Social and
Ethical
Responsibility
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Social and Ethical Responsibility
Chapter 24
Social and Ethical
Responsibility
24.1
Social Responsibility
24.2
Ethical Responsibility
2
Social and Ethical Responsibility
24.1
Explain the relationship between
entrepreneurs and social responsibility.
Explain how to develop a code of ethics.
List special ethical problems that
entrepreneurs face.
Section 24.1 Social Responsibility
3
Social and Ethical Responsibility
24.1
Businesses must do more than provide jobs and
make a profit.
They also are expected to run their business
responsibly.
Section 24.1 Social Responsibility
4
Social and Ethical Responsibility
24.1
philanthropy
social responsibility
Environmental Protection Agency (EPA)
Section 24.1 Social Responsibility
5
Social and Ethical Responsibility
Entrepreneurs and Social
Responsibility
Being a responsible
entrepreneur involves more
than philanthropy.
Section 24.1 Social Responsibility
philanthropy the act of
making charitable
donations to improve the
welfare of society
6
Social and Ethical Responsibility
Entrepreneurs and Social
Responsibility
For a business to survive,
it must exhibit social
responsibility.
Section 24.1 Social Responsibility
social responsibility
the principle that
companies should
contribute to the welfare
of society and not be
solely devoted to
maximizing profits
7
Entrepreneurs and Social Responsibility
Section 24.1 Social Responsibility
8
Social and Ethical Responsibility
Your Responsibility to
Customers
Guidelines for your responsibility to customers
include:
Do not mislead customers.
Give complete information regarding proper use.
Label unsafe products as such.
Offer the best quality products at the lowest
prices.
Section 24.1 Social Responsibility
9
Social and Ethical Responsibility
Your Responsibility to the
Environment
The Environmental
Protection Agency (EPA)
enforces environmental
laws and regulations.
Section 24.1 Social Responsibility
environmental
protection agency an
independent federal
agency established to
coordinate programs and
enforce regulations aimed
at reducing pollution and
protecting the
environment
10
Social and Ethical Responsibility
Your Responsibility to the
Environment
To protect the environment:
Employ environmental affairs personnel.
Eliminate wasteful practices and emissions
of pollutants from manufacturing processes.
Improve products to increase efficiency.
Section 24.1 Social Responsibility
11
Social and Ethical Responsibility
Contributing to the
Community
Many small businesses have found ways to be
generous to the community, including:
donating their products and services
involving employees in philanthropy
joining with other companies to promote
social responsibility
Section 24.1 Social Responsibility
12
Social and Ethical Responsibility
Being a Socially
Responsible Employer
As a small business owner, you have a
responsibility to treat your employees fairly.
You can offer flextime, health care, telecommuting,
on-site child care, and assistance to employees
with impairments.
Section 24.1 Social Responsibility
13
Social and Ethical Responsibility
Being a Socially
Responsible Employee
Personal responsibility is the basis of social
responsibility.
Responsible employees maintain high ethical
standards when dealing with coworkers,
management, and customers.
Section 24.1 Social Responsibility
14
Social and Ethical Responsibility
24.1
1. Explain the relationship between
entrepreneurs and social responsibility.
Beyond the philanthropic side of social
responsibility, entrepreneurs have a duty to
create safe products, treat customers and
employees fairly, and run honest businesses.
Section 24.1 Social Responsibility
15
Social and Ethical Responsibility
24.1
2. Discuss how entrepreneurs can contribute
to their communities.
Entrepreneurs can contribute by donating
products and services, getting employees
involved in philanthropy, and joining with other
companies to promote social responsibility.
Section 24.1 Social Responsibility
16
Social and Ethical Responsibility
24.2
Define ethics and ethical behavior.
Explain how to develop a code of ethics.
List special ethical problems that
entrepreneurs face.
Section 24.2 Ethical Responsibility
17
Social and Ethical Responsibility
24.2
Ethics are guidelines for human behavior.
They are the moral code by which people live and
conduct business.
Ethics help people decide how to act in situations
where moral issues are involved.
Section 24.2 Ethical Responsibility
18
Social and Ethical Responsibility
24.2
ethics
ethical behavior
business ethics
Section 24.2 Ethical Responsibility
code of ethics
conflict of interest
bribes
19
Social and Ethical Responsibility
What Does It Mean to
Be Ethical?
