©2005 by West Legal Studies in Business A Division of Thomson Learning Chapter 3 Ethics and Social Responsibility Fundamentals of Business Law 6 th Edition

©2005 by West Legal Studies in Business A Division of Thomson Learning Fundamentals of Business Law Miller Jentz 6 th Ed. 2 What is Business Ethics? Why is Business Ethics Important? –Case 3.1 Time Warner Entertainment Co. v. Six Flags Over Georgia, LLC (2002). Setting the Right Ethical Tone. –Importance of Ethical Leadership. –Creating Ethical Codes of Conduct. –Corporate Compliance Programs. Sarbanes-Oxley Act and Web-Based Reporting Systems. What is Business Ethics? Why is Business Ethics Important? –Case 3.1 Time Warner Entertainment Co. v. Six Flags Over Georgia, LLC (2002). Setting the Right Ethical Tone. –Importance of Ethical Leadership. –Creating Ethical Codes of Conduct. –Corporate Compliance Programs. Sarbanes-Oxley Act and Web-Based Reporting Systems. Nature of Business Ethics

©2005 by West Legal Studies in Business A Division of Thomson Learning Fundamentals of Business Law Miller Jentz 6 th Ed. 3 Nature of Business Ethics Conflicts and Trade Offs. –Case 3.2 Remsburg v. Docusearch, Inc. (2003). Defying the Rules: ENRON. –Accounting Issues. –‘Off the Books’ Transactions. –Self-Dealing. –Corporate Culture. Conflicts and Trade Offs. –Case 3.2 Remsburg v. Docusearch, Inc. (2003). Defying the Rules: ENRON. –Accounting Issues. –‘Off the Books’ Transactions. –Self-Dealing. –Corporate Culture.

©2005 by West Legal Studies in Business A Division of Thomson Learning Fundamentals of Business Law Miller Jentz 6 th Ed. 4 Business Ethics and the Law Legal compliance is the moral minimum. Laws regulation Business. “Gray” areas in the Law. –Case 3.3 Pavlik v. Lane Ltd./Tobacco Exporters International (1998). Technological Developments and Legal Uncertainties. –Case 3.4 Blakey v. Continental Airlines, Inc. (2000). Legal compliance is the moral minimum. Laws regulation Business. “Gray” areas in the Law. –Case 3.3 Pavlik v. Lane Ltd./Tobacco Exporters International (1998). Technological Developments and Legal Uncertainties. –Case 3.4 Blakey v. Continental Airlines, Inc. (2000).

©2005 by West Legal Studies in Business A Division of Thomson Learning Fundamentals of Business Law Miller Jentz 6 th Ed. 5 Approaches to Ethical Reasoning Duty-Based Ethics. –Religious Ethical Standards. –Kantian Ethics. –Principle of Rights. Outcome-Based Ethics. Duty-Based Ethics. –Religious Ethical Standards. –Kantian Ethics. –Principle of Rights. Outcome-Based Ethics.

©2005 by West Legal Studies in Business A Division of Thomson Learning Fundamentals of Business Law Miller Jentz 6 th Ed. 6 Corporate Social Responsibility Views: –Profit Maximization. –Stakeholder Approach. –Corporate Citizenship. Role of Public Opinion. Maximum vs. Minimum Profits. Views: –Profit Maximization. –Stakeholder Approach. –Corporate Citizenship. Role of Public Opinion. Maximum vs. Minimum Profits.

©2005 by West Legal Studies in Business A Division of Thomson Learning Fundamentals of Business Law Miller Jentz 6 th Ed. 7 Business Ethics on a Global Level Monitoring Employment Practices of Foreign Suppliers. Foreign Corrupt Practices Act: –Bribery and Public Corruption. –Accounting Requirements. –Penalties for Violations. Monitoring Employment Practices of Foreign Suppliers. Foreign Corrupt Practices Act: –Bribery and Public Corruption. –Accounting Requirements. –Penalties for Violations.