Unit 8 - Business Ethics, Corporate Social Responsibility (CSR) and Environmental Sustainability
Business Ethics – Key Points
Definition: Principles guiding decisions and behavior in business
Focuses on integrity, professionalism, and objectivity
Role in Strategic Management
"Good ethics = good business"
Builds trust and strengthens reputation
Ensures decisions align with laws and societal values
Reduces risks (legal, reputational, operational)
Benefits of Ethical Practices
Positive corporate culture
Attracts loyal customers
Retains stakeholder confidence
Supports sustainable competitive advantage
Seven Principles of Admirable Business Ethics
These principles serve as a guideline for fostering ethical conduct within organizations:
Be trustworthy: Trust is essential; no individual or business wants to engage with an
untrustworthy entity.
Be open-minded: Continuously seek ethics-related feedback from both internal and external
stakeholders to improve ethical standards.
Honor commitments: Maintain honesty and fulfill obligations to build credibility.
Avoid misrepresentation: Never exaggerate or mislead through print, actions, or words.
Be a responsible community citizen: Contribute positively to the local and global
community.
Use ethical accounting practices: Detect and eliminate questionable financial activities.
Follow the Golden Rule: Treat others as you wish to be treated, fostering mutual respect and
fairness.
Establishing an Ethics Culture – Key Points
Create a clear, accessible Code of Ethics
Ensure all employees understand it
Core Components of an Effective Ethics Program
Ethics workshops – Regular sessions to address dilemmas & reinforce values
Business Ethics – Key Points
Definition: Principles guiding decisions and behavior in business
Focuses on integrity, professionalism, and objectivity
Role in Strategic Management
"Good ethics = good business"
Builds trust and strengthens reputation
Ensures decisions align with laws and societal values
Reduces risks (legal, reputational, operational)
Benefits of Ethical Practices
Positive corporate culture
Attracts loyal customers
Retains stakeholder confidence
Supports sustainable competitive advantage
Seven Principles of Admirable Business Ethics
These principles serve as a guideline for fostering ethical conduct within organizations:
Be trustworthy: Trust is essential; no individual or business wants to engage with an
untrustworthy entity.
Be open-minded: Continuously seek ethics-related feedback from both internal and external
stakeholders to improve ethical standards.
Honor commitments: Maintain honesty and fulfill obligations to build credibility.
Avoid misrepresentation: Never exaggerate or mislead through print, actions, or words.
Be a responsible community citizen: Contribute positively to the local and global
community.
Use ethical accounting practices: Detect and eliminate questionable financial activities.
Follow the Golden Rule: Treat others as you wish to be treated, fostering mutual respect and
fairness.
Establishing an Ethics Culture – Key Points
Create a clear, accessible Code of Ethics
Ensure all employees understand it
Core Components of an Effective Ethics Program
Ethics workshops – Regular sessions to address dilemmas & reinforce values
