Business ethics and corporate culture

 

Lead-in

 

1. Express your opinion or share your experience on the following.

 

A. Do you consider yourself to be an ethical person? What qualities does an ethical person have?

B. What are some ethical dilemmas you have faced?

C. What makes a person act ethically or unethically?

2. Discuss the following questions in pairs, and then report your findings to the group. Be ready to argue, agree, or compromise.

 

A. What is business ethics?

B. What is the purpose of business? Is it just to make money?

C. What are some examples of unethical business practices?

Discuss this list of some unethical activities. Which are the worst, in your opinion? Why?

a) Unfair competition

b) Misleading product information

c) Mistreating employees

d) Avoiding paying taxes

e) Showing favoritism toward family members or friends at work (nepotism)

f) Employing people illegally

g) Bribery

h) Manipulating accounts

 

Key Vocabulary

Study the following list of vocabulary and do the tasks that follow.

 

1. ethics n	этика, мораль, нравственность; этические нормы
2. controversial adj	противоречивый
3. corporate governance	корпоративное управление, руководство
4. insider trading	инсайдерская, внутренняя торговля
5.bribery n	взяточничество
6.corporate social responsibility (CSR)	социальная ответственность бизнеса
7. guide v	руководить, управлять
8. gain approval	получить одобрение
9. apply to v	применяться к, распространяться на
10. conduct v	осуществлять, вести
11. consumer-based society	общество потребителей
12. show concern	выразить обеспокоенность, проявлять заботу
13. hallmark n	отличительная особенность
14. reconcile v	примирить, согласовать
15. ensure v	обеспечить, добиться
16. fair and equal adj	справедливый и равный
17. treatment n	обращение с кем-либо, чем-либо
18. trustworthiness n	благонадежность, добросовестность
19. morale n	моральный настрой, боевой дух
20. develop a plan	разработать план
21. create a strong foundation	создать прочную основу
22. attract v	привлекать
23. loyalty n	привязанность, верность
24. impact n	влияние
25. negate v	сводить на нет, отменять
26. urge n	желание, убеждение
27. rule v	управлять
28. selfish and all-consuming adj	эгоистичный и всепоглощающий
29. put on the backburner	откладывать на время; отодвинуть на второй план
30. unscrupulous adj	недобросовестный
31. misleading adj	вводящий в заблуждение
32. injurious adj	губительный, вредный
33. exaggerate v	преувеличивать
34. authenticity n	подлинность
35. cause harm to	причинить вред к.-либо, ч-либо
36. defamation n	клевета, оскорбление
37. spread false information	распространять ложную информацию
38. slap a fine	налагать штраф
39. be caught red-handed	быть пойманным с поличным
40. mistreat v	плохо обращаться
41. underpay v	недоплачивать
42. be subjected to	подвергаться
43. harassment n	домогательство, преследование
44. mutual adj	взаимный
45. corrupt adj	коррумпированный, продажный
46. complicate v	усложнить, затруднить
47. mom-and-pop stores	семейные магазины
48. compliance n	соблюдение, соответствие
49. the grassroots level	низовой уровень
50. stand for v	отстаивать, выступать за

 

Pre-reading Activities

1. Use your Key Vocabulary to fill in the prepositions, if necessary. Translate the sentences into Russian.

A. Legislation must be enacted to guarantee that homeless people will not be subjected … harassment and receive appropriate support, services and accommodation.

B. Increasingly disruptive cyber-threats and attacks that can seriously harm entire communities and cause harm … countless individuals are a new danger that we face.

C. Other decisions that could have helped resolve certain issues were put … the backburner when they threatened to damage the reputation and interests of specific persons.

D. All free and peace-loving nations of the world stand … peace and justice.

E. The United Nations Principles of Medical Ethics apply … all health professionals.

 

2. Use a dictionary and Key Vocabulary section to fill in the derivatives of the words given in the chart below. Note that some boxes will not be filled.

 

Noun	Verb	Adjective
		harmful
	corrupt
		misleading
complication
	treat
authenticity
	bribe
		equal
guidance
	conduct

 

3. Consult a dictionary, if necessary, to find the words with the opposite meaning.

 

loyal
fair
equal
ethical
fake
selfish
scrupulous
to attract
to treat
an outsider

 

4. Look through the list of Key Vocabulary. Which words do you associate with:

ü an ethical company?

