PRIDE
HUGHES
KAPOOR
INTRODUCTION TO
BUSINESS
ELEVENTH EDITION
Chapter Two
Ethics and Social
Responsibility
© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Learning Objectives
1.
2.
3.
4.
5.
6.
Understand what is meant by business ethics
Identify the types of ethical concerns that arise in the
business world
Discuss the factors that affect the level of ethical
behavior in organizations
Explain how ethical decision making can be
encouraged
Describe how our current views on the social
responsibility of business have evolved
Explain the two views on the social responsibility of
business and understand the arguments for and
against increased social responsibility
© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Learning Objectives (cont’d)
7.
8.
9.
10.
Discuss the factors that led to the consumer
movement and list some of its results
Analyze how present employment practices are being
used to counteract past abuses
Describe the major types of pollution, their causes, and
their cures
Identify the steps a business must take to implement a
program of social responsibility
© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Business Ethics Defined
Define Ethics and Business Ethics
Know and be able to discuss the principal
business ethics issues
•
•
•
•
Fairness and Honesty
Organizational Relationships
Conflict of Interest
Communications
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Factors Affecting Ethical Behavior
Be able to discuss the three factors affecting
ethical behavior
• Individual Factors
• Social Factors
• Opportunity
What influences are at play in each of these
factors?
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Encouraging Ethical Behavior
Be able to discuss ways of encouraging ethical
behavior
• External to a specific organization
• Within an organization
- Code of ethics
- Organizational environment
• Whistle-blowing
How do firms define acceptable behavior?
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Social Responsibility
What is Social Responsibility?
• How is it different from ethics?
• Why is it good business?
What are the Guidelines for Making Ethical
Decisions? (Five steps)
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The Evolution of Social
Responsibility in Business
Be able to discuss the evolution of social
responsibility in business
• Early 1900s
- What does Caveat Emptor mean? What does it
have to do with social responsibility?
- What was the prevailing view on the importance of
social responsibility?
• The Great Depression and Beyond
- What happened during the 20th and 21st centuries to
change views on government responsibility and
social responsibility?
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Two Views of Social Responsibility
Be able to compare and contrast the two views
of social responsibility
• Economic Model
• Socioeconomic Model
What are the primary emphases of each model?
What are differences between the two?
© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Social Responsibility and Consumerism
Be able to discuss the principal arguments for and
against increased social responsibility that are
outlined in the book
• Why is there no consensus on the importance of
social responsibility in business?
Define Consumerism
• What are the Six Basic Rights of Consumers?
• Be able to name and discuss the importance of
the major 20th century legislation protecting
consumers
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Major Federal Legislation Protecting
Consumers Since 1960
Federal Hazardous Substances Labeling Act (1960)
Kefauver-Harris Drug Amendments (1962)
Cigarette Labeling Act (1965)
Fair Packaging and Labeling Act (1966)
Motor Vehicle Safety Act (1966)
Truth in Lending Act (1968)
Credit Card Liability Act (1970)
Fair Credit Reporting Act (1971)
Consumer Product Safety Commission Act (1972)
Fair Credit Billing Act (1974)
Equal Credit Opportunity Act (1974)
Magnuson-Moss Warranty-Federal Trade Commission Act (1975)
Amendments to Equal Credit Opportunity Act (1976, 1994)
Fair Debt Collection Practices Act (1977)
Nutrition Labeling and Education Act (1990)
Telephone Consumer Protection Act (1991)
Consumer Credit Reporting Reform Act (1997)
Children’s Online Privacy Protection Act (2000)
Do Not Call Implementation Act (2003)
Credit Card Accountability, Responsibility, and Disclosure Act (2009)
© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Employment Practices
How have employment practices changed since
the mid-20th century?
How has the workforce changed?
What laws exist to protect workers?
What abuses are still problematic?
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Employment Practices
Define Minority
How do Income Levels differ between different
ethnic groups and men and women?
What is Affirmative Action?
• What does it seek to achieve?
• What are the downsides?
Who are the Hardcore Unemployed?
• What programs exist to help this group?
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Concern for the Environment
Define
•
•
•
•
Water Pollution
Air Pollution
Land Pollution
Noise Pollution
What is the Environmental Protection Agency
(EPA)?
Be able to discuss what safeguarding the
environment requires
Be able to list and describe the most important
environmental laws
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Major Environmental Laws
National Environmental Policy Act (1970)
Clean Air Amendment (1970)
Water Quality Improvement Act (1970)
Resource Recovery Act (1970)
Water Pollution Control Act Amendment (1972)
Noise Control Act (1972)
Clean Air Act Amendment (1977)
Resource Conservation and Recovery Act (1984)
Clean Air Act Amendment (1987)
Oil Pollution Act (1990)
Clean Air Act Amendments (1990)
Food Quality Protection Act (1996)
American Recovery and Reinvestment Act (2009)
© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Who Should Pay for a
Clean Environment?
Who pays for pollution clean-ups?
Who should pay?
Why is preventing pollution so problematic?
Is paying for a clean environment a cost of doing
business or not?
Should consumers be responsible for cleaning
up the environment?
© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Implementing a Program of
Social Responsibility
Discuss the steps that go into developing a
program of social responsibility for an
organization
How are social responsibility initiatives funded?
© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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