2384 Ethics & Social Responsibility (October 12 2010)

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Ethics & Social Responsibility

October 12, 2010



Definitions

Ethics

� Relating to good & bad, moral duty & obligation; the

consensually accepted standards of behaviour for anoccupation, trade or profession.

Morality

� The precepts of personal behaviour based on

religious, philosophical, or cultural grounds.Law

� Formal codes that permit or forbid certain behaviours.



What is Ethics?

� At the most basic level, ethics is concernedwith how we act and how we live our lives.

� Ethics is, in this sense, having to do with howwe act, choose to behave, and do things.

� Social Sciences emphasize that ethics isnormative, in that it deals with our reasoning

about how we SHOULD act.� An account of how and why people DO act

the way they do.



Ethics: How should we live?� The fundamental question of ethics can be

interpreted in two ways.

� µWe¶ can mean us individually or us collectively.� This is a question about how I should live my life,

how I should act, what I should do, and what kind

of person I should be.

� The meaning of ethics is sometimes referred toas MORALITY and it is the aspects of ethics that

we refer to by the phrase µpersonal integrity¶.



Business Ethics

� Oxymoron or Practical Reality?

� Do all business tell µwhite lies¶?

� Business Ethics is complying with rules,customs, expectations, principles of morality, policies of the organization, needsof others, fairness; how products/ services &

the actions of organizations can affectstakeholders (and society), either positivelyor negatively.



EthicalD

ilemma & IssuesEthical Dilemma:

� A situation that is problematic and makes an

individual ask what is the ³right´ or ³wrong´thing to do

Ethical Issue:

� An ethical issue is 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.



Ethical Issue Categories� Conflict of Interest

� Fairness and Honesty� Communications

� Business Relationships



Factors that Influence

Business Ethics

Individual

Standards

and

Values

Individual

Standards

and

Values

Managers¶

and

Coworkers¶

Influence

Managers¶

and

Coworkers¶

Influence

Opportunity:

Codes and

Compliance

Requirements

Opportunity:

Codes and

Compliance

Requirements

Ethical/Unethical

Choices

in Business

Ethical/Unethical

Choices

in Business



Supporting EthicalB

ehaviour Ethical code of conduct

� Establishes standards of behaviour

� Problem: Limited effect alone on ethical behaviour Ethics training

� Awareness and clarification of ethics code

� Practice resolving ethical dilemmas

Ethics officers� Educate and counsel; hear about wrongdoing

Ethical leadership� Demonstrate integrity and role model ethical

conduct



Social Responsibility� Business¶s obligation to maximize its

positive impact and minimize its

negative impact on society



Dimensions of Social

Responsibility± Economic Responsibilities

± Legal Responsibilities

± Ethical Responsibilities

± Voluntary

Where do Environmental Responsibilities fit?



The Pyramid of Social

Responsibility

Ethical Responsibilities

being ethical; doing what is right, just,

and fair; avoiding harm

Voluntary

Responsibilities

being a

³good corporate citizen;´

contributing to thecommunity and quality of life

Source: Adapted from Archie B. Carroll, ́ The Pyramid of Corporate Social Responsibility: Toward the MoralManagement of Organizational Stakeholders.µ Business Horizons 34 (July/August 1991): 42.

Legal Responsibilitiesobeying the law (society¶s codification

of right and wrong)

Economic Responsibilities

being profitable



Social Responsibility Issues� Relations with owners and shareholders

� Profit and ROI

� Employee relations:� Providing a safe workplace, adequate pay,

information about the company, listening togrievances, and treating employees fairly

� Consumer relations:

� Respecting the rights of customers andproviding them with safe and satisfying

products



Social Responsibility Issues� Environmental issues:

� Animal rights

� Pollution

� Community relations:

� Responsibility to the general welfare of

the community

Documents

2384 Ethics & Social Responsibility (October 12 2010)