1. © Prentice Hall, 2007Excellence in Business, 3eChapter 2 - 1 Ethics and Social Responsibility

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, 2007Excellence in Business, 3eChapter 2 - 3 Corporate Fraud Arthur Andersen Enron Marsh & McLennan WorldCom Ford & Firestone

4. © Prentice Hall, 2007Excellence in Business, 3eChapter 2 - 4 What is Ethical Behavior? Competing Fairly and Honestly CommunicatingTruthfully Not Harming Others

5. © Prentice Hall, 2007Excellence in Business, 3eChapter 2 - 5 Factors Influencing Ethical Behavior Cultural Differences Knowledge Corporate Behavior Reporting Systems

6. © Prentice Hall, 2007Excellence in Business, 3eChapter 2 - 6 Making Ethical Decisions PhilosophicalApproaches Is It Ethical? StakeholderIssues Utilitarianism Individual, Legal and Human Rights Principles of Justice Legality and Balance Acceptability Feasibility Outsiders Supervisors Employees

7. © Prentice Hall, 2007Excellence in Business, 3eChapter 2 - 7 Ethical Situations EthicalDilemma EthicalLapse

8. © Prentice Hall, 2007Excellence in Business, 3eChapter 2 - 8 Early 20 th Century Middle Early 21 st Century MaximizeProfits Provide Jobs and Pay Taxes Balance Ethics and Profits Social Responsibility in Business

9. © Prentice Hall, 2007Excellence in Business, 3eChapter 2 - 9 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

10. © Prentice Hall, 2007Excellence in Business, 3eChapter 2 - 10 Balancing Business and Stakeholders’ Rights Business SafeProductsProductChoice Consumers InformedPurchase Employees Equity Health & Safety Investors Profits Fair Disclosure Society CleanEnvironment

11. © Prentice Hall, 2007Excellence in Business, 3eChapter 2 - 11 Corporate Social Responsibility Social Audits Cause-RelatedMarketingCause-RelatedMarketingPhilanthropyPhilanthropy RecyclingProgramsRecyclingPrograms MedicalResearchMedicalResearch Worthy Causes CharitiesCharitiesHumanitarianAidHumanitarianAid EducationEducation

12. © Prentice Hall, 2007Excellence in Business, 3eChapter 2 - 12 Responsibility to Society and the Environment Natural Resources and Pollution Natural Resources and Pollution Environmental Activism Environmental Activism Business Environment Consumers

13. © Prentice Hall, 2007Excellence in Business, 3eChapter 2 - 13 Pervasiveness of Pollution Industrial Discharges Vehicle Emissions Chemical Spills

14. © Prentice Hall, 2007Excellence in Business, 3eChapter 2 - 14 Government Efforts to Reduce Pollution Global Warming Clean Water Act EPA Superfund Clean Air Act

15. © Prentice Hall, 2007Excellence in Business, 3eChapter 2 - 15 Business Efforts to Reduce Pollution Environmental Issues Environmental Staff Performance Expectations Performance Rewards Long-Term Cost Product Development Supplier Expectations Training and Awareness

16. © Prentice Hall, 2007Excellence in Business, 3eChapter 2 - 16 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

17. © Prentice Hall, 2007Excellence in Business, 3eChapter 2 - 17 Responsibility Toward Investors Fair Profit Distribution DistributionEthicalBehaviorEthicalBehaviorSocialResponsibilitySocialResponsibility

18. © Prentice Hall, 2007Excellence in Business, 3eChapter 2 - 18 Responsibility Toward Employees Equal Employment OpportunityAffirmativeAction Occupational Health and Safety Americans with Disabilities Act

19. © Prentice Hall, 2007Excellence in Business, 3eChapter 2 - 19 Global Ethics and Social Responsibility Bribery Environmental Abuse Unscrupulous Business Practices