Ch. 3 - Ethics and Corporate Social Responsibility PDF

ETHICS AND BBI2O: CORPORATE SOCIAL Introduction to Business RESPONSIBILITY  CONTENTS ◼Business Ethics: ▪ Types of Unethical Behaviour ◼Corporate Social Responsibility ◼Duty to Report ◼Laws the Govern Corporate Ethics ▪ Workplace Safety...

ETHICS AND BBI2O: CORPORATE SOCIAL Introduction to Business RESPONSIBILITY  CONTENTS ◼Business Ethics: ▪ Types of Unethical Behaviour ◼Corporate Social Responsibility ◼Duty to Report ◼Laws the Govern Corporate Ethics ▪ Workplace Safety ▪ Anti Discrimination Issues ▪ Harassment ▪ Accessibility Issues  SUCCESS CRITERIA I will be successful when I can ………. ◼Define Ethics and the various types of unethical behaviour ◼Explain what Fraud, Insider Trading and Embezzlement is (with examples) ◼Articulate an opinion about a ethical business case and whether the companies actions are right or wrong ◼Define Corporate Social Responsibility and relate its importance to companies all over the world (finish tomorrow)  BUSINESS ETHICS ◼In order to ensure that workers of a business behave ethically, most businesses have a code of ethics. ◼A code of ethics is a document that explains specifically how employees should respond in certain situations.  TYPES OF UNETHICAL BEHAVIOUR ◼Fraud is the crime of lying and deceiving for personal gain.  TYPES OF UNETHICAL BEHAVIOUR ◼Forgery is a form of fraud that involves passing bad cheques by forging someone’s name.  TYPES OF UNETHICAL BEHAVIOUR ◼Theft is a crime that involves stealing someone’s property. ◼Employer theft – take advantages of employees by not paying for overtime worked  TYPES OF UNETHICAL BEHAVIOUR ◼ Embezzlement is a type of accounting fraud in which an accountant or senior executive invents phony accounts for personal gain.  TYPES OF UNETHICAL BEHAVIOUR ◼In order to prevent embezzlement and accounting fraud, businesses are required to have auditors examine their accounts.  EXAMPLE ◼The Enron scandal is a famous example of accounting fraud. ◼Enron was a large American energy company who lied about their profits. When they were discovered to have been hiding the truth, the company went bankrupt ◼ https://www.youtube.com/watch?v=gGBf2XYlXF8  TYPES OF UNETHICAL BEHAVIOUR ◼Misuse of funds: moving money from one account to another without permission or direction  TYPES OF UNETHICAL BEHAVIOUR ◼Discrimination: not hiring a person because of an issue not related to his ability to do the job (race, religion, gender, disability)  TYPES OF UNETHICAL BEHAVIOUR ◼Environmental violation: ignoring laws and regulations that involve toxic waste  TYPES OF UNETHICAL BEHAVIOUR ◼Concealing information: not disclosing information that should be shared, e.g. information about defective product  TYPES OF UNETHICAL BEHAVIOUR ◼Insider trading is when people buy or sell shares after learning about confidential information about companies. ◼Insider trading is more difficult to detect than fraud or embezzlement.  EXAMPLE ◼Martha Stewart, a well-known American celebrity and owner of Martha Stewart Living Omnimedia Inc. was charged with insider trading after selling shares of a company (ImClone) after receiving insider information. She was sentenced to five months in prison. ◼ https://www.youtube.com/watch?v=_tliconLiLU Catch Me If You Can ◼ Scene 1 ◼ https://www.youtube.com/watch?v=ppu nAo8ckBc ◼ Scene 2 ◼ https://www.youtube.com/watch?v=67xt 8jcZfm8 ◼ Scene 3 ◼ https://www.youtube.com/watch?v=G0 RiP3MpUNE ◼ Scene 4 ◼ https://www.youtube.com/watch?v=gFr 0_ywVdhY Catch Me If You Can ◼ Beginning at the age of 16, Abagnale wrote bad cheques totalling $2.5m over a 6-year period in 26 countries. As a con artist, he impersonated a doctor, a lawyer, and an airline pilot. ◼ How would business take care of a bad cheque they may have received from con artist like Frank? ◼ What can a business employee do to detect a con artist? ◼ How can companies protect themselves from con artists?  Role Play Activity In your table groups you will choose one Types of Unethical Behavior and you will create a skit 2-4 min skit which meets the following criteria. 