Exploring Business © 2009 FlatWorld Knowledge 2-1 Business Ethics And Social Responsibility.

Exploring Business © 2009 FlatWorld Knowledge

2-1Business Ethics AndBusiness Ethics AndSocial ResponsibilitySocial Responsibility


2-2

Chapter ObjectivesChapter Objectives

1.1. Define Define business ethicsbusiness ethics and explain what it and explain what it means to act ethicallymeans to act ethically

2.2. Solve ethical dilemmas and make ethical Solve ethical dilemmas and make ethical decisionsdecisions

3.3. Identify ethical issues in business and Identify ethical issues in business and rationalizations for unethical behaviorrationalizations for unethical behavior

4.4. Specify actions managers take to Specify actions managers take to create/sustain ethical organizationscreate/sustain ethical organizations

5.5. Explain how organizations are responsible Explain how organizations are responsible to stakeholdersto stakeholders

6.6. Identify threats to natural environment Identify threats to natural environment and how businesses are addressing them.and how businesses are addressing them.


2-3

Idea of Business EthicsIdea of Business Ethics

What Is What Is EthicsEthics??

– Ethical BehaviorEthical Behavior

– Business EthicsBusiness Ethics

What Is What Is Social Responsibility?Social Responsibility?

– Corporate Social ResponsibilityCorporate Social Responsibility

– StakeholdersStakeholders


2-4Ethical Ethical Organizational ActivitiesOrganizational Activities

Treat People FairlyTreat People Fairly

Fairness = Top PriorityFairness = Top Priority

Everyone Accountable Everyone Accountable

Communicate Core Values to AllCommunicate Core Values to All

Demand/Reward Integrity from AllDemand/Reward Integrity from All


2-5

Best Corporate CitizensBest Corporate Citizens

• Proctor & GambleProctor & Gamble• IntelIntel• AvonAvon• Herman MillerHerman Miller• TimberlandTimberland

• CiscoCisco• Southwest Southwest

AirlinesAirlines• AT & TAT & T• StarbucksStarbucks• MerckMerck• MedtronicMedtronic


2-6Employee Attitudes InEmployee Attitudes InUnethical CompaniesUnethical Companies

• Uneasy About WorkUneasy About Work

• Object To Way TreatedObject To Way Treated

• Uncomfortable About How Uncomfortable About How Co-Workers TreatedCo-Workers Treated

• Question Management Question Management Directives & PoliciesDirectives & Policies


2-7

Why Study Ethics?Why Study Ethics?

? Ethics of future not Ethics of future not the same as the same as today/pasttoday/past

? Understand what Understand what is/isn’t is/isn’t acceptable/unacceptaacceptable/unacceptableble

? Recognize/deal with Recognize/deal with ethical challengesethical challenges

? Know right/wrong = Know right/wrong = marketable job marketable job candidatecandidate


2-8EthicalEthicalSelf-Examination, “I’m...Self-Examination, “I’m...

1)1) Always EthicalAlways Ethical

2)2) Mostly EthicalMostly Ethical

3)3) Somewhat EthicalSomewhat Ethical

4)4) Seldom EthicalSeldom Ethical

5)5) Never EthicalNever Ethical


2-9

Ethical ChallengesEthical Challenges

•“…“…arise in...business arise in...business organizations [because]…organizations [because]…

multiple stakeholders…make multiple stakeholders…make conflicting demands.”conflicting demands.”


2-10

EthicalEthical

o Decisions- Ethical LapseDecisions- Ethical Lapse

oDilemmas- problematic Dilemmas- problematic situationssituations


2-11How To Face an Ethical How To Face an Ethical DilemmaDilemma


2-12How To AvoidHow To Avoidan Ethical Lapsean Ethical Lapse


2-13Basic SituationsBasic SituationsCausing Ethical IssuesCausing Ethical Issues

BribesBribes Conflicts of InterestConflicts of Interest Conflicts of LoyaltyConflicts of Loyalty Issues of Honesty and IntegrityIssues of Honesty and Integrity Whistle-blowingWhistle-blowing


2-14

Bribes Vs. GiftsBribes Vs. Gifts

Cost of ItemCost of ItemGiftGift

•TimingTiming

•TypeType

ConnectionConnectionCheck Company PolicyCheck Company Policy


2-15

Conflict of InterestConflict of Interest

• “…“…individuals must choose individuals must choose between taking actions that between taking actions that

promote their personal interests promote their personal interests over the interests of others.”over the interests of others.”