ü an unethical company?

 

Reading

 

Read the text and be ready to discuss what business ethics is, its components and benefits.

 

Business ethics (also known as corporate ethics) is the study of appropriate business policies and practices regarding potentially controversial subjects including corporate governance, insider trading, bribery, discrimination, corporate social responsibility. The law often guides business ethics, but at other times business ethics provide a basic guideline that businesses can choose to follow to gain public approval. Business ethics applies to all aspects of business conduct and is relevant to the conduct of both individuals and entire organizations. So, business ethics can also be viewed as the moral principles that act as guidelines for the way a business conducts itself and its transactions. In many ways, the same guidelines that individuals use to conduct themselves in an acceptable way – in personal and professional settings – apply to businesses as well.

The concept of business ethics began in the 1960s as corporations became more aware of a rising consumer-based society that showed concerns regarding the environment, social causes, and corporate responsibility. The increased focus on so-called social issues was a hallmark of the decade.

Since that time period, the concept of business ethics has evolved. Business ethics goes beyond just a moral code of right and wrong; it attempts to reconcile what companies must do legally versus maintaining a competitive advantage over other businesses. Companies display business ethics in several ways: they are meant to ensure a certain level of trust between consumers and corporations, guaranteeing the public fair and equal treatment.

Business ethics have various components that govern how businesses and companies should operate. Some of those components include the following:

• Trustworthiness and solidarity
• Respect and responsibility
• Fairness and equality
• Concern for others and dialogue
• Reputation and morale

These key components should be taken into consideration when developing a business ethics plan. They will create a strong foundation for your business so that you can operate in a moral way. But the benefits of business ethics go far beyond just being a moral business. There are great economic effects of being an ethical business. The relationships a corporation creates encourage people to invest both their time and resources into that company. You will spend less time managing relationships between employees because there will be less conflict. And you will attract customers with your good reputation.

Understanding business ethics and having high ethical standards can also produce other benefits:

• Employees with high morale
• Customer loyalty
• Positive impacts on the community
• Negate the risk of negative press

On the other hand, the urge to rule the market has made businesses selfish and all-consuming, and the obligation to operate responsibly has been put on the backburner. The struggle for survival and emerging as a winner attracts a lot of unscrupulous tendencies that have unfortunately become a part of the system. The lines between acceptable and unacceptable have blurred over the years, and the focus has shifted from the consumers to gaining higher profits.

Here are some common unethical business practices that many companies around the world adopt for success.

1. Misleading Product Information

Many companies promote injurious products with misleading information that can be harmful to consumers or the environment. There are a lot of examples of this corrupt practice. From breakfast cereals to automobiles, a lot of companies have tricked the consumers by providing misleading information.

For ages businesses have exaggerated the qualities of their products to make them more saleable. This practice continues until consumers take notice and start questioning the authenticity of the information.

2. Unfair (or disloyal) competition

In commercial law unfair competition is a deceptive business practice that causes economic harm to other businesses or consumers. It includes a number of areas of law involving acts by one competitor or a group of competitors which harm another one in the field.

In the digital age, businesses have taken the route of cyber-defamation where they spread false information about a brand as an anonymous user on a social networking site or a blog. There are laws governing this kind of activity, and the offender can be slapped a fine if caught red-handed.

3. Mistreating Employees

Mistreating employees has become a familiar scenario in small as well as big companies who make employees work for long hours and underpay them. Many employees are made to work under stressful conditions and are subjected to mental and even sexual harassment.

The employer-employee relationship is a significant human relationship of mutual dependency that has great impact on the people involved. A person’s job, like a person’s business, are highly valued possessions that affect the lives of the employees and their families. Though the pressures of self-interest are very powerful and compelling, both workers and bosses should guide their choices by basic ethical principles including honestу, respect and caring.

