Slide 1: Chapter 2: Today’s environment for business ethics and related social issues

Slide 2: Ethics: is it important?

Slide 3: Ethics
 Ethics is more than legality, it is about being moral
 Standards of ethics are fundamental
 Ethics begins with each of us
 Responsible business behavior depends on responsible behavior of each individual in the
business

Slide 4: Concern for ethical and societal issues

• Business ethics
• Sarbanes-Oxley Act of 2002
• Minimum requirements for ethics compliance programs (table: 2.1)

Slide 5: Development of individual ethics

• Stages of moral and ethical development:
 Stage 1: Pre-conventional
 Stage 2: Conventional
 Stage 3: Post-conventional

Slide 6: On-the-job ethical dilemmas

How to handle ethical dilemmas at work:
What can you do about an ethical dilemma?
 Get the facts
 Ask yourself, is this really a moral dilemma?
 Get an outside and unbiased opinion

Slide 7: Common business ethical challenges

 Conflict of interest
 Avoid &
 Disclose
 Honesty and integrity
 Loyalty versus truth
 Whistle-blowing

Slide 8: How organizations shape ethical conduct

Four levels:
1. Ethical awareness: Code of conduct
2. Ethical education
3. Ethical action
4. Ethical leadership: stakeholders

Slide 9: Acting responsibly to satisfy society

• Social responsibility
• Social audits
Slide 10: Business’s social responsibilities
1. To the general public
2. To customers
3. To employees
4. To investors and the financial community

Slide 11: Responsibilities to the general public

• Public health issues
• Protecting the environment
• Recycling
• Green marketing
• Sustainable
• Developing the quality of the workforce
• Corporate philanthropy

Slide 12: Responsibilities to customers

• Consumerism
• Consumer rights:
1. The right to be safe: product liability
2. The right to be informed
3. The right to choose
4. The right to be heard

Slide 13: Responsibilities to employees

• Workplace safety
• Quality of life issues: family leave
• Ensuring equal opportunity on the job: discrimination
• Age discrimination
• Sexual harassment
• Sexism

Slide 14: Responsibilities to investors and the financial community

Businesses should behave ethically and legally
When firms fail, thousands of investors and consumers suffer