Good Corporate CitizenGood Corporate Citizen

Corporate Citizenship is…

• the adoption by business of a strategic focus for fulfilling the economic, legal, ethical & philanthropic social responsibilities expected of it by its stakeholders, including:

– business ethics– social responsibility– corporate volunteerism– compliance– reputation management

Good Corporate CitizenshipGood Corporate Citizenship

A) ETHICS IS A) ETHICS IS PRESCRIPTIVE PRESCRIPTIVE

B) GCC MODELS AIM AT B) GCC MODELS AIM AT ACHIEVING FAIRNESSACHIEVING FAIRNESS

C) IMPORTANCE OF C) IMPORTANCE OF DILEMMAS: DILEMMAS:

CHOOSING CHOOSING BETWEEN 2 GOODSBETWEEN 2 GOODS

BEING A GCC: WHO HELPS? BEING A GCC: WHO HELPS? (pp.4-5)(pp.4-5)A) MARKETING SPECIALISTSA) MARKETING SPECIALISTS

-ETHICAL ADVERTISING-ETHICAL ADVERTISINGB) MANAGEMENT INFORMATION SPECIALISTSB) MANAGEMENT INFORMATION SPECIALISTS

-PRIVACY ISSUES-PRIVACY ISSUESC) PUBLIC RELATIONS EXPERTSC) PUBLIC RELATIONS EXPERTS

-CORPORATE IMAGE-CORPORATE IMAGED) FINANCIAL ANALYSTSD) FINANCIAL ANALYSTS

-AN ETHICAL "BOTTOM LINE"-AN ETHICAL "BOTTOM LINE"E) HUMAN RELATIONS EXPERTSE) HUMAN RELATIONS EXPERTS

-ETHICAL HIRING PRACTICES-ETHICAL HIRING PRACTICES

The Roles we playThe Roles we play

ModelsModels

AGENT OF CHANGEAGENT OF CHANGE

AGENT OF SOCIO-MORAL AGENT OF SOCIO-MORAL DEVELOPMENT DEVELOPMENT

IMPLEMENTER OF ETHICS IMPLEMENTER OF ETHICS PROGRAMSPROGRAMS

AGENT OF MORAL LEADERSHIPAGENT OF MORAL LEADERSHIP

ModelsModels

AGENT OF CHANGEAGENT OF CHANGE

ModelsModels

AGENT OF SOCIO-MORAL AGENT OF SOCIO-MORAL DEVELOPMENTDEVELOPMENT

PiagetPiaget

MotoricMotoric

EgocentricEgocentric

Incipient cooperationIncipient cooperation

Codification of rulesCodification of rules

Social/Moral DevelopmentSocial/Moral DevelopmentPiaget argues that moral development is Piaget argues that moral development is closely related with cognitive developmentclosely related with cognitive development– for e.g., children have difficulties forming moral for e.g., children have difficulties forming moral

judgments until they get out of egocentric thinking judgments until they get out of egocentric thinking and are able to assume another’s perspectiveand are able to assume another’s perspective

– rule-based games are a manifestation of concrete rule-based games are a manifestation of concrete operations in children’s social interactionsoperations in children’s social interactions

– these games provide structures circumstances in these games provide structures circumstances in which children balance the rules of society against which children balance the rules of society against their own desirestheir own desires

methods for studying children’s moral ideasmethods for studying children’s moral ideas– behavioral observations of gamesbehavioral observations of games– clinical interviews about rules and moral dilemmasclinical interviews about rules and moral dilemmas

Rules in marble gamesRules in marble games

Piaget observed children’s rule-following Piaget observed children’s rule-following behavior during the game of marbles behavior during the game of marbles ((bilyebilye))

and asked the children what the rules and asked the children what the rules meant to themmeant to them– alterability: alterability: Can the rules be changed?Can the rules be changed?– historicity: historicity: Have they always been the same Have they always been the same

as today?as today?– Origıms: Origıms: How did the rules begin?How did the rules begin?

