Business Ethics & Social Responsibilitty

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Business Ethics & Social Responsibilitty

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Business Ethics & Social Responsibilitty

  1. 2. 2-
  2. 3. Business Ethics and Social Responsibility <ul><li>Business Ethics: </li></ul><ul><ul><li>The principles and standards that define acceptable conduct in business </li></ul></ul><ul><li>Social Responsibility: </li></ul><ul><ul><li>A business’s obligation to maximize its positive impact and minimize its negative impact on society </li></ul></ul>2-
  3. 4. Recognizing an Ethical Issue <ul><li>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. </li></ul>2- Did You Know? The most common types of observed misconduct are lying, withholding information, and abusive/ intimidating behavior.
  4. 5. Reasons For Not Reporting Observed Misconduct <ul><li>Didn’t believe corrective action would be taken </li></ul><ul><li>Feared retribution or retaliation from supervisor or management </li></ul><ul><li>Feared they wouldn’t remain anonymous </li></ul><ul><li>Thought someone else would report the misconduct </li></ul><ul><li>Didn’t know who to contact </li></ul>2- Source: 2005 Ethics Resource Center- National Business Ethics Survey Report, p. 29.
  5. 6. Misconduct Observed in the Workplace 2-
  6. 7. Ethical Issue Categories <ul><li>Conflict of interest </li></ul><ul><li>Fairness and honesty </li></ul><ul><li>Communications </li></ul><ul><li>Business relationships </li></ul>2-
  7. 8. Conflict of Interest <ul><li>Occurs when a person must choose whether to advance their own personal interest or those of others </li></ul>2-
  8. 9. Fairness and Honesty <ul><li>The heart of business ethics </li></ul><ul><ul><li>General values of decision makers </li></ul></ul>2-
  9. 10. Communications <ul><li>False and misleading advertising and deceptive personal-selling tactics anger customers and may cause a business to fail. </li></ul>2-
  10. 11. Business Relationships <ul><li>Businesspeople must be ethical toward their customers, suppliers, and others in their workplace. </li></ul>2-
  11. 12. Questions to Consider in Determining Whether an Action is Ethical <ul><li>Are there any potential legal restrictions or violations that could result from the action? </li></ul><ul><ul><li>Question: If I do this will it break any laws? </li></ul></ul><ul><li>Does your company have a specific code of ethics or a policy on the action? </li></ul><ul><ul><li>Question: If I do this will I go against the employee handbook? </li></ul></ul>2-
  12. 13. Questions to Consider in Determining Whether an Action is Ethical <ul><li>Is this activity customary in your industry? </li></ul><ul><li>Are there any industry trade groups that provide guidelines or codes of conduct that address this issue? </li></ul><ul><ul><li>Question: If I do this will I violate any trade practices? </li></ul></ul>2-
  13. 14. Questions to Consider in Determining Whether an Action is Ethical <ul><li>Would this activity be accepted by your coworkers? </li></ul><ul><li>Will your decision or action withstand open discussion with coworkers and managers and survive untarnished? </li></ul><ul><ul><li>Question: Will my action cause peer acceptance or rejection, or any peer pressure? </li></ul></ul>2-
  14. 15. Questions to Consider in Determining Whether an Action is Ethical <ul><li>How does this activity fit with your own beliefs and values? </li></ul><ul><ul><li>Question: Will my action violate any of my personal ethics, religious beliefs, or social values? </li></ul></ul>2-
  15. 16. 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
  16. 17. Codes of Ethics <ul><li>Formalized rules and standards that describe what a company expects of its employees </li></ul>2- Did You Know? Written ethics standards are more often found in larger companies than smaller ones.
  17. 18. Whistleblowing <ul><li>The act of an employee exposing the employer’s wrongdoing to outsiders </li></ul><ul><ul><li>The media </li></ul></ul><ul><ul><li>Government regulatory agencies </li></ul></ul>2-
  18. 19. The Facts on Business Ethics Today <ul><li>Of employees surveyed: </li></ul><ul><ul><li>86% reported that their organizations have written standards of conduct </li></ul></ul><ul><ul><li>69% reported that their organizations offer mandatory ethics training </li></ul></ul><ul><ul><li>65% reported that their organizations have a place where they can seek ethics advice </li></ul></ul>2- Source: 2005 Ethics Resource Center- National Business Ethics Survey: How Employees Perceive Ethics at Work.p.12-14.
