Corporate Social Responsibility A company’s only social responsibility is to make as much money as possible for its shareholders (Milton Friedman) The social responsibility of business encompasses the economic, legal, ethical and discretionary expectations that society has of obligations at a given point in time (Archie Carroll)

Behavior Classification Framework Ethical 1 4 No promotion for pregnant woman to work in toxic chemicals factory Asking Ellen to take job B? Managers want these situations Legal Illegal Marketing infant formula in developing countries Apartheid Most don’t like working here... 2 3 Unethical

Consequential or Theological Theories Focus on decisions’ results, consequences, outcomes Consequential Concerned with consequences, goals, outcomes doing the maximum good and minimum harm (cost-benefit approach) Utilitarianism Do the best for the most Produce the most net utility

Deontological (Rule Based) Theories Focus on moral obligations, duties, rights Categorical Imperative (Kant) Respect for individuals–treat as ends, not means to ends Apply criteria consistently If you were in the other person’s situation, would you want the same decision made? Absolute (universal) Emphasis on duty Concerned with “oughts” Conditional (Not discussed) Fundamentalism From a book Revealed wisdom One authority

Cultural Theories Emphasis on cultural differences in behavior standards Cultural Different Standards of conduct Espouses observing local standards Cultural Relativism No one authority Local standards prevail

Manager’s Context Many conflicting interests may impinge on manager’s decisions! Stakeholders Manager’s organization Manager Personal values & non-work roles Work role Informed Judgment Outcome: Decision Action

Business Ethics Objectives (Gandz and Hayes, 1988) Create an awareness of the ethical components of the decision Legitimize the consideration of ethical issues in the decision process Analyze the ethical components with some framework Apply technique of ethical analysis to decision situations

Guidelines Who are stakeholders with an interest in the decision shareholders, home- host- government, customers, suppliers, employees, communities, unions What are the responsibilities to stakeholders? (organizational? personal?) What are ethical implications of a decision in addition to economic and legal? Do you have facts? best info? take time... What are your assumptions? what ethical framework? Any options you have not considered? How should you act as an individual? (night sleep issue...)

More Guidelines Don’t accept responsibility for actions which are not your responsibility Don’t avoid making decisions on decisions which are your responsibility Be aware of and careful of dependency relationships you are entering... Don’t hide behind the “culture” excuse... Do best for all stakeholders; meet obligations/contracts; act legally; don’t harm; don’t deceive Look after your own interests as well as the company’s “billboard” or “light-of-day” tests When in Rome do as the BETTER Romans do Honestly: are you a leader in the area of global social responsibility? are you doing the minimum to get along? Are you resisting?