978-0073524597 Chapter 4 Part 1

Chapter 04 – Demanding Ethical and Socially Responsible Behavior

4-1

Demanding Ethical and

Socially Responsible

Behavior

chapter

=

what’s new in this edition 4.3

brief chapter outline and learning goals 4.3

lecture outline and lecture notes 4.5

PowerPoint slide notes 4.36

lecture links 4.53

lecture link 4-1: GIVING ONLINE WITH CAUSES 4.54

lecture link 4-2: CHINA CONFRONTS ITS ETHICAL DEMONS 4.54

lecture link 4-3: SELECTED CODES OF ETHICS 4.54

lecture link 4-4: APPROACHES TO SOCIAL RESPONSIBILITY 4.56

lecture link 4-5: CORPORATE RESPONSIBILITY IN THE CLASSROOM 4.56

lecture link 4-6: PHARMACEUTICAL OR FOOD? 4.57

lecture link 4-7: MERCK AND ETHICS (PART I) 4.58

lecture link 4-8: APP-GATE AT UNIVERSITY OF MISSOURI 4.59

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4

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Chapter 04 – Demanding Ethical and Socially Responsible Behavior

4-2

critical thinking exercises 4.60

critical thinking exercise 4-1: EXPLORING COMMUNITY SERVICE 4.60

critical thinking exercise 4-2: ETHICAL DILEMMAS 4.61

critical thinking exercise 4-3: RESEARCHING CODES OF ETHICS 4.64

critical thinking exercise 4-4: ETHICS MINICASES 4.65

critical thinking exercise 4-5: SOCIAL RESPONSIBILITY SUCCESSES 4.70

AND FAILURES

critical thinking exercise 4-6: SURVEYING PUBLIC INTEREST 4.71

ORGANIZATIONS

bonus cases 4.73

bonus case 4-1: WAL-MART’S VIRGINIA BATTLEGROUND 4.73

bonus case 4-2: MERCK AND ETHICS (PART II) 4.75

bonus case 4-3: A GLANCE INTO THE FUTURE: YOUR COMPUTER KNOWS 4.77

what’s new in

this edition

additions to the 10th edition:

• Getting to Know Blake Mycoskie, Founder of TOMS Shoes

• Name That Company: Xerox

• Discussion of Dodd-Frank Wall Street Reform and Consumer Protection Act added to section

Setting Corporate Ethical Standards

• Discussion of changes of forms of corporate philanthropy added to section Corporate Social Re-

sponsibility

• Discussion of use of social media to communicate corporate social responsibility efforts added to

section Responsibility to Customers

• Discussion of socially conscious research organizations

• Making Ethical Decisions: Facebook or Fakebook?

Chapter 04 – Demanding Ethical and Socially Responsible Behavior

4-3

revisions to the 10th edition:

• Text was revised to eliminate redundancy and tighten discussions.

• Statistical data and examples throughout the chapter were updated to reflect current information.

• Expanded discussion of Nike’s efforts to improve overseas factory conditions in section Interna-

tional Ethics and Social Responsibility

• Legal Briefcase: Cost of Corruption

• Thinking Green: Sustainable or Suspect: Greenwashing

deletions from the 9th edition:

• Getting to Know Steve Ells, Founder and CEO of Chipolte Mexican Grill

• Name That Company: Enron

• Discussion of Citizen Corps deleted from section Corporate Social Responsibility

• Making Ethical Decisions

brief chapter outline

and learning goals

c h a p t e r 4

Demanding Ethical and Socially

Responsible Behavior

Getting To Know BLAKE MYCOSKIE, Founder of TOMS SHOES

learning goal 1

Explain why obeying the law is only the first step in behaving ethically.

I. ETHICS IS MORE THAN LEGALITY.

A. Ethical Standards Are Fundamental.

learning goal 2

Ask the three questions to answer when faced with a potentially unethical action.

B. Ethics Begins with Each of Us.

Chapter 04 – Demanding Ethical and Socially Responsible Behavior

4-4

learning goal 3

Describe management’s role in setting ethical standards.

II. MANAGING BUSINESSES ETHICALLY AND RESPONSIBLY

learning goal 4

Distinguish between compliance-based and integrity-based ethics codes, and list the six steps

in setting up a corporate ethics code.

A. Setting Corporate Ethical Standards

learning goal 5

Define corporate social responsibility and compare corporations’ responsibility to various

stakeholders.

III. CORPORATE SOCIAL RESPONSIBILITY

A. Responsibility to Customers

B. Responsibility to Investors

C. Responsibility to Employees

D. Responsibility to Society and the Environment

E. Social Auditing

learning goal 6

Analyze the role of U.S. businesses in influencing ethical behavior and social responsibility

in global markets.

