Transcript Chapter 3
Chapter 4 Social Responsibility Business Ethics is a Component of Social Responsibility business ethics comprises principles & standards that guide behavior in business social responsibility refers to an organization’s obligation to maximize its positive impact on stakeholders and to minimize its negative impact dimensions of social responsibility: legal, economic, ethical, and philanthropic The Legal Dimension... refers to obeying laws and regulations established by government to set minimum standards of acceptable behavior laws are passed because society does not always trust business to act in their best interests Types of Laws... civil law-defines the rights and duties of individuals and organizations criminal law-prohibits specific actions and imposes punishment for breaking the law difference between the two: enforcement – criminal laws are enforced by the state or nation – civil laws are enforced by individuals (generally in court) How are business ethics disputes generally resolved? Business ethics disputes are generally resolved through lawsuits. Most laws affecting business fall into one of 5 categories: – – – – laws regulating competition (prevent restraint of trade) laws protecting consumers (safety, disclosure…) laws protecting the environment (air, water, noise) laws protecting equity & safety (discrimination, workplace safety, equal employment practice) – incentives for compliance (Federal Sentencing Guidelines for Organizations) The Ethical Dimension... behaviors & activities that are expected or prohibited by organizational members, the community, and society, even though these activities are not codified into law. goes beyond compliance with laws & regulations – such behavior has been associated with profits – goes beyond the firm’s wants & needs – should evolve from the culture of the organization Keys to Managing Ethics Programs must consider the values & principles of all key stakeholders of the organization the role and support of top management is critical top management & key stakeholders must address ethical issues affecting the organization on an ongoing basis The Economic Dimension... relates to how resources for the production of goods & services are to be distributed within a system issues of concern: – the economy-inflation, unemployment rates, pollution control & environmental constraints – competition The Philanthropic Dimension… refers to businesses’ contribution to society quality of life issues – responsible production of goods & services – technology improvements…yet not damaging to the environment or jeopardizing personal privacy philanthropic issues – making their communities better places to live strategic philanthropy