Bovee Bia4 Ppt 02

8/8/2019 Bovee Bia4 Ppt 02

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2007 Prentice Hall2-1

Ethics and Corporate Social

Responsibility

Chapter 2


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Chapter 2 Objectives

After studying this chapter, you will be able to:

Discuss what it means to practice good business

and explain the three factors that influence

ethical behavior

Identify three steps that businesses are taking to

encourage ethical behavior

List four questions you might ask yourselfwhentrying to make an ethical decision

Explain the difference between an ethical

dilemma and ethical lapse



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Chapter 2 Objectives, cont.

Explain the controversy surrounding corporate

social responsibility

Discuss how a business can become more

socially responsible

Define sustainable development and explain the

strategic advantages ofmanaging with

sustainability as a priority



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Two Sets of Ideals

Social

ResponsibilityEthics



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What is Ethical Behavior?

Definition

Competing Fairly and

Honestly

Communicating

Truthfully

Not Causing Harm toOthers



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Competing Fairly and Honestly

Trade Secrets

Industrial Espionage

Pretexting



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Communicating Truthfully

Tell the Truth, Whole Truth and

Nothing but the Truth

Transparency



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Not Causing Harm to Others

Insider Trading

Conflict of Interest

2007 Prentice Hall 2-8


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Corporate Fraud


WorldComWorldCom

AdelphiaAdelphia

Ford andFord andFirestoneFirestone


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Corporate Fraud


TycoTyco

EnronEnron

Arthur AndersenArthur Andersen


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Ethical Business Behavior


Influential Factors

OrganizationalOrganizational

BehaviorBehavior

KnowledgeKnowledge

CulturalCulturalDifferencesDifferences


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Be an Ethical Leader

Lead by example

Dont tolerate

unethical behavior

Inspire concretely

Acknowledge reality

Communicate

Be honest

Hire good people



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The Four Questions

Is the decision legal?

Is it balanced?

Can you live with it?

Is it feasible?



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Ethical Situations


Ethical Dilemma

Ethical Lapse


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Business and Society

Consumers expect benefits that require money.

Business generates a majority ofmoney in a

free-market economy.

Standard of living is generally derived from

profit-seeking companies.

Businesses cannot hope to operate profitably

without the many benefits provided by a safeand relatively predictable business environment.



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Corporate Social Responsibility

Perspectives Minimalist

Defensive

Cynical

Conscientious



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Efforts to Increase Social

Responsibility


CauseCause--RelatedRelated

MarketingMarketing

CauseCause--RelatedRelated

MarketingMarketing

PhilanthropyPhilanthropyPhilanthropyPhilanthropySocialSocialAuditAuditSocialSocialAuditAudit


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Reduce Pollution


Industrial DischargesIndustrial Discharges

VehicleVehicle EmissionsEmissions

ChemicalChemical SpillsSpills


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Responsibility Toward

Consumers


Consumerism:Consumerism:

The right to safe products

The right to be informed

The right to choose

The right to be heard


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Responsibility Toward Investors


Fair ProfitFair Profit

DistributionDistribution

Fair ProfitFair Profit

DistributionDistribution

SocialSocial

ResponsibilityResponsibility

SocialSocial

ResponsibilityResponsibility

EthicalEthical

BehaviorBehavior

EthicalEthical

BehaviorBehavior


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Employees

Equal Opportunity

Civil Rights Act

EEOC

Affirmative Action



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Employees

People with disabilities

ADA

OSHA



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Global Responsibilities

Bribery

Environmental Abuse

Unscrupulous

Business Practices


Documents

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