Business Ethics


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Business Ethics

  1. 1. >>>>>>>> Chapter 2 Business Ethics and Social Responsibility
  2. 2. ng Goals Learni 1 Explain the concepts of business ethics and social responsibility. 2 Describe the factors that influence business ethics. 3 List the stages in the development of ethical standards. 4 Identify common ethical dilemmas in the workplace. 5 Discuss how organizations shape ethical behavior. 6 Describe how businesses’ social responsibility is measured. Summarize the responsibilities of 7 business to the general public, customers, and employees. Explain why investors 8 are concerned with business ethics and social responsibility.
  3. 3. for Ethical Concern al Issues and Societ Business Ethics The standards of conduct and moral values governing actions and decisions in the work environment. – Social responsibility. – Balance between what’s right and what’s profitable. – Often no clear-cut choices. – Often shaped by the organization’s ethical climate. Sarbanes-Oxley Act 2002 law that added oversight for the nation’s major companies and a special oversight board to regulate public accounting firms that audit the financial records of these corporations.
  4. 4. temporary The Con ironment Ethical Env • High profile investigations and arrests in headlines. • Vast majority of businesses ethical. • New corporate officers charged with deterring wrongdoing and ensuring ethical standards. Johnson & Johnson Website
  5. 5. duals Make Indivi ifference AD • Individuals can make the difference in ethical expectations and behavior – Putting own interest ahead of the organization – Lying to employee – Misrepresenting hours – Safety violations – Internet Abuse • Technology is expanding unethical behavior
  6. 6. lopment of Deve ual Ethics Individ
  7. 7. ob Ethical On-the-J Dilemmas Situation in which a business decision may be influenced for personal gain. Employee’s disclosure of illegal, immoral, or unethical practices in the organization. Telling the truth and adhering to deeply felt ethical principles in business decisions. Businesspeople expect employees to be loyal and truthful, but ethical conflicts may arise.
  8. 8. ganizations How Or Conduct ape Ethical Sh
  9. 9. wareness Ethical A Code of Conduct Formal statement that defines how the organization expects and requires employees to resolve ethical questions.
  10. 10. Education Ethical Codes of conduct cannot detail a solution for every ethical situation, so corporations provide training in ethical reasoning.
  11. 11. ical Action Eth Helping employees recognize and reason through ethical problems and turning them into ethical actions.
  12. 12. eadership Ethical L Executives must demonstrate ethical behavior in their actions.
  13. 13. ponsibly to Acting Res tisfy Society Sa Social Responsibility • Management’s consideration of profit, consumer satisfaction, and societal well-being of equal value in evaluating the firm’s performance. • Contributions to the overall economy, job opportunities, and charitable contributions and service. • Organizations measure through social audits.
  14. 14. onsibility reas of Resp A
  15. 15. ibilities to Respons eral Public the Gen • Public Health Issues. What to do about inherently dangerous products such as alcohol, tobacco, and firearms. • Protecting the Environment. Using resources efficiently, minimizing pollution. • Recycling. Reprocessing used materials for reuse. • Developing the Quality of the Workforce. Enhancing quality of the overall workforce through education and diversity initiatives. • Corporate Philanthropy. Cash contributions, donations of equipment and products, and supporting the volunteer efforts of company employees.
  16. 16. ibilities to Respons ustomers C • The Right to Be Safe. Safe operation of products, avoiding product liability. • The Right to Be Informed. Avoiding false or misleading advertising and providing effective customer service. • The Right to Choose. Ability of consumers to choose the products and services they want. • The Right to Be Heard. Ability of consumers to express legitimate complaints to the appropriate parties.
  17. 17. ibilities to Respons mployees E • Workplace Safety. • Quality-of-Life Issues. Balancing work and family through flexible work schedules, subsidized child care, and regulation. • Ensuring Equal Opportunity on the Job. Providing equal opportunities to all employees without discrimination; many aspects regulated by law. • Age Discrimination. • Sexual Harassment and Sexism. Avoiding unwelcome actions of a sexual nature; equal pay for equal work without regard to gender.
  18. 18. ibilities to Respons Investors • Obligation to make profits for shareholders. • Expectation of ethical and moral behavior. • Investors protected by regulation by the Securities and Exchange Commission and state regulations.