Chapter 2
25 Pages

Chapter 2

Course Number: BUS 109, Fall 2008

College/University: Diablo Valley College

Word Count: 1460

Rating:

Document Preview

1 1 The Contemporary Business World The Contemporary Business World Business Business Business Business Essentials Essentials Essentials Essentials 6e 6e Ronald J. Ebert Ronald J. Ebert Ricky W. Griffin Ricky W. Griffin 2 BUSINESS ETHICS AND SOCIAL RESPONSIBILITY 2007 Prentice Hall, Inc. All rights reserved. PowerPoint Presentation by Charlie Cook The University of West Alabama L E A R N II N G O B J E C T...

Unformatted Document Excerpt
Coursehero >> California >> Diablo Valley College >> BUS 109

Course Hero has millions of student submitted documents similar to the one
below including study guides, practice problems, reference materials, practice exams, textbook help and tutor support.

Course Hero has millions of student submitted documents similar to the one below including study guides, practice problems, reference materials, practice exams, textbook help and tutor support.

Contemporary 1 1 The Business World The Contemporary Business World Business Business Business Business Essentials Essentials Essentials Essentials 6e 6e Ronald J. Ebert Ronald J. Ebert Ricky W. Griffin Ricky W. Griffin 2 BUSINESS ETHICS AND SOCIAL RESPONSIBILITY 2007 Prentice Hall, Inc. All rights reserved. PowerPoint Presentation by Charlie Cook The University of West Alabama L E A R N II N G O B J E C T II V E S LEARN NG OBJECT VES After reading this chapter, you should be able to: 1. Explain how individuals develop their personal codes Explain of ethics and why ethics are important in the workplace. workplace. 2. Distinguish social responsibility from ethics, identify Distinguish organizational stakeholders, and characterize social consciousness today. consciousness 3. Show how the concept of social responsibility applies Show both to environmental issues and to a firms relationships with customers, employees, and investors. investors. 2007 Prentice Hall, Inc. All rights reserved. 22 L E A R N II N G O B J E C T II V E S (contd) L E A R N N G O B J E C T V E S (contd) After reading this chapter, you should be able to: 4. Identify four general approaches to social Identify responsibility and describe the four steps that a firm must take to implement a social responsibility program. program. 5. Explain how issues of social responsibility and ethics Explain affect small business. affect 2007 Prentice Hall, Inc. All rights reserved. 23 Whats in It for Me? By understanding the material in this chapter, By youll be better able to: youll Assess ethical and socially responsible issues facing Assess you as an employee and as a boss or business owner. owner. Understand the ethical and socially responsible Understand actions of businesses you deal with as a consumer and as an investor. and 2007 Prentice Hall, Inc. All rights reserved. 24 Ethics in the Workplace Ethics Beliefs about whats right and wrong or good and bad Ethical Behavior Behavior conforming to individual beliefs and social norms Behavior about whats right and good about Unethical Behavior Behavior conforming to individual beliefs and social norms Behavior about what is defined as wrong and bad about Business Ethics The ethical or unethical behaviors by employees in the context The of their jobs of 2007 Prentice Hall, Inc. All rights reserved. 25 Individual Values and Codes Sources of Personal Codes of Ethics Childhood responses to adult behavior Influence of peers Experiences in adulthood Developed morals and values 2007 Prentice Hall, Inc. All rights reserved. 26 Business and Managerial Ethics Managerial Ethics The standards of behavior that guide individual The managers in their work managers Ethics affect a managers behavior toward: employees the organization other economic agentscustomers, competitors, other stockholders, suppliers, dealers, and unions stockholders, Ethical Concerns Ambiguity (e.g., financial disclosure) Global variation in business practices (e.g., bribes) 2007 Prentice Hall, Inc. All rights reserved. 27 Assessing Ethical Behavior Simple Steps in Applying Ethical Judgments Gather the relevant factual information Analyze the facts to determine the most appropriate moral values Make an ethical judgment based on the rightness or wrongness of the proposed activity or policy 2007 Prentice Hall, Inc. All rights reserved. 28 Assessing Ethical Behavior Ethical Norms and the Issues They Entail Utility: Does a particular act optimize the benefits to those who are affected by it? Do all relevant parties receive fair benefits? receive Rights: Does the act respect the rights of all individuals involved? individuals Justice: Is the act consistent with whats fair? Caring: Is the act consistent with peoples responsibilities to each other? responsibilities 2007 Prentice Hall, Inc. All rights reserved. 29 Company Practices and Business Ethics Encouraging Ethical Behavior Involves: Adopting written codes of conduct and establishing Adopting clear ethical positions for the conduct of business clear Having top management demonstrate its support of Having ethical standards ethical Instituting programs to provide periodic ethics Instituting training training Establishing ethical hotlines for reporting and Establishing discussion of unethical behavior and activities discussion 2007 Prentice Hall, Inc. All rights reserved. 210 FIGURE 2.2 Core Principles and Organizational Values FIGURE 2.2 Core Principles and Organizational Values 2007 Prentice Hall, Inc. All rights reserved. 