McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved. 4-1 Chapter Four Business Ethics, Corporate Social Responsibility, Corporate Governance & Critical Thinking 4

McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved. 4-2 Current Events Current Events Decision Making Decision Making Understand Selves/Others Understand Selves/Others Global Business Global Business Business Ethics?

McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved. 4-3 Pursuit of Profit Pursuit of Profit Not Accountable to Public Not Accountable to Public Call for Change/Adhere to Standards Call for Change/Adhere to Standards Stakeholder Theory Stakeholder Theory Corporate Responsibility

McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved. 4-4 Teleological- Focus on Consequences Teleological- Focus on Consequences Deontological- Focus on Decision/Action Deontological- Focus on Decision/Action Ethical Theories

McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved. 4-5 Rights Theory Rights Theory Modern Modern Strengths vs. Criticisms Strengths vs. Criticisms Kantianism- Categorical Imperative Kantianism- Categorical Imperative Deontological Theories

McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved. 4-6 Justice Theory (1971) Justice Theory (1971) Utilitarianism Utilitarianism Act Act Rule Rule Profit Maximization- Laissez Faire & Adam Smith Profit Maximization- Laissez Faire & Adam Smith Teleological Theories

McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved. 4-7 Codes Codes Instruction Instruction Law Law Improving Responsibility

McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved. 4-8 Shareholder Role Shareholder Role Consider All Interests Consider All Interests Independent Board Independent Board Change Internal Management Structure Change Internal Management Structure Eliminate Perverse Incentives & Management Eliminate Perverse Incentives & Management Improving Governance

McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved. 4-9 Decision Guidelines Facts Alternatives Stakeholders Society The Firm Self Ethics Constraints Action Implement

McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved Non Sequitur Non Sequitur Appeals to Pity Appeals to Pity False Analogies False Analogies Begging the Question- Circular Reasoning Begging the Question- Circular Reasoning Argumentum ad Populum Argumentum ad Populum Thinking Critically

McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved Bandwagon Fallacy Bandwagon Fallacy Argumentum ad Baculum Argumentum ad Baculum Argumentum ad Hominem Argumentum ad Hominem Argument from Authority- Reverence or Respect Argument from Authority- Reverence or Respect False Cause False Cause Critical Thinking (cont’d)

McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved Gambler’s Fallacy Gambler’s Fallacy Reductio ad Absurdum- Slippery Slope Fallacy Reductio ad Absurdum- Slippery Slope Fallacy Appeals to Tradition Appeals to Tradition Lure of the New Lure of the New Sunk Costs Fallacy Sunk Costs Fallacy Critical Thinking (cont’d)

McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved Resist Requests Resist Requests Recognize Unethical Requests Recognize Unethical Requests Buy Time Buy Time Find Mentor/Peer Find Mentor/Peer Find Win-Win Solutions Find Win-Win Solutions Work Within Firm Work Within Firm Prepare to Lose Job Prepare to Lose Job Controlling Unethical Actions