Business Ethics and
1 Explain the concepts of business
ethics and social responsibility.
2 Describe the factors that influence
3 List the stages in the development
of ethical standards.
4 Identify common ethical dilemmas
in the workplace.
5 Discuss how organizations shape
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
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.
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.
• High profile investigations
and arrests in headlines.
• Vast majority of businesses
• New corporate officers
charged with deterring
wrongdoing and ensuring
Johnson & Johnson Website
• Individuals can make the
difference in ethical expectations
– Putting own interest ahead of the
– Lying to employee
– Misrepresenting hours
– Safety violations
– Internet Abuse
• Technology is expanding
Situation in which a business
decision may be influenced
for personal gain.
of illegal, immoral, or
unethical practices in
Telling the truth and
adhering to deeply felt
ethical principles in
employees to be loyal
and truthful, but ethical
conflicts may arise.
Code of Conduct
Formal statement that
defines how the
employees to resolve
Codes of conduct
cannot detail a solution
for every ethical
training in ethical
recognize and reason
problems and turning
them into ethical
behavior in their
• 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
• Public Health Issues. What to do about inherently dangerous
products such as alcohol, tobacco, and firearms.
• Protecting the Environment. Using resources efficiently,
• 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
• 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.
• 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
• 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.