Fourth Edition
PART 1 . . . . . . . . . . . . . . . . . . . . . . . .
Understanding the Contemporary
Business Environment
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Conducting Business Ethically
Business Essentials
Chapter 3
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“The more I help others to
succeed, the more I succeed.”
Ray Kroc, Founder, McDonald’s
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Key Topics
Individual codes of ethics and the importance of
ethics in the workplace
Key terms
Social responsibility in U.S. business
Environmental issues and stakeholder relationships
Approaches and implementation
Implications for small business
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What Is Ethical Behavior?
Ethics: Right and wrong,
good and bad, in actions
that affect others
Ethical Behavior:
Conforming to generally
accepted ethical norms
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Ethical Considerations
Regarding a particular act…
Utility:
Does it optimize what is best for those who
are affected by it?
Rights: Does it respect the rights of the individuals
involved?
Justice: Is it consistent with what we regard as fair?
Caring: Is it consistent with people’s responsibilities
to each other?
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Company Practices and
Business Ethics
Best Approach: Open, Honest, Responsive!
The Coca Cola Scare Case
The Tylenol Scare Case
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How Much Privacy Does Your Employer
Owe You?
Email
Internet
Cellular Phones
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Formalizing the Commitment to
Ethics
Adopting Written Codes
Instituting Ethics Programs
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Principles, Ethics, and Corporate Policy
Core Principles &
Organizational
Values
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Social Responsibility: Balancing
Commitments to Stakeholders
Stakeholders: Groups, individuals, and organizations that
are directly affected by the practices of an organization
Employees
Customers
Investors
CORPORATION
Suppliers
Local
Communities
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The Evolution of
Social Responsibility
Contemporary Social
Consciousness
Era of Social Activism
The Great Depression
Entrepreneurial Era
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Responsibility Toward the
Environment
Air pollution
Water pollution
Land pollution
Toxic waste
Recycling
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Responsibility Toward Customers
Consumer Rights
Unfair Pricing
Ethics in Advertising
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Responsibility Toward Employees
Legal & Social
Commitments
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Whistle-blowers
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Responsibility Toward Investors
Improper financial
management
Check kiting
Insider trading
Misrepresentation
of finances
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Approaches to Social Responsibility
Level of Social Responsibility
Highest
Lowest
Obstructionist
Stance
Actively Avoids
Responsibility
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Defensive
Stance
Does Legal
Minimum
Accommodative
Stance
Responds to
Requests
Proactive
Stance
Actively Seeks
Opportunities to
Contribute
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Managing Social Responsibility Programs
Social Responsibility
Social Audit
Appointment of Director
Strategic Planning
Top-Management Support
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Ethics, Social Responsibility,
and the Small Business
Do small businesses
face different issues
with regard to ethics
and social
responsibility?
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Chapter Review
Discuss how individuals develop their personal codes of
ethics.
Explain why ethics matter in the workplace.
Distinguish social responsibility from ethics.
Show how social responsibility applies to environmental
issues and to relationships with customers, employees, and
investors.
Identify four approaches to social responsibility.
Describe the four steps a firm must take to implement a
social responsibility program.
Explain how social responsibly and ethics affect small
business.
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