Ethics and Social Responsibility

Ethics O A set of moral principles by which people conduct themselves personally, socially, or professionally

Business Ethics O A set of ideas about how a company should conduct business in relation to legal, social and environmental issues O Includes practicing in a way that is legal, moral and fair.

Social Responsibility O The duty to do what is best for society O There are two things to promote social responsibility 1. Eliminate negative activities 2. Perform positive activites

Individual LevelCorporate Level TheftDiscrimination Lying and spreading rumorsUnfair pay Accepting bribesSweatshop labor/Child labor Harassing othersMisleading accounting statements StealingNot paying taxes Disobeying company rulesPollution Selling defective products Unsafe work Paying bribes

What are some positive activites a business can support? O Sponsoring charitable campaigns O Training unemployed people for jobs O Allow others to use company facilities for charity O Support mental/physical health of employees O Create a Code of Ethics

Code of Ethics O A statement that explains what a company or group believes is proper and improper conduct. O Applies to individual and company as a whole

Stakeholders O Various individuals or groups of people that have direct interest, involvement, or investment in something O Employees O Unions O Shareholders O Community O Government

Factors that Affect Ethical Decisions O Culture O Religion O Family O History O Precedents O Past acceptance of certain actions O Laws