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© Prentice Hall, 2005 Excellence in Business, Revised Edition
Chapter 2 - 1
Ethical and Social Ethical and Social Responsibilities of Responsibilities of
BusinessBusiness
© Prentice Hall, 2007 Excellence in Business, 3e Chapter 2 - 2
Ethics in the Ethics in the WorkplaceWorkplace
Contemporary BusinessContemporary BusinessContemporary BusinessContemporary Business
Social ResponsibilitySocial ResponsibilitySocial ResponsibilitySocial Responsibility Ethical BehaviorEthical BehaviorEthical BehaviorEthical Behavior
PrinciplesPrinciples StandardsStandardsProfitsProfits SocietySociety
© Prentice Hall, 2005 Excellence in Business, Revised Edition
Chapter 2 - 3
What is Ethical Behavior?What is Ethical Behavior?
Competing FairlyCompeting Fairlyand Honestlyand Honestly
CommunicatingCommunicatingTruthfullyTruthfully
Not Harming OthersNot Harming Others
© Prentice Hall, 2005 Excellence in Business, Revised Edition
Chapter 2 - 4
Factors InfluencingFactors InfluencingEthical BehaviorEthical Behavior
Cultural DifferencesCultural Differences
KnowledgeKnowledge
OrganizationalOrganizationalBehaviorBehavior
LegislationLegislation
© Prentice Hall, 2005 Excellence in Business, Revised Edition
Chapter 2 - 5
Making Ethical DecisionsMaking Ethical Decisions
Is It Ethical?Is It Ethical? PhilosophicalPhilosophicalApproachesApproaches
StakeholderStakeholderIssuesIssues
OutsidersOutsidersOutsidersOutsiders
SupervisorsSupervisorsSupervisorsSupervisors
EmployeesEmployeesEmployeesEmployees
UtilitarianismUtilitarianismUtilitarianismUtilitarianism
Individual, LegalIndividual, Legaland Human Rightsand Human RightsIndividual, LegalIndividual, Legal
and Human Rightsand Human Rights
Principles Principles of Justiceof JusticePrinciples Principles of Justiceof Justice
Legality Legality and Balanceand Balance
Legality Legality and Balanceand Balance
AcceptabilityAcceptabilityAcceptabilityAcceptability
FeasibilityFeasibilityFeasibilityFeasibility
© Prentice Hall, 2005 Excellence in Business, Revised Edition
Chapter 2 - 6
• Utilitarianism is a theory of ethics that prescribes the quantitative maximization of good consequences for a population.
© Prentice Hall, 2005 Excellence in Business, Revised Edition
Chapter 2 - 7
Ethical SituationsEthical Situations
Ethical Ethical DilemmaDilemma
Ethical Ethical LapseLapse
© Prentice Hall, 2005 Excellence in Business, Revised Edition
Chapter 2 - 8
• An ethical dilemma is a situation that will often involve an apparent conflict between moral imperatives, in which to obey one would result in transgressing another.
• Ethical lapse: Situation in which an individual makes a decision that is morally wrong, illegal, or unethical
© Prentice Hall, 2005 Excellence in Business, Revised Edition
Chapter 2 - 9
Social Responsibility in Social Responsibility in BusinessBusiness
EarlyEarly2020thth Century Century
MiddleMiddle2020thth Century Century
EarlyEarly2121stst Century Century
MaximizeMaximizeProfitsProfits
Provide JobsProvide Jobsand Pay Taxesand Pay Taxes
Balance ProfitsBalance Profitsand Social Issuesand Social Issues
© Prentice Hall, 2005 Excellence in Business, Revised Edition
Chapter 2 - 10
Percentage of Executives Who “Strongly Agree” or “Agree” That Companies Should:Percentage of Executives Who “Strongly Agree” or “Agree” That Companies Should:
•Be environmentally responsible
•Be ethical in operations
•Earn profits
•Employ local residents
•Pay taxes
•Encourage and support employee volunteering
•Contribute money and leadership to charities
•Be involved in economic development
•Be involved in public education
•Involve community representatives in business decisions
•Target a portion of purchasing toward local vendors
•Help improve quality of life for low-income populations
•Be environmentally responsible
•Be ethical in operations
•Earn profits
•Employ local residents
•Pay taxes
•Encourage and support employee volunteering
•Contribute money and leadership to charities
•Be involved in economic development
•Be involved in public education
•Involve community representatives in business decisions
•Target a portion of purchasing toward local vendors
•Help improve quality of life for low-income populations
PercentagePercentage
100
100
96
94
94
89
85
75
73
62
61
54
100
100
96
94
94
89
85
75
73
62
61
54
© Prentice Hall, 2005 Excellence in Business, Revised Edition
Chapter 2 - 11
Balancing Business Balancing Business and Stakeholders’ Rightsand Stakeholders’ Rights
BusinessBusiness
Safe Safe ProductsProducts
Product Product ChoiceChoice
ConsumersConsumers
Informed Informed PurchasePurchase
EmployeesEmployees
EquityEquityHealth & SafetyHealth & Safety
InvestorsInvestors
ProfitsProfitsFair DisclosureFair Disclosure
SocietySociety
CleanCleanEnvironmentEnvironment
© Prentice Hall, 2005 Excellence in Business, Revised Edition
Chapter 2 - 12
CorporateCorporateSocial ResponsibilitySocial Responsibility
Social AuditsSocial AuditsSocial AuditsSocial Audits Cause-RelatedCause-RelatedMarketingMarketing
Cause-RelatedCause-RelatedMarketingMarketing PhilanthropyPhilanthropyPhilanthropyPhilanthropy
RecyclingRecyclingProgramsProgramsRecyclingRecyclingProgramsPrograms
MedicalMedicalResearchResearchMedicalMedical
ResearchResearch Worthy CausesWorthy CausesWorthy CausesWorthy Causes
CharitiesCharitiesCharitiesCharities HumanitarianHumanitarianAidAid
HumanitarianHumanitarianAidAid
EducationEducationEducationEducation
© Prentice Hall, 2005 Excellence in Business, Revised Edition
Chapter 2 - 13
• cause marketing relies on forging long-term, strategic marketing partnerships between businesses and non-profit organizations to elevate brand awareness within the context of social responsibility.
