1. © Prentice Hall, 2007Excellence in Business, 3eChapter 2 - 1 Business Done Right: Ethics and Social Responsibility

2. © Prentice Hall, 2007Excellence in Business, 3eChapter 2 - 2 Ethics in the Workplace Social responsibility Profits Society Ethical behavior Principles Standards

3. © Prentice Hall, 2007Excellence in Business, 3eChapter 2 - 3 Examples of Corporate Fraud Enron Arthur Andersen Marsh & McLennan WorldCom Ford & Firestone

4. © Prentice Hall, 2007Excellence in Business, 3eChapter 2 - 4 What is Ethical Behavior? Competing fairly and honestly Communicating truthfully Not causing harm to others

5. © Prentice Hall, 2007Excellence in Business, 3eChapter 2 - 5 Factors Influencing Ethical Behavior Cultural differences Knowledge Corporate behavior Reporting systems

6. © Prentice Hall, 2007Excellence in Business, 3eChapter 2 - 6 Making Ethical Decisions Is It Ethical? PhilosophicalApproachesStakeholderIssues OutsidersSupervisors EmployeesUtilitarianism Individual, Legal and Human Rights Principles of Justice Legality and Balance Acceptability Feasibility

7. © Prentice Hall, 2007Excellence in Business, 3eChapter 2 - 7 Types of Ethical Situations Ethical dilemmas Ethical lapses

8. © Prentice Hall, 2007Excellence in Business, 3eChapter 2 - 8 Social Responsibility in Business Early 20th Century –Maximize profits Middle 20th Century –Provide jobs and pay taxes Early 21st Century –Balance profits and social issues

9. © Prentice Hall, 2007Excellence in Business, 3eChapter 2 - 9 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 Percentage 100 96 94 89 85 75 73 62 61 54

10. © Prentice Hall, 2007Excellence in Business, 3eChapter 2 - 10 Balancing Business and Stakeholders’ Rights Business Investors Consumers Employees Society

11. © Prentice Hall, 2007Excellence in Business, 3eChapter 2 - 11 Corporate Social Responsibility Social audit Cause-related marketing Philanthropy

12. © Prentice Hall, 2007Excellence in Business, 3eChapter 2 - 12 Responsibility to Society and the Environment Business Environment Consumers

13. © Prentice Hall, 2007Excellence in Business, 3eChapter 2 - 13 Pervasiveness of Pollution Industrial discharges Vehicle emissions Chemical spills

14. © Prentice Hall, 2007Excellence in Business, 3eChapter 2 - 14 Government Efforts to Reduce Pollution The Clean Air Act Global Warming The Clean Water Act EPA Superfund

15. © Prentice Hall, 2007Excellence in Business, 3eChapter 2 - 15 Business Efforts at Reduction Environmental issues Environmental staff Performance expectations Performance rewards Long-term cost Product development Supplier expectations Training and awareness

16. © Prentice Hall, 2007Excellence in Business, 3eChapter 2 - 16 Responsibility Toward Consumers The right to safe products The right to be informed The right to choice The right to be heard

17. © Prentice Hall, 2007Excellence in Business, 3eChapter 2 - 17 Responsibility Toward Investors Fair profit distribution Social responsibility Ethical behavior

18. © Prentice Hall, 2007Excellence in Business, 3eChapter 2 - 18 Responsibility Toward Employees Equal employment opportunity Affirmative action Americans with Disabilities Act Occupational health and safety

19. © Prentice Hall, 2007Excellence in Business, 3eChapter 2 - 19 Global Ethics and Social Responsibility Bribery Environmental abuse Unscrupulous business practices