>>>>>>>>
 Explain the concepts of business ethics and social
responsibility.
 Analyze and judge common ethical dilemmas in the
workplace using case studies.
 Identify the factors that influence ethical and unethical
business practices.
 Describe the stages in the development of ethical
standards.
 Business Ethics:
The standards of conduct and rules based on moral
principles governing how businesses and
employees should conduct themselves.
 Social responsibility
 Balance between what’s right and what’s profitable
 Often no clear-cut choices
 Often shaped by the organization’s ethical climate
 There are several high profile investigations
and arrests in the headlines….
 Martha Stewart had a billion dollar empire when she
made a decision to sell a stock based on an insider
trading tip from her stock broker in 2004.
 Martha Stewart Article
“She was sentenced to
prison for five
months… and became
the very emblem of
corporate greed.”
“She would never have felt the loss—
she was coming up on a billion
dollars, and by selling those shares
she avoided a loss of $45,673—but
she couldn’t resist the chance to daub
at the blot on her investment record.”
 ENRON Scandal News Clip
 Corporate officers and traders charged
fraud, conspiracy and insider trading.
with
 ENRON was the Largest Corporate Fraud case in American
history.
 ENRON executives’ and traders’ greed eliminated:
 4,500 ENRON jobs
 85,000 Arthur Anderson jobs
 Investors lost over 60 billion dollars within a few days; for
many it meant losing their old-age security.
 Individuals can make unethical choices like:
 Conflict of Interest
 Bribery, gift-giving and receiving
 Invasion of privacy or confidentiality
 Dishonest hiring practices
 Insurance Fraud / Credit Card Fraud
 Internet Abuse
 Conflict of Interest:
 Situation in which a business decision may be influenced
for personal gain.
Situation in which a business
decision may be influenced
for personal gain.
Employee’s disclosure
of illegal, immoral, or
unethical practices in
the organization.
Telling the truth and
adhering to deeply felt
ethical principles in
business decisions.
Business people expect
employees to be loyal
and truthful, but ethical
conflicts may arise.
 Code of Ethics/Conduct:
 A formal set of guidelines for maintaining ethics in the
workplace.
 Codes of Ethics cannot detail a solution for every ethical
situation, so corporations provide training in ethical reasoning
along with a Code of Ethics.
 Ethical Leadership:
 Executives must
demonstrate ethical
behavior in their actions.
 Ethical Action:
 Helping employees
recognize and reason
through ethical problems and
turning them into ethical
actions.
 Social Responsibility:
 The duty to do what is best for the
good of society.
 Management’s consideration of profit,
consumer satisfaction, and societal
well-being of equal value in evaluating
the firm’s performance.
 Contributions to the overall economy,
job opportunities, and charitable
contributions and service.
http://www.tide.com/en-US/loads-of-hope/index.jspx
 Public Health Issues: What to do about inherently
dangerous products such as alcohol, tobacco, vaccines,
and steroids.
 Protecting the Environment: Using resources efficiently,
minimizing pollution.
 Recycling: Reprocessing used materials for reuse.
 Developing the Quality of the Workforce: Enhancing
quality of the overall workforce through education and
diversity initiatives.
 Corporate Philanthropy: Cash contributions, donations of
equipment and products, and supporting the volunteer
efforts of company employees.
 The Right to Be Safe: Safe operation of products, avoiding
product liability.
 The Right to Be Informed: Avoiding false or misleading
advertising and providing effective customer service.
 The Right to Choose: Ability of consumers to choose the
products and services they want.
 The Right to Be Heard: Ability of consumers to
express legitimate complaints to the appropriate parties.
 Workplace Safety: Monitored by  US Equal Employment
(OSHA) Occupational Safety and
Opportunity Commission
Health Administration.
(EEOC): Discrimination by
Type protected by EEOC  Quality-of-Life Issues:
Balancing work and family
Protects workers against many
through flexible work schedules,
different types of
subsidized child care, and
discrimination.
regulation such as the Family
and Medical Leave Act of 1993.
 Ensuring Equal Opportunity
on the Job: Providing equal
opportunities to all employees
without discrimination; many
aspects regulated by law.
 Sexual Harassment and
Sexism: Avoiding unwelcome
actions of a sexual nature;
equal pay for equal work
without regard to gender.
 Obligation to make profits for shareholders.
 Expectation of ethical and moral behavior.
 Investors protected by regulation by the Securities and
Exchange Commission and state regulations.
We will go to the computer lab to look at
three different Business Ethics Case
Studies.
You will use the website provided to read
the case studies and answer the following
questions:
1. What is the ethical issue?
2. What ethical action should be taken?
Corporate Social Responsibility
Use the internet to find a company that is
“Socially Responsible” like General Mills
(Yoplait) or Proctor and Gamble (Tide)
On the worksheet provided, give a brief
overview of your company, and what
programs they have participated in or
implemented to be socially responsible
corporate citizens.