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Lecture Crafting and executing strategy: Chapter 9 - Thompson, Peteraf, Gamble, Strickland
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Lecture Crafting and executing strategy: Chapter 9 - Thompson, Peteraf, Gamble, Strickland
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Chapter 9 - Ethics, corporate social responsibility, environmental sustainability, and strategy. After studying this chapter you will be able to: understand how the standards of ethical behavior in business are no different from the ethical standards and norms of the larger society and culture in which a company operates, recognize conditions that can give rise to unethical business strategies and behavior, gain an understanding of the costs of business ethics failures. | CHAPTER 9 ETHICS, CORPORATE SOCIAL RESPONSIBILITY, ENVIRONMENTAL SUSTAINABILITY, AND STRATEGY STUDENT VERSION WHAT DO WE MEAN BY BUSINESS ETHICS? Business Ethics Is the application of general ethical principles to the actions and decisions of businesses and the conduct of their personnel. Are not materially different from ethical principles in general because business actions have to be judged in the context of society’s standards of right and wrong. WHERE DO ETHICAL STANDARDS COME FROM—ARE THEY UNIVERSAL OR DEPENDENT ON LOCAL NORMS? The School of Ethical Universalism The School of Ethical Relativism Integrated Social Contracts Theory Sources for Ethical Standards 9–3 EXAMPLES OF ETHICAL RELATIVISM ISSUES The Use of Underage Labor The Payment of Bribes and Kickbacks Relativism Equates to Multiple Sets of Standards The Use of Local Morality to Guide Ethical Behavior Variations in Ethical Standards 9–4 INTEGRATIVE SOCIAL CONTRACTS THEORY Provides a middle-ground balance between universalism and relativism. Posits that the collective views of multiple societies form universal (first order) ethical principles that all persons have a contractual duty to observe in all situations. Within the contract, cultures or groups can specify locally ethical (second-order) actions. 9–5 CONSEQUENCES OF ETHICALLY QUESTIONABLE STRATEGIES Sizable civil fines and stockholder lawsuits Devastating image and public relations hits Sharp stock price drops as investors lose confidence Criminal indictments and convictions When Strategies Fail the Ethical Litmus Test 9–6 WHAT ARE THE DRIVERS OF UNETHICAL STRATEGIES AND BUSINESS BEHAVIOR? Unethical Strategies and Business Behaviors Faulty Oversight and Self Dealing Pressure for Short-term Performance A Weak or Corrupt Ethical Environment 9–7 WHAT ARE THE DRIVERS OF UNETHICAL STRATEGIES AND BUSINESS BEHAVIOR? Drivers of Unethical Business Behavior: Faulty internal oversight allows self-dealing in the pursuit of personal gain, . | CHAPTER 9 ETHICS, CORPORATE SOCIAL RESPONSIBILITY, ENVIRONMENTAL SUSTAINABILITY, AND STRATEGY STUDENT VERSION WHAT DO WE MEAN BY BUSINESS ETHICS? Business Ethics Is the application of general ethical principles to the actions and decisions of businesses and the conduct of their personnel. Are not materially different from ethical principles in general because business actions have to be judged in the context of society’s standards of right and wrong. WHERE DO ETHICAL STANDARDS COME FROM—ARE THEY UNIVERSAL OR DEPENDENT ON LOCAL NORMS? The School of Ethical Universalism The School of Ethical Relativism Integrated Social Contracts Theory Sources for Ethical Standards 9–3 EXAMPLES OF ETHICAL RELATIVISM ISSUES The Use of Underage Labor The Payment of Bribes and Kickbacks Relativism Equates to Multiple Sets of Standards The Use of Local Morality to Guide Ethical Behavior Variations in Ethical Standards 9–4 INTEGRATIVE SOCIAL CONTRACTS THEORY Provides a middle-ground balance .
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