4. Bribery

Bribery is the act of giving or receiving something of value in exchange for some kind of influence or action in return, that the recipient would otherwise not offer. In many countries of the world bribery is considered an unfair business practice and is therefore illegal. However, in some countries, bribery may not be considered corrupt and is viewed as the normal way business is conducted.

The field of business ethics is not simple to define. A wide range of industries and areas of social behavior that exist between any business and the consumer or general public complicate the field of business ethics. Business ethics can be practiced in corporate offices, as well as local mom-and-pop grocery stores. It has to do with social responsibility and corporate compliance, as well as employer and employee rights. The field of ethics addresses morality, responsibility, decisions, and actions taken by any company or business from the grassroots level to the highest positions in local or national governments. Ethics keep workers safe, help trade and interactions between companies remain honest and fair, and generally make for better goods and services. Distinguishing what a company will and won’t stand for is not always the same for each organization, but knowing what guidelines are necessary to be followed helps keep a company honest and productive.

 

Comprehension Check

1. Margin Marking: skim the text for the first time and add the following margin notes.

F? – if you don’t understand a statement

F! – if you are surprised by some ideas

F underline a statement, if you consider it to be important

Discuss your notes with your partner, then report to the group.

2. Read the text once again to prove the following ideas. Use the vocabulary of the text to discuss and debate.

 

A. Business ethics is a critical component that helps an organization achieve success.

B. A key element of any business ethics program is to create an environment where an employee can come forward to report any wrongdoing or non-adherence to ethics without fear.

C. Generally, companies benefit from taking a dynamic approach to applying their ethics and applying ethical models in business.

D. Unethical business behavior refers to actions that don’t conform to the acceptable standards of business operations.

E. Discrimination related to the employment in the businesses is one of the major ethical issues nowadays.

 

3. Answer the questions with reference to the text.

 

A. What is business ethics? Does the law usually guide it?

B. In what way do companies display business ethics?

C. When did corporations become more aware of environmental and social issues, corporate responsibility? What was a hallmark of that decade?

D. What should be taken into consideration when developing a business ethics plan?

E. Which unethical business practice causes economic harm to other businesses and consumers?

F. Can bribery be harmful to consumers or the environment?

G. Why have businesses taken the route of cyber-defamation nowadays?

H. What does the act of mistreating employees involve?

I. What are the benefits of being ethical in business?

J. Does the field of ethics address morality, responsibility, decisions, and actions taken only by individuals?

 

Vocabulary Focus

 

1. Translate the bracketed parts of the sentences using your key vocabulary. Mind the necessary grammar forms.

 

A. The second session was devoted to generic issues related to the protection of consumers against fraud and (недостоверная информация).

B. Even then, (пойманный с поличным), he couldn’t admit his fault.

С. (Проявлять заботу) for children is to (проявлять заботу) for the future of mankind.

D. Arrangements are in hand to (разработать план) of action for the implementation of all the recommendations.

E. The company got audited and (на нее наложили) with a huge (штраф) plus interest.

F. A lot of different measures are necessary (чтобы создать прочную основу) for future growth.

G. Initiatives to promote (корпоративную социальную ответственность) should be voluntary.

H. Strategies for the implementation of an effective rule of law must stem from (низового уровня).

I. It is extremely important for the draft resolution (получить одобрение) by consensus.

J. We'll put next year's plans (на второй план) until we deal with the current financial crisis.

 

2. Match the words on the left to the words with similar meaning on the right. Recall the context of these words.

 

1. controversial	a. reliability
2. unscrupulous	b. to interest
3. mutual	c. slander
4. injurious	d. to govern
5. defamation	e. harmful, abusive
6. authenticity	f. genuineness
7. trustworthiness	g. debatable
8. loyalty	h. shared
9. to rule	i. faithfulness
10. to attract	j. unprincipled

 

3. Match the verbs with their definitions. Give examples of word partnerships with these verbs from the text.

 

negate	complicate	mistreat	guide	underpay
exaggerate	stand for	reconcile	ensure	conduct

 

