business in canada (chapter 11)

Managing ethical behaviour in business organizations requires an in-depth understanding
of the many factors that contribute to employees' decisions to behave ethically or unethically.

R.T. De George: Ethics is the study of morality or moral judgments, standards, and rules of conduct.
P.V. Lewis: Business ethics is considered as comprising the rules, standards, principles, or codes that

- One central implication in these definitions is that ethical behaviour, by its very nature, occurs within a social context.
- Therefore, what is defined as ethical or unethical behaviour represents a judgment based on a referent structure.
- It is, further, difficult to define what constitutes ethical or unethical behaviour within an organization.
- In very broad terms, business ethics requires the organization or individual to behave in accordance with some carefully thought-out rules of moral philosophy.
- While the term itself is not easily definable, one can readily think of activities that could be considered unethical business practices, based on our views of what constitutes ethical or unethical behaviour.

1. end point ethics (consequences of our actions, limitations, utilitarianism)
- Utilitarianism asserts that to determine whether an action is right or wrong, one must assess the likely consequences, including tangible economic outcomes (profit for shareholders) or intangible outcomes, such as happiness or friendship.
- For example, "What does it mean to be an ethical businessperson?"
- Utilitarianism asserts that an action is ethical if it produces, or if it tends to produce, the greatest amount of good for the greatest number of people affected by the action.
- The modern counterparts of end-point ethics are cost-benefit and risk-benefit analyses.
2. rule ethics (right vs wrong)
- which considers actions as ethical or unethical based on their relation to the rules and principles that guide behaviours.
- In the Western world, for example, Judeo-Christian religious and moral rules or values have played a major role in defining morality in society.

organizational context:
1. corporate culture
2. decoupling
3. job routinization
4. organizational identity
5. work roles

- recognition of ethical implications of behaviour
- critical evaluation of ethical implications
- decision to engage in ethical or unethical behaviour

who are they:
individuals, groups, or entities that have an interest or stake in a particular project, organization, or system. These can include individuals or groups both inside and outside the organization. Stakeholders can have varying levels of influence and interest in the outcomes of the project or organization.

importance:
- decision making
- risk managment
- ethical considerations
- reputation

impact:
Positive impacts may include job creation, economic development, and community enrichment.

negative impacts such as environmental degradation, unethical practices, or poor labor conditions can harm stakeholders and the business itself.

what is it?
- is a concept that refers to a company's commitment to managing its business processes in an ethical and responsible manner.
- CSR encompasses a wide range of activities and initiatives that go beyond legal requirements and aim to create value for both the company and society.

relevant?
- social and economic responsibility
- ethical business practices
- employee well-being

1. Economic responsibilities
2. legal responsibilities
3. ethical responsibility
4. Philanthropic responsibility
examples and society expectations pg 361

against social responsibility:
- Business is business
- Business plays by its own rules.
- Business should not dictate morality.
- Organizations cannot be held accountable for their actions.
- High costs are passed to the consumer.

for social responsibility:
- Businesses should conform to societal expectations
- CSR is a practical strategy.
- Businesses must acknowledge its network of stakeholders.
- There are long-term benefits to be gained from CSR.
- Business has the power and resources to do good.

due to:
- social media
- CSR rating
- corporate disclosure legislation