7/29/2019 Student 02

1/19

Prentice Hall, 2007 Excellence in Business, 3e Chapter 2 - 1

Business Done Right:

Ethics and SocialResponsibility

7/29/2019 Student 02

2/19

Prentice Hall, 2007 Excellence in Business, 3e Chapter 2 - 2

Ethics in the Workplace

Social responsibility

Profits

Society

Ethical behavior

Principles Standards

7/29/2019 Student 02

3/19

Prentice Hall, 2007 Excellence in Business, 3e Chapter 2 - 3

Examples of Corporate

Fraud Enron

Arthur Andersen

Marsh & McLennan

WorldCom

Ford & Firestone

7/29/2019 Student 02

4/19

Prentice Hall, 2007 Excellence in Business, 3e Chapter 2 - 4

What is Ethical Behavior?

Competing fairly and honestly

Communicating truthfully

Not causing harm to others

7/29/2019 Student 02

5/19

Prentice Hall, 2007 Excellence in Business, 3e Chapter 2 - 5

Factors Influencing Ethical

Behavior Cultural differences

Knowledge Corporate behavior

Reporting systems

7/29/2019 Student 02

6/19

Prentice Hall, 2007 Excellence in Business, 3e Chapter 2 - 6

Making Ethical Decisions

Is It Ethical?PhilosophicalApproaches

StakeholderIssues

Outsiders

Supervisors

Employees

Utilitarianism

Individual, Legal

and Human Rights

Principles

of Justice

Legalityand Balance

Acceptability

Feasibility

7/29/2019 Student 02

7/19

Prentice Hall, 2007 Excellence in Business, 3e Chapter 2 - 7

Types of Ethical Situations

Ethical dilemmas

Ethical lapses

7/29/2019 Student 02

8/19

Prentice Hall, 2007 Excellence in Business, 3e Chapter 2 - 8

Social Responsibility in

Business Early 20th Century

Maximize profits

Middle 20th Century

Provide jobs and pay taxes

Early 21st Century

Balance profits and social issues

7/29/2019 Student 02

9/19

Prentice Hall, 2007 Excellence in Business, 3e Chapter 2 - 9

Percentage of Executives Who Strongly Agree

or Agree That Companies Should:

Be environmentally responsibleBe ethical in operations

Earn profits

Employ local residents

Pay taxesEncourage and support employee volunteering

Contribute money and leadership to charities

Be involved in economic development

Be involved in public educationInvolve community representatives in business decisions

Target a portion of purchasing toward local vendors

Help improve quality of life for low-income populations

Percentage

100100

96

94

9489

85

75

7362

61

54

7/29/2019 Student 02

10/19

Prentice Hall, 2007 Excellence in Business, 3e Chapter 2 - 10

Balancing Business and

Stakeholders Rights Business

Investors Consumers

Employees

Society

7/29/2019 Student 02

11/19

Prentice Hall, 2007 Excellence in Business, 3e Chapter 2 - 11

Corporate Social

Responsibility Social audit

Cause-related marketing

Philanthropy

7/29/2019 Student 02

12/19

Prentice Hall, 2007 Excellence in Business, 3e Chapter 2 - 12

Responsibility to Society and

the Environment Business

Environment

Consumers

7/29/2019 Student 02

13/19

Prentice Hall, 2007 Excellence in Business, 3e Chapter 2 - 13

Pervasiveness of Pollution

Industrial discharges

Vehicle emissions Chemical spills

7/29/2019 Student 02

14/19

Prentice Hall, 2007 Excellence in Business, 3e Chapter 2 - 14

Government Efforts to

Reduce Pollution The Clean Air Act

Global Warming The Clean Water Act

EPA Superfund

7/29/2019 Student 02

15/19

Prentice Hall, 2007 Excellence in Business, 3e Chapter 2 - 15

Business Efforts at

Reduction Environmental issues

Environmental staff

Performance expectations

Performance rewards

Long-term cost

Product development Supplier expectations

Training and awareness

7/29/2019 Student 02

16/19

Prentice Hall, 2007 Excellence in Business, 3e Chapter 2 - 16

Responsibility Toward

Consumers The right to safe products

The right to be informed The right to choice

The right to be heard

7/29/2019 Student 02

17/19

Prentice Hall, 2007 Excellence in Business, 3e Chapter 2 - 17

Responsibility Toward

Investors Fair profit distribution

Social responsibility

Ethical behavior

7/29/2019 Student 02

18/19

Prentice Hall, 2007 Excellence in Business, 3e Chapter 2 - 18

Responsibility Toward

Employees Equal employment opportunity

Affirmative action Americans with Disabilities Act

Occupational health and safety

7/29/2019 Student 02

19/19

Prentice Hall, 2007 Excellence in Business, 3e Chapter 2 - 19

Global Ethics and Social

Responsibility Bribery

Environmental abuse Unscrupulous business practices