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Chapter 2: Being Ethical and Socially Responsible

Chapter 2: Being Ethical and Socially Responsible. Learning Objectives. Understand what is meant by business ethics. Identify the types of ethical concerns that arise in the business world. Discuss the factors that affect the level of ethical behavior in organizations.

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Chapter 2: Being Ethical and Socially Responsible

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  1. Chapter 2: Being Ethical and Socially Responsible

  2. Learning Objectives • Understand what is meant by business ethics. • Identify the types of ethical concerns that arise in the business world. • Discuss the factors that affect the level of ethical behavior in organizations. • Explain how ethical decision making can be encouraged. • Describe how our current views on the social responsibility of business have evolved. • Explain the two views on the social responsibility of business and understand the arguments for and against increased social responsibility.

  3. Learning Objectives (cont.) • Discuss the factors that led to the consumer movement and list some of its results. • Analyze how present employment practices are being used to counteract past abuses. • Describe the major types of pollution, their causes, and their cures. • Identify the steps a business must take to implement a program of social responsibility.

  4. Business Ethics Defined • Ethics • The study of right and wrong and of the morality of the choices individuals make • An ethical decision is one that is “right” according to some standard of behavior • Business ethics • The application of moral standards to business situations

  5. Ethical Issues • Fairness and Honesty • Organizational Relationships • Conflict of Interest • Communications

  6. Factors Affecting Ethical Behavior • Individual Factors Affecting Ethics • Social Factors Affecting Ethics • “Opportunity” as a Factor Affecting Ethics

  7. Encouraging Ethical Behavior • Government’s Role in Encouraging Ethics • Trade Associations’ Role in Encouraging Ethics • Individual Companies’ Role in Encouraging Ethics

  8. Social Responsibility “Social responsibility is the recognition that business activities have an impact on society and the consideration of that impact in business decision making.” • Historical Evolution of Business Social Responsibility

  9. Two Views of Social Responsibility • The Economic Model • The Socioeconomic Model • The Pros and Cons of Social Responsibility • Arguments for Increased Social Responsibility • Arguments Against Increased Social Responsibility

  10. Consumerism • The Six Basic Rights of Consumers • The Right to Safety • The Right to Be Informed • The Right to Choose • The Right to Be Heard • Additional Consumer Rights • Major Consumerism Forces

  11. Employment Practices • Affirmative Action Programs • Training Programs for the Hard-core Unemployed

  12. Concern for the Environment • Effects of Environmental Legislation • Water Pollution • Air Pollution • Land Pollution • Noise Pollution • Who Should Pay for a Clean Environment?

  13. Implementing a Program of Social Responsibility • Developing a Program of Social Responsibility • Commitment of Top Executives • Planning • Appointment of a Director • The Social Audit • Funding the Program

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