Ch. 3 - Ethics & Social Responsibility

According to CAT INC. they follow a very strict code of ethics, which have characteristics of social responsibility, that involves Integrity, Excellence, Teamwork and Commitment, which in my opinion is something to be expected in every business however seems to work exceptionally well for them.

(Note: I only chose a select few characteristics of Integrity, Excellence, Teamwork and Commitment defined by CAT INC. to discuss about)

Integrity

The ability to avoid and manage conflicts and potential conflicts of interest.

• I believe for a company like Caterpillar to practice this type of ethic they must be very cautious and strict on the decisions they make, which is a good thing because it shows just how much they care about themselves as a company and the world. In order to be very cautious and strict on their decisions they would need a lot of time to think thoroughly about it which would be considered very bothersome and annoying but CAT INC. takes time out of their agenda to do it for the greater good.    

Compete fairly.

• Even though CAT INC. stands at the top of their industry they still practice fair competition which shows that they're a good sport with their competitors, which is rare to find in companies/businesses. They aren't out to destroy other companies/businesses in their field but rather use their competition to help provide motivation for future business activities.

------------------------------------------------------------------------------------------------------------

Excellence 

Accept nothing but the best quality in products and services and focus on delivering the highest value to customers, always with a sense of urgency.

• Whenever someone buys a Caterpillar machine the company provides them with a variety of services to accompany it in order to provide a excellent experience; basically a form of customer service.

------------------------------------------------------------------------------------------------------------

Teamwork

Treat others with respect and refuse to tolerate intimidation or harassment and treat people fairly and prohibit discrimination.

• Because CAT INC. heavily depends on communication and interactions among their employees/workers they practice this type of ethic. It seems to be a given fact that within any business/company this type of ethic should be practiced however because CAT INC. builds the foundation of respect and non-toleration of intimidation or harassment amongst everyone of its employees/workers, the company prospers.

Build outstanding relationships with dealers and distribution channel members.

• Although some companies/businesses may care only about selling their products, CAT INC. builds relationships with its dealers and distribution channel members, which in my opinion is a genius idea. Since CAT INC. builds its relationship with almost everyone, they automatically become a power to be reckoned with because they are backed up by other entities (having connections), so if they were to ever be in a pinch their "friends" would help them. 

------------------------------------------------------------------------------------------------------------

Commitment 

Support environmental responsibility through sustainable development.

• Like I discussed in a previous blog post, CAT INC. took a break from their usual practices (tactical retreat in a way) because of how the economy was doing. They figured that the demand of their products would not be needed for a while until the economy kicked back up so they decided to invest in research for the mean time. For CAT INC. to do research out of all the options out there while the demand of their machines were down, is a smart move in my opinion. Research would help them accomplish what they stated in their mission statement by improving their machines and making sure that they provide more bang for your buck which would reduce their impact on their environment and the world.

Take personal responsibility

• Similar to what I discussed in Excellence.

Make responsible ownership and investment decisions and to participate in public matters in a appropriate manner.

• CAT INC.'s mission statement has a lot to do with these two ethics because they both involve sustainability. CAT INC. practices green marketing which helps them stand out among their competition and at the same time helps the environment, and because they practice green marketing along with other activities they gain good publicity which in turn helps them continue their business while helping the environment.