Ethics, Corporate Responsibility, and Sustainability by Christie M. McCullough at Trulaske College of Business 2024.

1. TRULASKE COLLEGE OF BUSINESS
ETHICS,
CORPORATE
RESPONSIBILITY,
AND SUSTAINABILITY
Christie M. McCullough

2. Learning Outcomes
WHAT WE WE LEARN
What are ethics and business ethics?
What are the major ethical principles that can guide individuals and
organizations?
Why is ethical leadership important in organizations?
What is stakeholder management and why is it important?
What purpose can CSR (corporate social responsibility) offer to
organizations and society?

3. Ethics & Business Ethics Defined
Ethics essentially involves how we
act, live, lead our lives, and treat
others.
ETHICS
is applied ethics that focuses on real-world situations and the context and
environment in which transactions occur.
BUSINESS ETHICS
Normative ethics refers to the field
of ethics concerned with our
asking how should and ought we
live and act?
NORMATIVE ETHICS

4. An estimated cost of that crisis to
the global economy is over $22
trillion U.S. dollars
2008 SUBPRIME LENDING CRISIS
BUSINESS ETHICS: NO LONGER CONSIDERED A LUXURY BUT A NECESSITY

6. Dimensions of
Ethics: The
Individual Level
ETHICS IS A PERSONAL AND
UNIQUE TO EACH INDIVIDUAL
Influenced by
• family
• community
• peers and friends
• local & national culture
• society
• religious beliefs

7. “align with globally recognized
definitions of fundamental human
rights.”
ETHICAL AI
10 PRINCIPLES THE WORLD (MOSTLY) AGREES ON-
AND WHAT TO DO ABOUT THEM

8. Ethics and Values
TERMINAL AND INSTRUMENTAL VALUES
Terminal values are desired goals, objectives, or end
states that individuals wish to pursue.
Instrumental values are preferred means of behavior
used obtain those goals.

9. Leadership
ETHICS AT THE ORGANIZATIONAL LEVEL
SHOW RESPECT
FOR OTHERS
to recognize the
intrinsic worth of
others
TREAT ALL
STAKEHOLDERS
FAIRLY
Equality is also a
top priority for
ethical leaders
WORK TOWARD
A COMMON
GOOD
further social or
institutional
goals that are
greater than the
goals of the
individual
BUILD
COMMUNITY
focuses on the
needs of others
rather than the
self
BE HONEST
requires leaders
to be as open as
possible and to
describe reality
fully, accurately,
and in sufficient
detail

10. Dark Side of
Organizational
Leadership
LEADERS DECISIONS MATTER
Not all leaders lead or model high standards
or values. Seven symptoms of the failure of
ethical leadership include:
1.Ethical blindness
2.Ethical muteness
3.Ethical incoherence
4.Ethical paralysis
5.Ethical hypocrisy
6.Ethical schizophrenia
7.Ethical complacency

14. Corporate Social
Responsibility (CSR)
Corporate social responsibility is described as “a belief
that corporations have a social responsibility beyond
pure profit”
Businesses worldwide develop CSR initiatives to
become better corporate citizens but also to
communicate their activity to both internal and external
stakeholders, which may involve a number of groups

15. CSR: How to Ensure Impact
For All Shareholders
FORBES
88%
No longer acceptable for
companies to just make
money; companies must
positively impact society
as well.
95%
Believe that business
must benefit all
stakeholders, not just
shareholders
PURPOSE &
STRATEGY
Clear, focused strategy
will help align the
organization’s efforts
and ensure a positive
impact for all
shareholders