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Business Ethics & Social Responsibility
TRIHADI PUDIAWAN ERHAN - [email protected] -
Universitas Pembangunan JayaProgram Strata Satu
© February 2014
What is ETHICS?The inner-guiding moral principles & values people use to analyze
a situation and decide what is “right”
About Ethics
Ethics changes over time
people shapes principles and values
Business should operate by considering the principles & values of the people to be accepted
About Ethics
ETHICAL DILEMMA
VS
THE LESSER OF EVILS
About Ethics
ETHICAL DILEMMA
Why Should Be Ethical?
EXTERNALITIES
An externality refers to the uncompensated impact of one person's actions on the well-being of
a bystander.
Why Should Be Ethical?Ethical Behaviour
Lower Transaction Cost
Increases Efficiency & Effectiveness of Production &
Trade
Increases Company Profitability
Increases National Standard of Living, Well-Being, & Prosperity
Unethical Behaviour
Increases Transaction Cost
Reduces Efficiency & Effectiveness of Production &
Trade
Reduces Company Profitability
Reduces National Standard of Living, Well-Being, & Prosperity
REPUTATION
Business Ethics
BusinessEthics
SocietalEthics
IndividualEthics
OrganizationalEthics
OccupationalEthics
Rules For Ethical Decission Making
The Utilitarian Rule
A rule stating that an ethical decision is one that produces the greatest good for the greatest
number of people
Rules For Ethical Decission Making
A rule stating that an ethical decision is one that best mantains and protects the fundamental, inalienable rights and privileges of the people
affected by it
The Moral Rights Rule
Rules For Ethical Decission Making
A rule stating that an ethical decision is one that distribute benefit and harms among people in a
fair or impartial way
The Justice Rule
Rules For Ethical Decission Making
A practical that an ethical decision is one that a manager can communicate to society because the typical person would think it is acceptable
The Practical Rule
Laws & Rules
Laws Affecting Business Commerce
• Antitrust• Consumer Safety• Environmental
Protection• Public Interest
Laws Affecting Business Occupations
• Occupational Qualification
• Diversity• Employee Health &
Safety
Laws Affecting Business Organization
• Incorporation• Bankruptcy• Patents• Copyrights and
Trademarks
© February 2014