  19. 20. The Nature of Social Responsibility <ul><li>Four Dimensions: </li></ul><ul><ul><li>Economic – earn profits </li></ul></ul><ul><ul><li>Legal – comply with the law </li></ul></ul><ul><ul><li>Ethical </li></ul></ul><ul><ul><ul><li>Not just “for profit” only </li></ul></ul></ul><ul><ul><li>Voluntary & Philanthropic </li></ul></ul><ul><ul><ul><li>Promote human welfare and goodwill </li></ul></ul></ul>2-
  20. 21. 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
  21. 22. Best Corporate Citizens <ul><li>Green Mountain Coffee </li></ul><ul><li>Hewlett-Packard </li></ul><ul><li>Advanced Micro Devices </li></ul><ul><li>Motorola </li></ul><ul><li>Agilent Technologies </li></ul><ul><li>Timberland </li></ul><ul><li>Salesforce.com </li></ul><ul><li>Cisco Systems </li></ul><ul><li>Dell </li></ul><ul><li>Texas Instruments </li></ul><ul><li>Intel </li></ul><ul><li>Johnson and Johnson </li></ul><ul><li>NIKE </li></ul><ul><li>General Mills </li></ul><ul><li>Pitney Bowes </li></ul><ul><li>Wells Fargo </li></ul><ul><li>Starbucks </li></ul><ul><li>Wainright Bank & Trust </li></ul><ul><li>St. Paul Travelers </li></ul><ul><li>Ecolab </li></ul>2- Source: Philip Johansson, “The Best 100 Corporate Citizens,” Business Ethics, March/April 2006, p. 22.
  22. 23. Arguments for Social Responsibility <ul><li>Business helped to create many of the social problems that exist today, so it should play a significant role in solving them </li></ul><ul><li>Businesses should be more responsible because they have the financial and technical resources to help solve social problems </li></ul><ul><li>As members of society, businesses should do their fair share to help others </li></ul>2-
  23. 24. Arguments for Social Responsibility <ul><li>Socially responsible decision making by businesses can prevent increased government regulation </li></ul><ul><li>Social responsibility is necessary to ensure economic survival </li></ul><ul><ul><li>Businesses must take steps to help solve the social and environmental problems that exist today </li></ul></ul>2-
  24. 25. Arguments Against Social Responsibility <ul><li>Managers are sidetracked from the primary goal of business </li></ul><ul><ul><li>Earning profits </li></ul></ul><ul><li>Participation in social programs gives businesses greater power, perhaps at the expense of particular segments of society </li></ul>2-
  25. 26. Arguments Against Social Responsibility <ul><li>Some people question whether business has the expertise needed to assess and make decisions about social problems </li></ul><ul><li>Many people believe that social problems are the responsibility of government agencies and officials </li></ul>2-
  26. 27. Social Responsibility Issues <ul><li>Organizational relationships with owners and stockholders: </li></ul><ul><ul><li>Profit and ROI </li></ul></ul><ul><li>Employee relations: </li></ul><ul><ul><li>Providing a safe workplace, adequate pay, information about the company, listening to grievances, and treating employees fairly </li></ul></ul><ul><li>Consumer relations: </li></ul><ul><ul><li>Respecting the rights of customers and providing them with safe and satisfying products </li></ul></ul>2-
  27. 28. Social Responsibility Issues <ul><li>Environmental issues: </li></ul><ul><ul><li>Animal rights </li></ul></ul><ul><ul><li>Pollution </li></ul></ul><ul><ul><li>Global warming </li></ul></ul><ul><li>Community relations: </li></ul><ul><ul><li>Responsibility to the general welfare of the community </li></ul></ul>2- Did You Know? In one year, Americans generated 230 million tons of trash and recycled 23.5 percent of it.
