Ethics and Social Responsibility pp
Ethics The moral principles and values that govern actions & decisions by individuals & groups. Doing what is right. Respecting: - colleagues. - colleagues. - integrity of the product/service. - integrity of the product/service. - integrity of communication. - integrity of communication. Laws are society’s values & standards that are enforceable in courts. Unethical vs. illegal (Fig. 4-1).
Determinants of Ethical Behavior Fig. 4-2 Society: sets the general ethical values of a culture and sub-cultures. Business culture & practices: set the boundaries between competitive & unethical behavior. Codes vs. actual behavior. Personal morals & ethical beliefs: may or may not be related to religious beliefs.
Business Espionage Business Espionage The clandestine collection of trade secrets or proprietary information about a company’s competitors. Both unethical & illegal.
Codes of Ethics Formal statements of ethical principles and rules of conduct. AMA Fig. 4-3 (pp ).
Two Views of Ethics Moral idealism = certain values are universal. Utilitarianism = greatest good for the greatest number; benefits exceed costs.
Social Responsibility Responsibility of the organization as part of the larger society. Profit responsibility. Stakeholder responsibility. Social responsibility: - Public interest groups - Public interest groups - Public image - Public image - Doing good frequently good for business - Doing good frequently good for business ex. Green marketing & buildings. ex. Green marketing & buildings.
Sustainable Development Conducting business in a way that protects the natural environment. Has “sustainable” simply become a public relation term for many companies. Other Trends: Carbon Off-sets. Fair Trade.