1. Ethics & Social Responsibility
Contemporary Business - Chapter 2
Pages 31-56

2. What are they?
Ethics – standards of conduct and moral values - doing what is right
Social Responsibility – consideration of society’s well-being and consumer satisfaction, in addition to profits
Businesses need to find the balance between
doing what is right and doing what is profitable

3. What’s the problem?
Deciding what is right and what is wrong does not always involve a clear-cut choice
Businesses have responsibilities to investors, employees, customers, and society, their stakeholders.
Society has greater expectation of
successful businesses

4. What’s the problem? Businesses need to make it clear within the
organization what is expected
Read Johnsons & Johnson Credo on pg 33

5. What are some of the issues?
Individuals putting their own interests ahead of the organization
Managers lying to employees
Employees misreporting hours worked
Employees abusing the Internet
Company safety violations
CareerKickstart – How to Avoid Ethical Issues at Work Page 36

6. Common Ethical Challenges
Accepting gifts or kick-backs
Representing both sides on an issue
Need to avoid or disclose
Doing what you say you will do & accepting responsibility for mistakes
Misrepresentation
Stealing
What to do when you discover a problem – who do you tell?
Against company procedures or even illegal?
Sometimes the truth may hurt the company and/or others

7. A strong ethics culture reduces the risk of unethical behavior
What can be done?
Some businesses may choose not to work in certain countries
All businesses need to know what is happening within their company, it’s their responsibility
A strong ethics culture reduces the risk of unethical behavior

8. Code of Conduct
A formal statement that defines how the organization expects employees to resolve ethical issues
Sometimes a part of their mission statement or part of their manuals. It is in Johnson & Johnson’s Credo that we read earlier.

9. Code of Conduct Poor Ethics has Consequences Stakeholders Suffer
Do you think ethics can be taught?
Read Ethical Action pg
Poor Ethics has Consequences
Stakeholders Suffer

10. Back to Social Responsibility – What is it?
Social Responsibility – consideration of society’s well-being and consumer satisfaction, in addition to profits
Society has greater expectation of
successful businesses

11. Huh?
Historically, a business was measured by providing jobs and contributing to the economy. Decent wages and benefits, profits to investors, and quality products were sufficient. More is expected now.

12. What are the Business’ Social Responsibilities?
Employment Opportunities
Quality of Life
Respects Diversity
Safe, Healthy Workplace
See Laws on page 52
Profitable business
Accurate Financial Records
Pays employees well
Job creation
High Quality Products – product liability, healthy foods
Honest Labelling and Advertising
Response to Complaints
Environmental Concerns – recycling, pollution, going green
Philanthropy - charitable giving, health fair
Developing a Quality Workforce
To the General Public
To Customers
To Employees
To Investors and the Financial Community

13. Ethics & Social Responsibility Assignment
Review Questions - Page 57
#4, #8, and #9
For each, type the question number, the question, and the answer.
Projects and Teamwork Applications – Page 57
#2 (individually or with a partner)