1. Subject: Business Ethics
Lecturer: Ms. Huyen
Class: 11BSM3
Group members:
• Nguyễn Minh Nguyên
• Nguyễn Lê Huỳnh Uyên Thư
• Vũ Lê Nguyên
• Trương Ngọc Lan Thanh
• Nguyễn Quang Tuấn

2. Preview
An organization that develops effective corporate
governance and understands the importance of
business ethics and social responsibility in
achieving success should also develops some
progresses for managing these important concerns.

3. Preview
Basic steps that have been found effective in
utilizing the stakeholder framework to manage
responsibility and business ethics:
1. Assessing the corporate culture
2. Identifying stakeholder groups
3. Identifying stakeholder issues
4. Assessing Organizational commitment to social
responsibility
5. Identifying resources and determining urgency
6. Gaining stakeholder feedback

4. Step 1: Assessing
the Corporate Culture
There are five key steps in assessing corporate culture:
- First, begin by carefully uncovering and describing your
culture and various subcultures.
- Second, once you have described your existing culture
you are then in a position to turn to assessment, but avoid
the temptation to rely exclusively on broad, “hard data”
benchmarks that, though helpful to a point, are limited in
their usefulness.
- Third, integrate your culture assessment with your
ongoing risk assessment. Aim at ensuring that your
culture supports your compliance and ethics efforts and
that those efforts are designed to meet your company’s
actual risks.

5. Step 1: Assessing
the Corporate Culture
There are five key steps in assessing corporate culture:
- Fourth, assess your culture and your compliance and ethics
initiatives in terms of your company’s strategic goals. This will
ensure relevance for your work; improve buy-in, and clearly
position culture, compliance and ethics as a vital business
asset.
- Fifth, periodically conduct a “deep dive” into your
organizations culture and take full advantage of the available
benchmarked information.

6. Step 2+3: Identifying
Stakeholder Groups + Issues
HOW?
Stakeholders’ interests can be many and varied. A few of the more
common:
•Economics. An employment training program might improve
economic prospects for low-income people, for example. Zoning
regulations may also have economic consequences for various groups.
•Social change. An effort to improve racial harmony could alter the
social climate for members of both the racial or ethnic minority and the
majority.
•Work. Involving workers in decision-making can enhance work life
and make people more satisfied with their jobs.
•Time. Flexible work hours, relief programs for caregivers, parental
leave, and other efforts that provide people with time for leisure or
taking care of the business of life can relieve stress and increase
productivity.

7. •Environment: Protection of open space, conservation of resources,
attention to climate change, and other environmental efforts can add to
everyday life. These can also be seen as harmful to business and
private ownership.
•Physical health: Free or sliding-scale medical facilities and other
similar programs provide a clear benefit for low-income people and can
improve community health.
•Safety and security: Neighborhood watch or patrol programs, better
policing in high-crime neighborhoods, work safety initiatives – all of
these and many other efforts can improve safety for specific
populations or for the community as a whole.
•Mental health: Community mental health centers and adult day care
can be extremely important not only to people with mental health
issues, but also to their families and to the community as a whole.

8. WHY?
The most important reason for identifying and
understanding stakeholders is that it allows you to recruit
them as part of the effort. In most cases, a participatory
effort that involves representation of as many stakeholders
as possible has a number of important advantages below.

9. WHY?
•It puts more ideas on the table than would be the case if the
development and implementation of the effort were confined to a single
organization or to a small group of like-minded people.
•It includes varied perspectives from all sectors and elements of the
community affected, thus giving a clearer picture of the community
context and potential pitfalls and assets.
•It gains buy-in and support for the effort from all stakeholders by
making them an integral part of its development, planning,
implementation, and evaluation. It becomes their effort, and they’ll do
their best to make it work.
•It’s fair to everyone. All stakeholders can have a say in the
development of an effort that may seriously affect them.
•It saves you from being blindsided by concerns you didn’t know
about. If everyone has a seat at the table, concerns can be aired and
resolved before they become stumbling blocks. Even if they can’t be
resolved, they won’t come as surprises that derail the effort just when
you thought everything was going well.

10. •It strengthens your position if there’s opposition. Having all stakeholders
on board makes a huge difference in terms of political and moral clout.
•It creates bridging social capital for the community. Social capital is the
web of acquaintances, friendships, family ties, favors, obligations, and other
social currency that can be used to cement relationships and strengthen
community.
•It increases the credibility of your organization. Involving and attending to
the concerns of all stakeholders establishes your organization as fair, ethical,
and transparent, and makes it more likely that others will work with you in
other circumstances.
•It increases the chances for the success of your effort. For all of the above
reasons, identifying stakeholders and responding to their concerns makes it far
more likely that your effort will have both the community support it needs and
the appropriate focus to be effective.

11. Step 4: Assessing Organizational
Commitment to Social Responsibility
The step is to arrive at an understanding of social
responsibility that specifically matches the
organization interest.
This general definition will be used to evaluate
current practices and to select concrete social
responsibility initiatives.

12. Starbucks has formalized its initiatives in official
documents such as annual reports, web pages, and
company brochures . Starbucks is concerned with the
environment and integrates policies and programs
throughout all aspects of its operations to minimize its
environmental impact. The company also has many
community-building programs that help it to be a good
neighbor and contribute positively to the communities
where its partners and customers live, work, and play.

13. Step 5: Identifying resources and
determining urgency
2 main criteria can be considered:
- The level of financial and organizational investments
required by different actions
- The level of urgency when prioritizing social
responsibility challenges
-> When a challenge is viewed as significant and when
stakeholder pressures on the issues can be expected,
the challenge can be considered urgen.

14. For example, Facebook has encountered a severe backlash
concerning its privacy settings. Privacy experts have filed
complaints against Facebook for changing its privacy
policies and limiting what information user can keep
private, causing Facebook to scale back some of its
initiatives that were intended to create a more open
network. Internet privacy has become such an issue that
regulators are proposing a “Do Not Track” list and social
networkers’ bill of rights.

15. Step 6: Gaining Stakeholder Feedback
Stakeholder feedback can be generated through a variety
of means.
- First, stakeholder’s general assessment of a firm and its
practices can be obtained through satisfaction or
reputation surveys.
- Second, to gauge stakeholder’s perception of a firm’s
contributions to specific issues.
- Third, more format research may be conducted using
focus groups, observation, and surveys.

16. For example, Consumer Watchdog , a California-based
group that keeps an eye on everything from
education to the oil industry, publicly applauded the
decision of Google co-founder Larry Page to
become the company’s chief executive officer. Long
a critic of Goggle’s activities, the watchdog
organization expressed hope that Page would take
consumer issues like Internet privacy seriously.

17. Developing ideas through the feedbacks
• Is the selection of stakeholders appropriate? Should
there be more stakeholders under review?
• Is the result trustworthy if the organization makes the
selection of respondents?
• Should the objectives of the stakeholder analysis be
considered in more detail and should the questions be
more closely connected to these more precise
objectives?
• Should the questions be rather presented as statements
and divided into more concrete sub items?