Professional Documents
Culture Documents
Ethical Behavior
Behavior conforming to individual beliefs and social norms about whats right and good
Unethical Behavior
Behavior conforming to individual beliefs and social norms about what is defined as wrong and bad
Business Ethics
The ethical or unethical behaviors by employees in the context of their jobs
2009 Pearson Education, Inc.
Ethical Concerns
Ambiguity (e.g., financial disclosure) Global variation in business practices (e.g., bribes)
2009 Pearson Education, Inc.
Make an ethical judgment based on the rightness or wrongness of the proposed activity or policy
Social Responsibility
Social Responsibility
The overall way in which a business attempts to balance its commitments to relevant groups and individuals (stakeholders) in its social environment
Organizational Stakeholders
Groups, individuals, and organizations that are directly affected by the practices of an organization and, therefore, have a stake in its performance
Employees Investors
Suppliers
Businesses follow proper accounting procedures, provide information to shareholders about financial performance, and protect shareholder rights and investments
Businesses emphasize mutually beneficial partnership arrangements with suppliers Businesses try to be socially responsible
2009 Pearson Education, Inc.
Greenwashing: Using advertising to project a green image without substantially altering processes or products
Federal Trade Commission (FTC) started hearings in January 2008 regarding green marketing claims
2009 Pearson Education, Inc.
Consumerism
Social activism dedicated to protecting the rights of consumers in their dealings with businesses
Ethics in Advertising
Truth in advertising Morally objectionable advertising
2009 Pearson Education, Inc.
Arguments for SR
SR should take precedence over profits. Corporations as citizens should help others. Corporations have the resources to help. Corporations should solve problems they create.
2009 Pearson Education, Inc.
Defensive Stance
A company does everything required of it legally but no more
Accommodative Stance
A company meets its legal and ethical requirements and also goes further in certain cases
Proactive Stance
A company actively seeks to contribute to the well-being of groups and individuals in its social environment
2009 Pearson Education, Inc.