1. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 10 -1 Business Ethics Principles of conduct within organizations that guide decision making and behavior

2. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 10 -2 Business Ethics Code of Business Ethics  A document that provides behavioral guidelines that cover daily activities and decisions within the organization

3. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 10 -3 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

4. Ethical Decision Marking The encouragement of ethical decision making starts with the managers, the firm’s strategist, and the strategy itself Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 10 -4

5. Strategic and Competitive Advantage? Ethics training and an ethical culture can create a strategic advantage Why is this the case? Think about it. Would you want to deal with an organization that has the reputation of being unethical? Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 10 -5

6. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 10 -6 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

7. Whistleblowing Whistleblowing - policies that require employees to report any unethical violations they discover or see in the firm. 67 – 100% Sharron Watkins Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 10 -7

8. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 10 -8 Bribes A gift bestowed to influence a recipient’s conduct Illegal in many countries, acceptable in others

9. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 10 -9 Social Responsibility Actions an organization takes beyond what is legally required to protect or enhance the well-being of living things

10. Social Responsibility The first responsibility of any business is to make enough profit to cover the costs of the future, because if this is not achieved then no other social responsibility can be met. Firms should strive to engage in social activities that have benefits. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 10 -10

11. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 10 -11 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

12. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 10 -12 Lack of Standards Changing Making a claim that a product or process is “green” is becoming more difficult as standards are put into place

13. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 10 -13 Obama Regulations New “clean technology” business start ups  Solar  Wind  Biofuels  Insulation Biblical thought – oil will always be king

14. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 10 -14 Students and Environmental Training Companies prefer to hire graduates with training in environmental issues

15. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 10 -15 Be Proactive, Not Reactive Proactive – do more than the bare minimum Reactive – changing only when forced to by the law or consumer pressure

16. PROACTIVE Being proactive concerning energy Energy has become a large issue When it comes to environmental issues, being proactive will lead to conservation of energy. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 10 -16

17. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 10 -17 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