1. © Prentice Hall, 2005Excellence in Business, Revised Edition Chapter 2 - 1 Ethical and Social Responsibilities of Business

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

3. © Prentice Hall, 2005Excellence in Business, Revised Edition Chapter 2 - 3 What is Ethical Behavior? Competing Fairly and Honestly CommunicatingTruthfully Not Harming Others

4. © Prentice Hall, 2005Excellence in Business, Revised Edition Chapter 2 - 4 Factors Influencing Ethical Behavior Cultural Differences Knowledge OrganizationalBehavior Legislation

5. © Prentice Hall, 2005Excellence in Business, Revised Edition Chapter 2 - 5 Making Ethical Decisions Is It Ethical? PhilosophicalApproachesStakeholderIssues Outsiders Supervisors Employees Utilitarianism Individual, Legal and Human Rights Principles of Justice Legality and Balance Acceptability Feasibility

6. © Prentice Hall, 2005Excellence in Business, Revised Edition Chapter 2 - 6 Utilitarianism is a theory of ethics that prescribes the quantitative maximization of good consequences for a population.

7. © Prentice Hall, 2005Excellence in Business, Revised Edition Chapter 2 - 7 Ethical Situations EthicalDilemma EthicalLapse

8. © Prentice Hall, 2005Excellence in Business, Revised Edition Chapter 2 - 8 An ethical dilemma is a situation that will often involve an apparent conflict between moral imperatives, in which to obey one would result in transgressing another. Ethical lapse: Situation in which an individual makes a decision that is morally wrong, illegal, or unethical

9. © Prentice Hall, 2005Excellence in Business, Revised Edition Chapter 2 - 9 Social Responsibility in Business Early 20 th Century Middle Early 21 st Century MaximizeProfits Provide Jobs and Pay Taxes Balance Profits and Social Issues

10. © Prentice Hall, 2005Excellence in Business, Revised Edition Chapter 2 - 10 Percentage of Executives Who “Strongly Agree” or “Agree” That Companies Should: 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 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 54 100 96 94 89 85 75 73 62 61 54

11. © Prentice Hall, 2005Excellence in Business, Revised Edition Chapter 2 - 11 Balancing Business and Stakeholders’ Rights Business SafeProductsProductChoice Consumers InformedPurchase Employees Equity Health & Safety Investors Profits Fair Disclosure Society CleanEnvironment

12. © Prentice Hall, 2005Excellence in Business, Revised Edition Chapter 2 - 12 Corporate Social Responsibility Social Audits Cause-RelatedMarketingCause-RelatedMarketingPhilanthropyPhilanthropy RecyclingProgramsRecyclingPrograms MedicalResearchMedicalResearch Worthy Causes CharitiesCharitiesHumanitarianAidHumanitarianAid EducationEducation

13. © Prentice Hall, 2005Excellence in Business, Revised Edition Chapter 2 - 13 cause marketing relies on forging long-term, strategic marketing partnerships between businesses and non-profit organizations to elevate brand awareness within the context of social responsibility.

14. © Prentice Hall, 2007Excellence in Business, 3eChapter 2 - 14 Responsibility to Society and the Environment Natural Resources and Pollution Natural Resources and Pollution Environmental Activism Environmental Activism Business Environment Consumers

15. © Prentice Hall, 2005Excellence in Business, Revised Edition Chapter 2 - 15 Causes of Pollution Industrial Discharges Vehicle Emissions Chemical Spills

16. © Prentice Hall, 2005Excellence in Business, Revised Edition Chapter 2 - 16 Government Efforts to Reduce Pollution The Environmental Protection Agency Regulate Air and Water Reduce Automobile Emissions License Pesticides Control Toxic Substances Safeguard Drinking Water

17. © Prentice Hall, 2007Excellence in Business, 3eChapter 2 - 17 Government Efforts to Reduce Pollution Global Warming Clean Water Act EPA Superfund Clean Air Act

18. © Prentice Hall, 2005Excellence in Business, Revised Edition Chapter 2 - 18 Business Efforts to Reduce Pollution Environmental Issues Environmental Staff Performance Expectations Performance Rewards Long-Term Cost Product Development Supplier Expectations Training and Awareness

19. © Prentice Hall, 2005Excellence in Business, Revised Edition Chapter 2 - 19 Responsibility Toward Consumers The Right to Safe Products The Right to Be Informed The Right to Choice The Right to Be Heard

20. © Prentice Hall, 2007Excellence in Business, 3eChapter 2 - 20 Responsibility Toward Consumers Freedom of Choice Freedom of Choice Right to Be Heard Right to Be Heard Accurate Information Accurate Information Product Safety Product Safety

21. © Prentice Hall, 2005Excellence in Business, Revised Edition Chapter 2 - 21 Responsibility Toward Investors Fair Profit Distribution DistributionEthicalBehaviorEthicalBehaviorSocialResponsibilitySocialResponsibility

22. © Prentice Hall, 2005Excellence in Business, Revised Edition Chapter 2 - 22 Responsibility Toward Employees Equal Employment OpportunityAffirmativeAction Occupational Health and Safety Americans with Disabilities Act

23. © Prentice Hall, 2005Excellence in Business, Revised Edition Chapter 2 - 23 Global Ethics and Social Responsibility Bribery Environmental Abuse Unscrupulous Business Practices