Chapter 3

• Ethics vs. Ethical Behaviour


  Ethics are the principles and moral values that guide our behaviour. Ethical behaviour is putting those principles into action.

  Example: Stealing is considered unethical. Deciding not to steal aligns with ethical behaviour.
• Values vs. Ethical Dilemmas


  Values are our beliefs about what is right and wrong. An ethical dilemma arises when competing values conflict, making it difficult to choose the right course of action.

  Example: Value: Honesty. Dilemma: You witness a colleague stealing, making you choose between honesty (reporting it) and loyalty (protecting your colleague).
• Terminal vs. Instrumental Values


  Terminal values are the end goals we strive for (e.g., happiness, freedom). Instrumental values are the means to achieve those terminal values (e.g., hard work, education).

  Example: Happiness (terminal) - Education (instrumental). We value education because it helps us achieve happiness.
• Utilitarian View of Ethics


  Focuses on maximizing overall happiness and minimizing suffering for the greatest number of people.

  Example: Deciding to build a factory that creates jobs for many people, even if it pollutes the environment (potentially harming some).
• Individualism View of Ethics


  Emphasizes individual rights and freedoms. Actions are ethical if they respect individual liberties as long as they don't harm others.

  Example: Choosing not to wear a mask during a pandemic is considered ethical by some under this view (ignoring potential harm to others).
• Moral Rights View of Ethics


  Focuses on fundamental moral rights that deserve protection, regardless of consequences. Actions that violate these rights are unethical.

  Example: Refusing to discriminate against someone based on their race, even if it means losing a potential customer.
• Procedural Justice


  Ensures fair and unbiased processes are followed when making decisions that affect individuals.

  Example: Following established hiring procedures to ensure everyone gets a fair chance at a job, regardless of personal connections.
• Distributive Justice


  Focuses on fair and equitable distribution of benefits and burdens within a society.

  Example: Fair taxation system where everyone contributes a share based on their income.
• Interactional Justice


  Concerns the respectful treatment of individuals during interactions.

  Example: Treating employees with respect and dignity, regardless of their position or level within the company.
• Ethical Dilemma


  A situation where two or more important ethical principles come into conflict, making it difficult to choose the right course of action.

  Example: Deciding whether to report a colleague who is engaging in unethical practices, even if it risks jeopardizing your job security.
• Recognizing Ethical Dilemmas


  Look for situations where competing values clash, causing uncertainty about the right course of action. Consider potential consequences of different choices.

  Example: When a manager asks you to falsify data in a report, you recognize a conflict between honesty (reporting truthfully) and loyalty (protecting your manager).
• Solving Ethical Dilemmas

  1. Identify the relevant ethical principles and stakeholders involved.
  2. Gather information and consider potential consequences of different options.
  3. Choose the option that aligns best with your principles and minimizes harm.
  4. Seek guidance from mentors or ethical resources if needed.
• Rationalizations for Unethical Behaviour

  1. "Everyone does it": Justifying unethical behaviour because others do it too.
  2. "The ends justify the means": Believing that a good outcome justifies unethical actions taken to achieve it.
  3. "It's not a big deal": Downplaying the seriousness of unethical behaviour.
  4. "Nobody will get hurt": Ignoring potential consequences of unethical actions.
• Factors Influencing Ethical Behaviour

  1. Individual factors: Values, personality, moral character.
  2. Organizational factors: Leadership, work environment, ethical culture, code of ethics.
  3. Situational factors: Pressure, time constraints, potential rewards or punishments.
• Maintaining High Ethical Behaviour

  1. Be aware of your own values and ethical principles.
  2. Speak up if you witness unethical behaviour.
  3. Seek guidance and support from ethical role models.
  4. Continuously learn and reflect on ethical issues.
• Whistleblower


  An individual who reports unethical or illegal behaviour within an organization.
• Code of Ethics


  A formal document outlining an organization's expected ethical standards and conduct for employees.
• Ethical Role Model


  Someone who consistently demonstrates ethical behaviour and inspires others to do the same.
• Stakeholder


  An individual or group who is affected by the actions of an organization.
• CSR vs. ESG vs. Social Entrepreneurship

  CSR (Corporate Social Responsibility): A company's commitment to operating ethically and sustainably, considering social, environmental, and economic impacts.

  ESG (Environmental, Social, and Governance): A framework for measuring a company's performance on environmental, social, and governance factors.

  Social Entrepreneurship: Creating businesses or initiatives that address social problems while generating a profit.
• Classical vs. Socioeconomic Perspectives on CSR

  Classical: Focuses on profit maximization and shareholder primacy. CSR is seen as voluntary and not essential to a company's core business.

  Socioeconomic: Recognizes the social and environmental context of businesses. CSR is seen as essential for long-term success and stakeholder well-being.
• Arguments For CSR


  • Improves reputation and brand image.
  • Attracts and retains talent.
  • Mitigates risks and creates opportunities.
  • Contributes to a sustainable future
• Arguments against CSR


  Violates profit maximization.

  Increases costs and burdens.

  Lacks expertise and focus.

  Enables greenwashing.

  Difficult to measure impact.

  Lacks broad public support.
• Evaluating CSR - Social Responsibility Audit


  A systematic assessment of a company's social and environmental performance.
• Criteria for Social Responsibility Audit

  Environmental responsibility.

  Social responsibility.

  Economic responsibility.

  Stakeholder engagement.
• CSR Strategies


  Philanthropy and community engagement.

  Sustainable business practices.

  Ethical sourcing and supply chain management.

  Diversity, equity, and inclusion initiatives.