Matakuliah Tahun : J0712 - Pengantar Bisnis : 2009 Business Ethics and Social Responsibility Pertemuan 03 Business Ethics and Social Responsibility •Outline: –Doing business ethically and responsibly –Ethics in the workplace –Areas of social responsibility –Implementing social responsibility programs Bina Nusantara University 3 What Is Ethic? • Beliefs about what is right and wrong or good and bad in actions that affect others. Bina Nusantara University 4 Ethics in the Workplace • Ethical behavior is behavior conforming to generally accepted social norms concerning beneficial and harmful actions • Unethical behavior is behavior that does not conform to generally accepted social norms concerning beneficial and harmful actions Bina Nusantara University 5 What Is Business Ethics? • Ethical or unethical behaviors by a manager or employer of an organization. Bina Nusantara University 6 Business and Managerial Ethics Managerial ethics are standards of behavior that guide individual managers in their work. Three broad categories: – Behavior toward Employees – Behavior toward the Organization – Behavior toward Other Economic Agents Bina Nusantara University 7 Steps in Making Ethical Judgments Smooth? 1)Clear-Cut Facts? 2)AgreedUpon Moral Values? Bina Nusantara University 8 Expanded Model of Ethical Judgment Making Bina Nusantara University 9 What Is Social Responsibility? • The attempt of a business to balance its commitments to groups and individuals in its environment, including customers, other businesses, employees, investors and local communities Bina Nusantara University 10 What Are Organizational Stakeholders? • Those groups, individuals and organizations that are directly affected by the practices of an organization and who therefore have a stake in its performance. Bina Nusantara University 11 Areas of Social Responsibility • Responsibility Toward the Environment • Responsibility Toward Customers • Responsibility Toward Employees • Responsibility Toward Investors Bina Nusantara University 12 Responsibility Toward the Environment Controlling pollution—the injection of harmful substances into the environment—is a significant challenge to contemporary business. – Air Pollution – Water Pollution – Land Pollution • Toxic Waste Disposal • Recycling Bina Nusantara University 13 Air Pollution - Then, Now, & Future Bina Nusantara University 14 Responsibility Toward Customers • Consumer rights: – Safe Products – Informed About Product – To Be Heard – Choose What To Buy – To Be Educated – Courteous Service Bina Nusantara University 15 Advertising Ethics • Food product labeling • Misleading product claims • Deceptive advertising • Morally objectionable advertising Bina Nusantara University 16 Employer Commitments To Employee • Job Skills • Respect & Compassion – Nondiscrimination – Equal Opportunities for Rewards and Advancement – Physically & Socially Safe Workplace Bina Nusantara University 17 Responsibility to Investors • Improper Financial Management • Check Kiting- Check 21 • Insider Trading • Financial MisrepresentationGAAP Bina Nusantara University 18 Implementing Social Responsibility Programs • Critics of socially responsible business oppose any business activity that threatens profits. • Proponents of socially responsible business believe that corporations are citizens and should help to improve the lives of fellow citizens. Bina Nusantara University 19 Social Responsibility Approaches/Stances • • • • Obstructionist Defensive Accommodative Proactive Obstructionist Low Level Bina Nusantara University Defensive Accommodative Proactive High Level 20 Explanation………. • Obstructionist stance involves the firm doing as little as possible and may involve attempts to deny or cover up violations. • Defensive stance involves the firm meeting only minimum legal requirements in its commitments to groups and individuals in its social environment • Accommodative stance involves the firm, if specifically asked to do so, exceeding legal minimums in its commitments to groups and individuals in its social environment. • Proactive stance involves the firm actively seeking opportunities to contribute to the well being of groups and individuals in the firm’s social environment. Bina Nusantara University 21