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Chapter05-CorporateSocialResponsibility
IMChapter1:
EthicsandBusiness
ChapterObjectives
Afterreadingthischapter,youwillbeableto:
1.Explainthreelevelsatwhichethicaldecisionsgetmadeinbusiness.
2.Explainthenatureofbusinessethicsasanacademicdiscipline.
3.Explainwhyethicsisimportantinthebusinessenvironment.
4.Explainwhyethicalresponsibilitiesgobeyondlegalcompliance.
5.Distinguishtheethicsofpersonalintegrityfromtheethicsofsocialresponsibility.
6.Distinguishethicalnormsandvaluesfromotherbusiness-relatednormsandvalues.
7.Describeethicaldecisionmakingasaformofpracticalreasoning.
OpeningDecisionPoint-WellsFargo
TheWellsFargocasecanbeusedtointroducearangeoftopicsthatwillemergethroughoutthisbook.
Thecaseinvolvesdecisionmakingatanumberoflevels,fromindividualentry-levelemployees(like
manyofourstudents),tobranchmanagers,tomid-levelmanagement,seniorexecutives,andtheboardof
directors.Agooddiscussioncanbegeneratedbyaskingstudentstoassignresponsibility,bothinterms
ofwhoisatfault(whoisaccountable?)andwhatcouldbeonetopreventitfromre-occurring(what
causedit?).
Thesediscussionscaneasilyleadintothedecision-makingmodelthatwillbeintroducedlateinthe
chapter.Whatfactswouldbehelpfultomakethesejudgmentsofresponsibility?Whatfactswould
changeyourdecision?Whoarethestakeholdersinvolved,rangingfromentry-levelemployees,to
customers,tostockholders,tocompetitors.Whatstake,exactly,dothesegroupshaveinthiscase?How
weretheyharmed?How,ifatall,weretheirinterestsrepresentedintheprocess?
Thisisalsoagoodcasewithwhichtointroducethetopicsofcorporatecultureandleadership.Howwere
thedecisionsmadebyindividualsinfluencedbythes
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