that do not display ethical conduct
The responsibilities of a firm to employees, consumers, environmentalists, minorities, communities, shareholders, and other groups are referred to as ______.
corporate social responsibility
The position of most economists is best described how?
firms should not spend monies on philanthropic activities since making and growing profits is paramount
Employees should practice whistle-blowing, and organizations should ______.
have policies that encourage whistle-blowing
What position should company guidelines and policies take in regards to workplace romance?
it should be discouraged. Company guidelines or policies in general should discourage workplace romance because "the downside risks generally exceed the upside benefits" for the firm. Workplace romance guidelines should specify certain situations in which affairs are especially discouraged, such as between a supervisor and subordinate, and detail the types of relationships allowed, such as between peer-level employees in different departments who also have different career paths.
In many companies, the corporate environmental group is moving ______.
to report directly to the CEO
What debate regarding social responsibility does the video describe?
to what extent firms should spend monies on socially responsible acts given the continuous need to grow profitably
Does the video mention the need of firms to preserve wildlife rather than harm it?
yes
In addition to having a clear code of business ethics, managers must also consider the specific details of the code, how it will be implemented, and ______.
how adherence to it will be monitored
Whistleblowing in the United States is governed primarily by ______.
the SEC
Reasons Why Preserving the Environment Should Be a Permanent Part of Doing Business
• Consumer demand for environmentally safe products and packages is high. • Public opinion demanding that firms conduct business in ways that preserve the natural environment is strong. • Environmental advocacy groups now have more than 20 million Americans as members. • Federal and state environmental regulations are changing rapidly and becoming more complex. • Many lenders are examining the environmental liabilities of businesses seeking loans. • Many consumers, suppliers, distributors, and investors shun doing business with environmentally weak firms. • Liability suits and fines against firms having environmental problems are on the rise.
Environmental Sustainability
• Employees, consumers, governments, and society are especially resentful of firms that harm rather than protect the natural environment. • Conversely, people today are especially appreciative of firms that conduct operations in a way that mends, conserves, and preserves the natural environment.
Sustainability
the extent that an organization's operations and actions protect, mend, and preserve rather than harm or destroy the natural environment
Social Responsibility
- actions an organization takes beyond what is legally required to protect or enhance the well-being of living things
Environment
The surroundings in which an organization operates, including air, water, land, natural resources, flora, fauna, humans, and their interrelation.
Workplace Romance
Workplace romance can be detrimental to morale and productivity • favoritism complaints can arise • confidentiality of records can be breached • reduced quality and quantity of work could result • personal arguments can lead to work arguments • whispering secrets can lead to tensions • sexual harassment charges may ensue • conflicts of interest could arise
What report reveals how a firm's operations impact the natural environment?
a sustainability report
As Jacobs' notes, despite the company's focus on "doing good," it must continue to_____.
be profitable in order to continue its mission
According to the ISO 14001 standard, an organization is required to put in place and implement a series of practices and procedures that, when taken together, result in a(n) ______.
environmental management system (EMS)
What information is NOT included in a firm's sustainability report?
financial ratios
What quote from the video was attributed to the CEO of Herbalife Company?
integrity equals - longevity
business ethics
principles of conduct within organizations that guide decision making and behavior
Of the following, which is TRUE of firms like Life is Good that engage in social responsibility?
they generally enjoy higher financial performance
Which of the following is TRUE of workplace romance guidelines?
They should apply to all employees at all levels of the firm and they should specify certain situations in which affairs are especially discouraged, such as between a supervisor and a subordinate
Code of Business Ethics
To ensure that the code of ethics is read, understood, believed, and remembered, periodic ethics workshops are needed to sensitize people to workplace circumstances in which ethics issues may arise.
Extensive research has revealed which of the following relationships between corporate social responsibility and corporate financial performance?
a U-shaped curve
Which of the following is TRUE of an EMS?
identifies all aspects of the organization's activities, products, and services that could have a significant impact on the environment
What quote from the video was attributed to Alan Simpson?
if you have integrity, nothing else matters. if you dont have integrity nothing else matters.
A gift bestowed to influence a recipient's conduct
is a bribe
Whistle-blowing
refers to employees reporting any unethical violations they discover or see in the firm
Life is Good's CEO Bert Jacobs says the company's branding strategy is, "knowing who you are and acting like it." Not only is this a branding strategy, it also ____.
reinforces the company's organizational culture
Bribery
the offering, giving, receiving, or soliciting of any item of value to influence the actions of an official or other person in discharge of a public or legal duty a crime in most countries of the world, including the United States
Food Suppliers and Livestock Welfare
• Consumers expect humane treatment of animals. • Consumers are flocking to organic products.
Corporate Social Responsibility
• Ralph Nader proclaims that organizations have tremendous social obligations. • Milton Friedman asserts that organizations have no obligation to do any more for society than is legally required.
Corporate Social Responsibility (CSR) and Performance
• Research reveals a u-shaped relationship between CSR and corporate financial performance, whereby firms with the greatest CSR are generally also the firms with the highest financial performance; firms with the lowest CSR tend to have higher performance than those with moderate social responsibility. • Important to know that no social need can be met if the firm fails.
Business Ethics Topics That Have Become Important
• Whistle-blowing • Bribery • Workplace romance