1. Student friendly definition of your Unethical Behavior type. 2. A situation that clearly shows your type of Unethical Behavior in a real life scenario. 3. A skit must have at least two different scenes. Settings can be created using images on a slide show projected on the board. 4. An explanation of how your skit shows that type of Unethical Behavior. 5. All group members must speak. 6. Must quiz the audience on the solution for the scenario  SUCCESS CRITERIA I will be successful when I can ………. ◼Define Ethics and the various types of unethical behaviour ◼Explain what Fraud, Insider Trading and Embezzlement is (with examples) ◼Articulate an opinion about a ethical business case and whether the companies actions are right or wrong ◼Define Corporate Social Responsibility and relate its importance to companies all over the world (finish tomorrow)  CORPORATE SOCIAL RESPONSIBILITY ◼Most big businesses now exhibit corporate social responsibility in order to maintain a good reputation. ◼Most companies have an outline of their corporate social responsibility on their websites.  CORPORATE SOCIAL RESPONSIBILITY ◼The six CSR principles that companies try to demonstrate are: 1. Providing a safe and healthy work environment. 2. Adopting fair labour practices 3. Protecting the environment 4. Being truthful in advertising 5. Avoiding price discrimination 6. Donating to charity  DUTY TO REPORT ◼In order to behave ethically, corporations have a duty to report. This means that any important information must be disclosed to various stakeholders. ◼Whistle-blowing (the decision of an employee to inform officials or the public of an unethical/illegal action) ▪It is encouraged when corporations fail to meet their duty to report.  Common Business Issues with Ethical Implications 1. Workplace Safety 2. Anti Discrimination Issues 3. Harassment 4. Accessibility Issues  WORKPLACE SAFETY ◼ There are many laws that govern workplace safety. If you ever work at a job where you may have to work in unsafe conditions, always check and see if the conditions meet workplace safety laws! ◼ In Ontario, the Occupational Health and Safety Act (OHSA) was instituted to ensure workplace safety and health. ◼ Under this act workers have three basic rights in the workplace. 1. The right to refuse unsafe work. 2. The right to participate in workplace health and safety activities 3. The right to know about actual hazards in the workplace  ANTIDISCRIMINATION ISSUES ◼Discrimination in the workplace based on race, gender, ethnicity, religion, and against disabled people and other minorities is illegal in Canada. ◼Although such discrimination is outlawed, some say there is a glass ceiling that many minorities face in the workplace. ▪The term glass ceiling refers to the invisible barriers minorities face in the workplace. ▪For example?  HARASSMENT ◼Harassment refers to those behaviours that are found to be threatening or disturbing, and these behaviours are not acceptable in society. ◼One of the most common types of harassment is sexual harassment.  ACCESSIBILITY ISSUES ◼Businesses have a duty to accommodate people with disabilities to help eliminate discrimination in the workplace. ◼The duty to accommodate refers to an employer’s obligation to take appropriate steps to eliminate discrimination against employees.  SUCCESS CRITERIA I will be successful when I can ………. ◼Define Ethics and the various types of unethical behaviour ◼Explain what Fraud, Insider Trading and Embezzlement is (with examples) ◼Articulate an opinion about a ethical business case and whether the companies actions are right or wrong ◼Define Corporate Social Responsibility and relate its importance to companies all over the world (finish tomorrow)  THINK-PAIR-SHARE QUESTIONS 1. Explain what the term “whistleblowing” means and under what circumstances you feel whistle blowing is acceptable and unacceptable. 2. Explain why the term “glass ceiling” is an appropriate metaphor for explaining the invisible limits to senior positions for women and minorities. 3. What is insider trading and why should it be illegal?