AN INTRODUCTION TO BUSINESS ETHICS
CHAPTER THREE: CORPORATE SOCIAL RESPONSIBILITY
Copyright © 2014 by McGraw-Hill Education. All rights reserved.
THIS CHAPTER SEEKS TO
Help students continue developing the ability to identify and
analyze ethical issues in business
Explain the ethical foundation for the classical model of corporate
social responsibility
Review the ethical challenges to utilitarian and rights-based
justifications of the classical model
Explain how the classical model is extended and developed
through a moral minimum
Describe the stakeholder model of corporate social responsibility
Explain the ethical foundations of the stakeholder model
3-2 Copyright © 2014 by McGraw-Hill Education. All rights reserved.
DISCUSSION CASE: WALMART
New York Times reported in 2012 that a six-year internal
investigation found widespread bribery and corruption
within Walmart’s Mexican operations
Walmart employees paid $24 million in bribes to promote
expansion of business in Mexico
Walmart executives in Mexico knew of the bribes, and hid
them from U.S. Walmart corporate offices
When the internal investigation was shared with corporate
headquarters, Walmart executives ended the investigation
3-3 Copyright © 2014 by McGraw-Hill Education. All rights reserved.
DISCUSSION CASE: WALMART (CONT.)
The Times also reported than only upon learning of the
newspaper’s own investigation and plans to write a
story did Walmart executives notify legal authorities
The U.S. Justice Department began an investigation of
possible violations of the U.S. Corrupt Foreign Practices
Act
3-4 Copyright © 2014 by McGraw-Hill Education. All rights reserved.
DISCUSSION CASE: WALMART (CONT.)
Walmart is the world’s largest retail business, claiming
over 200 million customer visits per week at more than
8,100 retail stores in 15 countries
Its total sales for fiscal year 2011 were $418 billion
Worldwide, it employs over 2.1 million people
It is the largest private employer in the U.S. and Mexico, and
the largest employer in 25 U.S. states
3-5 Copyright © 2014 by McGraw-Hill Education. All rights reserved.
DISCUSSION CASE: WALMART (CONT.)
In many ways, Walmart is a socially responsible
corporation
Values promoted by Wal-Mart include honesty, respect,
fairness and integrity
Wal-Mart culture was founded on three basic beliefs: respect
for individuals, service to customers, and striving for
excellence
Defenders point out that its economic success is evidence of
how well Walmart is fulfilling its social responsibility
3-6 Copyright © 2014 by McGraw-Hill Education. All rights reserved.
DISCUSSION CASE: WALMART (CONT.)
Walmart has created immense value for shareholders,
consumers, suppliers, and employees
It regularly contributes to community and social causes
The Walmart Foundation is the largest corporate cash
contributor.