1. Introduction to Business
Chapter 9
Conducting Business Ethically & Responsibly

2. Ethics Ethical Behavior Unethical Behavior Business Ethics
Beliefs about what’s right and wrong or good and bad
Ethical Behavior
Behavior conforming to individual beliefs and social norms about what’s right and good
Unethical Behavior
Behavior conforming to individual beliefs and social norms about what is defined as wrong and bad
Business Ethics
The ethical or unethical behaviors by employees in the context of their jobs

3. Sources of Personal Codes of Ethics
Childhood responses to adult (like family members) behavior
Influence of peers (in schools, college etc.)
Experiences in adulthood (in your career)
Developed morals and values (your perception of what you have learnt in your life)

4. Managerial Ethics
The standards of behavior that guide individual managers in their work
Ethics affect a manager’s behavior toward:
Employees
The organization
Other economic agents—customers, competitors, stockholders, suppliers, dealers, and unions

5. Social Responsibility
The overall way in which a business attempts to balance its commitments to relevant groups and individuals in its environment, including customers, other businesses, employees, investors, and local communities.

6. The stakeholder model of Responsibility:
Investors
Employees
Company
Local Communities
Suppliers
customers

7. Local and International Communities
Customers
Businesses strive to treat customers fairly and honestly
Employees
Businesses treat employees fairly, make them a part of the team, and respect their dignity and basic human needs
Investors
Businesses follow proper accounting procedures, provide information to shareholders about financial performance, and protect shareholder rights and investments
Suppliers
Businesses emphasize mutually beneficial partnership arrangements with suppliers
Local and International Communities
Businesses try to be socially responsible