Transcript Chapter 2
Chapter 2 Business Ethics and Social Responsibility Business ethics – the standards of business conduct and moral values governing actions and decisions in the workplace. Social Responsibility – in a general sense, it’s management’s acceptance of the obligation to consider profit, consumer satisfaction and societal well-being of equal value in evaluating the firm’s performance. 2-1 Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Concern for Ethical and Societal Issues Businesses are responsible to the following groups: Customers - Quality, service, good prices Employees - Good pay, benefits, safety 2-2 Investors - Profits, return on investment Society- Protect environment, philanthropy Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Individuals make a difference Stages of Individual Moral and Ethical Development 2-3 Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved. How Organizations Shape Ethical Conduct Structure of an Ethical Environment Examples: “Lead by Example” Anonymous hotline Train how to recognize and reason through ethical situations. Code of Conduct 2-4 Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Common Business Ethical Challenges 2-5 Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Conflict of Interest – situation where an employee must make a decision about the business’s welfare versus personal gain. How do you handle a potential conflict of interest? Either Avoid it or Disclose it Examples: •Real estate agent representing the buyer and seller •Accepting a gift or bribe for special treatment •Represent competing companies 2-6 Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Responsibilities of Business 2-7 Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Responsibilities to Customers Consumerism—public demand that a business consider the wants and needs of its customers in making decisions. 2-8 Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Responsibilities to General Public Public Health Issues Protect the Environment Develop the Quality of Workforce Corporate Philanthropy Responsibilities to Employees Workplace Safety Quality of Life Issues Ensuring Equal Opportunity Keep safe from Sexual Harassment 2-9 Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 2-10 Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Anheuser-Busch: Encouraging Responsible Sales of Alcoholic Beverages 2-11 Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Toyota markets environment friendly cars 2-12 Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Chevrolet Corporate Philanthropy: The Chevrolet Michelle Kwan REWARDS Scholarship Program 2-13 Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved.