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Business Ethics And
Social Responsibility
Chapter Objectives
2-1
1.
2.
3
3.
4.
5.
6.
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2-2
Define business ethics and explain what it means
to act ethically
Solve ethical dilemmas and make ethical
decisions
Identify ethical issues in business and
rationalizations for unethical behavior
Specify actions managers take to create/sustain
ethical organizations
Explain how organizations are responsible to
stakeholders
Identify threats to natural environment and
how businesses are addressing them.
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Idea of Business Ethics
2-3
¾ What Is Ethics
Ethics??
Ethical
Organizational Activities
2-4
9 Treat People Fairly
– Ethical Behavior
9 Fairness = Top Priority
– Business Ethics
9 Everyone Accountable
9 Communicate
C
i t C
Core V
Values
l
tto All
¾ What
h Is Sociall Responsibility?
bl
9 Demand/Reward Integrity from All
– Corporate Social Responsibility
– Stakeholders
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Exploring Business © 2009 FlatWorld Knowledge
Best Corporate Citizens
•
•
•
•
•
Proctor & Gamble
Intel
Avon
Herman Miller
Timberland
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• Cisco
• Southwest
Airlines
• AT & T
• Starbucks
St b k
• Merck
• Medtronic
2-5
Employee Attitudes In
Unethical Companies
2-6
• Uneasy About Work
• Object To Way Treated
• Uncomfortable About How
Co--Workers Treated
Co
• Question Management
Directives & Policies
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Why Study Ethics?
? Ethics of future not the
same as today/past
? Understand what is/isn’t
acceptable/unacceptable
? Recognize/deal with
ethical challenges
? Know right/wrong =
marketable job candidate
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Ethical Challenges
Ethical
Self--Examination, “I’m...
Self
2-7
1)
Always Ethical
2)
Mostly Ethical
3)
Somewhat Ethical
4)
Seldom Ethical
5)
Never Ethical
2-8
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Ethical
2-9
• “…arise in...business
organizations
[because] multiple
[because]…multiple
stakeholders…make conflicting
demands.”
2-10
oDilemmas
Dilemmas-- problematic
situations
o DecisionsDecisions- Ethical Lapse
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How To Face an Ethical
Dilemma
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2-11
How To Avoid
an Ethical Lapse
2-12
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Basic Situations
Causing Ethical Issues
U
U
U
U
U
2-13
• Timing
• Type
T
™Connection
™Check Company Policy
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Exploring Business © 2009 FlatWorld Knowledge
2-15
• “…individuals must choose between
taking actions that promote their
personal interests over the interests of
others.”
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How to Maintain
Honesty & Integrity
2-14
™Cost of Item
™Gift
Bribes
Conflicts of Interest
Conflicts of Loyalty
Issues of Honesty and Integrity
Whistle--blowing
Whistle
Conflict of Interest
Bribes Vs. Gifts
Conflicts Of Interest
2-16
[Interferes With Best Interest of Company
Stakeholders
[Use of Private Information
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2-17
Whistle--Blowing
Whistle
2-18
)Applauded or Shunned
)Career Suicide
)Sarbanes
Sarbanes--Oxley
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Common Rationalizations
1) My Behavior Isn’t
2)
3)
4)
Really Illegal Or
Immoral
My Action Is In
Everyone’s
Everyone s Best
Interests
No One Will Find Out
What I’ve Done
The Company Will
Condone My Action
And Protect Me
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Formal
Code Of Conduct:
Ethics Influencers
2-19
2-20
yMembers of Organization
yTop Managers & Supervisors
yCo
Co--Workers & Subordinates
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Corporate
Social Responsibility
2-21
2-22
• “…the approach…an organization
takes in balancing its responsibilities
toward...stakeholders when
making decisions ”
making…decisions.
Principles & Guidelines
Topics
- Use Of Corporate Funds & Resources
- Conflict Of Interest
- Protection Of Proprietary Information
Enforcement
Encourages & Provides Instructions for Reporting
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The Corporate Citizen
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Stakeholders &
Responsibility
2-23
2-24
v Owners
Owners-- Fiduciary
v Employees
•
•
•
•
Safety & Health
Free from Sexual Harassment
Equal Opportunity & Diversity
Wages & Benefits
v Customers
v Communities
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Workplace Deaths
by Event/Exposure
2-25
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Median Annual Earnings by
Gender and Race
& Right To Safe Products
& Right To Be Informed
& Right
Ri ht To
T Ch
Choose
2-26
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2-27
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Responsibilities
to Customers
Workplace Deaths by
Occupations
Median Annual Earnings by Gender,
Age, and Degree Level
2-28
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2-29
Responsibilities
to Community
2-30
%Financial Contributions
%Volunteerism
%Supporting Social Causes
& Right To Be Heard
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Business Community
& Environmental Issues
2-31
àLand Pollution
àAir Pollution
àWater Pollution
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