Culture Strength

Weak Weak Leaning Strong Leaning Strong

FIGURE 2–1 Decline in the Strength of Ethical Cultures

Note: Due to rounding, some numbers do not equal 100 percent.

Source: Ethics Resource Center, 2011 National Business Ethics Survey (Arlington, VA: Ethics Resource Center, 2012), p. 19.

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34 Part 1: An Overview of Business Ethics

TABLE 2–1 Examples of Stakeholder Issues and Associated Measures of Corporate Impacts

Stakeholder Groups and Issues Potential Indicators of Corporate Impact on These Issues

Employees

1. Compensation and benefits • Ratio of lowest wage to national legal minimum or to local cost of living

2. Training and development • Changes in average years of training of employees

3. Employee diversity • Percentages of employees from different genders and races

4. Occupational health and safety • Standard injury rates and absentee rates

5. s with management • Availability of open-door policies or ombudsmen

Customers

1. Product safety and quality • Number of product recalls over time

2. Management of customer complaints

• Number of customer complaints and availability of procedures to answer them

3. Services to disabled customers • Availability and nature of measures taken to ensure services to disabled customers

Investors

1. Transparency of shareholder communications

• Availability of procedures to inform shareholders about corporate activities

2. Shareholder rights • Frequency and type of litigation involving violations of shareholder rights

Suppliers

1. Encouraging suppliers in developing countries

• Prices offered to suppliers in developed countries in comparison to countries’ other suppliers

2. Encouraging minority suppliers • Percentage of minority suppliers

Community

1. Public health and safety protection • Availability of emergency response plan

2. Conservation of energy and materials • Data on reduction of waste produced and comparison to industry

3. Donations and support of local organizations

• Annual employee time spent in community service

Environmental Groups

1. Minimizing the use of energy • Amount of electricity purchased; percentage of “green” electricity

2. Minimizing emissions and waste • Type, amount, and designation of waste generated

3. Minimizing adverse environmental effects of goods and services

• Percentage of product weight reclaimed after use