BUSA 2106 1st EditionLecture 3Outline of Last Lecture I. Introduction to Business Ethics II. Ethics Theory and Decision Making III. Exercise 2Outline of Current Lecture I. Corporate Social ResponsibilityII. Global Business EthicsIII. Foreign Corrupt Practices ActCurrent 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 useless 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 environmentToday 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
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