CHAPTER 7 Social and Ethical Environment of Business Ethical Issues and Social Responsibility

7.3 Ethical Issues and Social Responsibility Learning Outcomes 7.3.1 Describe how ethics relates to business practice. 7.3.2 Suggest ways in which businesses can be socially responsible. 7.3.3 Show integrity by choosing an ethical course. Slide 2

Business Ethics Ethics refers to standards of moral conduct that individuals and groups set for themselves, defining what behavior they value as right or wrong. Business ethics is a collection of principles and rules that define right and wrong conduct for an organization. Code of ethics is a formal, published collection of values and rules that reflect the firm’s philosophy and goals. Slide 3

Social Responsibility of Business Social responsibility refers to the duty of a business to contribute to the well-being of society. Stakeholders are any individuals or groups that are affected by the firm’s actions, such as owners, customers, suppliers, employees, creditors, government, and the public. Slide 4

Examples of Social Responsibility Donating money to flood victims Sponsoring an exhibition on Hindu art at a local museum Providing college scholarships Training reformed gang members in job-related skills Providing day care centers for employees’ children. Slide 5

Social Responsibility of Business (continued) Stakeholders Nongovernmental organizations (NGOs) use lobbying, publicity, and pressure tactics to influence businesses to alter their activities. Assignment Slide 6