* Based on a Privacy Trust Score PTS: Security DHS scored the lowest affiliations or very important Source: www.darwinmag.com, November 2003... Secrets to Spouse/Family 50% • Let a Gift
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McGraw-Hill/Irwin
Nickels McHugh McHugh
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Demonstrating
Ethical Behavior and Social
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• More Than Legality
• Standards are
Fundamental
• Ethics begins with each
of us
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Ways to Prevent Unethical Behavior
Source: CMO Magazine, Oct 2004
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Based on a Privacy Trust Score (PTS):
Security (DHS) scored the lowest
affiliations
or very important
Source: www.darwinmag.com, November 2003
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Percent of MBA Students Who Would:
• Buy Stock on Inside Information 52%
• Reveal Corp Secrets to Spouse/Family 50%
• Let a Gift Sway Purchasing Decision 26%
Business Deal
Source: USA Today
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Most Popular Ways to Monitor Employees
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• Is It Legal?
• Is It Balanced?
• How Will It Make Me Feel About
Myself?
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Why Don’t We Trust Corporations?
Source: USA Today
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Factors Influencing Managerial Ethics
Individual Organizational Environmental
• Values
• Work
Background
• Family Status
• Personality
• Top Level Mgmt
Philosophy
• The Firm’s
Reward System
• Job Dimensions
• Competition
• Economic
Conditions
• Social/Cultural
Institutions
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• Compliance-Based
• Integrity-Based
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Steps to Improve U.S Business Ethics
1 Top management support
2 Employees’ understanding
3 Managers’ training
4 Ethics Office
5 Outsiders must be informed
6 Enforcement of ethics code
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Levels of Corporate Social Responsibility
Societal Responsibility
Stakeholder Responsibility
Profit Responsibility
Owners/Stockholders
General
Public
Customers
Employees
Suppliers/Distributors
Ecological Environment
Public Interest Groups
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Corporate Responsibility
(Percent of country’s top 100 companies that publish
separate CR reports)
Source: Financial Times, June 15, 2005
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• Outside Groups that serve
as watchdogs:
Investors
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International Ethics and Social Responsibility
• Ethical problems are Not Unique to
the U.S managers
• Demand for Socially Responsible
Behavior from Global Suppliers
• Joint Initiative on Corporate
Accountability and Workers’ Rights
• Inter-American Convention Against
Corruption
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* Best Company Reputation
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Most Admired Global Companies
Source: Fortune, 2006