Business Ethics/Social Responsibility/EnvironmentalSustainability,Chapter Ten,Chapter Objectives,Explain why good ethics is good business in strategic management. Explain how firms can best ensure that their code of business ethics guides decision making instead of being ignored. Explain why whistle-blowing is important to encourage in a firm. Discuss the nature and role of corporate sustainability reports.,10-2,Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall,Chapter Objectives (cont.),Discuss specific ways that firms can be good stewards of the natural environment. Explain ISO 14000 and 14001. Discuss recent trends in bribery law.,10-3,Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall,A Comprehensive Strategic-Management Model,10-4,Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall,Social Responsibility,Environmental Sustainability,Social responsibility actions an organization takes beyond what is legally required to protect or enhance the well-being of living things Sustainability the extent that an organizations operations and actions protect, mend, and preserve rather than harm or destroy the natural environment,10-5,Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall,Business Ethics,Business ethics principles of conduct within organizations that guide decision-making and behavior,10-6,Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall,Seven Principles of Admirable Business Ethics,10-7,Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall,Code of Business Ethics,To ensure that the code of ethics is read, understood, believed, and remembered, periodic ethics workshops are needed to sensitize people to workplace circumstances in which ethics issues may arise,10-8,Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall,An Ethics Culture,Whistle-blowing refers to policies that require employees to report any unethical violations they discover or see in the firm,10-9,Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall,An Ethics Culture,Ethics training programs should include messages from the CEO or owner of the business emphasizing ethical business practices, the development and discussion of codes of ethics, and procedures for discussing and reporting unethical behavior,10-10,Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall,Bribes,Bribery the offering, giving, receiving, or soliciting of any item of value to influence the actions of an official or other person in discharge of a public or legal duty is a crime in most countries of the world, including the United States,10-11,Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall,Social Responsibility,Ralph Nader proclaims that organizations have tremendous social obligations,Milton Friedman asserts that organizations have no obligation to do any more for society than is legally required,10-12,Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall,Social Policy,Social policy concerns what responsibilities the firm has to employees, consumers, environmentalists, minorities, communities, shareholders, and other groups Firms should strive to engage in social activities that have economic benefits,10-13,Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall,Environmental Sustainability,Employees, consumers, governments, and society are especially resentful of firms that harm rather than protect the natural environment Conversely people today are especially appreciative of firms that conduct operations in a way that mends, conserves, and preserves the natural environment,10-14,Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall,The Top 20 Companies in the World on Sustainability,10-15,Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall,Lack of Standards Changing,Uniform standards defining environmentally responsible company actions are rapidly being incorporated into our legal landscape It has become more and more difficult for firms to make “green” claims when their actions are not substantive, comprehensive, or even true,10-16,Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall,Managing Environmental Affairs in the Firm,Environmental strategies can include: developing or acquiring green businesses divesting or altering environment-damaging businesses striving to become a low-cost producer through waste minimization and energy conservation pursuing a differentiation strategy through green-product features,10-17,Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall,Reasons Why Firms Should “Be Green”,Consumer demand for environmentally safe products and packages is high. Public opinion demanding that firms conduct business in ways that preserve the natural environment is strong. Environmental advocacy groups now have over 20 million Americans as members. Federal and state environmental regulations are changing rapidly and becoming mo