This document provides an overview of a chapter on ethics and corporate social responsibility from an introduction to business textbook. It covers: 1. Key concepts that shape personal ethics like justice, utilitarianism, and human rights. 2. How organizations can encourage ethical behavior through codes of ethics, training programs, and leading by example. 3. The concept of corporate social responsibility and a company's responsibilities to stakeholders like employees, customers, society, and investors. 4. Trends in ethics and corporate social responsibility like strategic corporate philanthropy and demonstrating responsibility in global markets.

1. PowerPoint Image Slideshow
Introduction to Business
Chapter 2 MAKING ETHICAL DECISIONS AND MANAGING A SOCIALLY
RESPONSIBLE BUSINESS

2. Learning Outcomes
• What philosophies and concepts shape personal ethical standards?
• How can organizations encourage ethical business behavior?
• What is corporate social responsibility?
• How do businesses meet their social responsibilities to various
stakeholders?
• What are the trends in ethics and corporate social responsibility?

3. Understanding Business Ethics
Ethics is a set of moral
standards for judging
whether something is
right or wrong;
• Individual business
ethics are shaped by
personal choices
• Environment in which
we live and work.
• Can ethics be
taught?
• Why or why not?
• What do you
think?
• What evidence
can you provide
to support your
view?

4. 1. Taking things that don’t belong to you.
2. Saying things, you know are not true.
3. Giving or allowing false impressions.
4. Buying influence or engaging in a conflict of interest.
5. Hiding or divulging information.
6. Taking unfair advantage.
7. Committing improper personal behavior.
8. Abusing another person.
9. Permitting organizational abuse.
10.Violating rules.
11.Condoning unethical actions.
Recognizing Unethical Business Activities

5. Justice
The Question of Fairness
Utilitarianism
Seeking the Best for the
Majority
Following Our Obligations
and Duties
Deontology
Individual Rights
Human rights
What is considered fair
according to the prevailing
standards of society
Focuses on the
consequences of an action
to determine whether it is
right or wrong
Person will follow his or
her obligations to another
individual or society
Upholding one’s duty is
what is considered
ethically correct
implies that certain rights
– to life, to freedom, to
the pursuit of happiness –
are conveyed at birth and
cannot be arbitrarily taken
away; certain rights are
guaranteed by the
government and its laws,
and these are considered
legal rights.

6. Do you think it is either good
business sense or really
unethical that Nike use
sweatshops to save money and
make higher profits?

7. Nike
Sweatshops:
Behind the
Swoosh

8. What
philosophies
and concepts
shape
personal
ethical
standards?
• CONCEPT CHECK
• How are individual business ethics formed?
• What is utilitarianism?
• How can you recognize unethical activities?

9. How Organizations Encourage Ethical Conduct

10. The first step in
making a good
ethical decision is
to recognize
unethical business
activities when
they occur
The Feeling Test. The Newspaper or Social Media Test
A.Making the Right Decision
Establishing a Formal Code of Ethics
A.Offering Ethics-Training Programs
A.Leading by Example

11. Workplace Ethics
1. Of course, Nancy behaved
unethically, but what
would be the possible
reasons for employees to
act this way?
2. Is there anything that
small business owners and
managers for businesses of
all sizes can do to help
prevent these kinds of
actions?

12. Table 2.1 An Ethical Dilemma Used for Employee Training

13. Code of Ethics

14. What are examples of Codes of Ethics, and can they be
a positive influence on workplace behavior?

15. 2. How can
organizations
encourage
ethical
business
behavior?
• CONCEPT CHECK
• What is the role of top management in
organizational ethics?
• What is a code of ethics?

16. Exhibit 2.4 The
Pyramid of
Corporate
Social
Responsibility

17. Illegal and
Irresponsible
Behavior
Irresponsible
but Legal
Behavior
Legal and
Responsible
Behavior
Understanding Social Responsibility
• Legality
• Responsibility

18. Corporate
Social
Responsibili
ty

19. 3. What is
corporate
social
responsibility?
CONCEPT CHECK
•What are the four
components of social
responsibility?
•Give an example of
legal but irresponsible
behavior.

20. What Corporate Social Responsibility (CSR) Has
Become

21. • Responsibilities to Stakeholders
Employees
Providing
jobs to employees,,
Providing a clean
and safe working
environment
Providing job
security
Empowering
employees to make
decisions
Satisfied customers
lead to long-term
relationships;
Long-term stream
of revenue and
profits for the firm
Consumer fraud is
the practice of
deceiving
customers
Failing to honor
warranties or other
promises or selling
goods or services
that do not meet
advertising claims
Customers

22. Responsibilities to Stakeholders
Public
Community with
jobs, goods, and
services
Environmental Protection
Become more
environmentally responsible
Corporate Philanthropy
• Contribution of cash
• Donating equipment and
products
• Supporting the volunteer
efforts of company employees.
Social Investing
Some investors are limiting their investments to securities that
fit within the beliefs about ethical and social responsibility
Investors

23. Rubicon: What we
stand for
Review the various stakeholders described in
Section 2.4 and think about which ones were
discussed in the video.
Employees?
Customers?
Society?
General Public?
Investors?

24. 4. How do
businesses
meet their
social
responsibilities
to various
stakeholders?
• CONCEPT CHECK
• How do businesses carry out their social
responsibilities to consumers?
• What is corporate philanthropy?
• Is a company’s only responsibility to its
investors to make a profit? Why or why not?

25. Trends in
Ethics and
Social
Responsibility
• Changes in Corporate Philanthropy
•
• Strategic Giving
• which ties philanthropy more closely to the
corporate mission or goals and targets donations
to regions where a company operates.

26. Trends in
Ethics and
Social
Responsibility
• A Social Contract between Employer and Employee
•
• There will never be job security.
• You will be employed by us if you add value to the
organization
• You are continuously responsible for finding ways to add
value.
• Demand interesting and important work
• Freedom and resources to perform it well
• Pay that reflects your contribution
• Experience and training needed to be employed here or
elsewhere
•

27. Trends in Ethics and Social Responsibility
• Global Ethics and Social Responsibility
•
• When American businesses expand into global markets
• Take their corporate codes of ethics and policies on social responsibility
with them
• They must respect local practices and customs as well
• Harmony between the organization’s staff and the host population

29. 5. What are the
trends in
ethics and
corporate
social
responsibility?
CONCEPT CHECK
•Describe strategic giving.
•What role do employees
have in improving their job
security?
•How do multinational
corporations demonstrate
social responsibility in a
foreign country?

30. Do you think it is either
good business sense or
really unethical that Nike
use sweatshops to save
money and make higher
profits?

31. Nike Sweatshops:
GoodBusiness Sense or Unethical?
On your Post-it Note write down:
1. Your name
2. Whether your think Nike usingcheap labour and sweatshops to reduce
costs and increase profits is either good business sense or really unethical.
3. Place your Post-it Note on the board where you stand. You can place it
anywhere between good business sense and really unethical.

32. Nike Sweatshops: Behind the Swoosh
Watch the following 20 minute
documentary on Nike.

33. Nike Sweatshops:
GoodBusiness Sense or Unethical?
On your new Post-it Note write down:
1. Your name
2. Whether your STILL think Nike using cheap labour and sweatshops to
reduce costs and increase profits is either good business sense or really
unethical.
3. Place your Post-it Note on the board where you stand. You can place it
anywhere between good business sense and really unethical.

34. Right or Wrong?
Is it ethically correct that Nike uses
sweatshops and cheaplabourtohelp
lower production costs?