Chapter 3

Practising Ethical Behaviour and Social Responsibility

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3-1

Two Important Concepts

Social responsibility
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Ethical behaviour
3-2

What Is Ethical Behaviour?

Competing fairly and honestly Communicating truthfully Not causing harm to others
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Factors Influencing Ethical Behaviour

Cultural differences

Knowledge Organizational behaviour

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Business Ethics
Top-management commitment Code of ethics

Ethics Officer

Reporting system
3-5

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Making Ethical Decisions

Stakeholder Issues Outsiders

Is It Ethical?
Legality and balance Acceptability

Philosophical Approaches Utilitarianism Individual, legal and human rights Principles of justice
3-6

Supervisors

Employees
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Feasibility

Types of Ethical Situations

Ethical dilemma

Ethical lapse
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Social Responsibility in Business

Early 20th Century Middle 20th Century Early 21st Century

Maximize profits

Provide jobs and pay taxes

Balance profits and social issues

3-8

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Percentage of Executives Who Strongly Agree or Agree That Companies Should:

Be environmentally responsible Be ethical in operations

Percentage
100 100

Earn profits
Employ local residents Pay taxes Encourage and support employee volunteering Contribute money and leadership to charities Be involved in economic development Be involved in public education Involve community representatives in business decisions Target a portion of purchasing toward local vendors Help improve quality of life for low-income populations
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96
94 94 89 85 75 73 62 61 54
3-9

Balancing Business and Stakeholders Rights

Business
Investors
Profits Fair Disclosure

Consumers
Informed Purchase

Employees
Equity Health & Safety

Society
Clean Environment

Safe Products

Product Choice

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3-10

Efforts to Increase Social Responsibility

Social Audit

Cause-related Philanthropy Marketing

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3-11

Causes of Pollution
Industrial discharges Vehicle emissions

Chemical spills
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Government Efforts to Reduce Pollution

Regulate air and water

Reduce automobile emissions License pesticides Control toxic substances

Canadian Environmental Protection Act (CEPA)

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Safeguard drinking water

3-13

The Kyoto Protocol

The goal of the Kyoto Protocol is to reduce greenhouse gas emissions Canadas commitment:
Reduce Canadian GHGs to 6% below 1990 levels by 2012 In 2007, Canada was above 1990 levels by 27 percent

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3-14

Business Efforts to Reduce Pollution

Environmental issues
Environmental staff Performance expectations Performance rewards
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Long-term cost
Product development Supplier expectations Training and awareness
3-15

Responsibility Toward Consumers

The Right to Safe Products The Right to Be Informed The Right to Choose The Right to Be Heard
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Responsibility Toward Investors

Social responsibility
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Business ethics
3-17

Responsibility Toward Employees

Equal employment Employment Equity opportunity Act

Diversity initiatives
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Occupational health and safety

3-18

Global Ethics and Social Responsibility

Bribery Environmental abuse

Unscrupulous business practices

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