It is important for an
entrepreneur to have clear
ethics policies governing
ethical behavior, because
not everyone has the same
standards.
Section 24.2 Ethical Responsibility
ethics guidelines for
human behavior; the
moral code by which
people live and conduct
business
ethical behavior
conduct that adheres to
the moral code by which
people live and conduct
business
20
Social and Ethical Responsibility
Understanding Your
Values
The benefits of understanding your value
system are:
You make better decisions because you base
them on your values.
You are able to persuade others to agree with
you when you are confident about your values.
You usually do not regret decisions you make
based on your values.
Section 24.2 Ethical Responsibility
21
Social and Ethical Responsibility
What Are Business
Ethics?
A business owner without
good business ethics can
not expect his or her
employees to act ethically.
Section 24.2 Ethical Responsibility
business ethics the
study of behavior and
morals in a business
situation
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Social and Ethical Responsibility
Are Everyone’s Ethics
the Same?
People do not share the same ethical values.
Because not everyone has high ethical
standards, entrepreneurs need to create clear
ethics policies.
Section 24.2 Ethical Responsibility
23
Social and Ethical Responsibility
Developing a Code
of Ethics
Many entrepreneurs
develop an explicit code of
ethics that spells out
appropriate business
conduct.
Section 24.2 Ethical Responsibility
code of ethics ethical
behavior guidelines that
govern the day-to-day
activities of a profession
or organization
24
Social and Ethical Responsibility
Written Versus Unwritten
Codes
Codes of ethics can be written or unwritten.
Follow these steps to create guidelines:
1.
2.
3.
4.
Brainstorm ethical dilemmas.
Discuss potential solutions.
Write a set of general guidelines.
Improve your code.
Section 24.2 Ethical Responsibility
25
Social and Ethical Responsibility
Special Problems for
Entrepreneurs
Entrepreneurs have some typical ethical
problems.
Conflicts of interest
Bribes
Desperate measures
Cultural differences
Patent of copyright infringement
Section 24.2 Ethical Responsibility
26
Social and Ethical Responsibility
Conflict of Interest
If an entrepreneur faces a
conflict of interest, he or
she should not put aside
ethics to meet a short-term
goal.
Section 24.2 Ethical Responsibility
conflict of interest a
clash between a person’s
private interests and his
or her responsibilities in a
position of trust
27
Social and Ethical Responsibility
Bribes
In some parts of the world,
bribes are an accepted
part of doing business.
bribe a payment made
to secure special services
for a business or special
consideration for its
products
Bribes are illegal in the
United States.
Section 24.2 Ethical Responsibility
28
Social and Ethical Responsibility
24.2
1. Define ethics and ethical behavior.
Ethics are guidelines for human behavior. They
are the moral code by which people live and
conduct business. Ethical behavior is conduct
that adheres to a moral code.
Section 24.2 Ethical Responsibility
29
Social and Ethical Responsibility
24.2
2. Explain how to develop a code of ethics.
(1) Brainstorm ethical dilemmas. (2) Discuss potential
solutions. (3) Write a set of general guidelines, that offer
a range of acceptable ways to deal with different
situations. (4) Improve the code. When a new situation
or solution occurs, add it to the guidelines.
Section 24.2 Ethical Responsibility
30
Social and Ethical Responsibility
24.2
3. List special ethical problems that
entrepreneurs face.
Entrepreneurs face conflict of interest, a conflict between
an individual’s private interests and his or her
responsibilities in a position of trust; desperate measures,
doing what has to be done to survive; cultural differences
when dealing with an international market; bribes; and
patent or copyright infringement.
Section 24.2 Ethical Responsibility
31
Social and Ethical Responsibility
Accessibility for All
Web sites often include elements that can limit their
usability for many people.
Make sure that the site you create is accessible to all.
Section 24.2 Ethical Responsibility
32
Social and Ethical Responsibility
Tech Terms
accessible
the capability of a Web site that allows all types of people to access
and use the site’s content
cascading style sheets (CSS)
a feature of HTML that gives users more control over how Web pages
are displayed
Section 24.2 Ethical Responsibility
33
Social and Ethical Responsibility
Tech Terms
screen readers
devices that read a Web site’s content aloud, especially important for
persons with visual impairments
World Wide Web Consortium (W3C)
an organization that produces standards for the World Wide Web
Section 24.2 Ethical Responsibility
34
End of
Social and
Ethical
Responsibility
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