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BUSINESS CHAPTER ETHICS AND SOCIAL RESPONSIBILITY
INTRODUCTION
Ethics is the study of how people should act it is a branch of philosophy Law and ethics may not always agree
Sometimes it is ethical to commit and illegal act, and
Wheelchair-bound bank robber? MLK sit-ins
Some legal acts are unethical
McDonalds menu and advertising?
WHY BOTHER WITH ETHICS?
There is little evidence that ethical behavior necessarily pays financially, either in the short or long run Society as a whole benefits from ethical behavior People feel better when they behave ethically Unethical behavior can be costly
Asthma Bride
WHAT IS ETHICAL BEHAVIOR?
Analyzing the Ethics Checklist
What are the facts? What are the critical issues? Who are the stakeholders? Dodge v. Ford Motor Company, 204 Mich. 459, 170 N.W. 668. (Mich. 1919), was a famous case in which the Michigan Supreme Court held that Henry Ford owed a duty to the shareholders of the Ford Motor Company to operate his business for profitable purposes as opposed to charitable purposes.
The Court held that a business corporation is organized primarily for the profit of the stockholders, as opposed to the community or its employees. Because this company was in business for profit, Ford could not turn it into a charity. This was compared to a spoilation of the company's assets.
WHAT IS ETHICAL BEHAVIOR?
Analyzing the Ethics Checklist
What are the alternatives? What are the ethical implications of each alternative?
Is the alternative legal? How would the alternative look in light the of day? Consequences of the alternative? Does an alternative violate important values? Does an alternative violate the golden rule? Is the alternative just? Has the process been fair?
WHAT IS ETHICAL BEHAVIOR?
Analyzing the Ethics Checklist
Is more than one alternative right?
Which values are in conflict? President Trumans decision regarding the end of WWII
Which of the conflicting values is most important? Can you find an alternative that is consistent with your values?
APPLYING THE ETHICS CHECKLIST: MAKING DECISIONS
Organizations Responsibility to Society
Advertising and Ethics -Alternatives
Ignore ethics and try to create ads that sell the most product, no matter the underlying message. Try generally to minimize exploitation. Include a systematic, focused review of underlying messages as part of the development process. Refuse to create any ads that are even potentially offensive.
APPLYING THE ETHICS CHECKLIST: MAKING DECISIONS
Organizations Responsibility to its Customers
Organizations Responsibility to Its Employees
Sheldon Baskin and subsidized apartment building Is a business responsible if its decisions create a financial hardship for someone else? What if a decision leaves someone homeless? Enron Gillette and Executive Payout Should employers be required to treat all employees the same in regard to benefits?
Organizations Responsibility Overseas Employees Responsibility to their Organization
Ford and Fuel Economy Standards on SUVs
Organizations Responsibility to Its Shareholders