IV. INTERNATIONAL ETHICS AND SOCIAL RESPONSIBILITY

V. SUMMARY

Chapter 04 – Demanding Ethical and Socially Responsible Behavior

Getting to Know BLAKE MYCOSKIE, Founder of TOMS

SHOES

TOMS’s mission is simple: For every pair of shoes sold, give a free pair to a child in need.

So far, the company has been wildly successful and Mycoskie has helped in giving away over 1

million shoes. Mycoskie was entrepreneurial before TOMS, opening an ad agency and an

online driver’s education system. But it was while participating in CBS’s Amazing Race where

he saw how much children around the world needed his help. Mycoskie and his entrepreneurial

spirit started TOMS in 2006.

Explain why obeying the law is only the first step in behaving ethically.

I. ETHICS IS MORE THAN LEGALITY.

A. HISTORY OF SCANDALS

Chapter 04 – Demanding Ethical and Socially Responsible Behavior

4-6

PPT 4-1

Chapter Title

PPT 4-2

Learning Goals

(See complete PowerPoint slide notes on page 4.36.)

PPT 4-3

Learning Goals

(See complete PowerPoint slide notes on page 4.36.)

PPT 4-4

Blake Mycoskie

(See complete PowerPoint slide notes on page 4.37.)

PPT 4-5

Name That Company

(See complete PowerPoint slide notes on page 4.37.)

PPT 4-6

Life After Scandal

(See complete PowerPoint slide notes on page 4.37.)

Chapter 04 – Demanding Ethical and Socially Responsible Behavior

4-7

c. Laws alone don’t make people honest, relia-

ble, or truthful.

4. Ethical behavior is not the same as following the

law.

honesty, courage, and self-sacrifice are

RIGHT.

b. Cheating, cowardice, and cruelty are

WRONG.

4. All major religions support a version of the

GOLDEN RULE: “Do unto others as you would

have them do unto you.”

Chapter 04 – Demanding Ethical and Socially Responsible Behavior

legal

briefcase

(Text page 91)

PPT 4-7

Cost of

Corruption

(See complete PowerPoint slide notes on page 4.38.)

PPT 4-8

What Is a Ponzi Scheme?

(See complete PowerPoint slide notes on page 4.38.)

PPT 4-9

What Are Ethics?

(See complete PowerPoint slide notes on page 4.38.)

PPT 4-10

Basic Moral Values

(See complete PowerPoint slide notes on page 4.39.)

lecture link 4-1

GIVING ONLINE WITH CAUSES

Giving and volunteerism are prominent in American cul-

ture. In an effort to reach more Americans, Causes links 119

users to charities around the world. (See the complete lecture

link on page 4.53 in this manual.)

critical thinking

exercise 4-1

EXPLORING COMMUNITY

SERVICE

This exercise encourages students to use the Internet to ex-

plore opportunities for community service. (See complete ex-

ercise on page 4.60 of this manual.)

Chapter 04 – Demanding Ethical and Socially Responsible Behavior

learning goal 2

Ask the three questions one should answer when faced with a potentially unethical ac-

tion.

C. ETHICS BEGINS WITH EACH OF US.

1. Americans in general are not always honest and

honorable.

a. A recent study identified low managerial eth-

ics as a major factor in America’s competitive

problems.

a. There is not always an easy choice.

4-10

PPT 4-11

Ethics and You

(See complete PowerPoint slide notes on page 4.39.)

lecture link 4-2

CHINA CONFRONTS ITS

ETHICAL DEMONS

As China grows in economic clout, it must improve its

dismal record on corruption and environmental issues. (See

the complete lecture link on page 4.54 in this manual.)

MAKING

ethical

decisions

(Text page 93)

PPT 4-12

Facebook or

Fakebook

(See complete PowerPoint slide notes on page 4.39.)

critical thinking

exercise 4-2

ETHICAL DILEMMAS

This exercise presents 10 examples of ethical dilemmas for

students to evaluate. (See complete exercise on page 4.61 of

this manual.)

TEXT FIGURE 4.1

Ethical Orientation Questionnaire

(Text page 95)

This figure presents a nine-question quiz to identify one’s

style of recognizing and resolving ethical dilemmas.

Chapter 04 – Demanding Ethical and Socially Responsible Behavior

individuals and organizations be sure their deci-

1. People learn their standards and values from ob-

serving what others do, not what they say.

