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In us when companys sued for illegal practices

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in US, when company’s sued for illegal practices, financial damages may be↓if it has ethics program - employees need to know how to follow corporate ethics policy - not many companies evaluate their ethics-related performance, but some starting to hire “ethics auditor” - create mechanisms that encourage employees to speak up when they see wrongdoing → ethical behaviour↑ What About National Culture? - no global ethical standards (what’s considered unethical in one country may not be viewed similarly in another country) e.g. Japan: business ppl exchange gifts (tradition), but N.Americans & Europeans think of it as bribery e.g. US company operating in China: manager caught employee stealing turns him over to local authorities → he got executed for theft (shocking) - companies operating branches in foreign countries face tough decisions abt how to conduct business under diff. ethical standards - criteria for defining right/wrong clearer in West than Asia & Middle East CORPORATE SOCIAL RESPONSBILITY Question 1 Is the decision motivated by self- serving interests? Question 2 Does the decision respect the rights of the individuals affected? Question 3 Is the decision fair & equitable? Unethical Unethical Ethical Unethical
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P ART 4: S HARING THE O RGANIZATIONAL V ISION corporate social responsibility = org’s responsibility to consider impact of its decisions on society - org’s try to better society e.g. charitable contributions; providing better wages to employees working in offshore factories - org’s engage in these practices b/c feel pressured to do so, OR they feel it’s the right thing to do - not everyone agrees to assuming social responsibility - current laws that support corporate behaviour that some might find troubling (Friedman) - more laws need to be put in place if corporations are to behave more socially responsibly (Bakan) - study: MBA students change their views abt social responsibility during course of their program (at graduation, majority suggests a company’s responsibility is to max. shareholder value) - some Canadian companies do practice social responsibility e.g. Vancity has “Ethical Policy” (the bank refuses to do business w/ companies that violate fundamental rights of children, or are involved in weapons) *Reducing Biases in Decision Making Focus on goals Look for info that disconfirms your beliefs Don’t create meaning out of random events Inc. your options *Corporate Response to Ethics Demands Explosion in demand for more ethical behavoiur Ethics specialists Ethics officers Codes of ethics Ethics authors *Developing a Meaningful Code of Ethics Clearly state basic principles and expectations Realistically focus on potential ethical dilemmas that employees face Distribute the code to all employees Enforce violations of the code
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