Fourth Edition

PART 1 . . . . . . . . . . . . . . . . . . . . . . . .

Understanding the Contemporary Business Environment

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Conducting Business Ethically

Business Essentials Chapter 3

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The more I help others to succeed, the more I succeed.

Ray Kroc, Founder, McDonalds

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Key Topics
Individual codes of ethics and the importance of ethics in the workplace Key terms

Social responsibility in U.S. business

Environmental issues and stakeholder relationships Approaches and implementation Implications for small business

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What Is Ethical Behavior?

Ethics: Right and wrong, good and bad, in actions that affect others

Ethical Behavior: Conforming to generally accepted ethical norms

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Ethical Considerations
Regarding a particular act
Utility: Does it optimize what is best for those who are affected by it?

Rights: Does it respect the rights of the individuals involved?

Justice: Is it consistent with what we regard as fair? Caring: Is it consistent with peoples responsibilities to each other?
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Company Practices and Business Ethics

Best Approach: Open, Honest, Responsive!
The Coca Cola Scare Case The Tylenol Scare Case

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How Much Privacy Does Your Employer Owe You?

Email Internet Cellular Phones

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Formalizing the Commitment to Ethics

Adopting Written Codes

Instituting Ethics Programs

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Principles, Ethics, and Corporate Policy

Core Principles & Organizational Values

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Social Responsibility: Balancing Commitments to Stakeholders

Stakeholders: Groups, individuals, and organizations that are directly affected by the practices of an organization
Employees Investors

Customers

CORPORATION

Suppliers

Local Communities
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The Evolution of Social Responsibility

Contemporary Social Consciousness Era of Social Activism The Great Depression Entrepreneurial Era

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Responsibility Toward the Environment

Air pollution Water pollution Land pollution
Toxic waste Recycling

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Responsibility Toward Customers

Consumer Rights

Unfair Pricing

Ethics in Advertising
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Responsibility Toward Employees

Legal & Social Commitments

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Whistle-blowers
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Responsibility Toward Investors

Improper financial management Check kiting
Insider trading

Misrepresentation of finances
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Approaches to Social Responsibility

Level of Social Responsibility

Lowest Highest

Obstructionist Stance

Defensive Stance

Accommodative Stance

Proactive Stance
Actively Seeks Opportunities to Contribute
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Actively Avoids Responsibility

Does Legal Minimum

Responds to Requests

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Managing Social Responsibility Programs

Social Responsibility Social Audit

Appointment of Director Strategic Planning

Top-Management Support
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Ethics, Social Responsibility, and the Small Business

Do small businesses face different issues with regard to ethics and social responsibility?

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Chapter Review
Discuss how individuals develop their personal codes of ethics. Explain why ethics matter in the workplace. Distinguish social responsibility from ethics. Show how social responsibility applies to environmental issues and to relationships with customers, employees, and investors. Identify four approaches to social responsibility. Describe the four steps a firm must take to implement a social responsibility program. Explain how social responsibly and ethics affect small business.
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