8/31/17

Corporate Social
Responsibility and Ethics
BA 101 – Introduction to Management
Louie Lee

What is Corporate Social Responsibility?

A business’ intention, beyond legal and economic

obligations, to do the right things and act in ways
that are good for the society

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Why Be Socially Responsible?

CLASSICAL VIEW OF BUSINESS SOCIOECONOMIC VIEW OF BUSINESS

OBLIGATION RESPONSIVENESS RESPONSIBILITY

Because the Because the Because the
company has to company believes company believes
do it it’s popular it’s integral to
society

Social Responsibility in Medicine: The EpiPen

• Emergency
anaphylaxis auto-
injected medication
for anyone with
allergies
• In 2007, Mylan
acquired the rights to
exclusively market the
product in the United
States
• In 2016, Mylan raised
the price of the
product from $100 to
$600
• Experts estimate that
there is $1 worth of
drug (epinephrine) in
an EpiPen

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What is Corporate / Business Ethics?

A business’ shared principles, values and beliefs

that define what is right and what is wrong
corporate behavior and decisions

How does Ethical or Unethical Behavior Manifest?

• Ego Strength
• Locus of Control

• Preconventional
• Conventional
• Principled • Values-Based
Management