Chapter 2: Business Ethics & Social Responsibility 1.Misgoverning Corporations (Overview) 2.The Individual Approach to Ethics 3.Identifying Ethical Issues 4.The Organizational Approach to Ethics 5.Corporate Social Responsibility 6.Environmentalism 7.Stages of Corporate Responsibility (Cases & Problems)

1. Misgoverning Corporations (Overview) Give a definition of business ethics and corporate social responsibility. What are some of the characteristics of an ethical organization? What are some of the drawbacks in working for a business that compromises ethics.

2.The Individual Approach to Ethics What values do you place on your own personal ethical behavior? How do you address an ethical dilemma and make an ethical decision? What is an ethical lapse? What are the five steps in a right vs. right decision?

3.Identifying Ethical Issues Give some examples of the difference between bribes and gifts Define conflict and interest and conflict of loyalty and cite their similarities and differences. What is the definition of insider trading? What is whistleblower and how is it used in business?

4. The Organizational Approach to Ethics Explain organizational behavior and ethical leadership Give examples of work experiences where there were ethical role models leaders. Work experiences where leaders compromised values and beliefs Define code of conduct in business and give examples from your work experience

5.Corporate Social Responsibility What is the definition of corporate social responsibility? Who are the stakeholders? Define fiduciary responsibility Discuss the advantages of company responsibility to employees re: wages, safety, sexual harassment, equal opportunity, diversity What does a socially responsible company owe its customers? The community in which it resides? The community(s) it serves? Should employee volunteerism be mandatory for all major businesses?

6. Environmentalism Do you believe companies have the social responsibility to protect the environment? Why? Should companies who are not good stewards of environment resources be penalized for their actions? For their inactions? Should companies that participate in good environmental practices receive rewards for their efforts?

7.Stages of Corporate Responsibility What are the five faces of corporate responsibility? (name and definition) Give examples for each of the five faces

Cases & Problems Assignment The class will divide into 4 groups: In this exercise each group will answer all 4 questions in the cases and problems section of chapter 2. Be prepared to discuss your answers in your groups in the next class session

Lessons in Community Living Executives consider it an honor to have their company named one of Business Ethics magazine’s “100 Best Corporate Citizens.”Companies are chosen from a group of one thousand, according to how well they serve their stakeholders—owners, employees, customers, and the communities with which they share the social and natural environment. Being in the top one hundred for five years in a row is cause for celebration. Two of the twenty-nine companies that enjoy this distinction are Timberland and the New York Times Company. The two companies are in very different industries. Timberland designs and manufactures boots and other footwear, apparel, and accessories; the New York Times Company is a media giant, with nineteen newspapers (including the New York Times and the Boston Globe), eight television stations, and more than forty Web sites. Link to the Timberland Web site ( and the New York Times Company Web site ( to learn how each, in its own way, supports the communities with which it shares the social and natural environment. Look specifically for information that will help you answer the following questions: 1. How does each company assist its community? To what organizations does each donate money? How do employees volunteer their time? What social causes does each support? 2. How does each company work to protect the natural environment? 3. Are the community-support efforts of the two companies similar or dissimilar? In what ways do these activities reflect the purposes of each organization? 4. In your opinion, why do these companies support their communities? What benefits do they derive from being good corporate citizens?