CHAPTER 2 - CHAPTER 2 CHAPTER 2 BUSINESS ETHICS AND SOCIAL...

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Unformatted text preview: CHAPTER 2 CHAPTER 2 BUSINESS ETHICS AND SOCIAL RESPONSIBILITY INTRODUCTION 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 – Some legal acts are unethical Wheelchair­bound bank robber? MLK sit­ins McDonald’s menu and advertising? WHY BOTHER WITH 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 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 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 the light 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 WHAT IS ETHICAL BEHAVIOR? Analyzing the Ethics Checklist – Is more than one alternative right? Which values are in conflict? President Truman’s 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 APPLYING THE ETHICS CHECKLIST: MAKING DECISIONS Organization’s 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 APPLYING THE ETHICS CHECKLIST: MAKING DECISIONS Organization’s Responsibility to its Customers Organization’s 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? Organization’s Responsibility to Its Shareholders Organization’s Responsibility Overseas Employee’s Responsibility to their Organization – Ford and Fuel Economy Standards on SUVs ...
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This note was uploaded on 04/04/2011 for the course GOVT 1132 taught by Professor Asdad during the Spring '11 term at University of Texas at Dallas, Richardson.

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