2-16

Conflicts Of InterestConflicts Of Interest

Interferes With Best Interest of Interferes With Best Interest of

Company StakeholdersCompany Stakeholders

Use of Private InformationUse of Private Information


2-17How to MaintainHow to MaintainHonesty & IntegrityHonesty & Integrity


2-18

Whistle-BlowingWhistle-Blowing

Applauded or ShunnedApplauded or ShunnedCareer SuicideCareer SuicideSarbanes-OxleySarbanes-Oxley


2-19Common RationalizationsCommon Rationalizations

1)1) My Behavior Isn’t My Behavior Isn’t Really Illegal Or Really Illegal Or ImmoralImmoral

2)2) My Action Is In My Action Is In Everyone’s Best Everyone’s Best InterestsInterests

3)3) No One Will Find Out No One Will Find Out What I’ve DoneWhat I’ve Done

4)4) The Company Will The Company Will Condone My Action Condone My Action And Protect MeAnd Protect Me


2-20

Ethics InfluencersEthics Influencers

Members of OrganizationMembers of Organization

Top Managers & SupervisorsTop Managers & Supervisors

Co-Workers & SubordinatesCo-Workers & Subordinates


2-21FormalFormalCode Of Conduct:Code Of Conduct:

Principles & GuidelinesPrinciples & Guidelines TopicsTopics

- Use Of Corporate Funds & ResourcesUse Of Corporate Funds & Resources- Conflict Of InterestConflict Of Interest- Protection Of Proprietary InformationProtection Of Proprietary Information

EnforcementEnforcement Encourages & Provides Instructions for ReportingEncourages & Provides Instructions for Reporting


2-22CorporateCorporateSocial ResponsibilitySocial Responsibility

• “…“…the approach…an the approach…an organization takes in balancing organization takes in balancing

its responsibilities its responsibilities toward...stakeholders when toward...stakeholders when

making…decisions.”making…decisions.”


2-23

The Corporate Citizen The Corporate Citizen


2-24Stakeholders & Stakeholders & ResponsibilityResponsibility

Owners- FiduciaryOwners- Fiduciary EmployeesEmployees

• Safety & HealthSafety & Health• Free from Sexual HarassmentFree from Sexual Harassment• Equal Opportunity & DiversityEqual Opportunity & Diversity• Wages & BenefitsWages & Benefits

CustomersCustomers CommunitiesCommunities


2-25Workplace DeathsWorkplace Deathsby Event/Exposureby Event/Exposure


2-26Workplace Deaths by Workplace Deaths by OccupationsOccupations


2-27Median Annual Earnings Median Annual Earnings by Gender and Race by Gender and Race


2-28Median Annual Earnings by Gender, Median Annual Earnings by Gender, Age, and Degree Level Age, and Degree Level


2-29ResponsibilitiesResponsibilitiesto Customersto Customers

Right To Safe ProductsRight To Safe Products

Right To Be InformedRight To Be Informed

Right To ChooseRight To Choose

Right To Be HeardRight To Be Heard


2-30ResponsibilitiesResponsibilitiesto Communityto Community

Financial ContributionsFinancial Contributions VolunteerismVolunteerism Supporting Social CausesSupporting Social Causes


2-31Business CommunityBusiness Community& Environmental Issues& Environmental Issues

Land PollutionLand Pollution

Air PollutionAir Pollution

Water PollutionWater Pollution

Exploring Business © 2009 FlatWorld Knowledge 2-1 Business Ethics And Social Responsibility.

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Transcript of Exploring Business © 2009 FlatWorld Knowledge 2-1 Business Ethics And Social Responsibility.