MGMT 1 Lecture Notes - Lecture 3: Making Money, Corporate Social Responsibility, Insider Trading
Document Summary
One of the world"s largest companies, poster child of the new economy. Went bankrupt in a matter of weeks. Jeff skilling (former cfo) is serving a 24-year sentence. Defrauded 65 billion from investors using ponzi scheme. Not everything that is legal is also ethical. Management must encourage and model ethical behavior. Needs to start at the very top. Incentives must be aligned to discourage unethical behavior. Most businesses and nonprofit organizations have written ethics codes. Compliance-based ethics codes rely on control and penalties. Integrity-based ethics codes appeal to each individual"s integrity and moral compass. Top management must unconditionally embrace ethical standards and behavior. Employees must understand what"s expected from them. Ethical standards apply to outside parties as well (suppliers) Csr acknowledges that businesses have broad responsibilities for the welfare of a society. Critics of csr focus on making money as the only responsibility. Create philanthropy, social initiatives, responsibility, and policy.
