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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
4
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.)
