Professional Documents
Culture Documents
Strategy, Ethics,
and Social
Responsibility
Amin Wibowo
10-1
10-2
Chapter Roadmap
10-5
10-6
Should
Ethical
Business
9
10-9
Developed by Character
Counts, a nonpartisan
organization of educators,
community leaders, and
ethicists.
10
10-10
Ethical Relativism
Cultural norms
Cultural circumstances
10-12
Examples of Universal
Ethical Principles or Norms
Honesty
Trustworthiness
Treating
Respecting
Practicing
Avoiding
rights of others
unnecessary harm to
Workers
Respecting
the environment
10-13
Different societies/cultures/countries
10-15
Companies
Foreign
10-17
Country Rank
143
Country /Territory
CPI
Score
2007
New Zealand
9.4
Denmark
9.4
Finland
9.4
Singapore
9.3
Sweden
9.3
Gambia
2.3
Indonesia
2.3
Togo
2.3
Russia
2.3
10-18
2014
Denmark
90
92
Finland
90
91
New Zealand
90
89
Sweden
88
87
Singapore
87
84
Switzerland
86
86
Australia
85
80
Norway
85
86
Canada
84
81
Netherlands
84
83
Indonesia
32
34
118/107
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10-20
Netherlands
8.8
Switzerland
8.8
Belgium
8.7
Japan
8.6
Australia
8.5
Singapore
8.3
25
Indonesia
7.1
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10-22
Ethical Relativism =
Multiple Sets of Ethical Standards
Proponents
there are
Few ethical absolutes to judge a companys
conduct in various countries
Plenty of situations where ethical
norms are contoured to fit
Ethical
Concept of Integrative
Social Contracts Theory
According
and
Appeal of Integrative
Social Contracts Theory
Universal ethical principles establish moral free space
based on the collective view of multiple societies and
cultures
Commonly held views about morality and ethical principles
combine to form a social contract with society
It is appropriate for societies or companies to go beyond
universal ethical principles and specify local or second-order
ethical norms
Moral manager
Managerial
ethical and
moral
principles
Immoral
manager
Amoral manager
10-27
Own actions
Considers
it important to
Pursues
business success
Characteristics of an
Intentionally Amoral Manager
Believes
Business activities
Other realms of life
Does
Characteristics of an
Unintentionally Amoral Manager
Is
Displays
Sees
Typical
beliefs
either
Amoral or
Immoral
Results
Corruption
Do Company Strategies
Need to Be Ethical?
Approaches
Approach
Pressures
Approaches to Managing a
Companys Ethical Conduct
Unconcerned or non-issue approach
Damage control approach
Compliance approach
Ethical culture approach
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Characteristics of
Damage Control Approach
Favored
Characteristics of
Compliance Approach
Implement
Appoint
Have
Institute
Conduct
Give
Install
Potential Weakness
of Compliance Approach
Moral
Characteristics of
Ethical Culture Approach
unethical strategy
Is morally wrong
An
ethical strategy is
Good business
10-48
Social
Society at large
10-50
Corporate philanthropy
Actions to earn trust and respect of stakeholders for
a firms efforts to improve the general well-being of
Customers
Employees
Local communities
Society
Environment
10-51
RESPONSIBILITY TO
EMPLOYEES
CUSTOMERS
INVESTORS
COMMUNITY
ENVIRONMENT
Sustainable Development
52
10-52
RESPONSIBILITY TO
EMPLOYEES: CREATING JOBS
THAT WORK
A. Meet
Legal Standards
B. Workplace Safety
C. Minimum Wage/Overtime
Requirements
D. Value Employees
E. Provide Work/Life Balance
53
10-53
Costco
Wal-Marts
Sams Club
$15.97
$5,735
82%
6%/yr
9.8% of sales
$13,647
$11.52
$3,500
47%
21%/yr
17% of sales
$11,039
54
10-54
RESPONSIBILITY TO CUSTOMERS
CONSUMERISM:
The Right to Be Safe
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10-55
ROTTEN APPLE?
Planned Obsolescence
Deliberately designing products
to fail in order to shorten
the time between consumer
repurchases
APPLE COMPUTERS:
iPods had irreplaceable battery.
Batteries died after 18 months.
Customers were encouraged to
purchase new iPods
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10-56
RESPONSIBILITY TO
INVESTORS
FAIR STEWARDSHIP AND FULL DISCLOSURE
A. Legal
A.
Requirements
Sarbanes-Oxley
B. Responsible
use of Corporate
Dollars
A.
Honesty
C. Is
Optimism or Pessimism
Socially Responsible?
57
10-57
RESPONSIBILITY TO
COMMUNITY
Cause-related Marketing
partnerships between businesses
and nonprofit organizations,
designed to spike sales for the
Corporate Responsibility company and raise money
The actions of the business
for the nonprofit.
rather than donations of
Corporate Philanthropy money and time.
business donations to
nonprofit groups, including
both money and time.
58
10-58
RESPONSIBILITY TO ENVIRONMENT
Green Marketing
marketing environmental
products and practices
to gain a competitive edge.
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10-59
RESPONSIBILITY TO ENVIRONMENT
A. Responsibility
to environment is a part of
responsibility to community
A. Reducing
A. Although
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Core values
Business mission
Overall strategy
Missions
Performance targets
Strategies
10-63
Based
In
Reasons to Behave in a
Socially Responsible Manner
Generates
internal benefits
risk of reputation-damaging
incidents, leading to increased buyer patronage
Works in best interest of shareholders
Key
Key
Use compensation incentives to enlist support of downthe-line company personnel to craft and execute a social
responsibility strategy
10-68