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Business Ethics & Social Responsibilitty
 

Business Ethics & Social Responsibilitty

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Business Ethics & Social Responsibilitty

Business Ethics & Social Responsibilitty

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    Business Ethics & Social Responsibilitty Business Ethics & Social Responsibilitty Presentation Transcript

    •  
    • 2-
    • Business Ethics and Social Responsibility
      • Business Ethics:
        • The principles and standards that define acceptable conduct in business
      • Social Responsibility:
        • A business’s obligation to maximize its positive impact and minimize its negative impact on society
      2-
    • Recognizing an Ethical Issue
      • An ethical issue is an identifiable problem, situation, or opportunity that requires a person to choose from among several actions that may be evaluated as right or wrong, ethical or unethical.
      2- Did You Know? The most common types of observed misconduct are lying, withholding information, and abusive/ intimidating behavior.
    • Reasons For Not Reporting Observed Misconduct
      • Didn’t believe corrective action would be taken
      • Feared retribution or retaliation from supervisor or management
      • Feared they wouldn’t remain anonymous
      • Thought someone else would report the misconduct
      • Didn’t know who to contact
      2- Source: 2005 Ethics Resource Center- National Business Ethics Survey Report, p. 29.
    • Misconduct Observed in the Workplace 2-
    • Ethical Issue Categories
      • Conflict of interest
      • Fairness and honesty
      • Communications
      • Business relationships
      2-
    • Conflict of Interest
      • Occurs when a person must choose whether to advance their own personal interest or those of others
      2-
    • Fairness and Honesty
      • The heart of business ethics
        • General values of decision makers
      2-
    • Communications
      • False and misleading advertising and deceptive personal-selling tactics anger customers and may cause a business to fail.
      2-
    • Business Relationships
      • Businesspeople must be ethical toward their customers, suppliers, and others in their workplace.
      2-
    • Questions to Consider in Determining Whether an Action is Ethical
      • Are there any potential legal restrictions or violations that could result from the action?
        • Question: If I do this will it break any laws?
      • Does your company have a specific code of ethics or a policy on the action?
        • Question: If I do this will I go against the employee handbook?
      2-
    • Questions to Consider in Determining Whether an Action is Ethical
      • Is this activity customary in your industry?
      • Are there any industry trade groups that provide guidelines or codes of conduct that address this issue?
        • Question: If I do this will I violate any trade practices?
      2-
    • Questions to Consider in Determining Whether an Action is Ethical
      • Would this activity be accepted by your coworkers?
      • Will your decision or action withstand open discussion with coworkers and managers and survive untarnished?
        • Question: Will my action cause peer acceptance or rejection, or any peer pressure?
      2-
    • Questions to Consider in Determining Whether an Action is Ethical
      • How does this activity fit with your own beliefs and values?
        • Question: Will my action violate any of my personal ethics, religious beliefs, or social values?
      2-
    • Three Factors that Influence Business Ethics 2- Individual Standards and Values Managers’ and Coworkers’ Influence Opportunity: Codes and Compliance Requirements Ethical/Unethical Choices in Business
    • Codes of Ethics
      • Formalized rules and standards that describe what a company expects of its employees
      2- Did You Know? Written ethics standards are more often found in larger companies than smaller ones.
    • Whistleblowing
      • The act of an employee exposing the employer’s wrongdoing to outsiders
        • The media
        • Government regulatory agencies
      2-
    • The Facts on Business Ethics Today
      • Of employees surveyed:
        • 86% reported that their organizations have written standards of conduct
        • 69% reported that their organizations offer mandatory ethics training
        • 65% reported that their organizations have a place where they can seek ethics advice
      2- Source: 2005 Ethics Resource Center- National Business Ethics Survey: How Employees Perceive Ethics at Work.p.12-14.
    • The Nature of Social Responsibility
      • Four Dimensions:
        • Economic – earn profits
        • Legal – comply with the law
        • Ethical
          • Not just “for profit” only
        • Voluntary & Philanthropic
          • Promote human welfare and goodwill
      2-
    • The Pyramid of Social Responsibility 2- Ethical Responsibilities being ethical; doing what is right, just, and fair; avoiding harm Voluntary Responsibilities being a “good corporate citizen;” contributing to the community and quality of life Source: Adapted from Archie B. Carroll, “The Pyramid of Corporate Social Responsibility: Toward the Moral Management of Organizational Stakeholders.” Business Horizons 34 (July/August 1991): 42. Legal Responsibilities obeying the law (society’s codification of right and wrong) Economic Responsibilities being profitable
    • Best Corporate Citizens
      • Green Mountain Coffee
      • Hewlett-Packard
      • Advanced Micro Devices
      • Motorola
      • Agilent Technologies
      • Timberland
      • Salesforce.com
      • Cisco Systems
      • Dell
      • Texas Instruments
      • Intel
      • Johnson and Johnson
      • NIKE
      • General Mills
      • Pitney Bowes
      • Wells Fargo
