Ethics and Corporate Social Responsibility Nicki Sheridan, Nalini Priya, Kendra Gallion

Overview of Ethics

Discussion Question: Define Ethics

Ethics is about doing the right thing within a moral framework.

The practical application of morality.

Not just determining what is right, but following through and doing what is right.

Test of Ethical Behavior

Morning-After Test How will you feel about this behavior tomorrow morning?

Front-Page Test How would you like to see this behavior written up on the front page

of your hometown newspaper?

Mirror Test How will you feel about this behavior when you look in the mirror?

Role Reversal Test How will you feel about being on the receiving end of this behavior?

Commonsense Test What does everyday common sense say about this behavior?

Trust & Total Quality

“The total quality approach cannot be successfully implemented in an organization that fails to subscribe to high standards of ethical behavior” (Goetsch, 2010, p. 75).

Ethical behavior builds trust.

Trust is essential to total quality.

Managers need to build trust in the organization as well as between employees.

Elements of Total QualityThat Depend on Trust

Communication

Interpersonal Relations

Conflict Management

Problem Solving

Teamwork

Employee Involvement and Empowerment

Customer Focus

Values & Total Quality

An organization will not produce quality if the organizational values are not quality.

Ethical behavior begins with values

Values that lead to ethical behavior: Fairness Dependability Integrity Honesty Truthfulness

Integrity & Total Quality

Integrity combines dependability and honesty

Discussion Question: Does ethical behavior automatically follow if the

organization has integrity?

Managers in a total quality setting need to strive for integrity vs. honesty

Responsibility & Total Quality

Accepting responsibility is part of ethical behavior.

Modern society has evolved to focus on rights but ignores the responsibilities that accompany those rights.

Total quality settings assure people are responsible for their actions rather than passing the blame.

Accepting responsibility builds trust, integrity, and other elements of ethics that are important to total quality.

Manager’s Role in Ethics

Must set consistent example of punctuality

Should be motivation and inspiration

Should be self disciplined, honest, and show commitment towards work

Manager’s Role in Ethics

Manager has three main responsibilities: Responsible for setting example of ethical behavior Responsible for helping employees make ethical

choices Responsible for helping employees follow through

and exhibit ethical behavior after appropriate choice has been made

Approaches to Ethics

Best-Ratio Approach

Black and White Approach

Full-Potential Approach

Organization’s Role in Ethics

Create internal environment that promotes ethical behavior

Set example of ethical behavior

Ethical Environment

Establish policies and practices Enforce policies

Develop ethics philosophy with key concepts: Honesty Integrity Truth Fairness

Setting an Example

Employees should be able to trust each other

Create ethical internal environment

Handling Ethical Dilemmas

What solutions are most likely to build trust among those involved?

What solution fits best into company’s value system?

What solution is most likely to enhance the organization integrity?

What solution is the most responsible option?

Ethics Training

Employee theft

Conflict of interest

Quality control

Misuse of company property

Environmental pollution

Method’s of gathering competitor’s information

Ethics Training

Inaccuracy of books and records

False or misleading advertising

Political contribution and activities

Improper relations with local and federal government representatives

Improper relations with foreign government officials

Codes of Business Conduct

Ethics training is becoming increasingly important as the pressures of succeeding is an intensely competitive global market place will frequently face ethical dilemmas.

Encourage two way communication

Make training practical

Avoid dogmatic statements

Ethical Decision Making

Ethical issue intensity

Business ethics evaluations and intentions

Ethical or unethical behavior

Individual factors

Organizational factors

Opportunity

Ethical Decision Making

Decision making models Categorical imperative Full-disclosure Doctrine of the mean Golden rule Market-ethic Organizational ethic Equal freedom Proportionality ethic Professional ethic

Belief vs. Behaviors

Discussion Question: What is dishonesty?

Self-Interest vs. Self-Protection

Conflicting values i.e. Honesty vs. Loyalty

Tangible vs. Intangible

Social Responsibility

Four steps of Social Responsibility: Philanthropic Ethical Economic Legal

Social Responsibility and Ethics

Social responsibility i.e. PNC Financial Services Group donates $28

million yearly in grants and scholarships for arts, community improvement, and education.

Corporate Social Responsibility

Also known as CSR

Discussion Question: What is corporate social responsibility (CSR)?

“A good company delivers excellent products and services; a great company delivers excellent products and services and strives to make the world a better place” (Ford Jr. as cited in Goetsch and Davis, 2010, p. 90).

Case Study

Group Activity Case Study

Treating your female employee differently based on her gender or in response to a harassment complaint may be considered discriminatory and unethical conduct.

Closing

Business Ethics Video What should you learn from it?

References

Examples of Ethical Issues in Business. (n.d.). Small Business. Retrieved November 6, 2013, from http://smallbusiness.chron.com/examples-ethical-issues-business-24464.html

Ferrell, O. C., Fraedrich, J., & Ferrell, L. (2011). Business ethics: ethical decision making and cases (8. ed.). Mason, OH: South-Western Cengage Learning.

Goetsch, D. L., & Davis, S. (2010). Quality management for organizational excellence: introduction to total quality (6th ed.). Upper Saddle River, N.J.: Prentice Hall.