Boys playing marblesBoys playing marblesPiaget observed how children actually played the game, Piaget observed how children actually played the game, and found that preschoolers typically played in an and found that preschoolers typically played in an egocentric manneregocentric manner– if 2 boys were playing, each would play in his own wayif 2 boys were playing, each would play in his own way– they had little sense of winning, one might yell ¨I won and you they had little sense of winning, one might yell ¨I won and you

won too!¨won too!¨

after age 7, children tried to follow common rules that after age 7, children tried to follow common rules that determine who winsdetermine who wins– at the beginning, Piaget found that children believed that rules at the beginning, Piaget found that children believed that rules

were fixed and unchangeablewere fixed and unchangeablethey said the rules came from some prestigious authority, from the they said the rules came from some prestigious authority, from the government or Godgovernment or Godafter age 10, children were more relativisticafter age 10, children were more relativistic

– they said the rules probably had changed over the yearsthey said the rules probably had changed over the years– began to treat rules as social conventions that could be changed if the began to treat rules as social conventions that could be changed if the

other players agreedother players agreed

Stages of moral development: Stages of moral development: PiagetPiaget

P. argues that moral development P. argues that moral development follows the children’s understanding follows the children’s understanding about the rules of games about the rules of games

Kohlberg: moral developmentKohlberg: moral development

Modified and elaborated on Piaget’s ideas about Modified and elaborated on Piaget’s ideas about moral thinkingmoral thinking

used interviews with individuals based on moral used interviews with individuals based on moral dilemmas (e.g., the Heinz dilemma)dilemmas (e.g., the Heinz dilemma)– In Europe, a woman was near death from cancer. One drug might In Europe, a woman was near death from cancer. One drug might

save her, a form of radium that a druggist in the same town had save her, a form of radium that a druggist in the same town had recently discovered. The druggist was charging $2,000, ten times recently discovered. The druggist was charging $2,000, ten times what the drug cost him to make. The sick woman’s husband, Heinz, what the drug cost him to make. The sick woman’s husband, Heinz, went to everyone he knew to borrow the money, but he could get went to everyone he knew to borrow the money, but he could get together only about half of what it cost. He told the druggist that his together only about half of what it cost. He told the druggist that his wife was dying and asked him to sell it cheaper or let him pay later. wife was dying and asked him to sell it cheaper or let him pay later. But the druggist said no. The husband got desperate and broke into But the druggist said no. The husband got desperate and broke into the man’s store to steal the drug for his wife. Should the husband the man’s store to steal the drug for his wife. Should the husband had done that? Why?had done that? Why?

Kohlberg: moral developmentKohlberg: moral developmentFound 3 kinds of morality that form a Found 3 kinds of morality that form a developmental orderdevelopmental order

The preconventional morality: The preconventional morality: the child shows the child shows no internalization of moral values, just based on no internalization of moral values, just based on punishment (stage 1) or reward/benefit (stage 2)punishment (stage 1) or reward/benefit (stage 2)– Stage 1 (Heteronomous morality) (Age 4-7): Stage 1 (Heteronomous morality) (Age 4-7):

obedience for its own sakeobedience for its own sake

involves deference to powerful people, usually the parents, involves deference to powerful people, usually the parents, in order to avoid punishmentin order to avoid punishment

the morality of an act is defined in terms of its physical the morality of an act is defined in terms of its physical consequencesconsequences

Heinz should not steal the medicine because he will be put Heinz should not steal the medicine because he will be put in jailin jail

Kohlberg: moral developmentKohlberg: moral developmentThe preconventional moralityThe preconventional morality– Stage 2 (Instrumental morality) (Age 7-10): Stage 2 (Instrumental morality) (Age 7-10):

the child conforming to gain rewardsthe child conforming to gain rewards

although there is evidence of reciprocity and sharing, it is a although there is evidence of reciprocity and sharing, it is a manipulative, self-serving reciprocity rather than one based manipulative, self-serving reciprocity rather than one based on a true sense of justice, generosity, or sympathyon a true sense of justice, generosity, or sympathy

justice is seen as an exchange system; you give as much justice is seen as an exchange system; you give as much as you receiveas you receive

– I’ll lend you my bike if I can play with your wagon.I’ll lend you my bike if I can play with your wagon.

