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Practicing Ethical Behavior and Social Responsibility. Two Important Concepts. Social responsibility Ethical behavior. Corporate Fraud. Enron Tyco Arthur Andersen Adelphia WorldCom Ford and Firestone. What Is Ethical Behavior?. Competing fairly and honestly Communicating truthfully

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Practicing Ethical Behavior and Social Responsibility


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    1. Practicing Ethical Behavior and Social Responsibility Business In Action 3e

    2. Two Important Concepts • Social responsibility • Ethical behavior Business In Action 3e

    3. Corporate Fraud • Enron • Tyco • Arthur Andersen • Adelphia • WorldCom • Ford and Firestone Business In Action 3e

    4. What Is Ethical Behavior? • Competing fairly and honestly • Communicating truthfully • Not causing harming to others Business In Action 3e

    5. Unethical Behavior • Cheating on expense accounts • Misuse of company resources • Creative accounting • Padding invoices • Insider trading • Conflicts of interest Business In Action 3e

    6. Factors Influencing Ethical Behavior • Cultural differences • Knowledge • Organizational behavior Business In Action 3e

    7. Promoting Ethical Behavior • Top executives • Written code of ethics • Ethics training • Ethics officer • Reporting system Business In Action 3e

    8. Stakeholder Issues Is It Ethical? Philosophical Approaches Utilitarianism Outsiders Legality and Balance Individual, Legal and Human Rights Supervisors Acceptability Employees Feasibility Principles of Justice Making Ethical Decisions Business In Action 3e

    9. Ethical Situations • Ethical dilemmas • Ethical lapses Business In Action 3e

    10. Social Responsibility in Business • Early 20th Century • Maximize profits • Middle 20th Century • Provide jobs and pay taxes • Early 21st Century • Balance profits and social issues Business In Action 3e

    11. Percentage of Executives Who “Strongly Agree” or “Agree” That Companies Should: Percentage • Be environmentally responsible • Be ethical in operations • Earn profits • Employ local residents • Pay taxes • Encourage and support employee volunteering • Contribute money and leadership to charities • Be involved in economic development • Be involved in public education • Involve community representatives in business decisions • Target a portion of purchasing toward local vendors • Help improve quality of life for low-income populations 100 100 96 94 94 89 85 75 73 62 61 54 Business In Action 3e

    12. Balancing Business and Stakeholders’ Rights • Business • Investors • Consumers • Employees • Society Business In Action 3e

    13. Social audit Cause-related marketing Philanthropy Efforts to Increase Social Responsibility Business In Action 3e

    14. Industrial discharges Vehicle emissions Chemical spills Causes of Pollution Business In Action 3e

    15. Environmental protection agency Regulate air and water Reduce automobile emissions License pesticides Control toxic substances Safeguard drinking water Government Efforts to Reduce Pollution Business In Action 3e

    16. Environmental issues Environmental staff Performance expectations Performance rewards Long-term cost Product development Supplier expectations Training and awareness Business Efforts at Reduction Business In Action 3e

    17. The right to safe products The right to be informed The right to choice The right to be heard Responsibility Toward Consumers Business In Action 3e

    18. Fair profit distribution Social responsibility Ethical behavior Responsibility Toward Investors Business In Action 3e

    19. Equal employment opportunity Affirmative action Americans with Disabilities Act Occupational health and safety Responsibility Toward Employees Business In Action 3e

    20. Bribery Environmental abuse Unscrupulous business practices Global Ethics and Social Responsibility Business In Action 3e