Chapter 4 – Page 82. Discussion starter:
Is unethical and illegal the same thing?
If it is illegal, is it unethical?
Goals Chapter 4.1
Explain why ethics are important in business
Describe a code of ethics
Discuss ethical dilemmas
Describe laws that deal with ethical dilemmas.
The Main Idea – Chapter 4
This chapter covers the role of ethics and social
responsibility in the business world.
4.1 – Discusses the importance of ethics, codes of
ethics, and laws that affect ethics in business.
4.2- Describes how companies have changed their
attitude toward social responsibility and how some
demonstrate it.
The Importance of Ethics pg 84
What are some of your personal ethics?
When did you form the morals and ethics
you live by?
The Importance of Ethics
•
All individuals develop
their own set of ethical
rules
•
Helps them decide how to
act in certain situations
•
Like us, businesses
develop ethics to help
them determine how to
behave…
Ethics
A set of moral principles
or values that govern
behavior.
Code of Ethics/Conduct
• aka Code of Conduct
• Formal documents that
are shared with all
employees
Code of Ethics
A document that outlines
the principles of conduct
to be used in making
decisions within the
organization.
Code of Ethics/Conduct Examples:
Verizon
Timberland
Kraft Foods
Patagonia
Think of a company and find their code of
ethics/conduct.
How do you feel about their code of conduct?
Verizon Code of Conduct Worksheet
Individually, complete the Verizon Code of
Conduct worksheet
Code of Ethics Homework:
Looking at the Verizon Code of Conduct example on my
wiki, please read it and pick another example to examine.
– Write a one page reflective essay (In MLA format)
comparing and contrasting the two (saved in Drive
as “Code of Conduct Compare and Contrast”)
– While reading, get a feel for the two companies and
what message they are trying to send
– Include how the similarities/difference between the
two makes you feel about the company overall
Code of Ethics. In groups of three…
Consider the school store as our business
Create a Power point code of ethics for the school
cart that should govern our classroom – put group
members names on title slide
No requirements how lengthy or format; put
serious thought into its layout and form. Do you
want a Verizon or Timberland code of ethics or a
mix?
Behaving Honestly pg 87
Enron Scandal
Sarbanes-Oxley Act of 2002- (named after
the politicians who got it started)
– Contains important rules affecting the reporting
and governance of public companies and their
directors and officers.
– Required CEOs and CFOs to certify reports
filed with the SEC
Dealing with Ethical Dilemmas pg 88
Read and discuss
Handout –read and discuss
Teams of two…
Come up with your own ethical dilemma
Discuss with class possible solutions
Laws Relating to Ethics in Business
The Sherman Act of 1890- Illegal for
companies to form a monopoly
The Clayton Act of 1914- Illegal to charge
different prices to different wholesale
customers.
– Ex: Pittsburg Steel can’t charge Honda one thing and
Ford another
– Also bans requiring a customer to purchase a second
good. Ex- PC and Windows operating system
Laws Relating to Ethics in Business
The Wheeler-Lea Act of 1938 - bans unfair
or deceptive acts or practices, including
false advertising
– Must inform consumers of possible negative
consequences of using their product.
Reebok to pay
25 million
The Wheeler-Lea Act of 1938 examples:
Humira
Advair
Consumer Protection pg. 91
Food and Drugs:
The Federal Food, Drug and Cosmetic
Act of 1938- gave power to the FDA to
oversee the safety of food, drugs and
cosmetics that they are not impure,
improperly labeled, falsely guaranteed and
“unhealthful”
Consumer Protection pg. 91
Consumer Products:
The Consumer Product Safety
Commission (CPSC) of 1972- Establishes
minimum product safety standards on
consumer products.
– If they find a product to be defective, they can force
the manufacturer to recall the product.
– Try finding a recalled product, weirder the better!
– Government Recall website, Wal-Mart
Consumer Protection pg. 91
Loans:
Truth in Lending Act of 1968- Creditors
are required to let consumers know how
much they are paying in finance charges
and interest
Environmental Protection pg. 92
National Environmental Policy Act of
1969- this law created the Environmental
Protection Agency (EPA)
– Mission is to protect human health
– Safeguard the air, water, and land
Environmental Protection pg. 92
The Clean Air Act of 1970- Federal law that
regulates air emissions.
China’s Pollution
Environmental Protection pg. 92
Toxic Substances Control Act of 1976 –
Gave the EPA the power to track 75,000
industrial chemicals made here/imported
– EPA screens the chemicals and can require
testing so there is no health/environment
hazard
Environmental Protection pg. 92
The Clean Water Act of 1977 – Gave the
EPA the power to set standards on the type
and amount industries can dump into bodies
of water.
Environmental Protection pg. 92
Intellectual Property
• Patents
• Last for 17 years
• Trademarks
• Last forever as long as
they are renewed
• Copyrights
• Last life of the person
plus 70 years after
death!
Intellectual property
Ownership of ideas, such
as inventions, books,
movies, and computer
programs.
Answer