4-12

PPT 4-13

Facing Ethical Dilemmas

(See complete PowerPoint slide notes on page 4.40.)

PPT 4-14

Bribery Bad Boys

(See complete PowerPoint slide notes on page 4.40.)

progress

assessment

(Text page 94)

PPT 4-15

Progress Assessment

(See complete PowerPoint slide notes on page 4.40.)

PPT 4-16

Ethics Start at the Top

(See complete PowerPoint slide notes on page 4.41.)

PPT 4-17

Factors Influencing Managerial

Ethics

(See complete PowerPoint slide notes on page 4.41.)

Chapter 04 – Demanding Ethical and Socially Responsible Behavior

learning goal 4

Distinguish between compliance based and integrity based ethics codes, and list the six

steps in setting up a corporate ethics code.

B. SETTING CORPORATE ETHICAL STANDARDS

by penalizing wrongdoers.

and unconditionally support an explicit code

of conduct.

Chapter 04 – Demanding Ethical and Socially Responsible Behavior

TEXT FIGURE 4.2

Overview of Johnson &

Johnson’s Code of Ethics

(Text page 97)

This text figure is an overview of Johnson & Johnson’s

code of ethics, what it calls its Credo.

TEXT FIGURE 4.3

Strategies for Ethics

Management

(Text page 97)

This text figure presents a comparison of compliance-based

and integrity-based ethics codes.

lecture link 4-3

SELECTED CODES OF ETHICS

Codes of ethics are as unique as the companies that write

them. This Lecture Link presents samples of ethics codes for

several major U.S. companies. (See the complete lecture link

on page 4.54 in this manual.)

PPT 4-18

Ethics Codes

(See complete PowerPoint slide notes on page 4.41.)

critical thinking

exercise 4-3

RESEARCHING CODES OF

ETHICS

Most companies now publish codes of ethics to provide

ethical guidelines for employees. This Internet exercise directs

students to research these codes of ethics on the Internet. (See

complete exercise on page 4.64 of this manual.)

Chapter 04 – Demanding Ethical and Socially Responsible Behavior

top and all employees are expected to act eth-

ically.

whistleblowers if the information given re-

sults in a successful enforcement action.

e. Step 5: OUTSIDERS such as suppliers, sub-

4-16

PPT 4-19

How to Improve America’s

Business Ethics

(See complete PowerPoint slide notes on page 4.42.)

PPT 4-20

How to Improve America’s

Business Ethics

(See complete PowerPoint slide notes on page 4.42.)

Chapter 04 – Demanding Ethical and Socially Responsible Behavior

b. Johnson & Johnson’s response to the cyanide

5. An important factor to encourage ethical behavior

b. Serves as a counselor or as an investigator

6. EFFECTIVE ETHICS OFFICERS are people

III. CORPORATE SOCIAL RESPONSIBILITY

A. BASICS OF SOCIAL RESPONSIBILITY

1. CORPORATE SOCIAL RESPONSIBILITY (CSR)

is a business’s concern for the welfare of society.

Chapter 04 – Demanding Ethical and Socially Responsible Behavior

4-18

PPT 4-21

How to Prevent Unethical

Behaviors

(See complete PowerPoint slide notes on page 4.43.)

PPT 4-22

How to Prevent Unethical

Behavior

(See complete PowerPoint slide notes on page 4.43.)

progress

assessment

(Text page 98)

PPT 4-23

Progress Assessment

(See complete PowerPoint slide notes on page 4.44.)

PPT 4-24

Corporate Social Responsibility

(See complete PowerPoint slide notes on page 4.44.)

Chapter 04 – Demanding Ethical and Socially Responsible Behavior

sponsibility of business is to make money for

stockholders.

sion of social responsibility that includes chari-

table donations.

Chapter 04 – Demanding Ethical and Socially Responsible Behavior

lecture link 4-4

APPROACHES TO SOCIAL

RESPONSIBILITY

Corporations can take several approaches toward social re-

sponsibility: reaction, defense, accommodation, and proaction

(See the complete lecture link on page 4.56 of this manual.)

PPT 4-25

Corporate Philanthropy and Social

Initiatives

(See complete PowerPoint slide notes on page 4.45.)

PPT 4-26

Corporate Responsibility and Policy

(See complete PowerPoint slide notes on page 4.45.)

critical thinking

exercise 4-4

ETHICS MINICASES

This exercise presents five short cases about real-world ethi-

cal dilemmas. It also makes a good group exercise. (See com-

plete exercise on page 4.65 of this manual.)

PPT 4-27

Positive Impacts of Companies

(See complete PowerPoint slide notes on page 4.46.)