1. Business Ethics and Social Responsibility
Chapter 4
Business Ethics and Social Responsibility

2. Ethics
Ethics = A set of moral principles by which people conduct themselves personally, socially, or professionally
Code of Ethics = a professional’s or company’s set of guidelines for upholding ethical behavior.
Business Ethics = rules that govern how we do business
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.

3. Unethical Business Practices
Bad for business
Affects a business’s profits, customer base, and employee loyalty
Sweatshops = factories that pay poorly, have unsafe working conditions, and treat workers badly
Example: Triangle Shirtwaist Factory Company fire

4. Social Responsibility
Social Responsibility = obligation to do what is best for the welfare of society
Businesses have a responsibility to consumers, workers, and society

5. Making Decisions on Ethical Issues
(do not need to write)
Identify the ethical dilemma.
Discover alternative actions.
Decide who might be affected.
List the probable effects of the alternatives.
Select the best alternative.

6. Government’s Responsibility to Customers
FDA (Food and Drug Administration) = a government agency that protects consumers form dangerous or falsely advertised products
Some others (you do not need to write)
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.

7. Business’ Responsibility to Employees
Equal Pay Act = a federal law requiring that men and women be paid the same wages for doing the same work.
OSHA = division of the Department of Labor that 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.

8. Business’ Responsibility to Society
EPA (Environmental Protection Agency) = a federal agency that enforces rules that protect the environment and control pollution
Conflict of Interest - when a business is tempted to put profits before social welfare. (When a person uses personal activities or actions to advance his or her career at the expense of another person)