1) Utilitarian/End-point ethics - Determine if it is right or wrong by assessing the consequences, what the outcome is and determining if the benefits are worth the costs

2) Rule ethics - Determine if it is right or wrong based on absolute rules (ex// religious, family, education rules)

1) Not being able to measure relative benefits to costs

2) Only looking at the "end-point" and not asking questions such as, 

-Who will be affected by this?

-What is the impact of this decision perceived by groups?

1) Your own company, other companies may not want to do trade with you

2) Competent competitors who work hard

3) Customers since they might get bad products

1) Corporate culture - Beliefs on how to behave and what goals to pursue (democratic/authoritative cultures, etc.)

2) Decoupling - Seperating actual activity from how it is perceived (ex// Nazi's killing, think they are "selecting")

3) Job routinization - not adapting to change (ex// doing routine safety check but not fixing nonroutine safety risks)

4) Organizational identity - Relating to boss's intentions

5) Work roles - Reaching sales goals take priority over being an honest citizen (Unethical but role responsbility)

A version of rule ethics, a model that states that the rules people live by are implicit contracts (everyone lives by these rules and therefore makes them equal) 

(ex// Downsizing, ppl thought that working hard = I won't get fired but organizations lowered job security)

A stake is, 1) An interest or share in an activity

2) A right

3) Ownership

Types of stakeholders are,

1) Internal stakeholders - owners, managers or employees

2) External stakeholders - community, government, customers, unions, media, suppliers, competitors etc.

It is obligation or responsibility for an organization to go beyond just the producting of goods/services and making profits to instead act in the way society desires and take on responsibilities

1) Economic responsibilities - be profitable

2) Legal - Obey laws

3) Ethical - Do what is fair

4) Philanthropic - volunteer, charity

1) Business is business (only max. profit)

2) Business plays its own rules (diff. rules from outside)

3) Business should not dictate morals (goal = profit)

4) Organizations can't be held accountable for their actions (too many stakeholders)

5) High costs are passed to the consumer (increased CSR prices are passed on, damages customer-company relationship)

1) Business should conform to societal expectations

2) CST is a practical strategy

3) Business must acknowledge shareholders

4) Potential long-term benefits from CSR

5) Business has the power to do good, so why not?

1) Improves transparency - credible and accountable

2) Allows flexibility - easy to use

3) Aims to satisfy more stakeholders - shows long-term perspective on how activities will impact people

1) No measurement standards

2) Too subjective - some categories need more judgement than others

3) Lack of comparability - not legally required or enforced, not all information may be true or accurate therefore it is hard to compare against other companies

1) Living planet index - Measures changes in biological diversity around the world. (ex// declines in species)

2) Ecological footprint - Measures # of biologically productive land/sea area req. to meet consumpt. demands

3) Index of sustainable economic welfare (ISEW) - measures positive/negative activities affecting society

ISEW =  (personal expen. + public expen. + value of unpaid work - private defence - value of environ. dmg.)

4) Genuine progress indicator - Similar to ISEW, measures economic growth/social well-being. Uses variables that GDP uses but subtracts any negative effects (ex// pollution, crime, etc.)

1) Reducing costs (reduces packaging, waste and less energy use)

2) Reducing risk (operational risks - improving health and safety programs)

3) Improving public relations (ex// Walmart is bad)

4) Obstacles to change (three biggest obstacles to being sustainable are - time, money and lack of knowledge)

1) Raw materials (renewable/nonrenew.? hard to obtain?)

2) Manufacturing (# of energy/water/waste? reduce pollution? reduce, reuse, recycle?)

3) Distribution (reusable packaging? less waste?)

4) Retailing (reusable shopping bags? recycling, composts)

5) Marketing (sustainable mkt/green mkt - 1) mkt of products that are safe, 2) products that min. negative effects on environ., 3) promote, produce, package in a sensible manner

6) Consumer use/consump. (buy locally grown foods)

7) End-of-line/disposal (recycle reuse reduce or trash it)

1) Societal changes

2) Legal/political changes

3) Technological changes

4) Economic changes

5) Global changes

6) Competitive changes

1) Developmental change - improve upon what the business is doing instead of making something new

2) Transitional change - replaces what already exists with something completely new (depart from old operations)

3) Transformational change - future state of the business is changed drastically but the future in unknown, achieved mostly through trial and error (must change employees mindsets accordingly)

Theory E - A theory of change, its purpose is to create economic value (shareholder value). Focuses on formal structure and systems. Made by higher-ups.(short term) (ex// Performance bonus, Personnel reductions)

Theory O - A theory of change, its purpose is to develop organization human capabilities to implement strategy and learning from actions taken by the effectiveness of the changes. Needs participation from everyone in org. (short-long term) (ex// Flatter structure, commit change to workers)

1) Creating a change vision and implementing it

2) The need for cultural change - accomadation and transformation within the organization

3) Leading change through communication - having a communicative, honest and insightful leader (CEO)

4) Reinforcing the change

1) Understanding the force for change (realize what you have to change)

2) Implement changes and get stakeholders to agree and accept the proposed changes

3) Creating a culture for change

4) Lead change through communication

5) Reinforce the change

1) Single-loop learning - The correction of errors that employees find in methods to keep systems working. Assume organizations has good system but needs fine tuning, makes incremental improvements and address symptoms not causes. (increased efficiency)

2) Double-loop learning - The assessment by individuals whether an error exists, if so systems need to be changed. Requires deep level of examination, makes significant org. changes and uncovers root causes.

Developed by Malcolm Gladwell

1) The law of the few - States that there are exceptional people (connectors, mavens and salesmen). They are able to spread the word in epidemic proportions

2) The stickiness factor - States that there are ways to make a message memorable by presenting and structuring in a certain way

3) The power of context - States that 1) word-of mouth epidemics are sensitive to the environment and 2) groups play a significant role in spreading them

1) Recognize our current paridigms

2) Shift to a new paradigm

Bureaucrats - perceived as following rules and regulations without considering the necessity of said rules. Reliant on institutionalization and don't change.

Cognitive Scripts - Mental pictures that allow you to organize knowledge in a systematic fashion so that you can call on them without having to process as much information, generates obstacles to learning and change.

Decisions that have risky and uncertain outcomes depend on how the decision is framed rather than the probable outcomes.

Loss aversion - Ppl would prefer to avoid losses at all costs and go for guaranteed wins

(ex// gambling, if you keep losing you'll try to make it all back to get rid of the losses)

Organizations need stockholders and support to survive and stockholders want to invest in an organization that has guaranteed results and is reliable. Therefore organizations rely on bureacratic and cognitive scripts to ensure they get guaranteed results.

Transformational change is costly and risky, therefore it is not used.