David sm13 ppt_10

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

Ch 10 -1

Chapter 10Business Ethics/ Social Responsibility/ Environmental Sustainability

Strategic Management: Concepts & Cases

13th Edition

Fred David


Ch 10 -2


Ch 10 -3

Business Ethics

Social Responsibility

Environmental Sustainability


Ch 10 -4

Business Ethics

Principles of conduct within organizations that guide decision making and behavior


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Business Ethics

Code of Business Ethics A document that provides behavioral

guidelines 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 and

reporting unethical behavior


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Ethics Culture

To align ethical and strategic decision making: 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 recipient’s 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 or enhance 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, and evaluation


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Social Policies on Retirement

Worker shortages in countries around the world are leading to changes in retirement and immigration policies


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Business Ethics




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The extent that an organization’s 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 that harm rather than protect the natural environment


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Sustainability Report

Reveals how a firm’s 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 environmental issues


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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 147 countries

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 gas vehicles


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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 cut greenhouse gases

Kyoto Protocal expires in 2012 Results of March 2009 Copenhagen Meeting

are expected to replace the Kyoto Protocal


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David sm13 ppt_10

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