Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 2-1 Chapter 2 Business Ethics and Social Responsibility Business.

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Presentation transcript:

Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 2-1 Chapter 2 Business Ethics and Social Responsibility Business ethics – the standards of business conduct and moral values governing actions and decisions in the workplace. Social Responsibility – in a general sense, it’s management’s acceptance of the obligation to consider profit, consumer satisfaction and societal well-being of equal value in evaluating the firm’s performance.

Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 2-2 Concern for Ethical and Societal Issues Businesses are responsible to the following groups: Customers - Employees - Investors - Society- Good pay, benefits, safety Quality, service, good prices Profits, return on investment Protect environment, philanthropy

Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 2-3 Individuals make a difference Stages of Individual Moral and Ethical Development

Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 2-4 How Organizations Shape Ethical Conduct Structure of an Ethical Environment “Lead by Example” Anonymous hotline Code of Conduct Train how to recognize and reason through ethical situations. Examples:

Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 2-5 Common Business Ethical Challenges

Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 2-6 Conflict of Interest – situation where an employee must make a decision about the business’s welfare versus personal gain. Examples: Real estate agent representing the buyer and seller Accepting a gift or bribe for special treatment Represent competing companies How do you handle a potential conflict of interest? Either Avoid it or Disclose it

Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 2-7 Responsibilities of Business

Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 2-8 Responsibilities to Customers Consumerism—public demand that a business consider the wants and needs of its customers in making decisions.

Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 2-9 Responsibilities to General Public Public Health Issues Protect the Environment Develop the Quality of Workforce Corporate Philanthropy Responsibilities to Employees Workplace Safety Quality of Life Issues Ensuring Equal Opportunity Keep safe from Sexual Harassment

Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 2-10

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Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved Toyota markets environment friendly cars

Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved Chevrolet Corporate Philanthropy: The Chevrolet Michelle Kwan REWARDS Scholarship Program

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