NAMA : VENNY SEPTIA MONICA

KELAS : EKS B 36A

TOPIK : STRATEGIC MANAGEMENT_CHAPTER 9_ Ethics, corporate social
responsibility, environmental sustainability and strategy

EXECUTIVE SUMMARY
 Business ethics involves applying general ethical principles and standards to business
activities, behavior and decisions
 Ethical principles in business are not different from ethical principles in general
 Business actions are judged
 By general ethical standards of society
 Not by more permissive standards

Ensuring a Strong Commitment to Business Ethics in Multinational Companies :

 Three schools of thought about the extent to which ethical standards apply across
countries and cultures exist:
 Ethical Universalism
 Ethical Relativism
 Integrative Social Contracts Theory

Corporate Social Responsibility :

 Social responsibility calls for companies to strike a balance between
1. Its economic responsibility to shareholders
2. The legal responsibility to comply with the laws of the countries where it
operates
3. The ethical responsibility to abide by society’s norms, and
4. The discretionary philanthropic responsibility to meet the unmet needs of
society

Corporate Sustainability :
 Corporate sustainability involves meeting the needs of today’s stakeholders
in a manner that protects the environment and resources needed for future generations
 Directed at improving a company’s triple bottle line (TBL)—its performance on
economic, environment, and social metrics

The Business Case for Socially Responsible Behavior :

 Generates internal benefits
 Enhances recruitment of quality employees
 Increases retention of employees
 Reduces risk of reputation-damaging
incidents
 Avoids criticism from consumer groups and may lead to increased buyer
patronage
 Works in best interest of shareholders
 Preempts costly legal and regulatory actions