Chapter 4

Ethics and Social Responsibility
 What YOU believe is right or wrong
 These decisions are based on ethics
 Set of Moral principles or vales that govern behavior
 A document that outlines the principles of conduct to
be used in making decisions
 Basically telling you what is RIGHT and what is
 Your boss informs you that your friend is going to be
fired– your friend is about to buy a house…should you
inform him?
 Your colleague has been violating your companies code
of ethics—by accepting expensive gifts from the
salesman. Do you report him- -
 Regulates accounting practices in the U.S.
 2001 Enron used Mark-to-Market Accounting
Keeton will explain)
 This gave birth to S-O---
 Sarbanes – Oxley
 Discrimination laws
 Tell me more
 The Sherman Act 1890
 Abolished monopolies
 Makes it illegal to charge different prices to
 For example steel producers cannot charge GM a
different price than it does Ford
 This makes it so you cannot require consumers to
purchase secondary items
 For example when you buy a computer you do not have
to buy the software as well.
 Bans unfair or deceptive practice
 False advertising
 Food and Drugs – FDA protects against many foods
and drugs
 Consumer Products
 Consumer Product Safety Commission (CPSC) (1972)
 Make sure products are safe
 Conduct recalls
 Credit Card
 Credit Card Act (2010)
 Protect consumers against high interest rates and charges
 1969
 Was created by the EPA to conserver human life, land,
water, and air.
 This act regulates air emissions (mainly from vehciles.
 This act deals with the following for all 50 states
 Acid rain
 Ground level ozone
 Ozone depletion
 Toxic substances in the air
 This gives the EPA authority to control and monitor
clean water standards in the united states.
 Research 5 consumer protection agencies and a brief
description of what they do.
 5 Environmental Agencies and a brief description of
what they do.
 The obligation an individual or company has to solve
social problems
 What are some Example? ? ?
Corporate Responsibility
Did you know? ? ? Corporate Responsibility
 Research two articles
 One giving an example of social responsibility
 One giving an example of Social Irresponsibility