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Unformatted text preview: * * * Ethics • More Than Legality
Standards • Standards are • Ethics begins with each
of us of 4-1 * * * Top U.S. Ethical Issues
Im pr ope r Ac c ounting P r a c tic e s De c e ptive S a le s /M a r k e ting P r a c tic e s Conflic ts of Inte r e s t Lying on Re por ts /Fa ls ifying Re c or ds Dis hone s ty w ith Cus tom e r s La c k of P ublic Tr us t in Cor por a te Am e r ic a Br ibe s a nd Kic k ba c k s Unfa ir Tr e a tm e nt of Em ploye e s /Cus tom e r s S e c ur itie s a nd/or Ba nk Fr a ud Dis c r im ina tion P r oduc ing Low -qua lity or Uns a fe P r oduc ts 0% 10% 20% 30% 40% 50% 60% Source: CMO Magazine, October 2004 4-2 * * * Ways to Prevent Unethical Behavior Unethical
Inc r e a s ing P e na lt ie s f o r O f f e n de r s Em ploye e Educ a t ion P r o gr a m s P ublic it y About Thos e Be ing P unis he d A Code of Conduc t Adding Et hic s Cla s s e s t o Colle ge P r ogr a m s Ne w La w s 0% 10% 20% 30% 40% 50% 60% 70% 80% Source: CMO Magazine, Oct. 2004 4-3 * * * Privacy Protectors
Based on a Privacy Trust Score (PTS): • Health care providers scored the highest Grocery • Grocery Stores and Department of Homeland Security (DHS) scored the lowest lowest Democrats • Democrats have higher PTS than all other political affiliations other 81% • 81% of the respondents feel privacy is important or very important important
Source: www.darwinmag.com, November 2003 4-4 * * * Ethics of MBA Students
Percent of MBA Students Who Would: • • • • Buy Stock on Inside Information Reveal Corp. Secrets to Spouse/Family Let a Gift Sway Purchasing Decision Pay Someone Off to Close a Pay Business Deal
Source: USA Today 52% 50% 26% 13% 13% 4-5 * * * Most Popular Ways to Monitor Most Employees Employees • Internet (74%) • Background Exams (62%) • Store and Review Email (43%) • Store and Review Computer Files (31%) • Videotape Employees (18%)
Source: USA Today 4-6 * * * Ethics Check Questions: • Is It Legal? • Is It Balanced?
• How Will It Make Me Feel About How Myself? Myself?
4-7 * * * Why Don’t We Why Trust Corporations? Trust Source: USA Today 4-8 * * * Factors Influencing Managerial Ethics Managerial
• Values Values • Work Background Background • Family Status Family • Personality Personality Organizational
• Top Level Mgmt. Philosophy Philosophy • The Firm’s Reward System Reward • Job Dimensions Job Environmental
• Competition Competition • Economic Conditions Conditions • Social/Cultural Institutions Institutions 4-9 * * * Codes of Ethics • Compliance-Based • Integrity-Based 4-10 * * * Steps to Improve U.S. Business Ethics U.S. 1.Top management support 2.Employees’ understanding 3.Managers’ training 4.Ethics Office 5.Outsiders must be informed 6.Enforcement of ethics code
4-11 * * * Levels of Corporate Social Responsibility
Societal Responsibility Stakeholder Responsibility
Ecological General Public Customers Profit Profit Responsibility
Owners/Stockholders Employees Suppliers/Distributors Environment Public Interest Groups Source: Marketing, 5/E by Berkowitz, Kerin, Hartley, and Rudelius. Source: Marketing 4-12 * * * Corporate Responsibility
(Percent of country’s top 100 companies that publish separate CR reports)
Japan UK France Germ a ny US Ita ly Spain 0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
4-13 Source: Financial Times, June 15, 2005 Source: Financial * * * Social Audit • Company Outside • Outside Groups that serve
as watchdogs: as
Socially-Conscious • Socially-Conscious Investors Investors • Environmentalists • Union Officials • Customers 4-14 * * * International Ethics and Social Responsibility and
• • • •
Ethical problems are Not Unique to Ethical Not the U.S. managers the Demand for Socially Responsible Demand Behavior from Global Suppliers Behavior Joint Initiative on Corporate Joint Accountability and Workers’ Rights Accountability Inter-American Convention Against Inter-American Corruption Corruption
4-15 * * * Best Company Reputation Johnson & Johnson (80.6) • Coca-Cola (79.7) • Google (79.5) • UPS (79.4) • 3M (78.8)
Source: USA Today 4-16 * * * Most Admired Most Global Companies Global
1. 1. 1. 1. 1. 1.
General Electric Toyota Procter & Gamble FedEx Johnson & Johnson 1. Microsoft 1. Dell 1. Berkshire Hathaway 1. Apple Computer 1. Wal-Mart Source: Fortune, 2006 4-17 ...
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