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CHAPTER 10 • BUSINESS ETHICS/SOCIAL RESPONSIBILITY/ENVIRONMENTAL SUSTAINABILITY 323

Conclusion

In a final analysis, ethical standards come out of history and heritage. Our predecessors
have left us with an ethical foundation to build on. Even the legendary football coach
Vince Lombardi knew that some things were worth more than winning, and he required his
players to have three kinds of loyalty: to God, to their families, and to the Green Bay
Packers, “in that order.” Employees, customers, and shareholders have become less and
less tolerant of business ethics violations in firms, and more and more appreciative of
model ethical firms. Information sharing across the Internet increasingly reveals such
model firms versus irresponsible firms.
Consumers across the country and around the world appreciate firms that do more
than is legally required to be socially responsible. But staying in business while adhering
to all laws and regulations must be a primary objective of any business. One of the best
ways to be socially responsible is for the firm to proactively conserve and preserve the nat-
ural environment. For example, to develop a corporate sustainability report annually is not
legally required, but such a report, based on concrete actions, goes a long way toward
assuring stakeholders that the firm is worthy of their support. Business ethics, social
responsibility, and environmental sustainability are interrelated and key strategic issues
facing all organizations.

Key Terms and Concepts

Bribe (p. 314) ISO 14000 (p. 320)
Bribery (p. 314) ISO 14001 (p. 320)
Business Ethics (p. 311) Social policy (p. 315)
Code of Business Ethics (p. 313) Social responsibility (p. 311)
Environment (p. 317) Sustainability (p. 311)
EMS (environmental management system) (p. 321) Whistle-Blowing (p. 313)

Issues for Review and Discussion

1. If you owned a small business, would you develop a code of business conduct? If yes, what
variables would you include? If no, how would you ensure that ethical business standards
were being followed by your employees?
2. What do you feel is the relationship between personal ethics and business ethics? Are they
or should they be the same?
3. How can firms best ensure that their code of business ethics ensure is read, understood,
believed, remembered, and acted on, rather than ignored?
4. Why is it important not to view the concept of “whistle-blowing” as “tattle-telling” or
“ratting” on another employee?
5. List six desired results of “ethics training programs” in terms of recommended business
ethics policies/procedures in the firm.
6. Discuss bribery. Would actions such as politicians adding earmarks in legislation or
pharmaceutical salespersons giving away drugs to physicians constitute bribery?
Identify three business activities that would constitute bribery and three actions that
would not.
7. How could a strategist’s attitude toward social responsibility affect a firm’s strategy? On a 1
to 10 scale ranging from Nader’s view to Friedman’s view, what is your attitude toward
social responsibility?
8. How do social policies on retirement differ in various countries around the world?
9. Firms should formulate and implement strategies from an environmental perspective. List
eight ways firms can do this.
10. Discuss the major requirements of an EMS under ISO 14001.