CCS 4204 Lecture 2
CCS 4204 Lecture 2
Mode: Virtual
Session
Ethics in the Business World
CSR
Introduction
Risks associated with inappropriate behavior have increased leading to
the need for ethics
Scenario 1
Bank of America
https://www.grin.com/document/317965
Scenario 2
Bank of America sued by employee
Scenario 2
Wells fargo unethical sales practices
Scenario 3
Citibank
Trends that Increase likelihood of unethical behavior
Greater globalization has created a much more complex work
environment due to diverse cultures and societies, making it more difficult
to apply principles and codes of ethics consistently.
IE-employees of the Pegatron factory in China, where the Apple iPhone
is produced, are often forced to work excessive amounts of overtime
Trends that Increase likelihood of unethical behavior
In today’s challenging and uncertain economic climate, many
organizations are finding it more difficult to maintain revenue and profits.
IE-Tesco
EXAMPLE 2
FIAT Company
NEED For Ethical Practices
Employees, shareholders, and regulatory agencies are increasingly
sensitive to
violations of accounting standards,
failures to disclose substantial changes in business conditions,
nonconformance with required health and safety practices, and
production of unsafe or substandard products
May lead to
Risk of financial loss for businesses
Risk of criminal and civil lawsuits
lapses in business ethics by employees in
IT organizations
Telkom
ETHICAL DILEMMAS
lower-level employees and ordinary individuals can find themselves in
the middle of ethical dilemmas
ETHICAL DILEMMAS
Telkom
WILL YOU SIGN OR NOT?
You are a new hire at a large software firm and have been working overtime
for the last two months trying to complete the final testing of a new software
release for the firm’s flagship product, which is used by thousands of
organizations worldwide. Unfortunately, the software has many bugs and
testing has taken weeks longer than expected. This afternoon your boss
stopped by and asked you to “sign off” on the completion of your portion of the
testing. He explains that the project has gone over budget and is in danger of
missing the committed release date for customers. When you object because
you feel the software is still buggy, he says not to worry, whatever bugs remain
will be fixed in the next release of the software. What do you do?
CORPORATE SOCIAL
RESPONSIBILITY
CSR
Is the concept that an organization should act ethically by taking
responsibility for the impact of its actions on its shareholders, consumers,
employees, community, environment, and suppliers.
Could be through
Donating a portion of net profit to charity
Implementing more sustainable business operations or
Encouraging employee education through tuition reimbursement.
CSR EFFECTS
Telkom
CHECK THE CSR PROGRAMS FOR
DeKUT
EQUITY BANK
SAFARICOM
WHY FOSTERING CSR AND GOOD BUSINESS ETHICS IS IMPORTANT
Gaining the goodwill of the community
Creating an organization that operates consistently
Fostering good business practices
Protecting the organization and its employees from legal action
Avoiding unfavorable publicity
Gaining the goodwill of the community
Telkom
Creating an organization that operates consistently
Organizations develop and abide by values to create an organizational
culture
Define a consistent approach for dealing with the needs of their
stakeholders
Operate with honesty and integrity, staying true to organizational principles
Operate according to standards of ethical conduct, in words and action
Treat colleagues, customers, and consumers with respect
Strive to be the best at what matters most to the organization
Value diversity
Make decisions based on facts and principles
Fostering Good Business Practices
Companies that produce safe and effective products avoid costly recalls
and lawsuits
Wyeth marketed the drug as safe for all transplant cases
Protecting the organization and its employees from
legal action
an employer can be held responsible for the acts of its employees even if
the employees act in a manner contrary to corporate policy and their
employer’s directions.26 The principle established is called respondeat
superior, or “let the master answer.
https://nairobinews.nation.co.ke/news/matatu-owner-fined-sh21-million-
for-his-drivers-recklessness
Protecting the organization and its employees from
legal action
employees of Wells Fargo Bank opened over 2 million bogus credit card
accounts not authorized by its customers, the bank was fined over $185
million.
Avoiding unfavorable publicity