Scribd Logo
Upload

Welcome to Scribd!

  • 20 views

    2 Business Ethics and Corporate Social Responsiblities Day 2

    Uploaded by

    Yonathan Shiferaw
    This chapter discusses business ethics and corporate social responsibility. It explains how individuals develop personal ethics codes and why ethics are important in the workplace. It distinguishes social responsibility from ethics and identifies organizational stakeholders. It shows how social responsibility applies to environmental issues and a firm's relationships with customers, employees, and investors. It identifies four approaches to social responsibility and the four steps to implement programs. It also explains how ethics and social responsibility affect small businesses.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd

    2 Business Ethics and Corporate Social Responsiblities Day 2

    Uploaded by

    Yonathan Shiferaw
    20 views25 pages
    This chapter discusses business ethics and corporate social responsibility. It explains how individuals develop personal ethics codes and why ethics are important in the workplace. It distinguishes social responsibility from ethics and identifies organizational stakeholders. It shows how social responsibility applies to environmental issues and a firm's relationships with customers, employees, and investors. It identifies four approaches to social responsibility and the four steps to implement programs. It also explains how ethics and social responsibility affect small businesses.

    Original Description:

    Business ethics and corporate social responsibility presentation

    Original Title

    2_Business_Ethics_and_Corporate_Social_Responsiblities_Day_2

    Copyright

    © © All Rights Reserved

    Available Formats

    PPTX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    This chapter discusses business ethics and corporate social responsibility. It explains how individuals develop personal ethics codes and why ethics are important in the workplace. It distinguishes social responsibility from ethics and identifies organizational stakeholders. It shows how social responsibility applies to environmental issues and a firm's relationships with customers, employees, and investors. It identifies four approaches to social responsibility and the four steps to implement programs. It also explains how ethics and social responsibility affect small businesses.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    20 views25 pages

    2 Business Ethics and Corporate Social Responsiblities Day 2

    Uploaded by

    Yonathan Shiferaw
    This chapter discusses business ethics and corporate social responsibility. It explains how individuals develop personal ethics codes and why ethics are important in the workplace. It distinguishes social responsibility from ethics and identifies organizational stakeholders. It shows how social responsibility applies to environmental issues and a firm's relationships with customers, employees, and investors. It identifies four approaches to social responsibility and the four steps to implement programs. It also explains how ethics and social responsibility affect small businesses.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 25

    Business Ethics and

    corporate Social
    Responsibility

    Chapter 2
    BUSINESS ETHICS AND
    SOCIAL RESPONSIBILITY
    LEARNING
    OBJECTIVES

    After reading this chapter, you should be able to:


    1. Explain how individuals develop their personal codes
    of ethics and why ethics are important in the
    workplace.
    2. Distinguish social responsibility from ethics, identify
    organizational stakeholders, and characterize social
    consciousness today.
    3. Show how the concept of social responsibility applies
    both to environmental issues and to a firm’s
    relationships with customers, employees, and
    investors.
    2
    LEARNING
    O B J E C T I V E S (cont’d)

    After reading this chapter, you should be


    able to:
    4. Identify four general approaches to social
    responsibility and describe the four steps that
    a firm must take to implement a social
    responsibility program.
    5. Explain how issues of social responsibility and
    ethics affect small business.

    3
    What’s in It for Me?

     By understanding the material in this


    chapter, you’ll be better able to:
     Assess ethical and socially responsible issues
    facing you as an employee and as a boss or
    business owner.
     Understand the ethical and socially
    responsible actions of businesses you deal
    with as a consumer and as an investor.

    4
    Ethics in the Workplace
     Ethics
     Beliefs about what’s right and wrong or good and bad
     Ethical Behavior
     Behavior conforming to individual beliefs and social
    norms about what’s right and good
     Unethical Behavior
     Behavior conforming to individual beliefs and social
    norms about what is defined as wrong and bad
     Business Ethics
     The ethical or unethical behaviors by employees in the
    context of their jobs
    5
    Individual Values and Codes

     Sources of Personal Codes of Ethics


     Childhood responses to adult behavior
     Influence of peers
     Experiences in adulthood
     Developed morals and values

    6
    Business and Managerial
    Ethics
     Managerial Ethics
     The standards of behavior that guide individual
    managers in their work
     Ethics affect a manager’s behavior toward:
     employees
     the organization
     other economic agents—customers, competitors,
    stakeholders, stockholders, suppliers, dealers, and
    unions
     Ethical Concerns
     Ambiguity (e.g., financial disclosure)
     Global variation in business practices (e.g., bribes,
    corruption etc..) 7
    Assessing Ethical Behavior

     Simple Steps in Applying Ethical


    Judgments
     Gather the relevant factual information
     Analyze the facts to determine the most
    appropriate moral values
     Make an ethical judgment based on the
    rightness or wrongness of the proposed
    activity or policy
    8
    Assessing Ethical Behavior

