Business Ethics & Social Business Ethics & Social ResponsibilityResponsibility

Learning ObjectivesLearning Objectives

ExplainExplain business ethics. business ethics.

Give reasonsGive reasons why ethical behavior is why ethical behavior is good for business.good for business.

DefineDefine social responsibility. social responsibility.

DescribDescribe the social responsibilities of e the social responsibilities of businesses.businesses.

Why Is This Important?Why Is This Important?

Understanding business ethics and Understanding business ethics and social responsibility informs you of social responsibility informs you of your rights as a consumer, employee, your rights as a consumer, employee, and citizen.and citizen.

What Is Ethics?What Is Ethics?

Ethics is Ethics is the set of moral principles by which the set of moral principles by which people conduct themselvespeople conduct themselves personally, socially, or personally, socially, or professionally.professionally.

Business Ethics is Business Ethics is a set of laws about how a a set of laws about how a business should conduct itselfbusiness should conduct itself. .

Legal ResponsibilityLegal Responsibility

In order for any business to be successful, it must In order for any business to be successful, it must operate legally and humanelyoperate legally and humanely..

The US government has The US government has independent agenciesindependent agencies to to protect society.protect society.

OSHAOSHA – a department of Labor sets and enforces work- – a department of Labor sets and enforces work-related health and safety rules.related health and safety rules.

Independent agencies protect Independent agencies protect consumersconsumers, monitor , monitor broadcast communications, and address broadcast communications, and address discrimination discrimination in the workplace.in the workplace.

Businesses that fail to follow laws are subject to Businesses that fail to follow laws are subject to finesfines, , lawsuitslawsuits, and new regulations. , and new regulations.

Code Of EthicsCode Of Ethics

A set of A set of strict guidelinesstrict guidelines for maintaining for maintaining ethics in the ethics in the workplace.workplace.

Professional groupsProfessional groups have their own code of ethics. have their own code of ethics. Examples: Examples: doctors & lawyersdoctors & lawyers

Can cover everything from employee behavior to Can cover everything from employee behavior to environmental safety. environmental safety.

Ethics as Good BusinessEthics as Good Business

UnethicalUnethical business practices affect your business. business practices affect your business.

ViolationViolation of government regulations may incur of government regulations may incur finesfines or or jail timejail time..

Violation of a companies Violation of a companies code of ethicscode of ethics might get you might get you firedfired or you may or you may lose your licenselose your license..

Cheating customers or poor customer service impacts Cheating customers or poor customer service impacts business by business by losing repeat customerslosing repeat customers..

Treating employees poorly results in lose of workers and Treating employees poorly results in lose of workers and time wasted training new employees.time wasted training new employees.

Important Ethical QuestionsImportant Ethical Questions

Ethics involves an Ethics involves an endless series of relationshipsendless series of relationships – – between buyer and seller, employer and employee, between buyer and seller, employer and employee, business and government, and business and society.business and government, and business and society.

When considering a questionable course of action, you When considering a questionable course of action, you have to ask yourself these important questions:have to ask yourself these important questions:

1.1. Is it against the lawIs it against the law? Does it violate company or ? Does it violate company or professional policies?professional policies?

2.2. What if everyone did thisWhat if everyone did this? How would I feel if someone did ? How would I feel if someone did this to me?this to me?

3.3. Am I sacrificing Am I sacrificing long-term benefits for short-term gainslong-term benefits for short-term gains??

Making Decisions on Ethical IssuesMaking Decisions on Ethical Issues

Making ethical decisions is not a quick task but Making ethical decisions is not a quick task but requires some hard thinkingrequires some hard thinking..

Sort of like the Sort of like the decision making processdecision making process..

Steps for making ethical decisions:Steps for making ethical decisions:

1.1. IdentifyIdentify the ethical dilemma. the ethical dilemma.

2.2. DiscoverDiscover a alternative actions. a alternative actions.

3.3. Decide Decide who might be affectedwho might be affected..

4.4. ListList the probable the probable effectseffects of the alternatives. of the alternatives.

5.5. Select the best alternativeSelect the best alternative..

Social ResponsibilitySocial Responsibility Social responsibility is the Social responsibility is the duty to do what is duty to do what is

best for the good of society.best for the good of society.

The social responsibility of business takes into The social responsibility of business takes into consideration consideration all that businesses do or does not all that businesses do or does not do to solve problems of societydo to solve problems of society..

Businesses have a ethical obligation to Businesses have a ethical obligation to provide provide safe products, create jobs, protect the safe products, create jobs, protect the environment, and contribute to the overall environment, and contribute to the overall standard of living in society.standard of living in society.

An ethical question in business occurs An ethical question in business occurs whenever whenever there’s a conflict of interest.there’s a conflict of interest.

Responsibility To CustomersResponsibility To Customers

CustomersCustomers are a business’s are a business’s FIRST FIRST responsibility.responsibility.

Businesses should offer a Businesses should offer a good, safe good, safe product or service at a reasonable priceproduct or service at a reasonable price..

The The Food & Drug AdministrationFood & Drug Administration (FDA) (FDA) protects consumers from dangerous or protects consumers from dangerous or falsely advertised products.falsely advertised products.

Responsibility To EmployeesResponsibility To Employees

Businesses have a social responsibility to Businesses have a social responsibility to create create jobs.jobs.

Businesses encourage Businesses encourage volunteerismvolunteerism to tackle to tackle societal problems.societal problems.

Businesses provide Businesses provide work experiencework experience for people for people who haven’t been successful in the workplace. who haven’t been successful in the workplace. (job placement programs)(job placement programs)

The government has also The government has also passed laws to protect passed laws to protect workersworkers in the workplace. Example: Equal Pay in the workplace. Example: Equal Pay Act & Disabilities ActAct & Disabilities Act

Responsibility To SocietyResponsibility To Society

Businesses have Businesses have environmental environmental responsibility.responsibility.

The The Environmental Protection AgencyEnvironmental Protection Agency (EPA) enforces rules that protect the (EPA) enforces rules that protect the environment and control pollution.environment and control pollution.

More businesses today consider their More businesses today consider their social responsibility to be more important social responsibility to be more important than ever.than ever.