Chapter 2: Integrity and Ethics Page 36

Integrity and Ethics Point 1- What is Integrity? Definition 1- Integrity Noble beliefs, values, and principles one claims to hold Integrity also refers to honesty, reliability, and a commitment to doing the “right things, regardless of the circumstances

Integrity and Ethics Definition 2- Ethical Issues Situations that deal with “right v. wrong” These situations aren’t just illegal v. legal They mainly deal with what is honest, fair, and respectful What are some ethical issues that effect a business?

Integrity and Ethics Top 7 Ethical Issues for Small Businesses Customer and Competitor Relationships Employment or Promotion Decisions Employee Obligations Relationships with Management

Integrity and Ethics Legal Compliance and Reporting Supplier Relationships Society and The Environment

Integrity and Ethics Work with a Partner Come up with a list of 10 Character Traits you would like to have in Prospective Employees for your company Be prepared to explain your rationale to the class Informal Presentation

Integrity and Ethics Definition 3- Stakeholders Those who can affect the performance of a company or are affected by it

Integrity and Ethics Major Stakeholder Groups Owners Customers Employees Community Government

Integrity and Ethics Point 3- SocRec Businesses should not only treat customers and employees well, but should act as a good citizen in the Community Definition 4- Social Responsibility Broader obligations to business within any community

Integrity and Ethics What are some examples of businesses being responsible to the communities they operate in? Create jobs Add to local tax revenues Social Responsibility involves going the “extra step”

Integrity and Ethics Many entrepreneurs feel it is a responsibility to “give back” Some say “No way!!” What are some benefits and detriments? Increased goodwill Acceptance Increased Sales Costly? No effect on business

Integrity and Ethics Select two companies and research what socially responsible programs they participate in Report on details, costs, concepts, etc. Be prepared to present your findings What would you do with “your company?”

Integrity and Ethics Point 4-What are some of the challenges and benefits for Small Companies acting with Integrity? Improved Financial Performance Enhanced Brand Image and Reputation

Integrity and Ethics Increased Sales Customer Loyalty Improved Quality of products and Productivity Low Employee Turnover TRUST!!!!

Integrity and Ethics Point 5- Integrity and the Online World How does Personal Privacy come into play? Cookies, aka Digital ID tags Usage patterns from a particular IP address Customer Profiles generated Sell them?

Integrity and Ethics Monitor your employees’ Internet activity Is there an expectation of Privacy? Responsible Internet Use Advertising Age states $760 BILLION on people

Integrity and Ethics Point 6- Building a Business with Integrity Key Questions Is it the truth? Is it fair to all concerned? Will it build goodwill? Is it beneficial to all concerned?

Integrity and Ethics What is Sustainability? Use of Eco-friendly concepts Environmentalism LEED Green and Clean Organic Free Range