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1、CHAPTER10BUSINESSETHICS,SOCIA1.RESPONSIBI1.ITY,ENVIRONMENTA1.SUSTAINABI1.ITYCHzXMEROUT1.INE BusinessEthics SocialResponsibility EnvironnwntalSustainabilityCHAPTEROBJECTIVESAfterstudyingthischapter,youshouldbeableIodOthefollowing:1. ExplainwhygoodCIhiCSisgxlbusinessinstrategic11unage11:nl.2. Explainh
2、owfl11nscanbestensureIhaltheircenl.6. ExplainISO14(XX)ai)d14(X)1.CHAPTEROVERVIEWAlthoughbusinessethics,socialresponsibility,andsustainabilityan?distincttopics.IhUyarequite!vlated.SocialrespoiisibilityreferstoactionsanorganizationtakesbeyondwhatislegallyrequiredoPnMeCtorenhancethewell-beingoflivingth
3、ings.SustainabilityreferstotheextentthatanOQjanizatioifsoperationsandactionsprotect,mend,andpresen,eratherIhanha11nordestroythenaturalenvironment.Businessethics,socialresponsibility,andsustainabilityissuesan?inteiwlaiedandinaclallareasOftheCOmPrehUnSiVestrategicInanagelnentInode1.asillustratedinFigu
4、re10.1.DoingGreatinaWeakEconomy-DisneyWhenmostfirmswerestrugglingin2(X)8.WallDisneyincreaseditsrevenuesfrom$35billionin2(X)7to$37billionin2(X)8withnetincomeof$4.4billion.Fortunemagazinein2009ratedWaltDisneyitsI3,h,MostAdmiredCompanyintheWorkrintermsofmanagementandperformance.InMarch2009.Disneypublis
5、hedanelaboratecorporatesocialresponsibiIity/businessechicssus(ainabilityreportthatcanbefoundonlineathttpcrreporthome.html.WaltDisneyiscuttingcarbonemissionsfromfuelsbyhalfby2012,andultimatelywillemitzerogreenhousegasemissionsatitsofficeandretailcomplexes,themeparks,andcruiselines.Disney*slong-termgo
6、alistocuttozerotheamountofwasteitsendstolandfills.EXTENDEDCHAPTEROUT1.INEWITHTEACHINGTIPS1. BUSINESSETHICSA. BusinessEthics1. Goodethicsisgoodbusiness.Badethicscanderaileventhebeststrategicplans.2. Businessethicscanbedefinedasprinciplesofconductwithinorganizationsthatguidedecisionmakingandbehavior.3
7、. ArisingtideofconsciousnessabouttheimportanceofbusinessethicsissweepingtheU.S.andtherestoftheworld.4. NeWSPaperandbusinessmagazinesdailyreportlegalandmoralbreachesofehicalconductbybothpublicandprivateorganizations.Beingunethicalcanbeveryexensive.5. Businessactionsconsidered(obeunethicalincludefraud
8、,misleadingadvertisingorlabeling,causingenvironmentalharm,poorproductorSerViCesafety,paddingexpenseaccounts,insidertrading,dumpingbandedorflawedproductsinforeignmarkets,notprovidingequalopportunitiesforwomenandminorities,overpricing,n)vingjobsoverseas,andsexualharassment.B. CodeofBusinessEthics1. An
9、ewwaveofethicsissuesinbusinesshasaccentuatedtheneedforstrategiststodevelopaclearcodeofbusinessethics.2. Acodeofbusinessethicsisadocu11wntthatprovidesbehavioralguidelinesthatcoverdailyactivitiesanddecisionswithinanorganization.3. Merelyhavingacodeofethicsisnotsufficienttoensureethicalbusinessbehavior
10、.Toensurethatthecodeisread,understood,believed,andremembered,periodicethicsworkshopsarcneededtosensitizepeopletoworkplacecircumstancesinwhichethicsissuesmayarise.VTN(ViSiitheNel):Thewebsiten11r.ethiesweh.ccodesdescribeswhyorganizationsshouldhaveethicsCOdeSandgivesguidelinesfi)rpreparingcodesofethics
11、.TeachingTip:BusinessEthicsmagazinepostsselectedarticlesfromeachbi-monthlyissueonthemagazineswebsiteathttp:WWW.business-.Thesearticlesproviderichinformationforlecturematerial.Italsoliststhetop100CorPoratCcitizensathttp:/Avww.busincss-TeachingTip:Thefollowingarewebsitesthatprovideexamplesofcodesofeth
12、ics. NationalAssociationofRealtors:h(tprwvw.realtor.orgmenolweb.nsfpagecode7oendocument AmericanPsychologicalAssociation:http:/www.apa.org/ethics/code/index.aspx Johnson&Johnson:http:/www.investor.jnj.coin/govemanceyconduct.cfmC. AnEthicsCulture1. Anethicsclurcneedstopermeateorganizations.Manyorgani
13、zationshavedevelopedaCOdC-Of-COndUCtmanualoutliningethicalexpectationsandgivingexamplesofsituationsthatcommonlyariseintheirbusinesses.2. Whistle-blowingreferstopoliciesthatrequireemployeestoreportanyunethicalviolationstheydiscoverorseeinthefirm.TheSECrecentlystrengtheneditswhistle-blowingpolicies,vi
14、rtuallymandatingthatanyoneseeingunethicalactivityreportsuchbehavior.3. Onereasonstrategists*salariesarchighisthattheymusttakethemoralrisksofthefirm.Strategistsarcresponsiblefordeveloping,communicating,andenforcingthecodeofbusinessethicsfortheirorganizations.Anintegralpartoftheresponsibilityofallmana
15、gersistoprovideethicsleadershipbyconstantexampleanddemonstration.4. EihicsIruiningprogramsshouldincludemessagesfromtheCEOorownerofthebusinessemphasizingCIhiCalbusinesspractices,thedevelopmentariddiscussionCfCodeSofethics,andpreduresfordiscusingandreportingunethicalbehavior.D. Bribes1. Briberyistheoffering,giving,receiving,orsolicitingofanyitemofvaluetoinfluence(heactions
