What is Ethics?
• Our Text: The system of rules that governs
the ordering of values.
• The Handout: the rules or standards which
govern the conduct of a person or a group.
• Others: the principles and standards of
moral behavior that are accepted by society
as right or good (as apposed to wrong or
bad).
1
What is Ethical Behavior
(as applied to business)?
1. Competing Fairly and Honestly
2. Communicating Truthfully
3. Not Causing Harm to Others
2
What is Social Responsibility
• The idea that business has certain
obligations to society beyond the pursuit of
profits—developed early in the 20th century.
3
Ch. 5 Outline (Not From Text)
1. Ethics in the Workplace
2. Social Responsibility in Business
3. Business’s Efforts to Increase Social
Responsibility
4. Ethics and (Corporate) Social
Responsibility Around the World
4
What is Ethical Behavior?
Competing Fairly
and Honestly
Communicating
Truthfully
Not Harming Others
5
Factors Influencing
Ethical Behavior
Cultural Differences
Knowledge
Organizational
Behavior
Legislation
6
Ethical Dilemma vs. Ethical
Lapse
• Ethical dilemma – a situation in which one
must choose between two conflicting but
arguably valid sides.
• Ethical lapse – a situation in which an
individual makes a decision that is clearly
wrong, such as divulging trade secrets to a
competitor.
7
Social Responsibility in Business
Early
20th Century
Maximize
Profits
Middle
20th Century
Provide Jobs
and Pay Taxes
Early
21st Century
Balance Profits
and Social Issues
8
Balancing Business
and Stakeholders’ Rights
Business
Investors
Consumers
Employees
Society
Profits
Fair Disclosure
Informed
Purchase
Equity
Health & Safety
Clean
Environment
Safe
Products
Product
Choice
9
Responsibility
Toward Consumers
The Right to Safe Products
The Right to Be Informed
The Right to Choice
The Right to Be Heard
10
Responsibility Toward
Employees
Equal Employment
Opportunity
Affirmative
Action
Americans with
Disabilities Act
Occupational
Health and Safety
11
Equality in Employment and The
Elimination of Discrimination
•
•
•
•
•
Civil Rights Act of 1964
Civil Rights Act of 1991
Affirmative Action
Diversity Initiatives
American Disabilities Act of 1990
12