     Ethical Norms and the Issues They Entail


     Utility: Does a particular act optimize the
    benefits to those who are affected by it? Do
    all relevant parties receive “fair” benefits?
     Rights: Does the act respect the rights of all
    individuals involved?
     Justice: Is the act consistent with what’s
    fair?
     Caring: Is the act consistent with people’s
    responsibilities to each other? 9
    Company Practices and
    Business Ethics
     Encouraging Ethical Behavior Involves:
     Adopting written codes of conduct and
    establishing clear ethical positions for the conduct
    of business
     Having top management demonstrate its
    support of ethical standards
     Instituting programs to provide periodic ethics
    training
     Establishing ethical hotlines for reporting and
    discussion of unethical behavior and activities
    10
    Core Principles and Organizational Values

    11
    Social Responsibility
     Social Responsibility
     The overall way in which a business attempts
    to balance its commitments to relevant groups
    and individuals (stakeholders) in its social
    environment
     Organizational Stakeholders
     Groups, individuals, and organizations that are
    directly affected by the practices of an
    organization and, therefore, have a stake in its
    performance
    12
    Corporate Stakeholder

    Who are Corporate stakeholders?

    What is their role in Business and

    Responsibilities?

    13
    Major Corporate Stakeholders

    14
    The Stakeholder Model of
    Responsibility
     Customers
     Businesses strive to treat customers fairly and honestly
     Employees
     Businesses treat employees fairly, make them a part of the team,
    and respect their dignity and basic human needs
     Investors
     Businesses follow proper accounting procedures, provide
    information to shareholders about financial performance, and
    protect shareholder rights and investments
     Suppliers
     Businesses emphasize mutually beneficial partnership
    arrangements with suppliers
     Local and International Communities
     Businesses try to be socially responsible for all
    15
    Contemporary Social
    Consciousness

     The Concept of Accountability


     The expectation of an expanded role for
    business in protecting and enhancing the
    general welfare of society

    16
    Areas of Social
    Responsibility

     Responsibility Toward the Environment


     Controlling air, water, and land pollution
     Properly disposing of toxic waste
     Engaging in recycling

    17
    Areas of Social
    Responsibility (cont’d)
     Responsibility Toward Customers
     Involves providing quality products and pricing products
    fairly and reasonably…
     Consumerism
     Social activism dedicated to protecting the rights of
    consumers in their dealings with businesses
     Basic Consumer Rights
     To possess safe products
     To be informed about all relevant aspects of a product
     To be heard as a client for any complaints
     To choose what to buy
     To be educated about purchases ( orientation/ aware off)
     To courteous service from the firms side
    18
    Consumer Rights (cont’d)
     Unfair Pricing
     Collusion: When two or more firms agree to
    collaborate on such wrongful acts as price-
    fixing
     Price gouging: Responding to increased
    demand with overly steep (and often
    unwarranted) price increases ( overcharges)
     Ethics in Advertising
     Truth in advertising
     Morally objectionable advertising
    (disagreeable) 19
    Areas of Social
    Responsibility (cont’d)
     Responsibility Toward Employees
     Legal and social commitments to:
     not practice illegal discrimination
     provide a physically and socially safe workplace
     provide opportunities to balance work and life
     provide protection for whistleblowers (an employee
    who discovers and tries to put an end to a company’s
    unethical, illegal, or socially irresponsible actions by
    publicizing them)
     Responsibility Toward Investors
     Proper financial management (no insider trading)
     Proper representation of finances
    20
    Implementing Social
    Responsibility (SR) Programs
     Arguments Against SR
     The cost of SR threatens profits.
     Business have too much control over which
    and how SR issues would be addressed.
     Business lacks expertise in SR matters.
     Arguments for SR
     SR should take precedence over profits.
     Corporations as citizens should help others.
     Corporations have the resources to help.
     Corporations should solve problems they
    create. 21
    Approaches to Social
    Responsibility
     Obstructionist Stance ( stopping something)
     A company does as little as possible and may
    attempt to deny or cover up violations
     Defensive Stance
     A company does everything required of it legally but
    no more
     Accommodative Stance
     A company meets its legal and ethical requirements
    and also goes further in certain cases
     Proactive Stance
     A company actively seeks to contribute to the well-
    being of groups and individuals in its social
    environment
    22
    Spectrum of Approaches to Corporate Social
    Responsibility

    23
    Managing Social
    Responsibility Programs
    1. Social responsibility must start at the top and be
    considered as a factor in strategic planning.
    2. A committee of top managers must develop a
    plan detailing the level of management support.
    3. One executive must be put in charge of the
    firm’s agenda.
    4. The organization must conduct occasional social
    audits—systematic analyses of its success in
    using funds earmarked for its social
    responsibility goals.
    24
    Social Responsibility and the
    Small Business
     Large Business versus Small Business
    Responses to Ethical Issues
     Differences are primarily differences of scale.
     More issues are questions of individual ethics.
     Ethics and social responsibility are
    decisions faced by all managers in all
    organizations, regardless of rank or size.

    25

    You might also like