1. Copyright © 2009 Pearson Education Canada3-1 Chapter 3 Practising Ethical Behaviour and Social Responsibility

2. Copyright © 2009 Pearson Education Canada3-2 Two Important Concepts SocialresponsibilitySocialresponsibilityEthicalbehaviourEthicalbehaviour

3. Copyright © 2009 Pearson Education Canada3-3 What Is Ethical Behaviour? Competing fairly and honestly Communicatingtruthfully Not causing harm to others

4. Copyright © 2009 Pearson Education Canada3-4 Factors Influencing Ethical Behaviour Cultural differences Knowledge Organizationalbehaviour

5. Copyright © 2009 Pearson Education Canada3-5 Business Ethics Top-managementcommitment Reportingsystem Code of ethics Ethics Officer

6. Copyright © 2009 Pearson Education Canada3-6 Making Ethical Decisions Is It Ethical? PhilosophicalApproachesStakeholderIssues Outsiders Supervisors Employees Utilitarianism Individual, legal and human rights Principles of justice Legality and balance Acceptability Feasibility

7. Copyright © 2009 Pearson Education Canada3-7 Types of Ethical Situations Ethical dilemma Ethical lapse

8. Copyright © 2009 Pearson Education Canada3-8 Social Responsibility in Business Early 20 th Century Middle Early 21 st Century Maximizeprofits Provide jobs and pay taxes Balance profits and social issues

9. Copyright © 2009 Pearson Education Canada3-9 Percentage of Executives Who “Strongly Agree” or “Agree” That Companies Should: Percentage of Executives Who “Strongly Agree” or “Agree” That Companies Should: Be environmentally responsible Be ethical in operations 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 Be environmentally responsible Be ethical in operations 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 Percentage 100 96 94 89 85 75 73 62 61 54 100 96 94 89 85 75 73 62 61 54

10. Copyright © 2009 Pearson Education Canada3-10 Balancing Business and Stakeholders’ Rights Business SafeProductsProductChoice Consumers InformedPurchase Employees Equity Health & Safety Investors Profits Fair Disclosure Society CleanEnvironment

11. Copyright © 2009 Pearson Education Canada3-11 Efforts to Increase Social Responsibility SocialAuditSocialAuditPhilanthropyPhilanthropyCause-relatedMarketingCause-relatedMarketing

12. Copyright © 2009 Pearson Education Canada3-12 Causes of Pollution Industrial discharges Vehicle emissions Chemical spills

13. Copyright © 2009 Pearson Education Canada3-13 Government Efforts to ReducePollution Canadian Environmental Protection Act (CEPA) Regulate air and water Reduce automobile emissions License pesticides Control toxic substances Safeguard drinking water

14. Copyright © 2009 Pearson Education Canada3-14 The Kyoto Protocol The goal of the Kyoto Protocol is to reduce greenhouse gas emissions Canada’s commitment: –Reduce Canadian GHG’s to 6% below 1990 levels by 2012 –In 2007, Canada was above 1990 levels by 27 percent

15. Copyright © 2009 Pearson Education Canada3-15 Business Efforts to Reduce Pollution Environmental issues Environmental staff Performance expectations Performance rewards Long-term cost Product development Supplier expectations Training and awareness

16. Copyright © 2009 Pearson Education Canada3-16 Responsibility Toward Consumers The Right to Safe Products The Right to Be Informed The Right to Choose The Right to Be Heard

17. Copyright © 2009 Pearson Education Canada3-17 Responsibility Toward Investors SocialresponsibilitySocialresponsibilityBusinessethicsBusinessethics

18. Copyright © 2009 Pearson Education Canada3-18 Responsibility Toward Employees Equal employment opportunity Employment Equity Act Occupational health and safety Diversityinitiatives

19. Copyright © 2009 Pearson Education Canada3-19 Global Ethics and Social Responsibility Bribery Environmental abuse Unscrupulous business practices