A.  to find a way in which two situations or beliefs that are opposed to each other can agree and exist together

B.  to treat a person or animal badly, cruelly, or unfairly

C.  to pay less than is deserved or usual

D.  to make complex, intricate, involved, or difficult

E.  to show someone how to do something difficult

F.  to make something seem larger, more important, better, or worse than it really is

G.  to cause something to have no effect

H.  to support or represent a particular idea or set of ideas

I.  to organize and perform a particular activity

J.  to make something certain to happen

 

Watching

Corporate Culture

A. Pre-watching

1. Look through the following expressions and make sure you understand what they mean.

natural forces

self-sustaining patterns of behavior

to advance the strategic and operating priorities

a drag on productivity

to undermine success

to gain a competitive advantage

2. Give your understanding of Corporate Culture and its role in a company. Discuss the questions in pairs.

 

A. Why can corporate culture be compared to natural forces?

B. How important is a healthy corporate culture?

C. Is it possible to change corporate culture?

 

B. First Watching

 

Follow the link https://www.youtube.com/watch?v=gficoigz1xs to watch a short video on YouTube, and then answer the questions above (in Pre-watching section) with reference to the information you’ve received.

 

C. Second Watching

 

Watch the video once again and complete the statements.

 

A. A company’s culture is a collection of …

B. When an organization is at its best, a culture is going to …

C. At its worst, the culture can be …

D. Instead of trying to change culture significantly, it’s much better to …

E. Companies can gain a competitive advantage when …

 

D. Follow-up Activity

 

1. Read a short abstract below and use it as an introduction to discuss the following questions. Use the information from the video as well.

F How important is corporate culture in business ethics?

F What are some methods that management can use to incorporate ethics into the corporate culture?

 

In difficult financial times, companies face various moral issues to try to keep up with their competitors. Although these issues have a direct impact on employee decision-making, businesses rarely address how employees should assess the ethics of their actions and incorporate ethics into their decisions. Often, this can be alleviated by creating and maintaining a corporate culture with a focus on ethics. Corporate culture is often considered to be both a source of various problems and the basis for solutions and is certainly a factor that determines how people behave in an organization. The role of management in the organizational culture is important as it both acts as a role model for the employees and can also directly influence the behavior and culture to improve organizational performance. Of course, there are better methods that management can use to incorporate ethics into the corporate culture or increase the likelihood that its employees will act ethically.

2. Share your ideas about the following quotations on corporate culture with your partner. Does your partner agree or disagree with your ideas? Report to the group.

 

A. “Customers will never love a company until the employees love it first.” (Simon Sinek)

B. “Culture is simply a shared way of doing something with a passion.” (Brian Chesky)

C. “There’s no magic formula for great company culture. The key is just to treat your staff how you would like to be treated.” (Richard Branson)

 

Talking Points

 

1. Work in pairs. Draw the mind-map “The Characteristics of an Ethical Business”. Exchange your maps with other groupmates, study, and discuss the results.

 

2. Read the following statements. How far do you agree with them?

 

A. The implementation of business ethics begins at the top. Business leaders, directors, and CEOs have the responsibility to show good business morals.

B. Being ethical has become a kind of a PR issue nowadays.

C. “Cooking the books”, or conducting unethical accounting practices, isn’t a serious ethical problem.

D. Racial discrimination is a costly ethical issue that employers and employees encounter on a daily basis in our country.

E. With developments in technological security capability, employers can now monitor their employees’ activity on their computers and other company-provided electronic devices. Electronic surveillance is supposed to ensure efficiency and productivity, and not to cross the line and become spying.

 

3. Role-play or discuss the following situations. Make up all the necessary details and decide how you will handle these ethical problems.

 

A. You are the office manager and one upper-level manager has repeatedly used the company credit card for personal expenses. Will you take any measures? Will you confront the person and reveal what you know?

B. You are senior managers. Your company is losing market share. You strongly suspect your main rival is using unfair methods to promote its products. Hold a meeting to solve the problem or discuss it with your partner.

C. You're in public relations writing a press release about a new product that didn't turn out quite as well as promised in earlier reports. Discuss how much you will reveal to the public in the press release.

 

4. Work with a partner. Read about three companies and discuss how ethical you think they are, using the key vocabulary of the unit.

