Ethics & social responsibility


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Ethics & social responsibility

  1. 1. Business Ethics & Social Responsibility
  2. 2. Business Ethics and SocialResponsibility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
  3. 3. 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.The most common types of observed misconduct are lying, withholding information, and abusive/ intimidating behavior
  4. 4. Reasons For Not ReportingObserved Misconduct1.Didn’t believe corrective action would be taken2.Feared retribution or retaliation from supervisor or3.Feared they wouldn’t remain anonymous4.Thought someone else would report the misconduct5.Didn’t know who to contact
  5. 5. Ethical Issue CategoriesConflict of interestFairness and honestyCommunicationsBusiness relationships
  6. 6. Conflict of InterestOccurs when a person must choose whether to advance their own personal interest or those of others
  7. 7. Fairness and HonestyThe heart of business ethics General values of decision makers
  8. 8. CommunicationsFalse and misleading advertising and deceptive personal-selling tactics anger customers and may cause a business to fail.
  9. 9. Business RelationshipsBusinesspeople must be ethical toward their customers, suppliers, and others in their workplace.
  10. 10. Questions to Consider in Determining Whetheran 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?
  11. 11. Questions to Consider in DeterminingWhether 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?
  12. 12. Questions to Consider in Determining Whetheran 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?
  13. 13. Questions to Consider in DeterminingWhether 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?
  14. 14. Individual Managers’ Opportunity: Ethical/UnethicalStandards and Codes and Choicesand Coworkers’ Compliance in BusinessValues Influence Requirements
  15. 15. Codes of EthicsFormalized rules and standards that describe what a company expects of its employees
  16. 16. WhistleblowingThe act of an employee exposing the employer’s wrongdoing to outsiders The media Government regulatory agencies
  17. 17. The Nature of Social ResponsibilityFour Dimensions: Economic – earn profits Legal – comply with the law Ethical  Not just “for profit” only Voluntary  Promote human welfare and goodwill
  18. 18. Arguments for Social Responsibility1. Business helped to create many of the social problems that exist today, so it should play a significant role in solving them2. Businesses should be more responsible because they have the financial and technical resources to help solve social problems3. As members of society, businesses should do their fair share to help others
  19. 19. Arguments for SocialResponsibility4. Socially responsible decision making by businesses can prevent increased government regulation5. Social responsibility is necessary to ensure economic survival  Businesses must take steps to help solve the social and environmental problems that exist today
  20. 20. Arguments Against SocialResponsibility1. Managers are sidetracked from the primary goal of business  Earning profits1. Participation in social programs gives businesses greater power, perhaps at the expense of particular segments of society
  21. 21. Arguments Against SocialResponsibility3. Some people question whether business has the expertise needed to assess and make decisions about social problems4. Many people believe that social problems are the responsibility of government agencies and officials
  22. 22. 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
  23. 23. Social Responsibility Issues  Environmental issues: Animal rights Pollution Global warming Community relations: Responsibility to the general welfare of the community
  24. 24. 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