Ethics
True or False: Ethical behavior only benefits society, not the company
False
Offering money or gifts to influence a decision is called this
Bribery
What type of challenges do all organizations face related to the natural environment?
Ecological Challenges
What does CSR stand for?
Corporate Social Responsibility
An employee reports illegal activity within their company and is later fired. What ethical/unethical issue is this?
Whistleblowing (and retaliation)
What is ethics in business?
discipline that looks at how people do and should act in regard to subjects of moral worth/ principles that guide right from wrong
True or False: Bribery can sometimes be acceptable in business
False
Name TWO major global environmental issues businesses must consider
Global warming
Deforestation (rainforest depletion)
Endangered species protection
Waste management
Name ONE key reason CSR is important for a company’s success.
Builds brand reputation and trust
Attracts customers/investors
Reduces long-term risk
Increases financial performance
A group project member does no work but tells the teacher they'll bring them coffee everyday for full credit. They get an A on the project. What ethical issue is this?
Bribery (do your work)
This is built when a company consistently acts ethically and gains public trust
reputation
This occurs when someone reports unethical or illegal activity within a company
Whistleblowing
What is a sustainability report and what does it reveal?
It shows how a firm’s operations impact the environment and discloses information to stakeholders, including labor practices
CSR is not just about people, what two other areas must companies consider?
Animals and ecosystems (environment)
Choosing money over doing the right thing is a lack of what?
Ethics/integrity
Acting unethically can lead to lawsuits and damage to
brand reputation/success, employee trust/morale performance
Workplace romance becomes unethical when it leads to this
Favoritism/conflict of interest
How can being environmentally responsible give a company a competitive advantage?
It improves relationships with consumers, regulators, and stakeholders, leading to greater success and reputation
Strategists should evaluate social issues based on what two factors?
Potential costs and benefits to the firm
A company chooses to ignore environmental regulations to reduce costs and increase profits. What major ethical issue does this represent?
Environmental irresponsibility / lack of sustainability
Ethical companies often have this long term financial benefit
Increased profits/sustainability
This risk of whistleblowing often discourages employees from speaking up
Retaliation (losing job, punishment, etc)
Name TWO environmental strategies firms use to become more sustainable and competitive.
Developing/acquiring green businesses
Waste minimization
Energy conservation
Environmental audits
Including environmental values in mission statements
How can proactively protecting the environment be considered a CSR strategy?
Demonstrates social responsibility
Builds trust with stakeholders
Protects long-term business success
Enhances brand reputation
A company ignores its responsibility to customers, employees, and the community. What concept does this violate?
Corporate Social Responsibility (CSR)