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Chapter 2 Business Ethics and Social Responsibility PowerPoint Presentation
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Chapter 2 Business Ethics and Social Responsibility

Chapter 2 Business Ethics and Social Responsibility

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Chapter 2 Business Ethics and Social Responsibility

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  1. Chapter 2 Business Ethics and Social Responsibility

  2. 2-3

  3. Ethisphere links ethics to profits Publication that illuminates the relationship between ethics and profits. 2-4

  4. Business Ethics & Social Responsibility Exec who allegedly made $270M off Enron to pay SEC $31.5M Business Ethics – principles and standards that determine acceptable conduct in business 2-5

  5. Business Ethics & Social Responsibility A Timeline of Ethical and Socially Responsible Concerns 2-6

  6. Business Ethics & Social Responsibility Social responsibility– business’s obligation to maximize its positive impact and minimize its negative impact on society 2-7

  7. Business Ethics & Social Responsibility Laws and regulations encourage businesses to conform to society’s standards, values, and attitudes. Sarbanes-Oxley Act - 2002 2-8

  8. The Role of Ethics in Business Concern about unethical business practices continue – HealthSouth’s accounting improprieties and securities fraud 2-9

  9. The Role of Ethics in Business Unethical and/or Illegal Accounting fraud Deceptive advertising Unfair competitive practices Internet theft 2-10

  10. The Role of Ethics in Business Ethical Conduct Builds trust Promotes confidence Validates relationships Learn how to recognize and resolve ethical issues 2-11

  11. Recognizing Ethical Issues in Business Ethical issue – an identifiable problem, situation, or opportunity that requires a person to choose from among several actions that may be evaluated as right or wrong, ethical or unethical. 2-12

  12. Recognizing Ethical Issues in Business How to judge the ethics of a situation – examine the situation from your stakeholders’ position, including customers and competitors 2-13

  13. Recognizing Ethical Issues in Business Types and Incidences of Observed Misconduct Many business issues may seem straightforward and easy to resolve on the surface, but are in reality very complex. 2-14

  14. Sources of Unethical Behavior in Organizations • Overly aggressive financial or business objectives • Abusive & intimidating behavior • Conflict of interest • Fairness & honesty • Communications • Business relationships 2-15

  15. Sources of Unethical Behavior Abusive and intimidating behavior “Bullies” behavior: 2-16

  16. Sources of Unethical Behavior in Organizations Conflict of interest – • the most common ethical issue identified by employees. • Advance personal interests over others’ interests • Benefit self at the expense of the company 2-17

  17. Least Corrupt Countries 2-18

  18. Business Ethics Fairness & honesty – the heart of business ethics How employees use resources No harm to customers Accurate representations Disclosure 2-19

  19. Business Ethics Most Popular Office Supplies Employees Pilfer “More Employees Taking Supplies,” The News Journal 2-20

  20. Honesty? Personal Ethics 25,000 high school students: 62% cheated on exams at least once 35% copied documents from Internet 27% shoplifted 23% cheated to win at sports 2-21

  21. Communications Ethical Concerns False/misleading advertising Deceptive personal selling tactics Product safety and quality Unsubstantiated claims Product labeling 2-22

  22. Business Relationships Ethical Concerns Relationships with customers Relationships with suppliers Relationships with co-workers 2-23

  23. Plagiarism Ethical Concerns The act of taking someone else’s work and presenting it as your own without mentioning the source 2-24

  24. Making Decisions About Ethical Issues Questions to Consider in Determining Whether an Action Is Ethical Open discussion of ethical issues does not eliminate ethical problems; it does promote trust and learning in an organization. 2-25

  25. Improving Ethical Behavior in Business Ethical decisions in an organizations are influenced by three key factors 2-26

  26. Improving Ethical Behavior in Business Codes of Ethics – Formalized rules and standards that describe what a company expects of its employees. 2-27

  27. Improving Ethical Behavior in Business Key Things to Consider in Developing a Code of Ethics 2-28

  28. National Business Ethics Survey (NBES) Codes of Ethics According to the NBES, employees in organizations with written standards of conduct are more likely to report misconduct when they observe it. 2-29

  29. Whistleblowing Codes of Ethics The act of an employee exposing an employer’s wrongdoing to outsiders, such as the media or government regulatory agencies. 2-30

  30. Business Ethics – Taking Responsibility 2-31

  31. 4 Dimensions Nature of Social Responsibility Economic Legal Ethical Voluntary (philanthropic) 2-32

  32. Pyramid of Social Responsibility 2-33

  33. Corporate Citizenship Nature of Social Responsibility The extent to which businesses meet the legal, ethical, economic, and voluntary responsibilities placed on them by their stakeholders. 2-34

  34. Best Corporate Citizens Nature of Social Responsibility Intel Corporation Eaton Corporation Nike Inc. Deere and Co. 2-35

  35. Nature of Social Responsibility Arguments For and Against Social Responsibility 2-36

  36. Owners & Stockholders Social Responsibility Issues Primary concern with profit or ROI Financial community at large Proper accounting procedures Protecting owner’s rights and investments 2-37

  37. Employee Relations Social Responsibility Issues Provide a safe workplace Adequate compensation Listen to grievances Fair treatment 2-38

  38. Consumer Relations Social Responsibility Issues Consumerism – the activities that independent individuals, groups, and organizations undertake to protect their rights as consumers. 2-39

  39. Environmental Issues Social Responsibility Issues Animal rights Pollution Going Green 2-40

  40. Community Relations Social Responsibility Issues General community and global welfare Hardcore unemployed Charitable contributions (United Way) Avon’s Breast Cancer Awareness Crusade 2-41