Business Ethics, Social Responsibility, Sustainability

david_sm13_ppt_10.ppt

1. Copyright © 2011 Pearson Education, Inc.
Publishing as Prentice Hall
Ch 10 -1
Chapter 10
Business Ethics/ Social Responsibility/
Environmental Sustainability
Strategic Management:
Concepts & Cases
13
th
Edition
Fred David

2. Copyright © 2011 Pearson Education, Inc.
Publishing as Prentice Hall
Ch 10 -2

3. Copyright © 2011 Pearson Education, Inc.
Publishing as Prentice Hall
Ch 10 -3
Business Ethics
Social Responsibility
Environmental Sustainability

4. Copyright © 2011 Pearson Education, Inc.
Publishing as Prentice Hall
Ch 10 -4
Business Ethics
Principles of conduct within
organizations that guide decision
making and behavior

5. Copyright © 2011 Pearson Education, Inc.
Publishing as Prentice Hall
Ch 10 -5
Business Ethics
Code of Business Ethics

A document that provides behavioral
guidelines that cover daily activities
and decisions within the organization

6. Copyright © 2011 Pearson Education, Inc.
Publishing as Prentice Hall
Ch 10 -6
Ethics Culture
Ethics training should include:

A message from the CEO

Development and discussion of codes
of ethics

Procedures for discussing and
reporting unethical behavior

7. Copyright © 2011 Pearson Education, Inc.
Publishing as Prentice Hall
Ch 10 -7
Ethics Culture
To align ethical and strategic decision
making:
Incorporate ethical considerations into long-
term planning
Incorporate ethical considerations into
performance appraisals
Encourage whistle-blowing
Monitor department and corporate
performance regarding ethical issues

8. Copyright © 2011 Pearson Education, Inc.
Publishing as Prentice Hall
Ch 10 -8
Business Ethics
Social Responsibility
Environmental Sustainability

9. Copyright © 2011 Pearson Education, Inc.
Publishing as Prentice Hall
Ch 10 -9
Social Responsibility
Actions an organization takes beyond
what is legally required to protect or
enhance the well-being of living things

10. Copyright © 2011 Pearson Education, Inc.
Publishing as Prentice Hall
Ch 10 -10
Social Policy
Concerns what responsibilities the firm has to
its employees, consumers, environmentalists,
minorities, communities, shareholders, and
other groups
Should be considered during each stage of
strategy formulation, implementation, and
evaluation

11. Copyright © 2011 Pearson Education, Inc.
Publishing as Prentice Hall
Ch 10 -11
Business Ethics
Social Responsibility
Environmental Sustainability

12. Copyright © 2011 Pearson Education, Inc.
Publishing as Prentice Hall
Ch 10 -12
Environmental Sustainability
The extent that an organization’s
operations and actions protect, mend,
and preserve rather than harm or
destroy the natural environment

13. Copyright © 2011 Pearson Education, Inc.
Publishing as Prentice Hall
Ch 10 -13
Environmental Sustainability
Strategies of companies are scrutinized
and evaluated from a natural
environment perspective
Employees, consumers, governments,
and society are resentful of firms that
harm rather than protect the natural
environment

14. Copyright © 2011 Pearson Education, Inc.
Publishing as Prentice Hall
Ch 10 -14
Sustainability Report
Reveals how a firm’s operation impact
the natural environment
These reports are not required, but are
a good business practice

15. Copyright © 2011 Pearson Education, Inc.
Publishing as Prentice Hall
Ch 10 -15
Managing Environmental Affairs in
the Firm
Managers must formulate strategies that preserve
and conserve natural resources and control pollution
Environmental strategies could 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

16. Copyright © 2011 Pearson Education, Inc.
Publishing as Prentice Hall
Ch 10 -16
Reasons Why Firms Should “Be
Green”
Consumer demand
Public opinion
Environmental advocacy groups
Federal and state environmental regulations
Lenders
Consumers, suppliers, distributors, and
investors
Liability suits and fines

17. Copyright © 2011 Pearson Education, Inc.
Publishing as Prentice Hall
Ch 10 -17
ISO 14000/14001 Certification
International Organization for
Standardization (ISO)
A network of standards institutes of 147
countries
Largest developer of sustainability
standards in the world
Compliance is voluntary

18. Copyright © 2011 Pearson Education, Inc.
Publishing as Prentice Hall
Ch 10 -18
ISO 14000/14001 Certification
ISO 14000 - a series of voluntary standards
in the environmental field
ISO 14001 – a set of standards included
within ISO 14000

Adopted by thousands of firms worldwide to
certify that they are conducting business in
an environmentally friendly manner

Results in an environmental management
system (EMS)