© Prentice Hall, 2005Excellence in Business, Revised Edition Chapter Ethical and Social Responsibilities of Business

© Prentice Hall, 2005Excellence in Business, Revised Edition Chapter Ethics in the Workplace Two important concepts –Social responsibility Profits Society –Ethical behavior Principles Standards

© Prentice Hall, 2005Excellence in Business, Revised Edition Chapter What is Ethical Behavior? Competing fairly and honestly Communicating truthfully Not causing harm to others

© Prentice Hall, 2005Excellence in Business, Revised Edition Chapter Examples of Corporate Fraud Adelphia ImClone WorldCom Tyco Enron

© Prentice Hall, 2005Excellence in Business, Revised Edition Chapter Factors Influencing Ethical Behavior Cultural differences Knowledge Organizational behavior Legislation

© Prentice Hall, 2005Excellence in Business, Revised Edition Chapter Making Ethical Decisions Is It Ethical? PhilosophicalApproachesStakeholderIssues OutsidersSupervisors EmployeesUtilitarianism Individual, Legal and Human Rights Principles of Justice Legality and Balance Acceptability Feasibility

© Prentice Hall, 2005Excellence in Business, Revised Edition Chapter Types of Ethical Situations Ethical dilemmas Ethical lapses

© Prentice Hall, 2005Excellence in Business, Revised Edition Chapter 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

© Prentice Hall, 2005Excellence in Business, Revised Edition Chapter Percentage of Executives Who “Strongly Agree” or “Agree” That Companies Should: Be environmentally responsible Be ethical in operations Earn profits Employ local residents Pay taxes Encourage and support employee volunteering Contribute money and leadership to charities Be involved in economic development Be involved in public education Involve community representatives in business decisions Target a portion of purchasing toward local vendors Help improve quality of life for low-income populations Percentage

© Prentice Hall, 2005Excellence in Business, Revised Edition Chapter Balancing Business and Stakeholders’ Rights Business Investors Consumers Employees Society

© Prentice Hall, 2005Excellence in Business, Revised Edition Chapter Corporate Social Responsibility Social audit Cause-related marketing Philanthropy

© Prentice Hall, 2005Excellence in Business, Revised Edition Chapter Causes of Pollution Industrial discharges Vehicle emissions Chemical spills

© Prentice Hall, 2005Excellence in Business, Revised Edition Chapter Government Efforts to Reduce Pollution Environmental protection agency –Regulate air and water –Reduce automobile emissions –License pesticides –Control toxic substances –Safeguard drinking water

© Prentice Hall, 2005Excellence in Business, Revised Edition Chapter Business Efforts at Reduction Environmental issues Environmental staff Performance expectations Performance rewards Long-term cost Product development Supplier expectations Training and awareness

© Prentice Hall, 2005Excellence in Business, Revised Edition Chapter Responsibility Toward Consumers The right to safe products The right to be informed The right to choice The right to be heard

© Prentice Hall, 2005Excellence in Business, Revised Edition Chapter Responsibility Toward Investors Fair profit distribution Social responsibility Ethical behavior

© Prentice Hall, 2005Excellence in Business, Revised Edition Chapter Responsibility Toward Employees Equal employment opportunity Affirmative action Americans with Disabilities Act Occupational health and safety

© Prentice Hall, 2005Excellence in Business, Revised Edition Chapter Global Ethics and Social Responsibility Bribery Environmental abuse Unscrupulous business practices