Ethics and social responsibility
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Ethics and Social Responsibility. Chapter 4. Learning Objectives. Explain why ethics are important in business Describe a code of ethics Discuss Ethical Dilemmas Describe Laws that deal with ethical issues Explain the change in corporations’ views of social responsibility

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Ethics and Social Responsibility

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Ethics and social responsibility

Ethics and Social Responsibility

Chapter 4


Learning objectives

Learning Objectives

  • Explain why ethics are important in business

  • Describe a code of ethics

  • Discuss Ethical Dilemmas

  • Describe Laws that deal with ethical issues

  • Explain the change in corporations’ views of social responsibility

  • Describe the ways in which businesses demonstrate their social responsibility.


Ethics and social responsibility

Nike

  • See page 83

  • Read the paragraph

  • Why might it be challenging for a manager to balance the needs of the company and the needs of a worker?

  • Imagine you are the Vice President of Social Responsibility at your workplace or school. What changes would you make in order to prevent unfair practices?


Ethics

Ethics

  • Get into groups of 2 and make a list of personal ethics.

  • Share Ideas


Ethics in business

Ethics in Business

Ethics: are a set of moral principles or values that govern behavior.


Importance of ethics

Importance of Ethics

  • Everyone has Personal Ethics

  • Helps decide in different situations

  • Businesses need ethics in order to know how to behave…also

  • Business Ethics reflect companies beliefs

    • What Actions are appropriate?

    • How to be fair among people?


Ethics and social responsibility

Codes of Ethicsa document that outlines the principles of conduct to be used in making decision within an organization.

Areas they cover:

  • Honesty

  • Adherence to the law

  • Product Safety and quality

  • Health and safety in the workplace

  • Conflicts of Interest

  • Employment Practices

  • Selling and marketing practices

  • Financial reporting

  • Pricing, billing, and contracting

  • Trading in securities/using confidential information

  • Acquiring and using information about competitors

  • Security

  • Payments to obtain business

  • Political activities

  • Protections of the environment


Code of ethics examples

Code of Ethics Examples


Behaving ethically

Behaving Ethically

One bad decision can make or break a company!


Behaving honestly

Behaving Honestly

  • Many situations the ethical course of action is clear cut

  • Employee Theft

    • Embezzle Money

    • Steal supplies

    • Take Bribes

    • Submit false expense reports

  • Don’t lie about the hours

  • Never falsify documents


Sarbanes oxley act of 2002

Sarbanes-Oxley Act of 2002

  • 2001- Enron Corporation

    • World’s largest traders in gas, electricity, etc

    • Collapsed in a scandal

    • Declared bankruptcy

    • Crimes

      • Deceiving investors

      • Inflating profits

      • Hiding debts

      • Arthur Anderson convicted of Obstructing Justice

  • WorldCom

    • Improperly booked over 7 billion in profits

  • President Bush signed

  • Contains important rules affecting the reporting and corporate governance of public companies and their directors and officers

  • Major provisions

    • Periodic Reports filed with SEC

    • Prohibits most loans to directors in beneficial ownership within 2 days after a transaction has been executed


Solving ethical dilemmas

Solving Ethical Dilemmas

  • Have you defined the problem accurately?

  • How would you define the problem if you stood on the other side of the fence?

  • Whom could your decision or action injure? Can you discuss the problem with the affected parties before you make your decision?

  • Are you confident that your position will be as valid over a long period of time as it seems now?

  • Could you disclose without qualm your decision or actions to your boss, your CEO, the board of directors, your family, and society as a whole?


Assignment

Assignment

  • You are going to get into groups of 4 or 5 and look at the Ethical Dilemma.

  • As a group you are going to look at the dilemma and answer the questions on the prior slide.

  • As a group you are going to come to group decision as how you would handle this.

  • Then you are explain to the class what you situation is and how you would handle it

  • When you are done in your group

    • Write in your Journal

    • Today’s Date

    • Would you have done things differently as an individual.


