1. BUSINESS ETHICS AND SOCIAL RESPONSIBILITY
CHAPTER 2
BUSINESS ETHICS AND SOCIAL RESPONSIBILITY

2. IS THE STUDY OF HOW PEOPLE OUGHT TO ACT
ETHICS
IS THE STUDY OF HOW PEOPLE OUGHT TO ACT

3. NOT HOW THEY
ACT

5. WORLDCOM

6. HEALTHSOUTH

9. ImClone

11. WORLDCOM

12. HEALTHSOUTH

15. ImClone

16. LAW AND ETHICS
MAY
NOT ALWAYS AGREE

17. SOMETIMES IT IS ETHICAL TO COMMIT AN ILLEGAL ACT
AND
SOME LEGAL ACTS ARE UNETHICAL

18. THERE ARE TWO TYPES OF LAWS
JUST AND UNJUST
AN UNJUST LAW IS NOT LAW AT ALL
(Dr. Martin Luther King, Jr., quoting St. Augustine)

19. WHY BOTHER WITH ETHICS? Society as a whole benefits
People feel better when they behave ethically
Unethical behavior can be costly

20. ETHICAL CHECK LIST What are the facts? What are the critical issues?
Who are the stakeholders?
What are the alternatives?
Is it legal?
How would it look in the light of the day?

21. ETHICAL CHECK LIST, CONT’D.
What are the consequences?
Does it violate important values?
Does it violate the Golden Rule?
Is it just?
Has the process been fair?

22. ETHICAL RESPONSIBILITIES
To other
To customers
employees
To stakeholders
To the company
To society

23. THE BEST BEHAVIOR
The best way to infuse ethics throughout an organization is for top management to behave ethically themselves.

24. Ethical behavior offers significant advantages: society as a whole benefits; executives who behave ethically have happier, more fulfilled lives; and unethical behavior can destroy a company!

25. CHESTER’S
RULES
FOR
ETHICAL
BEHAVIOR

26. WHEN IN DOUBT,
DON’T

27. IF IT SMELLS BAD,
IT PROBABLY IS

28. IF IT SOUNDS TO GOOD TO BE TRUE,
IT PROBABLY IS

29. NEVER DO ANYTHING YOU WOULD BE EMBARRASSED TO TELL YOUR MOTHER ABOUT