Organisational objectives 3 On completing this chapter you should be able to: Know and understand

Source: 
Adapted from 
http://hbswk.hbs.edu
22 marks, 44 minutes
1.
Explain what you understand by the term ‘corporate code of ethics’. 
[4]
2.
Discuss how SCG and its employees might benefit from a corporate code of ethics. [8]
3.
Should a business such as SCG ever use unethical methods in a country where 
they
are the ‘norm’ – for example, the giving and accepting of bribes? Justify 
your
answer. 
[10]

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Business organisation and environment
46 
1.3
Other issues connected with the concept of CSR cross over into ethical decisions. In 
fact, the two concepts are closely linked. Examples of recent CSR developments include:
• the growth in the number of 
fi
rms that promote organic and vegetarian foods
• increasing numbers of retailers emphasising the proportion of their products made 
from recycled materials
• businesses that refuse to stock goods that have been tested on animals or foods based 
on genetically modi
fi
ed ingredients.
In these cases, is the action being taken because trade and reputation might be lost if it 
is not or because such action is increasingly pro
fi
table? Might businesses be criticised 
for paying lip service to CSR rather than praised for their genuine concern for society 
and the environment? Conceivably, 
fi
rms are being ethical or environmentally conscious 
because they have an objective that Peter Drucker, a famous writer on management, 
calls ‘public responsibility’, because they want to behave in these ways. However, many 
consumer groups and pressure groups are still dubious as to whether these objectives are 
based on genuinely held beliefs.
Table 1.3.3 
looks at the bene
fi
ts and drawbacks for businesses of adopting CSR policies.