Ethics & Social Responsability

Ethics & Social Responsability

1. Nature of Ethics

   • Ethical Dilemas
     • People have to decide if they should help another person
       • Even-thought it might be against its own interests
   • ETHICS
     • Indicates what is inappropiate behavior & what´s is the right way to behave
     • & The Law
       • Society as a hole use political & legal process that specify what we can & cannot do
         • But neither laws nor ethics are fixed principles
           • They change depending on ethical beliefs & new laws
             • People wonder whether existing laws that make specific behaviors illegal are still appropiate
               • Ex. Marijuana
         • However not being illegal does not make behavior ethical

2. Stakeholders

   • People & groups affected by a companie's behave
     • People that supply a company with its productive resources & so have a claim
     • Company
       • How company operates because they want to maximize the return on their investment
         • Stockholders
       • Use financial, capital & human resources
         • Managers
       • Work in its various departments & functions
         • Employees
       • Expect to be paid fairly &recieve qualtiy products at agreed-upon their inputs
         • Suppliers & Distributors
       • Gap's Cod of Vendor Conduct
         • I. Fcatories shall operate with the laws, rules & regulations of their countries
         • II. Eviromental Regulations
         • III. No Discimination
         • IV. No Forced Labor
         • V. No Child Labor
         • VI. Wages & Hours
       • Most critical stakeholders
         • Costumers

3. Appropiate way to behave in situations where it necessary to balance a comapnie's self-interests & stakeholders

   • 4 Rules for Ethical Decision Making
     • 2. Utilitarian Rule
       • Should produce the greates good for the greatest # of people
     • 3. Justice Rule
       • Should distribute benefits & harm among people in a fair. quitable & impartial manner
     • 1. Moral Rights Rule
       • Shuold mantain & protect the fundamental rights& privileges of people
     • 4. Practical Rule
       • Shold be one that a manager has no hesitation about cmomunicating to people outside the company
     • Ethical Behavior
       • Increase efficecncy
         • Increase Company Performance
           • Increase national standard of leving & well-being
   • Trust
     • The willingness to have faith or confidenc in another person
   • Reoutation
     • The esteem or repute that iis gain by its ethical behave

4. Determinants

   • Socieltal Ethics
     • Standars that govern how members of society should deal with one another
       • In fairness, justice, poverty & rights
         • The vary across societies
   • Individual Etchics
     • Personal Standards & values
       • Determine how people view responsabilities to others & how to act in situations when self-interests are involve
         • But you can believe in your own ethics, even if they are wrong to most of society
           • ex. Stole to feed your family
   • Organizational Ethics
     • Guiding practices & beliefs through a company & its managers view their responsabilty towards stakeholders
       • Develop its "CREDO"
         • Ex. Johnson+Johnson
   • Occupactional Ethics
     • Standards that govern how members of a profession, trade or craft should conduct when performing work activities
       • ex. Disguise data of harmful effects products

5. Approaches to social responsability

   • The way companies & managers view the duty of making decisions
     • That protect, enhhance & promote welllfare & well-being of stakeholders & society
       • 4 Approaches
         • Obstructional
           • Companies & managers choose to behave unethically & illegally
             • ex. Malboro, Enron
         • Defensive
           • Companies & managers behave ethically, they stay within the law & abide by legal requirements
             • Companies that sells million of dollars before their stock collapsed
         • Acommodative
           • Companies & managers try to balance the interests of different stakeholders as the need arises
             • Companies looking for competitive advantage
               • Intel, DuPont
         • Proactive
           • Companies & managers embrace socially responsible behavior, by learning needs of different stakeholder groups
             • Using organizational resources to promote interests of all

6. Organizational Culture

   • Several Advantages
     • Good Reputation
       • Health of Stakeholders
         • Affects poritively people's life
   • Guides decision making when ethical questions arise
     • Manager's roles in developing ethcal values are crucial for employees
       • Ethics ombudsperson
         • Manager is responsible for communicating & teaching ethical standards to all employees & monitoring the conformity to those standards

7. Martina Sierra A01334524 Administración Mapa Mental 4 25/01/16