BUSA 2106 1st Edition Lecture 3 Outline of Last Lecture I Introduction to Business Ethics II Ethics Theory and Decision Making III Exercise 2 Outline of Current Lecture I Corporate Social Responsibility II Global Business Ethics III Foreign Corrupt Practices Act Current Lecture Questions Previous Lecture What are ethics Where do ethical values come from What is the relationship between law and ethics Can law prevent unethical business behavior If not what can Corporate Social Responsibility CSR The idea that corporations can and should act ethically and be accountable to society for their actions Examples McDonald s creating a healthier menu because of the rise of obesity in America Approaches to CSR Stakeholder approach One view of corporate social responsibility stresses that corporations have a duty not just to shareholders but also to other groups affected by corporate decisions stakeholders Stakeholders are corporation employees customers creditors suppliers and the community in which the corporation operates Example McDonald considering the affects of obesity on its consumers by adding healthier choices to the menu Corporate citizenship Another theory of social responsibility argues that corporations should take affirmative steps to solve social problems Examples Because the electricity used by computers is thought to create 200 million tons of carbon dioxide emissions per year considering this the computer company Sun commitment to corporate social responsibility the company is focusing on creating computer servers that use less power These notes represent a detailed interpretation of the professor s lecture GradeBuddy is best used as a supplement to your own notes not as a substitute Questions to ponder Should businesses be socially responsible What are arguments for and against CSR Should CSR be a mandatory requirement for maintaining a business license corporate status Why or why not How far down the supply chain should businesses be responsible for their suppliers actions Global business ethics Examples of ethical standards that differ across cultures Consumption of certain foods alcohol Negotiating styles Free speech and censorship Role of women Environmental and safety practices Payments to government officials Standards for wages and working conditions For a better idea on how global business ethics are addressed read pages 52 53 The legal environment Today 6th edition Foreign Corrupt Practices Act FCPA Prohibits US companies and their agents officers and directors employees shareholders from bribing officials of foreign governments to influence official acts Example 1 5 of Wal Mart stores in Mexico recruited fixers known as gestores who bribed government officials invoiced bribes in code purified fees in accounting records as legal fees Imposes strict accounting requirements But FCPA does NOT prohibit Grease payments to minor officials to facilitate business Payments that is lawful in that country Payment to third parties unless the company knows it will be passed on to foreign government officials in violation of FCPA
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