David Sm13 Ppt 10

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Copyright 2011 Pearson Education, Inc.

Publishing as Prentice HallCh 10 -1

Chapter 10

Business Ethics/ Social Responsibility/

Environmental Sustainability

Strategic Management:Concepts & Cases

13th Edition

Fred David

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Business Ethics

Social Responsibility


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Business Ethics

Principles of conduct withinorganizations that guide decision

making and behavior

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Business Ethics

Code of Business Ethics

A document that provides behavioralguidelines that cover daily activities

and decisions within the organization

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Ethics Culture

Ethics training should include:

A message from the CEO

Development and discussion of codes

of ethics

Procedures for discussing andreporting unethical behavior

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Ethics Culture

To align ethical and strategic decisionmaking:

Incorporate ethical considerations into long-

term planning Incorporate ethical considerations into

performance appraisals

Encourage whistle-blowing Monitor department and corporate

performance regarding ethical issues

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Bribes

A gift bestowed to influence a recipients

conduct

Illegal in many countries, acceptable in others

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Business Ethics



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Actions an organization takes beyond

what is legally required to protect orenhance the well-being of living things

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Social Policy

Concerns what responsibilities the firm has to

its employees, consumers, environmentalists,

minorities, communities, shareholders, and

other groups

Should be considered during each stage of

strategy formulation, implementation, andevaluation

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Social Policies on Retirement

Worker shortages in countries around the

world are leading to changes in retirementand immigration policies

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Business Ethics



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The extent that an organizations

operations and actions protect, mend,and preserve rather than harm or

destroy the natural environment

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Strategies of companies are scrutinized

and evaluated from a natural

environment perspective

Employees, consumers, governments,

and society are resentful of firms thatharm rather than protect the natural

environment

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Sustainability Report

Reveals how a firms operation impact

the natural environment

These reports are not required, but are

a good business practice

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Lack of Standards Changing

Making a claim that a product or

process is green is becoming more

difficult as standards are put into place

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Obama Regulations

New clean technology business

start ups

Solar Wind

Biofuels

Insulation

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Managing Environmental Affairs in

the Firm

Managers must formulate strategies that preserve

and conserve natural resources and control pollution

Environmental strategies could include

Developing or acquiring green businesses Divesting or altering environment-damaging

businesses

Striving to become a low-cost producer through

waste minimization and energy conservation

Pursuing a differentiation strategy through green

product features

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Students and Environmental Training

Companies prefer to hire graduates

with training in environmentalissues

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Reasons Why Firms Should Be

Green

Consumer demand

Public opinion

Environmental advocacy groups

Federal and state environmental regulations

Lenders

Consumers, suppliers, distributors, and

investors

Liability suits and fines

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Be Proactive, Not Reactive

Proactive do more than the bare

minimum Reactive changing only when

forced to by the law or consumer

pressure

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ISO 14000/14001 Certification

International Organization for

Standardization (ISO)

A network of standards institutes of 147countries

Largest developer of sustainability

standards in the world Compliance is voluntary

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ISO 14000/14001 Certification

ISO 14000 - a series of voluntary standards

in the environmental field

ISO 14001 a set of standards included

within ISO 14000

Adopted by thousands of firms worldwide to

certify that they are conducting business in

an environmentally friendly manner Results in an environmental management

system (EMS)

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Electric Car Networks

Government funding for manufacturing

Recharging stations being installed in many

cities

Extensive research and development within

the auto industry

Companies are replacing gasoline powered

vehicles with hybrid electric-natural gasvehicles

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March 2009 Copenhagen Meeting

Scientists warned that global warming is

worse than expected

Companies and governments encouraged to

vigorously implement strategies to cutgreenhouse gases

Kyoto Protocal expires in 2012

Results of March 2009 Copenhagen Meetingare expected to replace the Kyoto Protocal

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All rights reserved. No part of this publication may be reproduced, stored in a

retrieval system, or transmitted, in any form or by any means, electronic,

mechanical, photocopying, recording, or otherwise, without the prior written

permission of the publisher. Printed in the United States of America.

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