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CHAPTER 9
ETHICS, CORPORATE SOCIAL RESPONSIBILITY, ENVIRONMENTAL SUSTAINABILITY, AND STRATEGY
Student Version Copyright ®2012 The McGraw-Hill Companies, Inc. McGraw-Hill/Irwin
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.
9–2
WHERE DO ETHICAL STANDARDS COME FROM—ARE THEY UNIVERSAL OR DEPENDENT ON LOCAL NORMS?
Sources for Ethical Standards
The School of Ethical
Universalism
The School of Ethical
Relativism
Integrated Social Contracts
Theory
9–3
The School of Ethical Universalism
♦Ethical Universalism
● Holds that common understandings across multiple cultures and countries about what constitutes right and wrong give rise to universal ethical standards that apply to all societies, all firms, and all businesspeople.
♦Effect on Business Ethics
● Whether a business-related action is right or wrong is judged by universal standards.
9–4
The School of Ethical Relativism
♦Ethical Relativism
● Holds that differing beliefs, customs, and behavioral norms across countries and cultures give rise to multiple sets of standards of what is ethically right or wrong.
♦Effect on Business Ethics
● Whether business-related actions are right or wrong depends on local ethical standards.
9–5
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