Exam 4: Demanding Ethical and Socially Responsible Behavior

In the Reaching Beyond Our Borders box, the story proves that a large multinational company can ask its employees to follow, and should expect them to follow, the same ethical standards they would practice if living and working within the U.S. borders.

When Delish Donuts uses in-store recycling and composting, and cleans with nontoxic detergents, Delish Donuts is participating in corporate

Employees observe behavior and adopt standards of right and wrong.

As a response to various scandals, the federal government now requires social audits of all U.S. businesses.

Make it Better, Inc. is a large insurance company in the Midwest. Make it Better made its corporate philanthropy public when it announced 3% of its profits would be donated toward the cultural and environmental concerns of Des Moines, the home of Make it Better's corporate headquarters. The CEO stated, "In honor of several hundred employees that come to work here every day, we want to give something back." Since this is only helping one metropolitan area, the donation falls outside the realm of corporate social responsibility.

At a recent town hall meeting, citizens expressed concern regarding the impact of a proposed new casino. The owner of the proposed casino responded, "I don't know what all of this fuss is about. I'm just a businessman trying to earn a profit, provide new jobs, and pay taxes." His response reflects an overall commitment to corporate social responsibility.

Ethical dilemmas in business

Ethical behavior involves the clear and easy choice of right and wrong actions toward others.

Utilizing the phrase "the ends justify the means" as a corporate value system can negatively impact company morale and competitiveness.

In a famous speech, former President John F. Kennedy proposed that businesses had four basic rights, and in his own words, he proclaimed that "each one of them leads us back to the right to keep the profits from one's business."

As a result of pressure from business lobbyists, Congress failed to pass legislation protecting whistleblowers.

Corporate philanthropy refers to the position a firm takes on issues that affect society.

At Fisher Financial Services, clients have a right to do business with whichever consultant they choose. It is not out of the ordinary for a financial consultant to lose a client to another consultant in the same office. If it is a high-net worth client, with the potential for high commissions on sales, the incentive to steal a fellow worker's client exists because the firm's culture has not established integrity-based ethics to deter this activity.

Employers should proceed cautiously when designing an employee incentive program that rewards employees strictly on increased sales.

A(n) ________-based ethics code defines corporate values, creates a supportive environment, and stresses shared accountability among employees.

Game Guys, Inc., is interested in keeping employees, customers, and the general public aware of the activities and programs it has accomplished within the community this past year. The company might consider performing a

Businesses with a formal code of ethics are less common now than in the past.

When stating a firm position on various social and political issues, corporate policies often commit company profits to back these positions.

International issues of social responsibility and ethical behavior are

In order to do the right thing for all stakeholders, a business should be managed ethically.