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ETHICAL
- 2. Business in a ChangingWorld McGraw-Hill/Irwin Copyright © 2009 by the McGraw-Hill Companies, Inc. All rights reserved. Chapter 2 Business Ethics and Social Responsibility
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- 4. Ethisphere links ethicsto profits Publication that illuminates the relationship between ethics and profits. 2-4
- 5. Business Ethics &Social Responsibility Exec who allegedly made $270M off Enron to pay SEC $31.5M Business Ethics – principles and standards that determine acceptable conduct in business 2-5
- 6. Business Ethics &Social Responsibility A Timeline of Ethical and Socially Responsible Concerns 2-6
- 7. Business Ethics &Social Responsibility Social responsibility– business’s obligation to maximize its positive impact and minimize its negative impact on society 2-7
- 8. Business Ethics &Social Responsibility Laws and regulations encourage businesses to conform to society’s standards, values, and attitudes. Sarbanes-Oxley Act - 2002 2-8
- 9. The Role ofEthics in Business Concern about unethical business practices continue – HealthSouth’s accounting improprieties and securities fraud 2-9
- 10. The Role ofEthics in Business Unethical and/or Illegal •Accounting fraud •Deceptive advertising •Unfair competitive practices •Internet theft 2-10
- 11. The Role ofEthics in Business Ethical Conduct •Builds trust •Promotes confidence •Validates relationships Learn how to recognize and resolve ethical issues 2-11
- 12. Recognizing Ethical Issuesin Business Ethical issue – 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. 2-12
- 13. Recognizing Ethical Issuesin Business How to judge the ethics of a situation – examine the situation from your stakeholders’ position, including customers and competitors 2-13
- 14. Types and Incidencesof Observed Misconduct Many business issues may seem straightforward and easy to resolve on the surface, but are in reality very complex. Recognizing Ethical Issues in Business 2-14
- 15. 1. Overly aggressivefinancial or business objectives 2. Abusive & intimidating behavior 3. Conflict of interest 4. Fairness & honesty 5. Communications 6. Business relationships Sources of Unethical Behavior in Organizations 2-15
- 16. Sources of UnethicalBehavior Abusive and intimidating behavior “Bullies” behavior: 2-16
- 17. Conflict of interest– – the most common ethical issue identified by employees. – Advance personal interests over others’ interests – Benefit self at the expense of the company Sources of Unethical Behavior in Organizations 2-17
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- 19. Business Ethics Fairness &honesty – the heart of business ethics •How employees use resources •No harm to customers •Accurate representations •Disclosure 2-19
- 20. Business Ethics Most PopularOffice Supplies Employees Pilfer “More Employees Taking Supplies,” The News Journal 2-20
- 21. Personal Ethics 25,000 highschool students: •62% cheated on exams at least once •35% copied documents from Internet •27% shoplifted •23% cheated to win at sports Honesty? 2-21
- 22. Ethical Concerns •False/misleading advertising •Deceptivepersonal selling tactics •Product safety and quality •Unsubstantiated claims •Product labeling Communications 2-22
- 23. Ethical Concerns •Relationships withcustomers •Relationships with suppliers •Relationships with co-workers Business Relationships 2-23
- 24. Ethical Concerns The actof taking someone else’s work and presenting it as your own without mentioning the source Plagiarism 2-24
- 25. Making Decisions AboutEthical Issues Questions to Consider in Determining Whether an Action Is Ethical Open discussion of ethical issues does not eliminate ethical problems; it does promote trust and learning in an organization. 2-25
- 26. Improving Ethical Behaviorin Business Ethical decisions in an organizations are influenced by three key factors 2-26
- 27. Improving Ethical Behaviorin Business Codes of Ethics – Formalized rules and standards that describe what a company expects of its employees. 2-27
- 28. Improving Ethical Behaviorin Business Key Things to Consider in Developing a Code of Ethics 2-28
- 29. Codes of Ethics Accordingto the NBES, employees in organizations with written standards of conduct are more likely to report misconduct when they observe it. National Business Ethics Survey (NBES) 2-29
- 30. Codes of Ethics Theact of an employee exposing an employer’s wrongdoing to outsiders, such as the media or government regulatory agencies. Whistleblowing 2-30
- 31. Business Ethics –Taking Responsibility 2-31
- 32. Nature of SocialResponsibility 1. Economic 2. Legal 3. Ethical 4. Voluntary (philanthropic) 4 Dimensions 2-32
- 33. Pyramid of SocialResponsibility 2-33
- 34. Nature of SocialResponsibility The extent to which businesses meet the legal, ethical, economic, and voluntary responsibilities placed on them by their stakeholders. Corporate Citizenship 2-34
- 35. Nature of SocialResponsibility 1. Intel Corporation 2. Eaton Corporation 3. Nike Inc. 4. Deere and Co. Best Corporate Citizens 2-35
- 36. Nature of SocialResponsibility Arguments For and Against Social Responsibility 2-36
- 37. Social Responsibility Issues •Primary concern with profit or ROI • Financial community at large • Proper accounting procedures • Protecting owner’s rights and investments Owners & Stockholders 2-37
- 38. Social Responsibility Issues •Provide a safe workplace • Adequate compensation • Listen to grievances • Fair treatment Employee Relations 2-38
- 39. Social Responsibility Issues Consumerism– the activities that independent individuals, groups, and organizations undertake to protect their rights as consumers. Consumer Relations 2-39
- 40. Social Responsibility Issues •Animal rights • Pollution • Going Green Environmental Issues 2-40
- 41. Social Responsibility Issues •Generalcommunity and global welfare •Hardcore unemployed •Charitable contributions (United Way) •Avon’s Breast Cancer Awareness Crusade Community Relations 2-41