      • Starbucks
      • Wainright Bank & Trust
      • St. Paul Travelers
      • Ecolab
      2- Source: Philip Johansson, “The Best 100 Corporate Citizens,” Business Ethics, March/April 2006, p. 22.
    • Arguments for Social Responsibility
      • Business helped to create many of the social problems that exist today, so it should play a significant role in solving them
      • Businesses should be more responsible because they have the financial and technical resources to help solve social problems
      • As members of society, businesses should do their fair share to help others
      2-
    • Arguments for Social Responsibility
      • Socially responsible decision making by businesses can prevent increased government regulation
      • Social responsibility is necessary to ensure economic survival
        • Businesses must take steps to help solve the social and environmental problems that exist today
      2-
    • Arguments Against Social Responsibility
      • Managers are sidetracked from the primary goal of business
        • Earning profits
      • Participation in social programs gives businesses greater power, perhaps at the expense of particular segments of society
      2-
    • Arguments Against Social Responsibility
      • Some people question whether business has the expertise needed to assess and make decisions about social problems
      • Many people believe that social problems are the responsibility of government agencies and officials
      2-
    • Social Responsibility Issues
      • Organizational relationships with owners and stockholders:
        • Profit and ROI
      • Employee relations:
        • Providing a safe workplace, adequate pay, information about the company, listening to grievances, and treating employees fairly
      • Consumer relations:
        • Respecting the rights of customers and providing them with safe and satisfying products
      2-
    • Social Responsibility Issues
      • Environmental issues:
        • Animal rights
        • Pollution
        • Global warming
      • Community relations:
        • Responsibility to the general welfare of the community
      2- Did You Know? In one year, Americans generated 230 million tons of trash and recycled 23.5 percent of it.
    • John F. Kennedy’s 1962 Consumer Bill of Rights
      • The right to safety
      • The right to be informed
      • The right to choose
      • The right to be heard
      2- Did You Know? John F. Kennedy was the 35th President of the United States.
    • Responsibility of the Ethics Officer
      • Provide advice about ethics to employees and management
      • Distribute the company’s code of ethics
      • Create and maintain an anonymous, confidential service to answer questions about ethical issues
      • Take action on ethics violations
      • Review and modify the code of ethics as needed
      2-
    • Solve the Dilemma
      • What are some of the ethical issues involved in giving a customer an award for consumption behavior without notifying him/her first?
      • Do you see this as a potential violation of privacy? Explain.
      • How would you handle the situation if you were Barnard?
      2-
    • Explore Your Career Options
      • How do you explain the emergence of career opportunities in the field of business ethics and social responsibility?
      2-
    • Additional Discussion Questions and Exercises
      • What makes ethical decisions so difficult?
      • Many organizations are primarily concerned with earning a profit or a return on their investment.
        • Does this concern for owners and investors present an ethical dilemma for companies when weighing business decisions that favor employees and/or the general public?
      • The right to be heard is one of the four rights in the consumer bill of rights.
        • How are some corporations addressing this consumer concern?
      2-
    • Additional Discussion Questions and Exercises
      • Find examples of environmental issues in newspapers or business journals.
        • Do these issues influence businesses?
      • Imagine you are a salesperson. When does offering a gift, such as basketball tickets, become a bribe rather than just a sales practice?
      2-
    • Chapter 2 Quiz
      • Which of the following has the greatest effect on ethical behavior in organizations?
        • authority of an employee’s superiors
        • an employee’s perception of the ethics of coworkers and managers
        • an employee’s personal beliefs about what is right or wrong
        • investors perceptions of ethics
      • Copying someone else’s work and presenting it as your own is:
        • ethics
        • bribe
        • plagiarism
        • greenmail
      2-
    • Chapter 2 Quiz
      • A code of ethics is:
        • a set of formalized rules and standards describing what the company expects of its employees.
        • a government legislation enforced by government agencies.
        • a set of principles that describe what a person believes is the right way to behave.
        • the impact of a business’s activities on society.
      • Which one of the following is NOT one of the four rights provided in John F. Kennedy’s consumer bill of rights?
        • right to safety
        • right to be inform
        • right to sue
        • right to choose
      2-
    • Multiple Choice Questions about the Video
      • What is interesting about Greystone Bakeries?
        • It is based in Alaska
        • It is a franchise
        • It only sells one type of cookie
        • It supplies Ben and Jerry’s with 11,000 pounds of brownies per day
      • Which of the following is NOT provided by Eileen Fisher?
        • Onsite yoga and massage
        • A car after one year of working for the company
        • $1,000 education benefit per year
        • After 5 years at the company $5,000 towards a vacation
      2-