BUSINESS ETHICS AND SOCIAL RESPONSIBILITY

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Presentation transcript:

BUSINESS ETHICS AND SOCIAL RESPONSIBILITY CHAPTER 2 BUSINESS ETHICS AND SOCIAL RESPONSIBILITY

IS THE STUDY OF HOW PEOPLE OUGHT TO ACT ETHICS IS THE STUDY OF HOW PEOPLE OUGHT TO ACT

NOT HOW THEY ACT

WORLDCOM

HEALTHSOUTH

ImClone

WORLDCOM

HEALTHSOUTH

ImClone

LAW AND ETHICS MAY NOT ALWAYS AGREE

SOMETIMES IT IS ETHICAL TO COMMIT AN ILLEGAL ACT AND SOME LEGAL ACTS ARE UNETHICAL

THERE ARE TWO TYPES OF LAWS JUST AND UNJUST AN UNJUST LAW IS NOT LAW AT ALL (Dr. Martin Luther King, Jr., quoting St. Augustine)

WHY BOTHER WITH ETHICS? Society as a whole benefits People feel better when they behave ethically Unethical behavior can be costly

ETHICAL CHECK LIST What are the facts? What are the critical issues? Who are the stakeholders? What are the alternatives? Is it legal? How would it look in the light of the day?

ETHICAL CHECK LIST, CONT’D. What are the consequences? Does it violate important values? Does it violate the Golden Rule? Is it just? Has the process been fair?

ETHICAL RESPONSIBILITIES To other To customers employees To stakeholders To the company To society

THE BEST BEHAVIOR The best way to infuse ethics throughout an organization is for top management to behave ethically themselves.

Ethical behavior offers significant advantages: society as a whole benefits; executives who behave ethically have happier, more fulfilled lives; and unethical behavior can destroy a company!

CHESTER’S RULES FOR ETHICAL BEHAVIOR

WHEN IN DOUBT, DON’T

IF IT SMELLS BAD, IT PROBABLY IS

IF IT SOUNDS TO GOOD TO BE TRUE, IT PROBABLY IS

NEVER DO ANYTHING YOU WOULD BE EMBARRASSED TO TELL YOUR MOTHER ABOUT