© Prentice Hall, 2007 Excellence in Business, 3e Chapter 2 - 14
Responsibility to Society Responsibility to Society and the Environmentand the Environment
Natural Resourcesand Pollution
Natural Resourcesand Pollution
Environmental Activism
Environmental Activism
BusinessBusiness EnvironmentEnvironment ConsumersConsumers
© Prentice Hall, 2005 Excellence in Business, Revised Edition
Chapter 2 - 15
Causes of Causes of PollutionPollution
Industrial Discharges
Vehicle Emissions
Chemical Spills
© Prentice Hall, 2005 Excellence in Business, Revised Edition
Chapter 2 - 16
GovernmentGovernmentEfforts toEfforts to
Reduce PollutionReduce Pollution
The EnvironmentalThe EnvironmentalProtection AgencyProtection Agency
Regulate Regulate Air and WaterAir and Water
ReduceReduceAutomobile EmissionsAutomobile Emissions
License PesticidesLicense Pesticides
Control Control Toxic SubstancesToxic Substances
SafeguardSafeguardDrinking WaterDrinking Water
© Prentice Hall, 2007 Excellence in Business, 3e Chapter 2 - 17
Government Efforts Government Efforts to Reduce Pollutionto Reduce Pollution
Global Warming
Clean Water Act
EPA Superfund
Clean Air Act
© Prentice Hall, 2005 Excellence in Business, Revised Edition
Chapter 2 - 18
Business EffortsBusiness Effortsto Reduce Pollutionto Reduce Pollution
Environmental IssuesEnvironmental Issues
Environmental StaffEnvironmental Staff
Performance ExpectationsPerformance Expectations
Performance RewardsPerformance Rewards
Long-Term CostLong-Term Cost
Product DevelopmentProduct Development
Supplier ExpectationsSupplier Expectations
Training and AwarenessTraining and Awareness
© Prentice Hall, 2005 Excellence in Business, Revised Edition
Chapter 2 - 19
ResponsibilityResponsibilityToward ConsumersToward Consumers
The Right to Safe ProductsThe Right to Safe ProductsThe Right to Safe ProductsThe Right to Safe Products
The Right to Be InformedThe Right to Be InformedThe Right to Be InformedThe Right to Be Informed
The Right to ChoiceThe Right to ChoiceThe Right to ChoiceThe Right to Choice
The Right to Be HeardThe Right to Be HeardThe Right to Be HeardThe Right to Be Heard
© Prentice Hall, 2007 Excellence in Business, 3e Chapter 2 - 20
Responsibility Responsibility Toward ConsumersToward Consumers
Freedom of ChoiceFreedom of Choice
Right to Be HeardRight to Be Heard
Accurate InformationAccurate Information
Product SafetyProduct Safety
© Prentice Hall, 2005 Excellence in Business, Revised Edition
Chapter 2 - 21
Responsibility Responsibility Toward InvestorsToward Investors
Fair ProfitFair ProfitDistributionDistributionFair ProfitFair Profit
DistributionDistributionEthicalEthical
BehaviorBehaviorEthicalEthical
BehaviorBehaviorSocialSocial
ResponsibilityResponsibilitySocialSocial
ResponsibilityResponsibility
© Prentice Hall, 2005 Excellence in Business, Revised Edition
Chapter 2 - 22
Responsibility TowardResponsibility TowardEmployeesEmployees
Equal EmploymentEqual EmploymentOpportunityOpportunity
AffirmativeAffirmativeActionAction
OccupationalOccupationalHealth and SafetyHealth and Safety
Americans withAmericans withDisabilities ActDisabilities Act
© Prentice Hall, 2005 Excellence in Business, Revised Edition
Chapter 2 - 23
Global Ethics and Social Global Ethics and Social ResponsibilityResponsibility
Bribery
Environmental Abuse
Unscrupulous Business Practices
