Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 10 -1 Chapter 10 Business Ethics/ Social Responsibility/ Environmental Sustainability

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

Ch 10 -1

Chapter 10Business Ethics/ Social Responsibility/ Environmental Sustainability

Strategic Management: Concepts & Cases

13th Edition

Fred David


Ch 10 -2


Ch 10 -3

Business Ethics

Social Responsibility

Environmental Sustainability


Ch 10 -4

Business Ethics

Principles of conduct within organizations that guide decision making and behavior


Ch 10 -5

Business Ethics

Code of Business Ethics A document that provides behavioral

guidelines that cover daily activities and decisions within the organization


Ch 10 -6

Ethics Culture

Ethics training should include: A message from the CEO Development and discussion of codes

of ethics Procedures for discussing and

reporting unethical behavior


Ch 10 -7

Ethics Culture

To align ethical and strategic decision making: Incorporate ethical considerations into long-

term planning Incorporate ethical considerations into

performance appraisals Encourage whistle-blowing Monitor department and corporate

performance regarding ethical issues


Ch 10 -8

Business Ethics




Ch 10 -9


Actions an organization takes beyond what is legally required to protect or enhance the well-being of living things


Ch 10 -10

Social Policy

Concerns what responsibilities the firm has to its employees, consumers, environmentalists, minorities, communities, shareholders, and other groups

Should be considered during each stage of strategy formulation, implementation, and evaluation


Ch 10 -11

Business Ethics




Ch 10 -12


The extent that an organization’s operations and actions protect, mend, and preserve rather than harm or destroy the natural environment


Ch 10 -13


Strategies of companies are scrutinized and evaluated from a natural environment perspective

Employees, consumers, governments, and society are resentful of firms that harm rather than protect the natural environment


Ch 10 -14

Sustainability Report

Reveals how a firm’s operation impact the natural environment

These reports are not required, but are a good business practice


Ch 10 -15

Managing Environmental Affairs in the Firm Managers must formulate strategies that preserve

and conserve natural resources and control pollution Environmental strategies could include

Developing or acquiring green businesses Divesting or altering environment-damaging

businesses Striving to become a low-cost producer through

waste minimization and energy conservation Pursuing a differentiation strategy through green

product features


Ch 10 -16

Reasons Why Firms Should “Be Green” Consumer demand Public opinion Environmental advocacy groups Federal and state environmental regulations Lenders Consumers, suppliers, distributors, and

investors Liability suits and fines


Ch 10 -17

ISO 14000/14001 Certification

International Organization for Standardization (ISO)

A network of standards institutes of 147 countries

Largest developer of sustainability standards in the world

Compliance is voluntary


Ch 10 -18

ISO 14000/14001 Certification

ISO 14000 - a series of voluntary standards in the environmental field

ISO 14001 – a set of standards included within ISO 14000 Adopted by thousands of firms worldwide to

certify that they are conducting business in an environmentally friendly manner

Results in an environmental management system (EMS)

Documents

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 10 -1 Chapter 10 Business Ethics/ Social Responsibility/ Environmental Sustainability