Part I: Organization of a
Business
2
Business Ethics
&
Social
Responsibilit
y
Learning
Goals
Describe responsibilities of firms to:
1.
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–
–
–
–
–
2.
Customers
Employees
Stockholders
Creditors
Environment
Communities
Explain the cost of fulfilling social
responsibilities
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Key
Terms
商业道德
business ethics
code of ethics 道德规范
social resposibility 社会责任
corporate resposibility 企业责任
customer loyalty 顾客忠诚度
consumerism 用户至上主义
monopoly 垄断
antitrust law 反垄断法
deregulate 解除管制
deposits 存款，押金
interest rates 利率
morale 士气
Key
多样性Terms
• diversity
• sexual harassment 性骚扰
• affirmative action 平权行动
(Br:positive dicrimination)
• grievance policy 申诉政策
• layoffs 裁员
• dilemma 困境
• employee turnover 员工流动
• shareholer activism 股东积极性
• institutional investors 机构投资人
• tradeoff 权衡
Responsibility to
Customers
• Responsible production
practices
– safety
– warning labels
•
Responsible sales
practices
Ways to Ensure Responsibility to
Customers
•
Role of firms:
1. Establish a code of responsibilities (Exhibit 2.1)
2. Monitor complaints
3. Obtain & utilize customer feedback
•
•
Role of consumerism
Role of government: laws on
- product safety
- advertising
- industry competition
Responsibility to
Employees
• Employee
Safety
– workplace
•
Proper Treatment of Employees
– Diversity
– Prevention of sexual harassment


Quid pro quo (交换物）
Hostile environment
– Equal opportunity
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

Civil Rights Act of 1964
EEOC:
Affirmative action
Types of
DiversityReligion
Gender
Beliefs
Age
Race
Ways to Ensure Responsibility to
Employees
•
•
Code of responsibility
Grievance policy
Good example: Marriott
1. sets up a mediation process
2. offers a toll-free number for employees
to call
3. to voice complaints in front of a panel of
employees
Job
Satisfaction
Responsibility to
Stockholders
• Decisions should reflect the best interest
of the owners
–Tie employee compensation to firm
performance
– Disclosure of accurate information about
financials
•
Sarbanes-Oxley Act: the Public Accounting
Reform and Investor Protection Act, 2002
Violations of
Responsibility
 Cases of misleading stockholders: provide
misleading financial information that
exaggerates financial condition
– Oracle Corp.
– Enron (Ken Lay and Jeff Skillings)
– WorldCom (63 year old CEO Ebber’s sentenced to 25
years
– Global Crossing (Inflated earnings, bankruptcy)
– ImClone (Sam and Martha)
– Tyco (Dennis)
Stockholder
Actions
• Shareholder activism
•
Institutional investors
Executive
Compensation
C.E.O.
• X times the average
compensation of
employees
50
0
42
Employee
1980
85
1990
2000
•
Responsibility to
Creditors
Provide accurate information
Make payment
• Inform creditors if having difficulty in
meeting obligations
• If firm does not pay creditors what it
owes them, it may have to file for
bankruptcy.
 Cases of misleading stockholders
•
Responsibility
to
the
• Production
processes, as well as products,
Environment
can harm the environment
– Air Pollution
– Land Pollution
•
Ways to prevent
− firms: change production/packaging
processes, recycle
− government: specific guidelines
Responsibility
Conflicts
Environment
• Environmental expenses vs
company profit
Profitability
Responsibility to the
Community
• Contributions: sponsor local events
Foundations: make charitable contributions
• Charity:
•
Improve firm’s image
• Maximizing social responsibility may conflict
with maximizing firm value
•
– may reduce firm’s ability to provide products at
reasonable prices
中国慈善排行榜
•
•
•
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•
2004中国慈善排行榜发布一张榜单上榜慈善家 50位，合计捐赠款物折
合10.29亿元。
2005中国慈善排行榜上榜慈善家 136位，合计捐赠9.85亿元（含实物捐
赠）。
2006中国慈善排行榜上榜慈善家 162位，合计捐赠15.89亿元（含实物
捐赠）；上榜跨国公司42家，合计捐赠款物折合4.27亿元；上榜上市公
司44家，合计捐赠款物折合 1.2亿元。
2007中国慈善排行榜上榜慈善家 174位，合计捐赠19.1亿元（不含实物
捐赠）；上榜慈善企业222家，合计捐赠20.7亿元。
2008中国慈善排行榜上榜慈善家 149位，合计捐赠16.5亿元（不含物品
捐赠），平均捐赠1107万元；入榜慈善企业 325家，合计捐赠 54.9亿元
（不含物品捐赠），平均捐赠1689万元。
“2009中国慈善排行榜”入榜慈善家 121位，共计捐赠18.84亿元；入
榜慈善企业899家，共计捐赠117.95 亿元（含物品捐赠）。
- 江苏黄埔再生资源利用有限公司董事长陈光标继 2008年获得“中国
首善“称号后，今年获得中国慈善排行榜最高奖项“最具号召力的中国
慈善家”称号，世纪金源集团黄如论、黄涛父子因现金捐赠第一名而获
得“中国首善”称号，四川宏达集团董事长刘沧龙获得“2009慈善特
别贡献奖”。
- 此外，陈逢干、杨受成、匡俊英、王秋杨、李兆会、李清友、杨卓舒、
杨勋、李爱君、孙荫环等10人被评选为“2009十大慈善家”；恒源祥、
浏阳河、顶新集团、前进钢铁、加多宝、TCL、中国人寿、强生、晶龙、
Responsibilities
International
in
Environment
• Awareness
of cultural differences
Avoid unethical payoffs
• Establish ethical global reputation
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Social Responsibility:
• Examples
Apple and IBM
– Invest in education programs
•
Home Depot
– Donates to community programs for housing
projects
– Provided supplies and equipment to 9.11 rescue
efforts
•
Checkers
– Provides jobs for inner-city residents
•
Coca-Cola
– Sponsors Boys and Girls Clubs
Summar
• Business ethics y
influence decisions
•
Firms have basic responsibilities to
–
–
–
–
–
•
customers
employees
stockholders
environment
Community
Social responsibility decisions & impact:
p.59
Conflict Among
Responsibilities
Customers
Communities
Employees
Environment
Stockholders
Creditors
Conflict Among
Responsibilities
Learning Goals
(revisited)
• Describe responsibilities of firms to:
– Customers
– Employees
– Stockholders
– Creditors
– Environment
– Communities
•
Explain the costs