Transcript Lecture-11 dated 17 Dec. 2013.ppt

Development Planning &
Administration
MPA – 403
Lecture-11
FACILITATOR
Prof. Dr. Mohammad Majid Mahmood Bagram
0333-5188677, [email protected]
Reflections
• Corporate Social Responsibility & Ethics
Corporate Social Responsibility & Ethics
in Development Planning &
Administration
Are Ethics and Business
Compatible?
Are Ethics & Business Compatible?
• In an extreme, business and ethics may seem
incompatible:
– Earning profits may also be unethical
– In Islamic finance, earning interest is unethical
– Possession itself may be unethical in extreme sense
• Lots of businesses may need violence of some degree:
– E.g., Medical research
• Where do we draw the line between business and
morality:
– If the approach is subjective, then ethics lose their meaning as
everyone defines ethics to suit one’s convenience
Ethics and Society
• In fact, ethics serve society
• Societies are built on support
• All societies, whether those of humans or nonhumans, need mutual support, patience and care.
ETHICS IS LONG TERM POLICY
• All religions, all ethics and morals spring from the
basic conflict between short term and long term:
– If we limit ourselves to the short term:
• Pleasures today, even at the cost of pains
tomorrow, sound like a good bargain
– If we take long term into account:
• Every such pleasure which is not lasting, should
be avoidable
• Long term is how long:
– Do we look at our lifetime?
– Do we look at the lives of our children?
LONG TERMISM IN BUSINESS
• Issues of corporate ethics have taken the form of shorttermism vs. long-termism
• If businesses are focused on long term stability and growth,
they are ethical:
– Short term strategies compromise on longer interests
• Warren Buffet has stressed on long term strategies
• McKinsey survey shows that companies are focused on short
term strategies due to market pressures
Ethical Theories
TELEOLOGICAL
No act is wrong or
right in itself, only in
terms of its
consequences
Do the best thing
Do what produces
the better outcome
DEONTOLOGICAL
Acts are wrong or
right irrespective of
their consequences
VIRTUE ETHICS
Acts are wrong or
right depending on
what the morally
good person would
do
Do the right thing
Be the most honest
person
The right thing may Being good is a
not produce the best matter of character
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outcome
Why ethical problems occur in
business?
1)
2)
3)
4)
Personal gains and selfish interests
Competitive pressure on profits
Business goals vs. personal values
Cross cultural contradiction
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Typical issues of ethics in business
Bribery and kickbacks
Corporate crime, e.g. Price fixing
Employee issues
Product issues, e.g.. Patent and copyright violation,
product defects
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Warren Buffet’s
Rule of Thumb for Ethical Conduct
• “…I want employees to ask themselves (when
they are in doubt about whether a particular
conduct is ethical or not), whether they are willing
that their act appear the next day on the front
page of local paper – to be read by their spouses,
children and friends.”
[Berkshire, code of ethics]
Coca Cola International
“Make every drop count”
Mission
“To refresh the world in body, mind and spirit”
“To inspire moments of optimism through our
brands and our action”
“To create value and make a difference everywhere
we engage”
Values
Leadership
Passion
Integrity
Accountability
Collaboration
Innovation
Quality
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Company Profile
Worlds largest liquid non-alcoholic
refreshments producer.
Headquarter in Georgia Atlanta, USA
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Powerful Brand
Interbrands 2011 ranked coca cola the no.1
brand in the world and estimated its brand
value at $150 billions.
Coca Cola in Pakistan
Established in 1964
Corporate Social Responsibility
The good side of picture
Coca-Cola and its Employees
Coca-cola’s top priority for the
employees are:
Health and safety
Training and development
Respect and rights protection
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Code of Conduct
Employees Must:
Avoid conflicts of interest
Safeguard the company nonpublic information
Never attempt to accept bribe
Fairly deal with customer and suppliers
Protect the company asset
Must report violations
Coca-Cola and Environment
Establish objectives and targets
Work with local communities
Use recycle able packaging
Comply with local environmental laws
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Community
Education
Providing education to youth in
underdeveloped areas of China
Improving their infrastructure
Libraries
Community (Cont’d)
Community (Cont’d)
Sports
Encourage more active
lifestyles
physical and nutrition
education programs
Environment
Environmental Performance
Aspire to environmental excellence
Focus on environmental efforts on three area:
1.
2.
3.
water use;
packaging; and
energy use & climate protection.
Unethical practices
The Bad Side of the Picture
Acidity
Tooth decay
Benzene
Heat and light convert calcium benzoate
into benzene
Water use
9 liters of water to produce one liter of coke
water contamination
decreasing water level
Criticism on Coca Cola
in Colombia
Coca cola in Colombia
More then 70 years in business
Employs more then 2000 Colombians.
5000 retailers.
Volatile Environment
Internal conflicts in Colombia
Unions
Despite the unstable environment ,coca cola provide
safe and stable economic opportunities.
Employee’s Benefit
Cola Cola provides its employees with:
Emergency cell phones
Transportation services
Secure Housing
Additional security for union leaders
24 hour hot line
Criticism
Coca Cola Company is a killer
Hires agents to kill union leaders
Is Against the Unions
Case of Isidro Segundo Gil
Protests
Colombian Court Ruling
The court ruled out that there was no solid
evidence that would prove that the Coca Cola
Company and the Colombian bottlers were
involved in the murders of the union members.
Where is Coke standing
 The Coca-Cola business system has a
tradition of giving back to the
communities it serves
Still the company is facing a lot of issues
in third world countries
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Conclusion
In development Planning &
Administration, those who can see the
deepest into the past can also see
farthest into the future”
Thank you
for your kind attention!
FACILITATOR
Prof. Dr. Mohammad Majid Mahmood
0333-5188677, [email protected]