1. 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)

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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...)

9. 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?