1. Business Ethics & Social Responsibility
Business Ethics – principles and standards that determine acceptable conduct in business
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2. A Timeline of Ethical and Socially Responsible Concerns
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3. Business Ethics & Social Responsibility
Social responsibility– business’s obligation to maximize its positive impact and minimize its negative impact on society
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4. Business Ethics & Social Responsibility
Laws and regulations encourage businesses to conform to society’s standards, values, and attitudes.
(E.g., in USA:Sarbanes-Oxley Act – 2002)
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5. The Role of Ethics in Business
Concern about unethical business practices continue –
HealthSouth’s accounting improprieties and securities fraud
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6. The Role of Ethics in Business
Unethical and/or Illegal
Accounting fraud
Deceptive advertising
Unfair competitive practices
Internet theft
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7. The Role of Ethics in Business
Ethical Conduct
Builds trust
Promotes confidence
Validates relationships
Learn how to recognize and resolve ethical issues
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8. Recognizing Ethical Issues in Business
an identifiable problem, situation, or opportunity that requires a person to choose from among several actions that may be evaluated as right or wrong, ethical or unethical.
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9. Recognizing Ethical Issues in Business
How to judge the ethics of a situation –
examine the situation from your stakeholders’ position, including customers and competitors
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10. Types and Incidences of Observed Misconduct
Many business issues may seem straightforward and easy to resolve on the surface, but are in reality very complex.
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11. Sources of Unethical Behavior in Organizations
Overly aggressive financial or business objectives
Abusive & intimidating behavior
Conflict of interest
Fairness & honesty
Communications
Business relationships
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12. Sources of Unethical Behavior Abusive and intimidating behavior“
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13. Sources of Unethical Behavior in Organizations
Conflict of interest –
the most common ethical issue identified by employees.
Advance personal interests over others’ interests
Benefit self at the expense of the company
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14. Least Corrupt Countries
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15. Business Ethics Fairness & honesty – the heart of business ethics
How employees use resources
No harm to customers
Accurate representations
Disclosure
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16. Business Ethics Most Popular Office Supplies Employees Pilfer
“More Employees Taking Supplies,” The News Journal
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17. Personal Ethics Honesty? Have you ever cheated on exams?
copied documents from Internet
shoplifted
cheated to win at sports
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18. Ethical Concerns Communications False/misleading advertising
Deceptive personal selling tactics
Product safety and quality
Unsubstantiated claims
Product labeling
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19. Ethical Concerns Business Relationships Relationships with customers
Relationships with suppliers
Relationships with co-workers
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20. Ethical Concerns Plagiarism
The act of taking someone else’s work and presenting it as your own without mentioning the source
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21. Making Decisions About Ethical Issues
Questions to Consider in Determining Whether an Action Is Ethical
Open discussion of ethical issues does not eliminate ethical problems; it does promote trust and learning in an organization.
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22. Improving Ethical Behavior in Business
Ethical decisions in an organizations are influenced by three key factors
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23. Improving Ethical Behavior in Business
Codes of Ethics –
Formalized rules and standards that describe what a company expects of its employees.
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24. Codes of Ethics
National Business Ethics Survey (NBES)
According to the NBES, employees in organizations with written standards of conduct are more likely to report misconduct when they observe it.
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25. Codes of Ethics Whistleblowing
The act of an employee exposing an employer’s wrongdoing to outsiders, such as the media or government regulatory agencies.
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26. Business Ethics – Taking Responsibility
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27. Nature of Social Responsibility
SR: A business’s obligation to maximize its positive impact and minimize its negative impact on society
4 Dimensions
Economic
Legal
Ethical
Voluntary (philanthropic)
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28. Pyramid of Social Responsibility
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29. Nature of Social Responsibility
Corporate Citizenship
The extent to which businesses meet the legal, ethical, economic, and voluntary responsibilities placed on them by their stakeholders.
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30. Nature of Social Responsibility
Best (American) Corporate Citizens
Intel Corporation
Eaton Corporation
Nike Inc.
Deere and Co.
See the top 20 list on page 53
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31. Arguments For and Against SR
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32. Social Responsibility Issues
Owners & Stockholders
Primary concern with profit or ROI
Financial community at large
Proper accounting procedures
Protecting owner’s rights and investments
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33. Social Responsibility Issues
Employee Relations
Provide a safe workplace
Adequate compensation
Listen to grievances
Fair treatment
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34. Social Responsibility Issues
Consumer Relations
Consumerism – the activities that independent individuals, groups, and organizations undertake to protect their rights as consumers.
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35. Social Responsibility Issues
Environmental Issues
Animal rights
Pollution
Going Green
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36. Social Responsibility Issues
Community Relations
General community and global welfare
Hardcore unemployed
Charitable contributions (United Way)
Avon’s Breast Cancer Awareness Crusade
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