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BusinessEthics/

SocialResponsibility/

Environmental

SustainabilityChapterTenChapterObjectivesExplainwhygoodethicsisgoodbusinessinstrategicmanagement.Explainhowfirmscanbestensurethattheircodeofbusinessethicsguidesdecisionmakinginsteadofbeingignored.Explainwhywhistle-blowingisimportanttoencourageinafirm.Discussthenatureandroleofcorporatesustainabilityreports.10-2Copyright©2013PearsonEducation,Inc.publishingasPrenticeHallChapterObjectives(cont.)Discussspecificwaysthatfirmscanbegoodstewardsofthenaturalenvironment.ExplainISO14000and14001.Discussrecenttrendsinbriberylaw.10-3Copyright©2013PearsonEducation,Inc.publishingasPrenticeHallAComprehensiveStrategic-ManagementModel10-4Copyright©2013PearsonEducation,Inc.publishingasPrenticeHallSocialResponsibility,

EnvironmentalSustainabilitySocialresponsibilityactionsanorganizationtakesbeyondwhatislegallyrequiredtoprotectorenhancethewell-beingoflivingthingsSustainability

theextentthatanorganization’soperationsandactionsprotect,mend,andpreserveratherthanharmordestroythenaturalenvironment10-5Copyright©2013PearsonEducation,Inc.publishingasPrenticeHallBusinessEthicsBusinessethicsprinciplesofconductwithinorganizationsthatguidedecision-makingandbehavior10-6Copyright©2013PearsonEducation,Inc.publishingasPrenticeHallSevenPrinciplesofAdmirableBusinessEthics10-7Copyright©2013PearsonEducation,Inc.publishingasPrenticeHallCodeofBusinessEthicsToensurethatthecodeofethicsisread,understood,believed,andremembered,periodicethicsworkshopsareneededtosensitizepeopletoworkplacecircumstancesinwhichethicsissuesmayarise10-8Copyright©2013PearsonEducation,Inc.publishingasPrenticeHallAnEthicsCultureWhistle-blowing

referstopoliciesthatrequireemployeestoreportanyunethicalviolationstheydiscoverorseeinthefirm10-9Copyright©2013PearsonEducation,Inc.publishingasPrenticeHallAnEthicsCultureEthicstrainingprogramsshouldincludemessagesfromtheCEOorownerofthebusinessemphasizingethicalbusinesspractices,thedevelopmentanddiscussionofcodesofethics,andproceduresfordiscussingandreportingunethicalbehavior10-10Copyright©2013PearsonEducation,Inc.publishingasPrenticeHallBribesBriberytheoffering,giving,receiving,orsolicitingofanyitemofvaluetoinfluencetheactionsofanofficialorotherpersonindischargeofapublicorlegaldutyisacrimeinmostcountriesoftheworld,includingtheUnitedStates10-11Copyright©2013PearsonEducation,Inc.publishingasPrenticeHallSocialResponsibilityRalphNaderproclaimsthatorganizationshavetremendoussocialobligationsMiltonFriedmanassertsthatorganizationshavenoobligationtodoanymoreforsocietythanislegallyrequired10-12Copyright©2013PearsonEducation,Inc.publishingasPrenticeHallSocialPolicySocialpolicyconcernswhatresponsibilitiesthefirmhastoemployees,consumers,environmentalists,minorities,communities,shareholders,andothergroupsFirmsshouldstrivetoengageinsocialactivitiesthathaveeconomicbenefits10-13Copyright©2013PearsonEducation,Inc.publishingasPrenticeHallEnvironmentalSustainabilityEmployees,consumers,governments,andsocietyareespeciallyresentfuloffirmsthatharmratherthanprotectthenaturalenvironmentConverselypeopletodayareespeciallyappreciativeoffirmsthatconductoperationsinawaythatmends,conserves,andpreservesthenaturalenvironment10-14Copyright©2013PearsonEducation,Inc.publishingasPrenticeHallTheTop20CompaniesintheWorldonSustainability10-15Copyright©2013PearsonEducation,Inc.publishingasPrenticeHallLackofStandardsChangingUniformstandardsdefiningenvironmentallyresponsiblecompanyactionsarerapidlybeingincorporatedintoourlegallandscapeIthasbecomemoreandmoredifficultforfirmstomake“green”claimswhentheiractionsarenotsubstantive,comprehensive,oreventrue10-16Copyright©2013PearsonEducation,Inc.publishingasPrenticeHallManagingEnvironmental

AffairsintheFirmEnvironmentalstrategiescaninclude:developingoracquiringgreenbusinessesdivestingoralteringenvironment-damagingbusinessesstrivingtobecomealow-costproducerthroughwasteminimizationandenergyconservationpursuingadifferentiationstrategythroughgreen-productfeatures10-17Copyright©2013PearsonEducation,Inc.publishingasPrenticeHallReasonsWhyFirmsShould

“BeGreen”Consumerdemandforenvironmentallysafeproductsandpackagesishigh.Publicopiniondemandingthatfirmsconductbusinessinwaysthatpreservethenaturalenvironmentisstrong.Environmentaladvocacygroupsnowhaveover20millionAmericansasmembers.Federalandstateenvironmentalregulationsarechangingrapidlyandbecomingmorecomplex.10-18Copyright©2013PearsonEducation,Inc.publishingasPrenticeHallReasonsWhyFirmsShould

“BeGreen”Morelendersareexaminingtheenvironmentalliabilitiesofbusinessesseekingloans.Manyconsumers,suppliers,distributors,andinvestorsshundoingbusinesswithenvironmentallyweakfirms.Liabilitysuitsandfinesagainstfirmshavingenvironmentalproblemsareontherise.10-19Copyright©2013PearsonEducation,Inc.publishingasPrenticeHallBeProactive,NotReactiveAproactivepolicyviewsenvironmentalpressuresasopportunitiesandincludessuchactionsasdevelopinggreenproductsandpackages,conservingenergy,reducingwaste,recycling,andcreatingacorporateculturethatisenvironmentallysensitive.10-20Copyright©2013PearsonEducation,Inc.publishingasPrenticeHallISO14000/14001CertificationTheISO14000familyofstandardsconcernstheextenttowhichafirmminimizesharmfuleffectsontheenvironmentcausedbyitsactivitiesandcontinuallymonitorsandimprovesitsownenvironmentalperformance.10-21Copyright©2013PearsonEducation,Inc.publishingasPrenticeHallISO14000/14001CertificationISO14001isasetofstandardsadoptedbythousandsoffirmsworldwidetocertifytotheirconstituenciesthattheyareconductingbusinessinanenvironmentallyfriendlymannerResultsinanenvironmentalmanagementsystem10-22Copyright©2013PearsonEducation,Inc.publishingasPrenticeHallMajorRequirementsofanEMSShowcommitmentstopreventionofpollution,continualimprovementinoverallenvironmentalperformance,andcompliancewithallapplicablestatutoryandregulatoryrequirements10-23Copyright©2013PearsonEducation,Inc.publishingasPrenticeHallMajorRequirementsofanEMSIdentifyallaspectsoftheorganization’sactivities,products,andservicesthatcouldhaveasignificantimpactontheenvironment,includingthosethatarenotregulated10-24Copyright©2013PearsonEducation,Inc.publishingasPrenticeHallMajorRequirementsofanEMSSetperformanceobjectivesandtargets

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