This document discusses ethics and corporate social responsibility. It defines ethics as moral principles that guide what is right and wrong behavior. When asked, many business people associate ethics with feelings, religion or legal compliance. There are three domains of human action - certified law, free choice, and ethics, with ethics representing social standards with less explicit control. The document outlines approaches to ethical decision making including utilitarian, individualism, moral rights, and justice approaches. It also discusses levels of moral development, social responsibility, shades of corporate green in environmental approaches, and the three pillars of an ethical organization as integrity, trust and accountability.

1. Ethics and CSR"What does ethics mean to you?“

2. "What does ethics mean to you?“A few years ago, sociologist Raymond Baumhart asked business people. Major replies were-"Ethics has to do with what my feelings tell me is right or wrong.“"Ethics has to do with my religious beliefs.“"Being ethical is doing what the law requires.“"Ethics consists of the standards of behavior our society accepts.“"I don't know what the word means."

3. Three Domains of Human ActionDomain of Certified Law(Legal Standard)Domain of Free Choice(Personal Standard)Domain of Ethics(Social Standard)Amount ofHighExplicit ControlLow

4. Ethical DilemmaA situation that arises when all alternative choices or behaviors have been deemed undesirable. Potentially negative ethical consequences, making it difficult to distinguish right from wrong.

5. EthicsThe code of moral principles and values that govern the behaviors of a person or group with respect to what is right or wrong.

6. Criteria for Ethical Decision MakingMost ethical dilemmas involveA conflict between needs of the part & whole.

7. The individual versus the organization.

8. The organization versus society as a whole.

9. What will be your take for above???Four Considerations inEthical Decision MakingUtilitarian Approach

10. Individualism Approach

11. Moral-Rights Approach

12. Justice ApproachUtilitarian ApproachMoral behavior produces the greatest good for the greatest number.

13. Computations can be very complex, simplifying them is considered appropriate.

14. Critics fear a “Big Brother” approach and ask if the common good is squeezing the life out of the individual.Individualism ApproachActs are moral when they promote the individual's best long-term interests.

15. Individual self-direction paramount.

16. Individualism is believed to lead to honesty & integrity since that works best in the long run.Moral-Rights ApproachAsserts human beings have fundamental rights and liberties.Moral decisions are those that best maintain the rights of those people affected by them.An ethical decision is one that avoids interfering with the fundamental rights of others.

17. “Moral Rights” ConsiderationsThe right of free consentThe right to privacyThe right of freedom of conscienceThe right of free speechThe right to due processThe right to life & safety

18. Justice ApproachMoral Decisions must be based on standards of equity, fairness, and impartiality.Treatment of individuals should not be based on arbitrary characteristics.Organizations and individuals could draft code of conduct, make it known to all and implement equally on allCloset thinking to codified law.

19. Levels of Moral DevelopmentSOURCES: Based on L. Kahlberg, “Moral Stages and Moralization: The Cognitive-Developmental Approach, in Moral Development and Behavior: Theory, Research, and Social Issues, ed. T. Lickona (New York: Holt, Rinehart, and Winston, 1976), 31-53; and Jill W. Graham, “Leadership, Moral Development and Citizenship Behavior,” Business Ethics Quarterly 5, no. 1 (January 1995), 43-54.

20. Social ResponsibilityOrganization’s obligation to make choices and take actions that will contribute to the welfare and interests of society and organization.Distinguishing right from wrong.Being a good corporate citizen.Many social responsibilities issues are ambiguous with respect to right and wrong.Shades of Corporate GreenActivist ApproachActively conserve the environmentStakeholder ApproachAddress multiple stakeholder concernsMarket ApproachRespond to customersLegal ApproachSatisfy legal requirements regarding environmental conservation

21. Total Corporate Social Responsibility

22. Corporate Responses toSocial DemandsHighDegree of Social ResponsibilityLowProactiveTake social initiatives.AccommodationAccept ethical responsibility.DefenseDo only what is legally required.ObstructionFight all the way.

23. Three Pillars of an Ethical OrganizationSOURCE: Adapted from Linda Klebe Trevino, Laura Pincus Hartman, and Michael Brown, “Moral Person and Moral Manager,” California Management Review 42, No. 4 (Summer 2000), 128-142.

24. Enlightened CompaniesRealize the importance of:integritytrust