po b lecture 6 economic systems and csr students
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B415 Lecture 6TRANSCRIPT
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Principles of Business
Economic Systems & CSR – Part 2
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Overview
• Business and the natural environment: sustainable creation of goods, environmental considerations, new models of ‘green’ innovation
• Efforts to conserve resources and reduce pollution
• Trends towards sustainability; role of various stakeholders
• Determine what is ethical behaviour
• Critically evaluate the factors that influence ethical behaviour
• Describe the various ethical decision making methods
• Approaches to resolving ethical dilemmas
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Learning Outcomes
• Discuss the role of business in protecting the natural environment of define sustainable development
• Explain the responsibilities businesses have toward their employees
• Discuss what it means to practise good business ethics and highlight three factors that influence ethical decision-making
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Sustainability at the heart of business
Why would you invest in a company which is out of synch with the needs of society, that
does not take its social compliance in its supply
chain seriously, that does not think about
the costs of externalities, or of its negative impacts on
society?Paul Polman, CEO Unilever
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An eye on the issues
View video: http://www.ted.com/talks/hans_rosling_on_global_population_growth#t-2772
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The Bottom of the Pyramid
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We are consuming equivalent of 1.5 planets
Source: World Wildlife Fund, 2013
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CSR and the Natural Environment
The creation, delivery, use, and disposal of products that society values virtually always generate pollution and consume natural resources
Environmental causes are often as much about human health and safety as they are about forests, rivers, and wildlife.
Many of these issues often require tough trade-offs, occasional sacrifice, disruptive change, and decision making in the face of uncertainty.
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Green or clean in electricity
Source: Bovee et al, 2013
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United Nations Millennium Development Goals
Source: UN
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Environmental Sustainability
Target 7.A: Integrate the principles of sustainable development into country policies and programmes and reverse the loss of environmental resources
Target 7.B:Reduce biodiversity loss, achieving, by 2010, a significant reduction in the rate of loss
Target 7.C:Halve, by 2015, the proportion of the population without sustainable access to safe drinking water and basic sanitation
Target 7.D: Achieve, by 2020, a significant improvement in the lives of at least 100 million slum dwellers
Source: UN
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The Trend Towards Sustainability
• Sustainable Development– Operating business in a manner that minimizes pollution
and resource depletion, ensuring that future generations will have vital resources
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FTSE4Good
Source: LSE
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Creating Sustainable Business Models
View video: https://www.youtube.com/watch?v=aTzEBoIBro0
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CSR: Consumers
• Consumerism – A movement that pressures
businesses to consider consumer needs and interests
• The right to buy safe products – and to buy them safely
• The right to be informed• The right to choose which products to
buy• The right to be heard
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CSR: Employees
• Discrimination – In a social and
economic sense, denial of opportunities to individuals on the basis of some characteristic that has no bearing on their ability to perform in a job
• Affirmative Action – Activities undertaken by
businesses to recruit and promote members of groups whose economic progress has been hindered through either legal barriers or established practices
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CSR: Employees
A global supply chain creates increased issues and challenges for organisations to ensure that they monitor and
control the conditions of their workers.
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What is business ethics?
• Ethics – The rules or standards
governing the conduct of a person or group
• Transparency – The degree to which
affected parties can observe relevant aspects of transactions or decisions
Source: Bovee et al, 2013
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What is Ethical Behavior?
• Competing fairly and honestly
• Communicating truthfully
• Being transparent
• Not causing harm to others
Consider how these might play out with various stakeholders such as:
MediaSuppliersCustomers
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3 Core Factors that influence ethical behavior…
Cultural differences Knowledge Organizational
behavior
Code of Ethics A written statement that sets forth the principles that guide
an organization’s decisions
Whistle-Blowing The disclosure of information
by a company insider that exposes illegal or unethical
behavior by others within the organization
Consider the impact on:
Source: Bovee et al, 2013
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Consider their stance on ethics
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Ethical Decision Making
• Ethical Lapse– A situation in which an
individual or a group makes a decision that is morally wrong, illegal, or unethical
• Ethical Dilemma – A situation in which more
than one side of an issue can be supported with valid arguments
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Finding the Right Answer When Faced with an Ethical Dilemma
• Make sure you frame the situation accurately, taking into account all relevant issues and questions.
• Identify all parties who might be affected by your decision
• Be as objective as possible• Don’t assume that other
people think the way you do
• Watch out for conflicts of interest
• Conflict of interest – A situation in which
competing loyalties can lead to ethical lapses, such as when a business decision may be influenced by the potential for personal gain
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Conflicts of interest
View video: http://www.ted.com/talks/dan_ariely_beware_conflicts_of_interest#t-264562
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Approaches to Resolving Ethical Dilemmas
Source: Bovee et al, 2013
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The Prisoners Dilemma
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Ethical Dilemmas: What would you do?
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Essential work for next week
• Please consult the OLE for details of:– Essential readings*– Seminar/workshop preparation work*– Recommended further readings– Any additional learning
* Essential readings and preparation work must always be completed in time for the next session
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Appendix – Sources for illustrations
Slide 4:www.unilever.com
Slide 12www.shutterstock.com
Slide 15:www.unlatched.com
Slide 17:www.thesimpleurbannite.com & www.primark.com
Slide 21:Coca Cola, Starbucks and McDonalds websites
Slide 22:www.denverpost.com
Slide 26: www.answers.com
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End of presentation
© Pearson College 2013