211 Social Responsibility Social Responsibility The overall way in which a business attempts to The balance its commitments to relevant groups and individuals (stakeholders) in its social environment individuals Organizational Stakeholders Groups, individuals, and organizations that are Groups, directly affected by the practices of an organization and, therefore, have a stake in its performance and, 2007 Prentice Hall, Inc. All rights reserved. 212 FIGURE 2.3 Major Corporate Stakeholders FIGURE 2.3 Major Corporate Stakeholders 2007 Prentice Hall, Inc. All rights reserved. 213 The Stakeholder Model of Responsibility Customers Businesses to strive treat customers fairly and honestly Employees Businesses treat employees fairly, make them a part of the team, and respect their dignity and basic human needs Investors Businesses follow proper accounting procedures, provide information to shareholders about financial performance, and protect shareholder rights and investments Suppliers Businesses emphasize mutually beneficial partnership arrangements with suppliers Local and International Communities Businesses try to be socially responsible socially 2007 Prentice Hall, Inc. All rights reserved. 214 Contemporary Social Consciousness The Concept of Accountability The expectation of an expanded role for business in The protecting and enhancing the general welfare of society society 2007 Prentice Hall, Inc. All rights reserved. 215 Areas of Social Responsibility Responsibility Toward the Environment Controlling air, water, and land pollution Properly disposing of toxic waste Engaging in recycling 2007 Prentice Hall, Inc. All rights reserved. 216 Areas of Social Responsibility (contd) Responsibility Toward Customers Involves providing quality products and pricing products fairly Consumerism Social activism dedicated to protecting the rights of consumers Social in their dealings with businesses in Basic Consumer Rights Basic To possess safe products To be informed about all relevant aspects of a product To be heard To choose what to buy To be educated about purchases To courteous service 2007 Prentice Hall, Inc. All rights reserved. 217 Consumer Rights (contd) Unfair Pricing Collusion: When two or more firms agree to Collusion: collaborate on such wrongful acts as price fixing collaborate Price gouging: Responding to increased demand with overly steep (and often unwarranted) price increases increases Ethics in Advertising Truth in advertising Morally objectionable advertising 2007 Prentice Hall, Inc. All rights reserved. 218 Areas of Social Responsibility (contd) Responsibility Toward Employees Legal and social commitments to: not practice illegal discrimination provide a physically and socially safe workplace provide opportunities to balance work and life provide protection for whistleblowers (an employee who provide discovers and tries to put an end to a companys unethical, illegal, or socially irresponsible actions by publicizing them) illegal, Responsibility Toward Investors Proper financial management (no insider trading) Proper representation of finances 2007 Prentice Hall, Inc. All rights reserved. 219 Implementing Social Responsibility Implementing (SR) Programs (SR) Arguments Against SR The cost of SR threatens profits. Business have too much control over which and how Business SR issues would be addressed. SR Business lacks expertise in SR matters. Arguments for SR SR should take precedence over profits. Corporations as citizens should help others. Corporations have the resources to help. Corporations should solve problems they create. 2007 Prentice Hall, Inc. All rights reserved. 220 Approaches to Social Responsibility Obstructionist Stance A company does as little as possible and may attempt to deny or cover up violations Defensive Stance A company does everything required of it legally but no more Accommodative Stance A company meets its legal and ethical requirements and also goes further in certain cases Proactive Stance A company actively seeks to contribute to the well- being of groups and individuals in its social environment 2007 Prentice Hall, Inc. All rights reserved. 221 FIGURE 2.5 Spectrum of Approaches to Corporate Social FIGURE 2.5Spectrum of Approaches to Corporate Social Spectrum Spectrum Responsibility Responsibility Responsibility Responsibility 2007 Prentice Hall, Inc. All rights reserved. 222 Managing Social Responsibility Managing Programs Programs 1. 2. 3. 4. Social responsibility must start at the top and be Social considered as a factor in strategic planning. considered A committee of top managers must develop a plan committee detailing the level of management support. detailing One executive must be put in charge of the firms One agenda. agenda. The organization must conduct occasional social audits systematic analyses of its success in using funds systematic earmarked for its social responsibility goals. earmarked 2007 Prentice Hall, Inc. All rights reserved. 223 Social Responsibility Social and the Small Business and Large Business versus Small Business Large Responses to Ethical Issues Responses Differences are primarily differences of scale. More issues are questions of individual ethics. Ethics and social responsibility are decisions Ethics faced by all managers in all organizations, regardless of rank or size. regardless 2007 Prentice Hall, Inc. All rights reserved. 224 KEY TERMS KEY TERMS accommodative stance accommodative business ethics collusion consumerism defensive stance ethical behavior ethics insider trading managerial ethics obstructionist stance organizational stakeholders organizational 2007 Prentice Hall, Inc. All rights reserved. proactive stance proactive social audit social responsibility unethical behavior whistle-blower whistle-blower 225
MOST POPULAR MATERIALS FROM BUS
MOST POPULAR MATERIALS FROM Diablo Valley College