© Prentice Hall, 2007Excellence in Business, 3eChapter Ethics and Social Responsibility

© Prentice Hall, 2007Excellence in Business, 3eChapter Ethics in the Workplace Contemporary Business Social Responsibility Ethical Behavior Principles Standards Profits Society

© Prentice Hall, 2007Excellence in Business, 3eChapter Corporate Fraud Arthur Andersen Enron Marsh & McLennan WorldCom Ford & Firestone

© Prentice Hall, 2007Excellence in Business, 3eChapter What is Ethical Behavior? Competing Fairly and Honestly CommunicatingTruthfully Not Harming Others

© Prentice Hall, 2007Excellence in Business, 3eChapter Factors Influencing Ethical Behavior Cultural Differences Knowledge Corporate Behavior Reporting Systems

© Prentice Hall, 2007Excellence in Business, 3eChapter Making Ethical Decisions PhilosophicalApproaches Is It Ethical? StakeholderIssues Utilitarianism Individual, Legal and Human Rights Principles of Justice Legality and Balance Acceptability Feasibility Outsiders Supervisors Employees

© Prentice Hall, 2007Excellence in Business, 3eChapter Ethical Situations EthicalDilemma EthicalLapse

© Prentice Hall, 2007Excellence in Business, 3eChapter Early 20 th Century Middle Early 21 st Century MaximizeProfits Provide Jobs and Pay Taxes Balance Ethics and Profits Social Responsibility in Business

© Prentice Hall, 2007Excellence in Business, 3eChapter Percentage of Executives Who “Strongly Agree” or “Agree” That Companies Should: Percentage of Executives Who “Strongly Agree” or “Agree” That Companies Should: Be environmentally responsible Be ethical in operations Earn profits Employ local residents Pay taxes Encourage and support employee volunteering Contribute money and leadership to charities Be involved in economic development Be involved in public education Involve community representatives in business decisions Target a portion of purchasing toward local vendors Help improve quality of life for low-income populations Be environmentally responsible Be ethical in operations Earn profits Employ local residents Pay taxes Encourage and support employee volunteering Contribute money and leadership to charities Be involved in economic development Be involved in public education Involve community representatives in business decisions Target a portion of purchasing toward local vendors Help improve quality of life for low-income populations Percentage

© Prentice Hall, 2007Excellence in Business, 3eChapter Balancing Business and Stakeholders’ Rights Business SafeProductsProductChoice Consumers InformedPurchase Employees Equity Health & Safety Investors Profits Fair Disclosure Society CleanEnvironment

© Prentice Hall, 2007Excellence in Business, 3eChapter Corporate Social Responsibility Social Audits Cause-RelatedMarketingCause-RelatedMarketingPhilanthropyPhilanthropy RecyclingProgramsRecyclingPrograms MedicalResearchMedicalResearch Worthy Causes CharitiesCharitiesHumanitarianAidHumanitarianAid EducationEducation

© Prentice Hall, 2007Excellence in Business, 3eChapter Responsibility to Society and the Environment Natural Resources and Pollution Natural Resources and Pollution Environmental Activism Environmental Activism Business Environment Consumers

© Prentice Hall, 2007Excellence in Business, 3eChapter Pervasiveness of Pollution Industrial Discharges Vehicle Emissions Chemical Spills

© Prentice Hall, 2007Excellence in Business, 3eChapter Government Efforts to Reduce Pollution Global Warming Clean Water Act EPA Superfund Clean Air Act

© Prentice Hall, 2007Excellence in Business, 3eChapter Business Efforts to Reduce Pollution Environmental Issues Environmental Staff Performance Expectations Performance Rewards Long-Term Cost Product Development Supplier Expectations Training and Awareness

© Prentice Hall, 2007Excellence in Business, 3eChapter Responsibility Toward Consumers Freedom of Choice Freedom of Choice Right to Be Heard Right to Be Heard Accurate Information Accurate Information Product Safety Product Safety

© Prentice Hall, 2007Excellence in Business, 3eChapter Responsibility Toward Investors Fair Profit Distribution DistributionEthicalBehaviorEthicalBehaviorSocialResponsibilitySocialResponsibility

© Prentice Hall, 2007Excellence in Business, 3eChapter Responsibility Toward Employees Equal Employment OpportunityAffirmativeAction Occupational Health and Safety Americans with Disabilities Act

© Prentice Hall, 2007Excellence in Business, 3eChapter Global Ethics and Social Responsibility Bribery Environmental Abuse Unscrupulous Business Practices