Here are your groups

Here are your Groups

Group 1

Group 2

  • Aubrey Anselmo

  • Linh Dang

  • Chandler Fish

  • Josh Gray

  • Taylor Carper

  • Ashley Davis

  • Terry Forward

  • Ashley Kleine


Here are your groups1

Here are your Groups

Group 3

Group 4

  • Ryan Morey

  • Jamie Reynolds

  • Karlye Staggs

  • Kyle Reeser

  • Kelly Yaklin

  • Kyle Thick

  • Matt Richardson

  • Kendyl Staggs

  • Katie Thiel


Laws relating to ethics in business

Laws Relating to Ethics in Business

  • Competitive Behavior

  • Consumer Protection

  • Environmental Protection


Competitive behavior

Competitive Behavior

  • All Companies operating in U.S. must abide by these laws

    • The Sherman Act

      • Illegal to monopolize trade

      • Able to compete fairly

    • The Clayton Act

      • 1914

      • Illegal to charge different prices to different wholesale customers

      • Example: Manufacturer of Steel cannot charge one price to GM and another to Ford

      • Bans requiring a customer to purchase a second good

        • Hardware cannot charge for software

  • The Wheeler-LEA Act

    • 1938

    • Deceptive Acts or practices

    • False Advertising

    • Label consequences

    • Example: Cigarette Boxes


Consumer protection

Consumer Protection

  • Food and Drugs

    • Federal Food, Drug and Cosmetic Act

      • Bans sale of impure, improperly labeled, falsely guaranteed, and unhealthful foods, drugs, and cosmetics

      • Enforced by Food and Drug Administration (FDA)

  • Consumer Products

    • Consumer Product Safety Commission (CPSC)

      • Establishes minimum safety standards

      • Can force manufacturers to recall items

      • Examples?

  • Loans

    • Series of Laws/ Truth in Lending Act

    • Makes Creditors inform customers up front what the fees and interest will be.

    • Equal Credit Opportunity Act

      • Cannot discriminate


Environmental protection

Environmental Protection

  • 1960’s

  • The National Environmental Policy Act of 1969

    • Key Piece

    • Created Environmental Protection Agency (EPA)

      • Protect Human health and safeguard the air, water and land

  • Clean Air Act of 1970

    • Regulates air emissions

  • The Toxic Substances Control Act of 1976

    • Track Industrial Chemicals produced or imported in US

  • The Clean Water Act

    • Set standards on the type and quantity of pollutants that industries put in water


Ethical standards and culture

Ethical Standards and Culture

  • Standards of ethics differ around the world

    • Here it might be ethical in U.S. but not in another country

    • As a business manager that works internationally needs to have an understanding of ethics in different cultures


Ethical standards and culture1

Ethical Standards and Culture

Corporate Gift Giving

Intellectual Property

  • Corporate Gift Giving

    • Differ around the world

      • Some Cultures Gifts are expected and if you don’t bring one it is an insult

        • Japan

      • United States government officials cannot accept gifts from businesses

  • Refers to ownership of Property

    • Inventions

    • Books

    • Movies

    • Computer Programs

  • Creators have exclusive right to market and sell their work.

    • Patents

    • Trademark

    • Copywright

  • Very important to businesses

    • Especially in Software- hard to track


Social responsibility

Social Responsibility

  • Changing Views of Social Responsibility

  • Measuring Social Responsibility


Changing views of social responsibility

Changing Views of Social Responsibility

Social Responsibility: the obligation that individuals or businesses have to help solve social Problems

  • Profit Maximization

    • During 19th and early 20th Century

  • Trusteeship Management

    • 1920’s and 1930’s

    • Recognized that owners of businesses had obligations to do more than just earn profits

    • Obligations to: Employees, Customers, and their creditors

  • Social Involvement

    • 1960’s

    • Businesses should use their influence and financial resources to address Social Problems

    • Diversity is one big thing companies got involved in.


Measuring social responsibility

Measuring Social Responsibility

Social Audit: a review of a business’s social responsiveness.

  • Philanthropy and Volunteerism

    • Contributing time and money to charitable, cultural, and civic organizations

    • Improve human Welfare

  • Environmental Awareness

  • Sensitivity to Diversity and Quality of Work Life


End of section assignment

End of Section Assignment

Management Careers in Focus

Journal Write

  • Add Property Management to your Management Career PowerPoint

  • Use the same requirements that you have used in the past.

  • Page 93

  • In looking at the laws that we talked about in Chapter 4 which ones do you think will be impacted the most in the next 20 years.

  • Write your answer in your journal under Today’s date


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