Business Ethics Social Responsibility
Business Ethics – principles and standards that determine acceptable conduct in business
Social responsibility – business’s obligation to maximize its positive impact and minimize its negative impact on society
Laws and regulations -- encourage businesses to conform to society’s standards, values, and attitudes
The Role of Ethics in Business
Unethical and/or Illegal
•Accounting fraud
•Deceptive advertising
•Unfair competitive practices
•Internet theftEthical Conduct
•Builds trust
•Promotes confidence
•Validates relationships
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.
Sources of Unethical Behavior in Organizations
1.Overly aggressive financial or business objectives
2.Abusive & intimidating behavior
3.Conflict of interest
4.Fairness & honesty
5.Communications
6.Business relationships
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
Business Ethics
Fairness & honesty – the heart of business ethics
•How employees use resources
•No harm to customers
•Accurate representations
•Disclosure
Ethical Concerns
Communications:
•False/misleading advertising
•Deceptive personal selling tactics
•Product safety and quality
•Unsubstantiated claims
•Product labeling
Business Relationships:
•Relationships with customers
•Relationships with suppliers
•Relationships with co-workers
Plagiarism -- The act of taking someone else’s work and presenting it as your own without mentioning the source
Codes of Ethics – Formalized rules and standards that describe what a company expects of its employees
Improving Ethical Behavior in Business
Ethical decisions in an organizations are influenced by three key factors
Codes of Ethics
Whistleblowing:
The act of an employee exposing an employer’s wrongdoing to outsiders, such as the media or government regulatory agencies.
Nature of Social Responsibility
1.Economic
2.Legal
3.Ethical
4.Voluntary (philanthropic)
Corporate Citizenship:
•The extent to which businesses meet the legal, ethical, economic, and voluntary responsibilities placed on them by their stakeholders.
Owners & Stockholders:
•Primary concern with profit or ROI
•Financial community at large
•Proper accounting procedures
•Protecting owner’s rights and investments
Social Responsibility Issues
Responsibilities to Employees:
•Provide a safe workplace
•Adequate compensation
•Listen to grievances
•Fair treatment
Consumerism – the activities that independent individuals, groups, and organizations undertake to protect their rights as consumers.
Environmental Concerns:
•Animal rights
•Pollution
•Going Green
Responsibilities to Community/Society
•General community and global welfare
•Charitable contributions (United Way)
•Avon’s Breast Cancer Awareness Crusade
•National Alliance of Businessmen
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