Escolar Documentos
Profissional Documentos
Cultura Documentos
Mature
Business
w
BSM
600w
Ranjita.singh@ryerson.ca
What
are
Business
Ethics?
The
same
as
Ethics
in
General!
The
dierence
between
right
and
wrong
Business
ac?ons
have
to
be
judged
in
the
context
of
societys
standards
of
right
and
wrong.
Why
ethics
are
compromised/dicult
to
maintain
Self-dealing
managers
take
advantage
of
their
posi?on
to
further
their
own
private
interests
rather
than
those
of
the
rm.
Short-termism
managers
focus
short-term
performance
objec?ves
at
the
expense
of
longer-term
strategic
objec?ves
(usually
to
boost
bonuses),
sacricing
long
run
performance.
Costs
of
Ethical
Wrongdoing
Triple
BoQom
Line
Prot People
Planet
1
You
are
nancial
director
of
a
large
mul?na?onal
organisa?on
and
have
been
privy
to
informa?on
about
a
takeover
bid
to
acquire
a
rival
rm.
A
family
friend
is
considering
selling
shares
in
this
rival
organisa?on
and
has
asked
you,
as
an
expert
in
the
industry,
for
advice
on
this
maQer.
What
would
you
do?
2
Na?onal
Automo?ves
assembles
a
safety
system
for
passenger
automobiles.
This
system
substan?ally
reduces
severe
injuries
to
drivers
involved
in
accidents.
In
an
eort
to
increase
prots,
Na?onal
recently
took
steps
to
cut
costs
and
increase
produc?on.
Na?onal
has
begun
using
some
less
expensive
components.
These
components
increase
the
systems
es?mated
failure
rate
from
12
to
15
failures
per
10,000
accidents.
Despite
this
increase,
the
company
con?nues
to
meet
the
governments
safety
standard
of
20
failures
per
10,000
accidents.
3
Don
SuQon
applied
for
a
payroll
clerk
job
with
Search
Services,
a
market
research
rm.
To
improve
his
chances
of
ge]ng
the
job,
he
exaggerated
his
work
experience
on
his
rsume.
Don
was
hired.
A`er
one
year,
he
received
above-average
ra?ngs
during
his
annual
performance
review.
Shortly
therea`er,
his
boss
met
Dons
former
supervisor
and
learned
the
truth.
If
you
are
his
boss,
what
would
you
do?
4) Apples problem in enforcing Supplier Code of Conduct
99
THE NEW EXTERNAL ENVIRONMENT OF BUSINESS
10
THE ROLE OF STAKEHOLDERS IN CORPORATE
RESPONSIBILITY AND SUSTAINABILITY
11
CORPORATE RESPONSIBILITY AND
SUSTAINABILITY
12
PRINCIPAL AREAS OF CORPORATE
RESPONSIBILITY AND SUSTAINABILITY
1) Equity - CEO pay is about 300 times average worker salary
13
PRINCIPAL AREAS OF CORPORATE
RESPONSIBILITY AND SUSTAINABILITY
2) Health and Safety
Occupational accident
and illnesses cost about
4% of GDP.
Absenteeism costs
employers $3.5 billion.
The 2013 rail fire in Lac
Megantic killed 47 and
caused $200 million in
damages.
14
PRINCIPAL AREAS OF CORPORATE
RESPONSIBILITY AND SUSTAINABILITY
3) Ethics the Madoff Affair - client
The publics confidence in accounts missing $65
business corporations has billion
been reduced Arthur Anderson
Scandals include: accounting firm after
Enron - shares fell from being found guilty to
criminal charges
over $90 to less than $1
surrendered its license
WorldCom - $73 billion
to practice 85,000
loss employees affected
15
Deriving
compe??ve
advantage
16
MANAGING IN A CHANGING WORLD
17