david_sm13_ppt_10_ge slides for students

Copyright © 2011 Pearson Education Ch 10 -1
Chapter 10
Business Ethics/ Social Responsibility/
Environmental Sustainability
Strategic Management:
Concepts & Cases
13th Edition
Fred David

Business Ethics
Social Responsibility

Business Ethics
 Principles of conduct within
organizations that guide decision
making and behavior

Business Ethics
 Code of Business Ethics
 A document that provides behavioral
guidelines that cover daily activities
and decisions within the organization

Ethics Culture
 Ethics training should include:
 A message from the CEO
 Development and discussion of codes
of ethics
 Procedures for discussing and
reporting unethical behavior

Ethics Culture
 To align ethical and strategic decision
making:
 Incorporate ethical considerations into long-
term planning
 Incorporate ethical considerations into
performance appraisals
 Encourage whistle-blowing
 Monitor department and corporate
performance regarding ethical issues

Bribes
 A gift bestowed to influence a recipient’s
conduct
 Illegal in many countries, acceptable in others

Business Ethics

 Actions an organization takes beyond
what is legally required to protect or
enhance the well-being of living things

Social Policy
 Concerns what responsibilities the firm has to
its employees, consumers, environmentalists,
minorities, communities, shareholders, and
other groups
 Should be considered during each stage of
strategy formulation, implementation, and
evaluation

Social Policies on Retirement
 Worker shortages in countries around the
world are leading to changes in retirement
and immigration policies

Business Ethics

 The extent that an organization’s
operations and actions protect, mend,
and preserve rather than harm or
destroy the natural environment

 Strategies of companies are scrutinized
and evaluated from a natural
environment perspective
 Employees, consumers, governments,
and society are resentful of firms that
harm rather than protect the natural
environment

Sustainability Report
 Reveals how a firm’s operation impact
the natural environment
 These reports are not required, but are
a good business practice

Lack of Standards Changing
 Making a claim that a product or
process is “green” is becoming more
difficult as standards are put into place

Obama Regulations
 New “clean technology” business
start ups
 Solar
 Wind
 Biofuels
 Insulation

Managing Environmental Affairs in
the Firm
 Managers must formulate strategies that preserve
and conserve natural resources and control pollution
 Environmental strategies could include
 Developing or acquiring green businesses
 Divesting or altering environment-damaging
businesses
 Striving to become a low-cost producer through
waste minimization and energy conservation
 Pursuing a differentiation strategy through green
product features

Students and Environmental Training
 Companies prefer to hire graduates
with training in environmental
issues

Reasons Why Firms Should “Be
Green”
 Consumer demand
 Public opinion
 Environmental advocacy groups
 Federal and state environmental regulations
 Lenders
 Consumers, suppliers, distributors, and
investors
 Liability suits and fines

Be Proactive, Not Reactive
 Proactive – do more than the bare
minimum
 Reactive – changing only when
forced to by the law or consumer
pressure

ISO 14000/14001 Certification
 International Organization for
Standardization (ISO)
 A network of standards institutes of 147
countries
 Largest developer of sustainability
standards in the world
 Compliance is voluntary

ISO 14000/14001 Certification
 ISO 14000 - a series of voluntary standards
in the environmental field
 ISO 14001 – a set of standards included
within ISO 14000
 Adopted by thousands of firms worldwide to
certify that they are conducting business in
an environmentally friendly manner
 Results in an environmental management
system (EMS)

Electric Car Networks
 Government funding for manufacturing
 Recharging stations being installed in many
cities
 Extensive research and development within
the auto industry
 Companies are replacing gasoline powered
vehicles with hybrid electric-natural gas
vehicles

March 2009 Copenhagen Meeting
 Scientists warned that global warming is
worse than expected
 Companies and governments encouraged to
vigorously implement strategies to cut
greenhouse gases
 Kyoto Protocal expires in 2012
 Results of March 2009 Copenhagen Meeting
are expected to replace the Kyoto Protocal

All rights reserved. No part of this publication may be reproduced, stored in a
retrieval system, or transmitted, in any form or by any means, electronic,
mechanical, photocopying, recording, or otherwise, without the prior written
permission of the publisher. Printed in the United States of America.

david_sm13_ppt_10_ge slides for students

More Related Content

Similar to david_sm13_ppt_10_ge slides for students (20)

Recently uploaded (20)

david_sm13_ppt_10_ge slides for students