Business Ethics and Social Responsibility
LEARNING OBJECTIVES
After reading this chapter, you should be able to:
1. Explain how individuals develop their personal codes of
ethics and why ethics are important in the workplace.
2. Distinguish social responsibility from ethics, identify
organizational stakeholders, and characterize social
consciousness today.
3. Show how the concept of social responsibility applies both
to environmental issues and to a firm’s relationships with
customers, employees, and investors.
L E A R N I N G O B J E C T I V E S (CONT’D)
After reading this chapter, you should be able to:
4. Identify four general approaches to social responsibility and
describe the four steps that a firm must take to implement a
social responsibility program.
5. Explain how issues of social responsibility and ethics affect
small business.
WHAT’S IN IT FOR ME?
• By understanding the material in this chapter,
you’ll be better able to:
– Assess ethical and socially responsible issues
facing you as an employee and as a boss or
business owner.
– Understand the ethical and socially responsible
actions of businesses you deal with as a consumer
and as an investor.
ETHICS IN THE WORKPLACE
• Ethics
– Beliefs about what’s right and wrong or good and bad
• Ethical Behavior
– Behavior conforming to individual beliefs and social norms about what’s right and
good
• Unethical Behavior
– Behavior conforming to individual beliefs and social norms about what is defined as
wrong and bad
• Business Ethics
– The ethical or unethical behaviors by employees in the context of their jobs
INDIVIDUAL VALUES AND CODES
• Sources of Personal Codes of Ethics
– Childhood responses to adult behavior
– Influence of peers
– Experiences in adulthood
– Developed morals and values
BUSINESS AND MANAGERIAL ETHICS
• Managerial Ethics
– The standards of behavior that guide individual managers
in their work
– Ethics affect a manager’s behavior toward:
• Employees
• The organization
• Other economic agents—customers, competitors,
stockholders, suppliers, dealers, and unions
ASSESSING ETHICAL BEHAVIOR
• Simple Steps in Applying Ethical Judgments
– Gather the relevant factual information
– Analyze the facts to determine the most
appropriate (paling sesuai) moral values
– Make an ethical judgment based on the rightness
or wrongness of the proposed activity or policy
ASSESSING ETHICAL BEHAVIOR
• Ethical Norms and the Issues They Entail
– Utility: (kegunaan)Does a particular act optimize the benefits to
those who are affected by it? Do all relevant parties receive
“fair” benefits?
– Rights: (hak) Does the act respect the rights of all individuals
involved?
– Justice: (keadilan) Is the act consistent with what’s fair?
– Caring: (kepedulian) Is the act consistent with people’s
responsibilities to each other?
COMPANY PRACTICES AND BUSINESS ETHICS
• Encouraging Ethical Behavior Involves:
– Having top management demonstrate its support
of ethical standards
– Instituting programs to provide periodic ethics
training
© 2009 Pearson Education, Inc.
SOCIAL RESPONSIBILITY
• Social Responsibility
– Cara suatu bisnis dalam upaya menyeimbangkan komitmennya terhadap kelompok dan
individu terkait dalam lingkungan sosialnya.
• Organizational Stakeholders
– Groups, individuals, and organizations that are directly affected by the practices of an
organization and, therefore, have a stake in its performance
THE STAKEHOLDER MODEL OF RESPONSIBILITY
• Customers
• Employees
• Investors
• Suppliers
• Local community(environment)