1. Explain why obeying the law is only the frst step in behaving ethically.
2. How can we tell if our business decisions are ethical?
3. How is legality different from ethics?
4. How can we tell if our business decisions are ethical?
5. Wha is managements roles in setting ethical standards?
6. Whats the difference between compliance-based on integrity-based ethics codes?
7. What is corporate social responsibility?
8. How do businesses demonstrate corporate responsibility toward stakeholders?
9. How are a company’s social responsibility efforts measured?
10. How can U.S companies influence ethical behavior and social responsibility in global markets?
11. What effects have the new laws protecting whistleblowers had on the business environment? Go online or to the library to research individuals who reported their employers’ illegal and/or uethical behavior. Did the companies change their policies? If so, what effect have theses policies had on the companies’ stakeholders? What effect did trportig the problem have on the whistleblowers themselves?
According to household products and personal care company Seventh Generation, corporate responsibility is in its DVA as it considers the effects of its actions on the next seven generations. It strives to limit the effect of all aspects of its products on the environment, from development to their production, purchase, use, and disposal. Visit the company’s website at https://seventhgeneration.com. Then answer the following questions:
1. What is the social mission of Seventh Generation?
2. How is Seventh Generation involved in improving the Vermont community?
3. How does Seventh Generation communicate the company’s social mission to its customers?
2. & 4. How can we tell if our business decisions are ethical?
Ethical business decisions can be evaluated using several decision-making models, which generally involve these steps:
Identify the Facts: Get all the verified details of the situation.
Identify the Ethical Issues and Stakeholders: Determine the nature of the ethical conflict (e.g., conflict of interest, dishonesty) and all parties affected (employees, customers, community, etc.).
Evaluate Options using Ethical Filters/Models: Test each possible option against established ethical standards, such as:
Utilitarianism: Which option results in the greatest good for the greatest number of people?
Rights: Which option best respects the rights of all stakeholders?
Justice/Fairness: Which option is fair and impartial?
Make a Decision and Justify It: Select the option that aligns best with the company's core values and ethical principles, and be prepared to publicly defend the choice.
5. What is management's role in setting ethical standards?
Management, especially top management, is the most critical factor in setting a company's ethical standards. Their role is to:
Lead by Example (Tone at the Top): Employees look to their leaders' actions, not just their words. Ethical behavior from managers normalizes ethical conduct for the entire organization.
Establish a Code of Ethics: Create and communicate clear, written ethical standards, guidelines, and disciplinary procedures.
Implement an Ethics Program: Design and enforce ethics training programs, set up anonymous reporting mechanisms (like a whistleblower hotline), and appoint an Ethics Officer.
Sample Answer
The user has presented a comprehensive list of questions covering business ethics, corporate social responsibility (CSR), and a case study on Seventh Generation.
Business Ethics and Legality
1. Why obeying the law is only the first step in behaving ethically.
Obeying the law is the minimum standard of behavior required by society, often referred to as the ethical floor. Ethics goes beyond this legal minimum to encompass moral standards, values, fairness, and right action that are accepted by society and guide people's proper relationships with one another. A business action can be legal (e.g., selling cigarettes) but still considered unethical (e.g., heavily marketing them to vulnerable populations)