Transcript Social Responsibility and Ethics Notes

Social Responsibility and
Ethics
What is Social Responsibility?

Social responsibility is a business's contract
with society to make safe products, treat
customers and employees fairly, and conduct
business honestly
 A company has a duty to protect its
customers from unsafe products and
misinformation
 The Environmental Protection Agency (EPA),
the media, and the public all promote
environmentalism among businesses
Why is it important?

Entrepreneurs can contribute to the
community by donating products or
services, encouraging employees to
participate in community service, and
joining other companies to work on
community projects
Ethics
Ethics are the moral code by which
people live and conduct business
 An entrepreneur should develop a
written code of ethics to reduce the
chance of unethical behavior occurring
in his or her business
 Employees should be involved in
developing the code of ethics

When Ethics come into play

Businesses often face ethical problems
when:
– there are conflicts of interest
– when their economic survival is threatened
– when doing business abroad (where
ethical practices may differ)