Summary: Ethical Behaviour And Social Responsibility

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• 1 Ethical behaviour and social responsibility

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• What is the difference between ethics and legality?

  Ethics describe the relationship between people and legality refers to the written laws. 

• How do we restore trust in the free market?

  - Punish those who have broken the law
  - Make accounting records more transparent
  - Consider what is ethical, not just what's legal.

• Which questions should you ask yourself when facing ethical dilemmas?

  1. Is it legal?
  2. Is it balanced?
  2. How will it make me feel about myself?

• Why does a company have to manage in an ethical way?

  To keep a good reputation, to keep customers, to attract customers, to prevent lawsuits, etc.

• What kind of ethics codes are there?

  - Compliance-based ethics code; increasing control and penalties to control behaviour --> prevent unlawful behaviour 
  - Integreti-Based ethics code; creates an environment that supports ethically sound behaviour. 

• How to improve business ethics?

  1. Top management needs to offer unconditional support and explicit corporate code of conduct.
  2. Employees must understand that senior management expects all employees to act ethically.
  3. Managers and other need training to consider all the consequences of their decisions
  4. An ethics office must be set up with which employees can communicate anonymously 
  5. Outsiders must be told about the ethics program
  6. The ethics cod must be enforced with timely action

• How to prevent unethical behaviour?

  1. managers must communicate the organisation's vision on ethical behaviour.
  2. organisations must have a code of ethics
  3. policies have to be enforce regarding ethical offences
  4. ethical responsibilities must be taught to all employees.
  5. discussion of ethics must be included in the decision-making process
  6. Accountability must be taken seriously at all levels in the organisation
  7. organisations must act fast when a crisis occurs
  8. employees must know they have to defend and maintain the company's reputation.

• What are the dimensions of CSR?

  - corporate philanthropy; charitable donations
  - corporate social initiates; enhanced forms of corporate philanthropy -> linked to the company's competencies.
  - Corporate responsibility; from hiring minorities to making safe products
  - Corporate policy; the position a firm takes on social and political matters.

• What are the responsibility for business to employees?

  - Create jobs
  - Chance for upward mobility (promotion)
  - Treat them with respect (HRM)
  - Offer salaries and benefits that help employees reach their personal goals

• What's a social audit?

  A systematic evaluation of an organisation's progress towards implementing socially responsible and responsive programs.