Personal Ethics Have you ever cheated on exams? copied documents from Internet shoplifted cheated to win at sports Honesty? 2-1

Business Ethics & Social Responsibility Business Ethics – principles and standards that determine acceptable conduct in business 2-2

Business Ethics & Social Responsibility Social responsibility– business’s obligation to maximize its positive impact and minimize its negative impact on society 2-3

Business Ethics & Social Responsibility Laws and regulations encourage businesses to conform to society’s standards, values, and attitudes. 2-4

The Role of Ethics in Business Unethical and/or Illegal Accounting fraud Deceptive advertising Unfair competitive practices Internet theft 2-5

The Role of Ethics in Business Ethical Conduct Builds trust Promotes confidence Validates relationships 2-6

Types and Incidences of Observed Misconduct Many business issues may seem straightforward and easy to resolve on the surface, but are in reality very complex. 2-7

1.Overly aggressive financial or business objectives 2.Abusive & intimidating behavior 3.Conflict of interest 4.Fairness & honesty 5.Communications 6.Business relationships Sources of Unethical Behavior in Organizations 2-8

Sources of Unethical Behavior Abusive and intimidating behavior “ 2-9

Conflict of interest – – the most common ethical issue identified by employees. – Advance personal interests over others’ interests – Benefit self at the expense of the company Sources of Unethical Behavior in Organizations 2-10

Least Corrupt Countries 2-11

Business Ethics Fairness & honesty – the heart of business ethics How employees use resources No harm to customers Accurate representations Disclosure 2-12

Business Ethics Most Popular Office Supplies Employees Pilfer “More Employees Taking Supplies,” The News JournalMore Employees Taking Supplies 2-13

Ethical Concerns False/misleading advertising Deceptive personal selling tactics Product safety and quality Unsubstantiated claims Product labeling Communications 2-14

Ethical Concerns Relationships with customers Relationships with suppliers Relationships with co-workers Business Relationships 2-15

Ethical Concerns The act of taking someone else’s work and presenting it as your own without mentioning the source Plagiarism 2-16

Improving Ethical Behavior in Business Ethical decisions in an organizations are influenced by three key factors 2-17

Improving Ethical Behavior in Business Codes of Ethics – Formalized rules and standards that describe what a company expects of its employees. 2-18

Codes of Ethics The act of an employee exposing an employer’s wrongdoing to outsiders, such as the media or government regulatory agencies. Whistleblowing 2-19

Business Ethics – Taking Responsibility 2-20

Nature of Social Responsibility 1.Economic 2.Legal 3.Ethical 4.Voluntary (philanthropic) 4 Dimensions 2-21 SR: A business’s obligation to maximize its positive impact and minimize its negative impact on society

Pyramid of Social Responsibility 2-22

Nature of Social Responsibility The extent to which businesses meet the legal, ethical, economic, and voluntary responsibilities placed on them by their stakeholders. Corporate Citizenship 2-23

Nature of Social Responsibility 1.Intel CorporationIntel Corporation 2.Eaton CorporationEaton Corporation 3.Nike Inc.Nike Inc 4.Deere and Co.Deere and Co. See the top 20 list on page 53 Best (American) Corporate Citizens 2-24

Social Responsibility Issues Primary concern with profit or ROI Financial community at large Proper accounting procedures Protecting owner’s rights and investments Owners & Stockholders 2-25

Social Responsibility Issues Provide a safe workplace Adequate compensation Listen to grievances Fair treatment Employee Relations 2-26

Social Responsibility Issues Consumerism – the activities that independent individuals, groups, and organizations undertake to protect their rights as consumers. Consumer Relations 2-27

Social Responsibility Issues Animal rights Pollution Going Green Environmental Issues 2-28

Social Responsibility Issues General community and global welfare Hardcore unemployed Charitable contributions Avon’s Breast Cancer Awareness Crusade Community Relations 2-29