1. Principles of Business, Marketing, and Finance
Economic and Ethical Activity in a Changing World
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2. Ethics
A set of moral principles by which people conduct themselves personally, socially, or professionally
Businesses have a legal responsibility to do what is right for society’s welfare
Business Ethics-a set of laws about how a business should conduct itself
Explain how bribery is expected in business transactions for some countries. Then ask students if U.S. businesses should resort to bribery to increase the GDP.
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3. Unethical Business Practices
Bad for business
Affects a business’s profits, customer base, and employee loyalty
Sweatshops
-factories that have unsafe working conditions, treat workers badly, and pay poorly
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4. Important Ethical Questions
Brainstorm ethical issues in the workplace that students today may have to make decisions about. Then explain how ethics involves doing the right thing when it is more attractive to do the unethical activity.
Is it against the law?
What if everyone did this?
Am I sacrificing long-term benefits for short term gains?
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5. Making Decisions on Ethical Issues
Identify the ethical dilemma.
Discover alternative actions.
Decide who might be affected.
List the probable effects of the alternatives.
Select the best alternative.
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6. Social Responsibility
Duty to do what is best for the good of society
Businesses have a responsibility to consumers, workers, and society
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7. Government’s Responsibility to Customers
FDA (Food and Drug Administration)
FTC (Federal Trade Commission
CPSC (Consumer Product Safety Commission)
USDA (United States Department of Agriculture)
Ask students to list the four government agencies identified in the slide and then see if the can explain the consumer protection role for each agency.
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8. Business’ Responsibility to Employees
Equal Pay Act
OSHA-division of the Department of Labor (sets and enforces work-related health and safety rules)
Ask students to list three responsibilities that employers have for employees. Then ask students to list three responsibilities employees have to the employer.
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9. Business’ Responsibility to Society
EPA (Environmental Protection Agency)
Saving energy
Recycling
Conflict of Interest-when a business is tempted to put profits before social welfare
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10. THE TYLENOL CRISIS, 1982
In October of 1982, Tylenol, the leading pain-killer medicine in the United States at the time, faced a tremendous crisis when seven people in Chicago were reported dead after taking extra-strength Tylenol capsules. It was reported that an unknown suspect/s put 65 milligrams of deadly cyanide into Tylenol capsules, 10,000 more than what is necessary to kill a human.
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11. THE TYLENOL CRISIS, 1982
The tampering occurred once the product reached the shelves. They were removed from the shelves, infected with cyanide and returned to the shelves (Mitchell, 1989). In 1982, Tylenol controlled 37 percent of its market with revenue of about $1.2 million. Immediately after the cyanide poisonings, its market share was reduced to seven percent (Mitchell 1989).
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12. What did Johnson & Johnson do?
Once the connection was made between the Tylenol capsules and the reported deaths, public announcements were made warning people about the consumption of the product. Johnson & Johnson was faced with the dilemma of the best way to deal with the problem without destroying the reputation of the company and its most profitable product.
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13. What did Johnson & Johnson do?
Following their guidelines of protecting people first and property second, McNeil Consumer Products, a subsidiary of Johnson & Johnson, conducted an immediate product recall from the entire country which amounted to about 31 million bottles and a loss of more than $100 million dollars. (Lazare, Chicago Sun-Times 2002) Additionally, they halted all advertisement for the product and eventually permanently removed all of the capsules from the market.
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14. Why did Johnson & Johnson do it?
The reason Tylenol reacted so quickly and in such a positive manner to the crisis stems from the company’s mission statement. (Lazare Chicago Sun-Times 2002). On the company’s credo written in the mid-1940’s by Robert Wood Johnson, he stated that the company‘s responsibilities were to the consumers and medical professionals using its products, employees, the communities where its people work and live, and its stockholders. Therefore, it was essential to maintain the safety of its publics to maintain the company alive. Johnson & Johnson’s responsibility to its publics first proved to be its most efficient public relations tool. It was the key to the brand’s survival.
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15. Code of Ethics Poster
You and a partner will conduct research about what different businesses include and don’t include in their code of ethics.
Then create a Code of Ethics poster to post in your place of business that:
1. Has your company name and logo on top of poster.
2. Has a solid mission statement under the name and logo.
(Find examples and create your own)
3. Has at least 10 points for a solid Code of Ethics
4. Be creative but make sure your ethics match the type of business you do