  28. 29. John F. Kennedy’s 1962 Consumer Bill of Rights <ul><li>The right to safety </li></ul><ul><li>The right to be informed </li></ul><ul><li>The right to choose </li></ul><ul><li>The right to be heard </li></ul>2- Did You Know? John F. Kennedy was the 35th President of the United States.
  29. 30. Responsibility of the Ethics Officer <ul><li>Provide advice about ethics to employees and management </li></ul><ul><li>Distribute the company’s code of ethics </li></ul><ul><li>Create and maintain an anonymous, confidential service to answer questions about ethical issues </li></ul><ul><li>Take action on ethics violations </li></ul><ul><li>Review and modify the code of ethics as needed </li></ul>2-
  30. 31. Solve the Dilemma <ul><li>What are some of the ethical issues involved in giving a customer an award for consumption behavior without notifying him/her first? </li></ul><ul><li>Do you see this as a potential violation of privacy? Explain. </li></ul><ul><li>How would you handle the situation if you were Barnard? </li></ul>2-
  31. 32. Explore Your Career Options <ul><li>How do you explain the emergence of career opportunities in the field of business ethics and social responsibility? </li></ul>2-
  32. 33. Additional Discussion Questions and Exercises <ul><li>What makes ethical decisions so difficult? </li></ul><ul><li>Many organizations are primarily concerned with earning a profit or a return on their investment. </li></ul><ul><ul><li>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? </li></ul></ul><ul><li>The right to be heard is one of the four rights in the consumer bill of rights. </li></ul><ul><ul><li>How are some corporations addressing this consumer concern? </li></ul></ul>2-
  33. 34. Additional Discussion Questions and Exercises <ul><li>Find examples of environmental issues in newspapers or business journals. </li></ul><ul><ul><li>Do these issues influence businesses? </li></ul></ul><ul><li>Imagine you are a salesperson. When does offering a gift, such as basketball tickets, become a bribe rather than just a sales practice? </li></ul>2-
  34. 35. Chapter 2 Quiz <ul><li>Which of the following has the greatest effect on ethical behavior in organizations? </li></ul><ul><ul><li>authority of an employee’s superiors </li></ul></ul><ul><ul><li>an employee’s perception of the ethics of coworkers and managers </li></ul></ul><ul><ul><li>an employee’s personal beliefs about what is right or wrong </li></ul></ul><ul><ul><li>investors perceptions of ethics </li></ul></ul><ul><li>Copying someone else’s work and presenting it as your own is: </li></ul><ul><ul><li>ethics </li></ul></ul><ul><ul><li>bribe </li></ul></ul><ul><ul><li>plagiarism </li></ul></ul><ul><ul><li>greenmail </li></ul></ul>2-
  35. 36. Chapter 2 Quiz <ul><li>A code of ethics is: </li></ul><ul><ul><li>a set of formalized rules and standards describing what the company expects of its employees. </li></ul></ul><ul><ul><li>a government legislation enforced by government agencies. </li></ul></ul><ul><ul><li>a set of principles that describe what a person believes is the right way to behave. </li></ul></ul><ul><ul><li>the impact of a business’s activities on society. </li></ul></ul><ul><li>Which one of the following is NOT one of the four rights provided in John F. Kennedy’s consumer bill of rights? </li></ul><ul><ul><li>right to safety </li></ul></ul><ul><ul><li>right to be inform </li></ul></ul><ul><ul><li>right to sue </li></ul></ul><ul><ul><li>right to choose </li></ul></ul>2-
  36. 37. Multiple Choice Questions about the Video <ul><li>What is interesting about Greystone Bakeries? </li></ul><ul><ul><li>It is based in Alaska </li></ul></ul><ul><ul><li>It is a franchise </li></ul></ul><ul><ul><li>It only sells one type of cookie </li></ul></ul><ul><ul><li>It supplies Ben and Jerry’s with 11,000 pounds of brownies per day </li></ul></ul><ul><li>Which of the following is NOT provided by Eileen Fisher? </li></ul><ul><ul><li>Onsite yoga and massage </li></ul></ul><ul><ul><li>A car after one year of working for the company </li></ul></ul><ul><ul><li>$1,000 education benefit per year </li></ul></ul><ul><ul><li>After 5 years at the company $5,000 towards a vacation </li></ul></ul>2-

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