Chapter 4 Business Ethics and Social Responsibility
Ethics Ethics = A set of moral principles by which people conduct themselves personally, socially, or professionally Code of Ethics = a professional’s or company’s set of guidelines for upholding ethical behavior. Business Ethics = rules that govern how we do business
Unethical Business Practices Bad for business Affects a business’s profits, customer base, and employee loyalty Sweatshops= factories that pay poorly, have unsafe working conditions, and treat workers badly Example: Triangle Shirtwaist Factory Company fire
Social Responsibility Social Responsibility = obligation to do what is best for the welfare of society Businesses have a responsibility to consumers, workers, and society
Making Decisions on Ethical Issues (do not need to write) Identify the ethical dilemma. Discover alternative actions. Decide who might be affected. List the probable effects of the alternatives. Select the best alternative.
Government’s Responsibility to Customers FDA (Food and Drug Administration) = a government agency that protects consumers form dangerous or falsely advertised products Some others (you do not need to write) FTC (Federal Trade Commission CPSC (Consumer Product Safety Commission) USDA (United States Department of Agriculture)
Business’ Responsibility to Employees Equal Pay Act = a federal law requiring that men and women be paid the same wages for doing the same work. OSHA = division of the Department of Labor that sets and enforces work-related health and safety rules
Business’ Responsibility to Society EPA (Environmental Protection Agency) = a federal agency that enforces rules that protect the environment and control pollution Conflict of Interest- whena business is tempted to put profits before social welfare. (When a person uses personal activities or actions to advance his or her career at the expense of another person)