Conducting Business Ethically

1. Conducting Business Ethically

2. “The more I help others to succeed, the more I succeed.”Ray Kroc, Founder, McDonald’s

3. Key Topics • Individual codes of ethics and the importance of ethics in the workplace • Key terms • Social responsibility in Canadian business • Environmental issues and stakeholder relationships • Approaches and implementation • Implications for small business

4. What is Ethical Behaviour Ethics: Right and wrong, good and bad, in actions that affect others Ethical Behaviour:Conforming to generally accepted ethical norms

5. Ethical Considerations Regarding a particular act… Utility: Does it optimize what is best for those who are affected by it? Rights: Does it respect the rights of the individuals involved? Justice: Is it consistent with what we regard as fair? Caring: Is it consistent with people’s responsibilities to each other?

6. Company Practices and Business Ethics • Best Approach: Open, Honest, Responsive! “We believe our first responsibility is to doctors, nurses and patients, to mothers and fathers and all others who se our products and services.” Johnson & Johnson’s Credo How Much Privacy Does Your Employer Owe You?

7. How Much Privacy Does Your Employer Owe You? Email Internet Cellular Phones

8. Formalizing the Commitment to Ethics Adopting Written Codes Instituting Ethics Programs

9. Principles, Ethics, and Corporate Policy Strategies & Practices (Revised Frequently) Organizational Objectives (Changed Infrequently) Core Principles Organizational Values (Unchanging)

10. Social Responsibility: Balancing Commitments to Stakeholders Employees Investors Customers Suppliers Local Communities Stakeholders: Groups, individuals, and organizations who are directly affected by the practices of an organization. CORPORATION

11. Responsibility Towards the Environment • Air pollution • Water pollution • Land pollution • Toxic waste • Recycling

12. Responsibility Towards Customers Consumer Rights Unfair Pricing Ethics in Advertising

13. Responsibility Toward Employees Legal & Social Commitments Whistle-blowers

14. Responsibility Toward Investors • Improper financial management • Cheque kiting • Insider trading • Misrepresentation of finances

15. Approaches to Social Responsibility Level of Social Responsibility Highest Lowest Obstructionist Stance Proactive Stance Defensive Stance Accommodative Stance Actively Seeks Opportunities to Contribute Actively Avoids Responsibility Does Legal Minimum Responds to Requests

16. Managing Social Responsibility Programs Social Responsibility Social Audit Appointment of Director Strategic Planning

17. Ethics, Social Responsibility, and the Small Business Do small businesses face different issues with regard to ethics and social responsibility?

18. Review • Discuss how individuals develop their personal codes of ethics. • Explain why ethics matter in the workplace. • Distinguish social responsibility from ethics. • Show how social responsibility applies to environmental issues and to relationships with customers, employees, and investors. • Identify four approaches to social responsibility. • Describe the four steps a firm must take to implement a social responsibility program. • Explain how social responsibly and ethics affect small business.