Bus 10 Notes - 9B Social

Responsibility

2-1

Introduction to Business
Social Responsibility & Ethics

Ethics in Business

2-2

What Is Ethics?
Behavior at the individual level
Concerned with what is right and wrong
Varies by culture

What Is Social Responsibility?

Corporate Social Responsibility is the approach an
organization takes in balancing its responsibilities
toward stakeholders when making decisions.
Stakeholders:
Owners, Employees, Customers, Community, Distribution
Partners, Regulators, Suppliers,
Exploring Business 2009 FlatWorld Knowledge

Ethical Dilemmas

2-3

Ethical issues arise in organizations

because multiple stakeholders make
conflicting demands.
Dilemmas are problematic situations

Exploring Business 2009 FlatWorld Knowledge

Bus 10 Notes - 9B Social

Responsibility

Basic Situations Causing Ethical Issues

2-4

Bribes
Check company policy on gifts

Conflicts of Interest
Choose between taking actions that promote their
personal interests over the interests of the firm

Conflicts of Loyalty
Disclosing confidential information

Sexual Harassment
Power + personal relationship
Inappropriate touching
Offensive atmosphere

Whistle-blowing (4 min Enron video)

How To Avoid an Ethical Lapse

2-5

Stakeholders

Exploring Business 2009 FlatWorld Knowledge

Ethics Influencers

2-6

Top Managers & Supervisors

Co-Workers & Subordinates
Your own background and values

Exploring Business 2009 FlatWorld Knowledge

Bus 10 Notes - 9B Social

Responsibility

Formal Code Of Conduct

2-7

Principles & Guidelines

Topics
Use Of Corporate Funds
& Resources
Conflict Of Interest
Protection Of
Proprietary Information

Enforcement
Encourages & Provides
Instructions for
Reporting
Exploring Business 2009 FlatWorld Knowledge

2-8

Social Responsibility towards Stakeholders.

Employee relations:
Providing a safe workplace, adequate pay, information
about the company, listening to grievances, and
treating employees fairly

Consumer relations:
Respecting the rights of customers &
providing them with safe and satisfying
products, & accepting their feedback

Community relations:
Responsibility to the general welfare
of the community; supporting social causes

Environmental issues:
Sustainability
Animal rights
Pollution / Global warming

Social Responsibility Case Study

2-9

Tesco 2012 CSR

Review (5 mins)
http://www.youtube.com
/watch?v=GwznBBI5t4k

Discussion Question:
Who are some of the
stakeholders
mentioned for Tesco
Supermarkets?
How are they affected
by the stated activities?

Bus 10 Notes - 9B Social

Responsibility

7-10

Introduction to Business
Labor Relations Case

Labor Relations Terms

7-11

A Labor Union is an organized group of

workers that bargains with employers to
improve its members pay, job security,
and working conditions.
Collective Bargaining is the process of
settling differences and establishing
mutually agreeable conditions under which
employees will work
The outcome of this process is the labor
agreement or contract.

Union Structure

7-12

Labor
Federation
National Union

Local Union
Shop Steward

Shop Steward

Grievance

Bus 10 Notes - 9B Social

Responsibility

Negotiation Breakdown

Union
Tactics

Strike

Picket

7-13

Mgmt
Tactics

Boycott

Lockout

Strike
Breakers

Outside Assistance

7-14

Negotiations

Mediation

Arbitration

Walmarts Labor Relations Practices

7-15

Video (6 minutes)
http://www.youtube.com/watch?v=cQtp6KMAI
w0&feature=related

Discuss:
1. What has Walmart been criticized for?
2. How well is Walmart serving its
stakeholders?
3. Is Walmart a socially responsible firm?

Bus 10 Notes - 9B Social

Responsibility

Labor Union Density

7-16