Introduction to Business Chapter 9 Conducting Business Ethically & Responsibly

Ethics Ethical Behavior Unethical Behavior Business Ethics Beliefs about what’s right and wrong or good and bad Ethical Behavior Behavior conforming to individual beliefs and social norms about what’s right and good Unethical Behavior Behavior conforming to individual beliefs and social norms about what is defined as wrong and bad Business Ethics The ethical or unethical behaviors by employees in the context of their jobs

Sources of Personal Codes of Ethics Childhood responses to adult (like family members) behavior Influence of peers (in schools, college etc.) Experiences in adulthood (in your career) Developed morals and values (your perception of what you have learnt in your life)

Managerial Ethics The standards of behavior that guide individual managers in their work Ethics affect a manager’s behavior toward: Employees The organization Other economic agents—customers, competitors, stockholders, suppliers, dealers, and unions

Social Responsibility The overall way in which a business attempts to balance its commitments to relevant groups and individuals in its environment, including customers, other businesses, employees, investors, and local communities.

The stakeholder model of Responsibility: Investors Employees Company Local Communities Suppliers customers

Local and International Communities Customers Businesses strive to treat customers fairly and honestly Employees Businesses treat employees fairly, make them a part of the team, and respect their dignity and basic human needs Investors Businesses follow proper accounting procedures, provide information to shareholders about financial performance, and protect shareholder rights and investments Suppliers Businesses emphasize mutually beneficial partnership arrangements with suppliers Local and International Communities Businesses try to be socially responsible