1. MEWAR
UNIVERSITY
DEPARTMENT OF CHEMICAL ENGINEERING
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8. 4–8
Table 4.1 What Is the Nature of Social Enterprise?
Environment Pollution control
Restoration or protection of environment
Conservation of natural resources
Recycling efforts
Energy Conservation of energy in production and marketing operations
Efforts to increase the energy efficiency of products Other energy-saving programs (for example,
company-sponsored car pools)
Fair Business Practices Employment and advancement of women and minorities
Employment and advancement of disadvantaged individuals (disabled, Vietnam veterans, ex-offenders,
former drug addicts, mentally retarded, and hardcore unemployed)
Support for minority-owned businesses
Human Resources Promotion of employee health and safety
Employee training and development
Remedial education programs for disadvantaged employees
Alcohol and drug counseling programs
Career counseling
Child day-care facilities for working parents
Employee physical fitness and stress management programs
Community Involvement Donations of cash, products, services, or employee time
Sponsorship of public health projects
Support of education and the arts
Support of community recreation programs
Cooperation in community projects (recycling centers, disaster assistance, and urban renewal)
Products Enhancement of product safety
Sponsorship of product safety education programs
Reduction of polluting potential of products
Improvement in nutritional value of products
Improvement in packaging and labeling
17. DDiiffffeerreennttiiaattiinngg EEtthhiiccss aanndd MMoorraalliittyy
Ethics Morality
Ethics is a system of moral principles Morals are principles of right and
wrong conduct.
Ethics is a framework, a systemic and reasoned
basis for making statements about morality.
Morals are simply what we believe
to be right and wrong.
Ethics stress a social system in which those
morals are applied.
Morals define personal character,
Ethics point to standards or codes of behavior
expected by the group to which the individual
belongs. This could be national ethics, social
ethics, company ethics, professional ethics, or
even family ethics.
While a person’s moral code is
usually unchanging, the ethics he
or she practices can be other-dependent.
There appears to be a clear distinction here that ethics are more sophisticated than
morals. Morally, one can support almost anything, while ethically we require reason
and justification for what we believe.
4–17
18. Example: DDiiffffeerreennttiiaattiinngg EEtthhiiccss aanndd MMoorraalliittyy
•Though the lawyer’s personal moral code likely
finds murder immoral and reprehensible, ethics
demand the accused client be defended as
vigorously as possible, even when the lawyer
knows the party is guilty and that a freed
defendant would potentially lead to more crime.
Legal ethics must override personal morals for
the greater good of upholding a justice system in
which the accused are given a fair trial and the
prosecution must prove guilt beyond a
reasonable doubt.
4–18
19. TThhee SSppeeccttrruumm ooff EEtthhiiccaalliittyy ((VVeerrnnee EE.. HHeennddeerrssoonn,, 11998844,, JJBBEE))
•Business ethics is the continuing process of re-defining
the goals and rules of business activity.
In times of rapid change, spurred equally by
technological innovation within the business
community and by societal expectations in the
larger community, participants who share in that
process of re-defining goals and rules should be
sensitive to professional differences.
• Because of these differences, definitions of what
is ethical will vary as well, spread across a
spectrum of ethicality. 4–19
23. Figure 4.1 Classifying Decisions Using a Conceptual Framework
4–23
Source: Verne E. Henderson, “The Ethical Side of Enterprise,” Sloan Management Review (spring 1982): 42.
24. Classifying DDeecciissiioonnss UUssiinngg aa CCoonncceeppttuuaall
FFrraammeewwoorrkk
•The quadrants depicted in Figure demonstrate
the age-old dilemma between law and ethics.
Moving from the ideal ethical and legal position
(Quadrant 1) to an unethical and ille-gal position
(Quadrant IV), one can see the continuum of
activities within an ethical process. Yet legality
provides societal standards but not definitive
answers to ethical questions.
4–24
26. CCoommmmeenntt oonn MMaannaaggeerriiaall RRaattiioonnaalliizzaattiioonnss
•These rationalizations appear realistic, given the
behavior of many business enterprises today.
• However, the legal aspect can be the most
dubious. This is because the
business world (and society) relies heavily on the
law to qualify the actions of various
situations. The law interprets the situations
within the prescribed framework.
4–26
27. 4–27
Table 4.3 Types of Morally Questionable Acts
Type Direct Effect Examples
Nonrole Against the firm Expense account cheating
Embezzlement
Stealing supplies
Role failure Against the firm Superficial performance appraisal
Not confronting expense account cheating
Palming off a poor performer with inflated praise
Role distortion For the firm Bribery
Price fixing
Manipulating suppliers
Role assertion For the firm Investing in South Africa
Using nuclear technology for energy generation
Not withdrawing product line in face of initial
allegations of inadequate safety
Source: James A. Waters and Frederick Bird, “Attending to Ethics in Management,” Journal of Business Ethics 5 (1989): 494.