Transcript Chapter 2 Business Ethics and Social Responsibility Business ethics – the standards of business conduct and moral values governing actions and decisions in the workplace. Social.

Chapter 2
Business Ethics and Social
Responsibility
Business ethics – the standards of business
conduct and moral values governing actions
and decisions in the workplace.
Social Responsibility – in a general sense, it’s
management’s acceptance of the obligation to
consider profit, consumer satisfaction and
societal well-being of equal value in evaluating
the firm’s performance.
2-1
Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved.
Concern for Ethical and Societal Issues
 Businesses are responsible to the following
groups:
Customers - Quality, service, good prices
Employees - Good pay, benefits, safety
2-2
Investors -
Profits, return on investment
Society-
Protect environment, philanthropy
Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved.
Individuals make a difference
 Stages of Individual Moral
and Ethical Development
2-3
Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved.
How Organizations Shape Ethical Conduct
 Structure of an Ethical Environment
Examples:
“Lead by Example”
Anonymous hotline
Train how to recognize
and reason through
ethical situations.
Code of Conduct
2-4
Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved.
 Common Business
Ethical Challenges
2-5
Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved.
Conflict of Interest – situation where an employee
must make a decision about the business’s welfare
versus personal gain.
How do you handle a potential conflict of interest?
Either Avoid it or Disclose it
Examples:
•Real estate agent representing the buyer and seller
•Accepting a gift or bribe for special treatment
•Represent competing companies
2-6
Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved.
 Responsibilities
of Business
2-7
Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved.
 Responsibilities to Customers
Consumerism—public demand that a
business consider the wants and needs of its
customers in making decisions.
2-8
Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved.
 Responsibilities to General Public
Public Health Issues
Protect the Environment
Develop the Quality of Workforce
Corporate Philanthropy
 Responsibilities to Employees
Workplace Safety
Quality of Life Issues
Ensuring Equal Opportunity
Keep safe from Sexual Harassment
2-9
Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved.
2-10
Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved.
 Anheuser-Busch:
Encouraging
Responsible Sales
of Alcoholic
Beverages
2-11
Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved.
 Toyota markets
environment
friendly cars
2-12
Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved.
 Chevrolet
Corporate
Philanthropy: The
Chevrolet Michelle
Kwan REWARDS
Scholarship
Program
2-13
Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved.