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    • 1. The Ethical and Social Environment Week of 1-21
    • 2. Determinants of Individual Ethics Family Individual Events Individual Ethics Peers Values and Morals
    • 3. Individual Ethics
      • Ethical Behavior
        • Ethical behavior is in the eye of the beholder
        • However, it also refers to behavior that conforms to generally accepted social norms
        • Best guide for individual ethics is to ask yourself “Would it be okay if Mom knew I was doing this?”
    • 4. Individual Ethics
      • Are these behaviors unethical?
        • Using office supplies for personal use
        • “Surfing the Net” on business time
        • Selling a product you know to be defective
        • Selling company stock before the general public knows about something that will decrease the value of that stock.
    • 5. ? Discussion Questions ?
      • Have you ever been faced with an ethical dilemma at work?
      • What happened, and how did you resolve the issue?
    • 6. Individual Ethics
      • Problem is that ambiguous situations can be interpreted in different ways
    • 7. Ethics in Organizations
      • Managing Ethical Behavior
        • Must begin with top management
        • Training
        • Code of Ethics
          • A formal, written statement of the values and ethical standards that guides a firm’s actions
        • Individual behavior
    • 8. Arguments for Social Responsibility
      • Business creates problems and should therefore help to solve them
      • Corporations are citizens in our society
      • Business often has the resources necessary to solve problems
      • Business is a partner in our society, along with the government and general population.
    • 9. Arguments Against Social Responsibility
      • Business lacks the expertise to manage social programs
      • Involvement in social programs gives business too much power
      • There is potential for conflict of interest
      • The purpose of business in U.S. society is to generate profit for owners.
    • 10. Corporate Social Responsibility Hierarchy Economic Discretionary Ethical Legal
    • 11. Economic Responsibilities - Be Profitable
      • Basic economic unit of society
      • Produce the goods and services that society wants and maximize profits for its owners
      • The only social responsibility = profit-maximizing.
    • 12. Legal Responsibilities - Obey the Law
      • Local governments
      • State legislators
      • Federal regulatory agencies.
    • 13. Ethical Responsibilities - Do What is Right
      • Not necessarily codified into law
      • May not serve the firm's direct economic interests
      • To be ethical organization decision makers should:
        • Act with equity, fairness, and impartiality
        • Respect the rights of individuals
        • Treat individuals differently only when relevant to the organization's goals.
    • 14. Discretionary Responsibilities - Contribute to Quality of Life
      • Purely voluntary and guided by a company's desire to make social contributions not mandated by economics, law, or ethics
      • Philanthropic contributions
      • Goes beyond what society expects a firm to contribute to the community's welfare.
    • 15. Corporate Reactions to Ethical Crises
    • 16. Obstructive - Fight All the Way
      • Deny all responsibility
      • Claim that evidence of wrongdoing is misleading or distorted
      • Place obstacles to delay investigation
      • Tends to occur in firms whose actions are based on economic considerations.
    • 17. Defensive - Do Only What is Legally Required
      • Company admits to some errors of omission or commission
      • Defends itself but is not obstructive
      • Tend to work within the letter of the law.
    • 18. Accommodative - Accept Ethical Responsibility
      • Accepts social responsibility for actions
      • Try to meet economic, legal, and ethical responsibilities
      • Curtail ethically questionable activities.
    • 19. Proactive -Take Social Initiatives
      • Take the lead in social issues
      • Learn what is in the public interest and respond without pressure from stakeholders
      • Use discretionary responsibilities to enhance community welfare.