 

A. Starbucks

The company is often quick to fix its environmental problems, from greatly reducing the water it uses for its dipper well to using recycled paper in its cups. The company also encourages consumers to be environmentally conscious by offering a 10-cent discount to those who bring their own reusable cups and giving free coffee grounds to consumers who want to use them for compost.

Starbucks is also dedicated to its baristas, offering them full health insurance benefits and stock awards.

B.Google

Google regularly makes good on its motto: "Don't be evil." Through its Google Green Program, the company has donated over $1 billion to renewable energy projects, and has decreased its own footprint by using energy efficient buildings and public transportation. The company is also a staunch advocate of free speech, which can be observed from its frequent conflicts with the Chinese government.

Google employees have access to free health care and treatment from on-site doctors, free legal advice with discounted legal services, a fully stock snack pantry and onsite cafeteria, and a free on-site nursery.

C. Nestle

Nestle is subject to the world's longest running boycott for the irresponsible marketing of baby milk to mothers in the developing world. The company has also been criticized for a number of other business practices including the use of unsustainable palm oil and genetically modified ingredients in its foods.

 

Summary Points

 

Read and entitle the text. Then give its summary and be ready to answer the questions on its contents.

Business ethics is the behavior that a business adheres¹ to in its daily dealings with the world. The ethics of a particular business can be diverse. They apply not only to how the business interacts with the world at large, but also to their one-on-one dealings with a single customer.

Many businesses have gained a bad reputation just by being in business. To some people, businesses are interested in making money, and that is the bottom line. It could be called capitalism in its purest form. Making money is not wrong in itself. It is the manner in which some businesses conduct themselves that brings up the question of ethical behavior.

Good business ethics should be a part of every business. There are many factors to consider. When a company does business with another that is considered unethical, does this make the first company unethical by association? Some people would say yes, the first business has a responsibility and it is now a link in the chain of unethical businesses.

Many global businesses, including most of the major brands that the public use, can be seen not to think too highly of good business ethics. Many major brands have been fined millions for breaking ethical business laws. Money is the major factor.

If a company does not adhere to business ethics and breaks the laws, they usually end up being fined. Many companies have broken anti-trust, ethical and environmental laws and received fines worth millions. The problem is that the amount of money these companies are making outweighs² the fines applied. Billion dollar profits blind the companies to their lack of business ethics, and the dollar sign wins.

A business may be a multi-million seller, but does it use good business ethics and do people care? There are popular soft drinks and fast food restaurants that have been fined time and time again for unethical behavior. Business ethics should eliminate exploitation, from the sweat-shop children³ who are making sneakers to the coffee serving staff who are being ripped off in wages. Business ethics can be applied to everything from the trees cut down to make the paper that a business sells to the ramifications of importing coffee from certain countries.

In the end, it may be up to the public to make sure that a company adheres to correct business ethics. If the company is making large amounts of money, they may not wish to pay too close attention to their ethical behavior. There are many companies that pride themselves in their correct business ethics, but in this competitive world, they are becoming very few and far between.

https://www.wisegeek.com/what-is-business-ethics.htm

 

Vocabulary:

1. adhere to n – придерживаться

2. outweigh n – превосходить, перевешивать

3. sweat-shop children – дети, работающие на предприятиях с потогонными условиями труда

 

Questions:

1. What do business ethics apply to?

2. Are there any factors that influence business ethics?

3. Why aren’t unethical businesses afraid of being fined?

 

Writing

 

Choose one of the quotations to write a short essay expressing your opinion.

 

ü “ There is one and only one social responsibility of business — to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game.” (M. Friedman)

ü “The business of business should not just be about money, it should be about responsibility. It should be about public good, not private greed.” (Anita Roddick)

 

Independent Study

 

1. Interview your friends, groupmates or relatives about how much they are affected in their choices by how they perceive the ethical behavior of companies. Do they ask questions about well-known brand names such as:

ü Where are the products made?

ü How much are the staff paid?

ü What are their working conditions like?

ü Are the materials environmentally-friendly?

ü Do they sponsor local charities?

Think of some other questions you might ask a company about their activity. Report your findings to the group.

2. Visit the websites of a few companies you’re familiar with, look for the information about their ethical policy. Make a report.

Unit 12