Heinz should steal the drug because someday he might Heinz should steal the drug because someday he might have cancer and would want someone to steal it from himhave cancer and would want someone to steal it from him

The conventional morality: The conventional morality: the child’s the child’s internalization of moral values is internalization of moral values is intermediate. He/she abides by certain intermediate. He/she abides by certain standards of other people such as standards of other people such as parents (stage 3) or the rules of society parents (stage 3) or the rules of society (stage 4)(stage 4)

– Stage 3 (Good-child morality) (Age: 10-Stage 3 (Good-child morality) (Age: 10-12)12)

good behavior is that which maintains good behavior is that which maintains approval and good relations with othersapproval and good relations with othersthe child is concerned about conforming to the child is concerned about conforming to hiş friends’ and families’ standards to hiş friends’ and families’ standards to maintain good-will and good relationsmaintain good-will and good relationsa social-relational moral perspective a social-relational moral perspective develops, based on feelings and develops, based on feelings and agreements between peopleagreements between peopleHeinz should steal the drug for his wife. He Heinz should steal the drug for his wife. He loves his wife and his wife loves him. You loves his wife and his wife loves him. You can do anything for love!can do anything for love!

HOW TO ETHICALLY AUDIT A HOW TO ETHICALLY AUDIT A CORPORATIONCORPORATION

GENERAL AREAS TO AUDIT:GENERAL AREAS TO AUDIT:

i) INCOMEi) INCOME

ii) SECURITY AND STABILITY OF ii) SECURITY AND STABILITY OF WORKFORCEWORKFORCE

-training/retraining-training/retraining

iii) WORKPLACE CONDITIONSiii) WORKPLACE CONDITIONS

-heat, light, food, aesthetics, -heat, light, food, aesthetics, access for disabledaccess for disabled

iv) JOB CONTENTiv) JOB CONTENT

-satisfaction, challenge, variety-satisfaction, challenge, variety

GENERAL AREAS TO AUDIT:GENERAL AREAS TO AUDIT:

v) HEALTH & SAFETYv) HEALTH & SAFETY

-incidence of injury/disease-incidence of injury/disease

-protection-protection

*vi) MANAGEMENT STYLE*vi) MANAGEMENT STYLE

-transparent/cooperative-transparent/cooperative

vii) NON-WORK OPPORTUNITIES vii) NON-WORK OPPORTUNITIES

viii) AIDS POLICYviii) AIDS POLICY*ix) CORPORATE CITIZENSHIP*ix) CORPORATE CITIZENSHIP*x) ENVIRONMENT*x) ENVIRONMENT

-AIR, WATER QUALITY-AIR, WATER QUALITY-NOISE-NOISE-PACKAGING-PACKAGING-WASTE DISPOSAL-WASTE DISPOSAL

*xi) CUSTOMERS*xi) CUSTOMERS-FULL DISCLOSURE-FULL DISCLOSURE-TASTEFUL ADS-TASTEFUL ADS-RELIABLE WARRANTIES-RELIABLE WARRANTIES

xii) MILITARY:xii) MILITARY:--

*xiii) GENDER/RACE ISSUES*xiii) GENDER/RACE ISSUES

Herman Miller:

What we believe in…• making a meaningful contribution to our customers• cultivating community, participation & peopledevelopment• creating economic value for shareholders &employee owners• responding to change through design & innovation• living with integrity & respecting the environment

ExxonExxon

We pledge to be a good coporate citizen in We pledge to be a good coporate citizen in all the places we operate and to be a all the places we operate and to be a responsible member of the human responsible member of the human community. We will maintain the highest community. We will maintain the highest ethical standards and are dedicated to ethical standards and are dedicated to running safe and environmentally running safe and environmentally responsible operations.responsible operations.