Chapter 4 Business Ethics and Social Responsibility

Learning Objectives Explain business ethics Give reasons why ethical behavior is good for business Define social responsibility Describe the social responsibilities of businesses

Ethics Moral principles by which people conduct themselves personally, socially, or professionally

Business Ethics Rules based on moral principles about how businesses and employees ought to conduct themselves What are some ways that businesses conduct themselves ethically (to customers, to employees)? Unethically?

Code of Ethics A set of guidelines for maintaining ethics in the workplace Sweatshop OSHA

Conflict of Interest A conflict between self-interest and professional obligation

Ethical Questions Is it against the law? Does it violate company or professional policies? Even if everyone is doing it, how would I feel if someone did this to me? Am I sacrificing long-term benefits for short-term gains?

Ethical Decision-Making Process Select the best alternative List the probable effects of the alternatives Decide who might be affected Discover alternative actions Identify the ethical dilemma

Social Responsibility The duty to do what is best for the good of society What ways can a business fulfill its social responsibilities?

Responsibilities of Businesses Customers Employees Society Creditors and Owners

Questions How can producing a good or service a certain way be socially responsible? What is the mission of the Food and Drug Administration (FDA)?

Assignment Using the Internet, look up three Codes of Ethics for various professions ( such as the medical, legal, educational, business). Compare and contrast the Codes of Ethics.