Contemporary business, 12 by kurts CB12ech02

Chapter Business Ethics and Social Responsibility oals G g n i n r a e L Explain the concepts of business ethics and social responsibility Describe the factors that influence business ethics List the stages in the development of ethical standards Identify common ethical dilemmas in the workplace Discuss how organizations shape ethical behavior Describe how businesses’ social responsibility is measured Summarize the responsibilities of business to the general public, customers, and employees Explain why investors are concerned with business ethics and social responsibility Concern for Ethical and Societal Issues Sarbanes-Oxley Act 2002 law that added oversight for the nation’s major  companies and a special oversight board to regulate public accounting firms  that audit the financial records of these corporations Business Ethics The standards of conduct and moral values governing actions  and decisions in the work environment • Social responsibility • Balance between what’s right and what’s profitable • Often no clear­cut choices • Often shaped by the organization’s ethical climate THE NEW ETHICAL ENVIRONMENT • High profile investigations and arrests in headlines • Vast majority of businesses ethical • New corporate officers charged with deterring wrongdoing and ensuring ethical  standards Source: “Our Company, Our Credo,” Johnson & Johnson Web site Individuals Make a Difference • Personal ethics matter • Survey of British workers found 30 percent spent 30 minutes daily doing  personal business online • Technology expanded abuses • Data theft Development of Individual Ethics On-the-Job Ethical Dilemmas Situation in which a business  decision may be influenced  for personal gain Employee’s disclosure  of illegal, immoral, or  unethical practices in  the organization Telling the truth and  adhering to deeply felt  ethical principles in  business decisions Businesspeople expect  employees to be loyal  and truthful, but ethical  conflicts may arise HOW ORGANIZATIONS SHAPE ETHICAL CONDUCT Ethical Action • Helping employees recognize and reason through ethical problems and turning  them into ethical actions Ethical Leadership • Executives must demonstrate ethical behavior in their actions ACTING RESPONSIBLY TO SATISFY SOCIETY Social Responsibility Management’s acceptance of the obligation to consider  profit, consumer satisfaction, and societal well­being of equal value in  evaluating the firm’s performance • For example, contributions to the overall economy, job opportunities, and  charitable contributions and service • Measured through social audits Areas of responsibility Responsibilities to the General Public Public Health Issues What to do about inherently dangerous  products such as alcohol, tobacco, vaccines, and steroids Responsibilities to the General Public Public Health Issues What to do about inherently dangerous  products such as alcohol, tobacco, vaccines, and steroids Responsibilities to the General Public Public Health Issues What to do about inherently dangerous  products such as alcohol, tobacco, vaccines, and steroids Responsibilities to the General Public Public Health Issues What to do about inherently dangerous  products such as alcohol, tobacco, vaccines, and steroids Protecting the Environment Using resources efficiently,  minimizing pollution •  Recycling Reprocessing used materials  for reuse.  Developing the Quality of the Workforce Enhancing  quality of the overall workforce through education and  diversity initiatives Corporate Philanthropy Cash contributions, donations of  equipment and products, and supporting the volunteer efforts  of company employees Responsibilities to Customers Responsibilities to Customers The Right to Be Safe Safe operation of products, avoiding  product liability The Right to Be Informed Avoiding false or misleading  advertising and providing effective customer service The Right to Choose Ability of consumers  to choose the products and services they  want The Right to Be Heard Ability of consumers to  express legitimate complaints to the appropriate parties Responsibilities to Employees Responsibilities to Employees Workplace Safety Monitored by  Occupational Safety and Health Administration Quality-of-Life Issues Balancing work and family  through flexible work schedules, subsidized child  care, and regulation such as the Family and Medical Leave Act  of 1993 Ensuring Equal Opportunity on the Job Providing equal opportunities to all employees without  discrimination; many aspects regulated by law Age Discrimination Age Discrimination in Employment Act of  1968 protects workers age 40 or older.  Sexual Harassment and Sexism Avoiding unwelcome actions  of a sexual nature; equal pay for equal work without regard to  gender Responsibilities to Investors and the Financial Community • Obligation to make profits for shareholders • Expectation of ethical and moral behavior • Investors protected by regulation by the  Securities and Exchange Commission  and state regulations ... • Obligation to make profits for shareholders • Expectation of ethical and moral behavior • Investors protected by regulation by the  Securities and Exchange Commission  and state regulations ... express legitimate complaints to the appropriate parties Responsibilities to Employees Responsibilities to Employees Workplace Safety Monitored by Occupational Safety and Health Administration Quality-of-Life Issues Balancing work and family ... Providing equal opportunities to all employees without  discrimination; many aspects regulated by law Age Discrimination Age Discrimination in Employment Act of  1968 protects workers age 40 or older.