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inalienable right to free choice； aided by being major employers and
taxpayers。
。 Amoral business： Make decisions without considering their ethical
implications either through carelessness； indifference or the mistaken
belief that business is there to make profit only。 Such businesses see
governments and their laws as the only ethical or moral constraint they
need concern themselves with。
。 Moral business： All decisions are made considering what is ethical； fair
and just。
Ethics and Social Responsibility 229
IMPLEMENTING ETHICAL AND RESPONSIBLE
STRATEGIES
Ethics and values play a central role in shaping a pany’s identity and
reputation； building its brands； and earning the trust of customers； suppliers
or other business partners。 While honesty； fairness and responsibility are
crucial for building a good reputation； an organization that is looking for
pre…eminence in its field needs to go beyond just meeting stakeholders’
needs。 It has to emphasize the message that it is a。。ractive as a business
partner and as a good corporate citizen。 To achieve this status the following
steps need to be pursued：
。 Acknowledge and monitor all stakeholders with a valid claim on your
a。。entions。
。 municate regularly with stakeholders； listening to their interests
and concerns。
。 Actively cooperate with stakeholders to minimize risks。
。 Always avoid actions that endanger lives。
。 Use processes that are sensitive to stakeholders’ needs。
。 Recognize the danger that managers’ convenience and the needs of
most other stakeholder groups will almost always be in conflict。
。 Resolve stakeholder conflicts speedily and fairly。
Resolving conflict
Unfortunately； however ethical and socially responsible an organization
is； it will at some stage； perhaps even frequently； find itself pursuing a
strategy that upsets other stakeholder groups。 A recent example of one
such conflict was Shell’s decision； announced in April 2008； to pull out
of the London Array wind farm。 This ￡2 billion project for 341 turbines
capable of producing 1；000 megawa。。s of power was a key part of the UK
government’s strategy to produce 15 per cent of UK energy needs from
renewable sources by 2015； with an aspiration to raise that to 20 per cent by
2020。 Given that in 2008 renewable energy accounted for only 2 per cent of
output in the UK； the London Array was seen as important； perhaps vital；
to achieving those goals。 But Shell had to weigh up the consequences of
upse。。ing the UK government； Friends of the Earth and its other German
and Dutch partners in the project； with other concerns。 Shell’s view was
that the cost of wind farms was simply spiralling out of control； with steel
prices rising with increased world demand from such countries as China
and India。 In any event； world turbine production was booked up years
in advance。 Shell already had stakes in 11 wind farms producing over
1；100 megawa。。s and reckoned that as a pany it could make the same
230 The Thirty…Day MBA
contribution to the environment at a much lower cost to its shareholders；
but probably on another continent and in another technology。
Resolving stakeholder conflicts calls for tact and munications
and the recognition that while you can’t please everyone； you can still
be ethical。 About 1 per cent of Shell’s investments are in green projects。
For example； a pany subsidiary； Shell Solar； has played a major role
in the development of first…generation CIS （copper indium diselenide）
thin…film technology。 This it believes to be the most mercially viable
form of photovoltaic solar technology to generate electricity from the
sun’s energy。 Together with its joint venture partner in this project； Saint
Gobain； it has a pilot plant under construction in Saxony； Germany that
will produce sufficient solar panels to save 14；000 tonnes of CO2 per year。
So stakeholders such as the UK government and Denmark’s DONG Energy
in the London Array project had to be weighed up against Saint Gobain；
with the German government being party to both strategies through the
participation of that country’s energy giant； E。ON。 All the while； Shell was
under pressure to match its historic profit growth。 Authenticity Consulting
（authenticityconsulting/misc/long。pdf） has a useful checklist to
help with decisions about resolving stakeholder conflict。
Whistle…blowers – an ethical longstop
Not surprisingly； the people most likely to know about unethical or socially
irresponsible behaviour are those working in the organization itself。 Governments
around the world have adopted measures to encourage a flow of
information on ethical problems and fraud from whistle…blowers – that is；
anyone employed or recently employed by a public body； business organization
or charity who reveals evidence of wrongdoing。 Whistle…blowers
have also been given a measure of legal protection。 In the United States
the Lloyd–La Folle。。e Act of 1912 started the ball rolling； giving federal
employees the right to provide Congress with information； to be followed
by a patchwork of laws covering such fields as water pollution； the environment；
the Sarbanes–Oxley Act （2002） to deal with corporate fraud and the
Whistleblower Protection Enhancement Act （2007）。 In the UK the Public
Interest Disclosure Act （1998） and various laws enacted by the European
Union and other governments provide a framework of legal protection for
individuals who disclose information。
Many firms too have established ways to a。。ract information on frauds
being mi。。ed against them； including 24…hour hotlines and corporate
ethics offices。 For example； Vodafone’s （vodafone/start/
responsibility/supply_chain/whistle…blowing。html） ‘Speak Up’ programme
– launched in 2006/07 – provides suppliers and employees working in its
supply chain with a means of reporting any ethical concerns。 Fewer than 10
Ethics and Social Responsibility 231
incidents were reported in 2006/07。 That low figure may be less to do with
the absence of ethical problems and more to do with the deeply ingrained
biases against whistle…blowing and a distrust of assurances that retribution
will not follow； especially in areas far removed from the watchful eyes of a
corporate ethics office。
These organizations can provide further background on the subject：
。 The National Whistleblowers Centre （whistleblowers）：
Focuses on exposing government and corporate misconduct； promoting
ethical standards and protecting the jobs and careers of whistle…blowers。
。 Spinwatch （spinwatch）： Monitors the role of public relations
and spin in contemporary society and has worked with whistle…blowers；
anonymously； on some of the most contentious issues： Northern Ireland；
the role of the media； genetic engineering； the oil industry； tobacco
smuggling； food and farming； and the war in Iraq； for example。
。 Whistleblower （whistleblower。uk）： Run by journalists and set
up to allow people to sell stories to the media confidentially。 It has had
a measure of success； breaking the story on how the Richard and Judy
Show’s ‘You Say； We Pay’ petition was ripping off viewers。
。 Wikileaks （wikileaks）： Its primary interest is in exposing
oppressive regimes but it offers an avenue for anyone who wishes to
reveal unethical behaviour in their governments and corporations； with
a degree of anonymity。
DOES BEING ETHICAL PAY OFF？
There is plenty of anecdotal evidence that ethical and socially responsible
organizations are be。。er places to work。 At the very least； being ethical
provides an organization with an insurance policy limiting its exposure
to a range of legal liabilities for faulty products； misleading advertising；
price fixing and discrimination at work； for example。 But evidence on
whether being ethical helps a business organization to bee and stay
more profitable is less clear。 Corpedia （h。。p：//welerpedia）；
a pliance and ethics training pany with clients in 60 countries；
including RadioShack； EMC； Xerox and PepsiCo； produces an index
of panies deemed ethical。 panies such as Intel； Starbucks； The
Timberland pany and Whole Foods Mar
