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Business Ethics and Social Responsibility

– Social responsibility. – Balance between what’s right and what’s profitable.Business Ethics The standards of conduct and moral values governing actions and decisions in the work environment. Sarbanes-Oxley Act 2002 law that added oversight for the nation’s major companies and a special oversight board to regulate public accounting firms that audit the financial records of these corporations. . – Often no clear-cut choices. – Often shaped by the organization’s ethical climate.

• New corporate officers charged with deterring wrongdoing and ensuring ethical standards. Johnson & Johnson Website . • Vast majority of businesses ethical.• High profile investigations and arrests in headlines.

• Individuals can make the difference in ethical expectations and behavior – Putting own interest ahead of the organization – Lying to employee – Misrepresenting hours – Safety violations – Internet Abuse • Technology is expanding unethical behavior .

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immoral. Employee’s disclosure of illegal. but ethical conflicts may arise. . Business people expect employees to be loyal and truthful.Situation in which a business decision may be influenced for personal gain. Telling the truth and adhering to deeply felt ethical principles in business decisions. or unethical practices in the organization.

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Code of Conduct Formal statement that defines how the organization expects and requires employees to resolve ethical questions. .

. so corporations provide training in ethical reasoning.Codes of conduct cannot detail a solution for every ethical situation.

Helping employees recognize and reason through ethical problems and turning them into ethical actions. .

Executives must demonstrate ethical behavior in their actions. .

Social Responsibility • Management’s consideration of profit. • Organizations measure through social audits. job opportunities. and charitable contributions and service. . and societal well-being of equal value in evaluating the firm’s performance. • Contributions to the overall economy. consumer satisfaction.

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• Public Health Issues. and steroids. • Corporate Philanthropy. Using resources efficiently. donations of equipment and products. • Protecting the Environment. . and supporting the volunteer efforts of company employees. minimizing pollution. Cash contributions. tobacco. What to do about inherently dangerous products such as alcohol. Enhancing quality of the overall workforce through education and diversity initiatives. • Developing the Quality of the Workforce. Reprocessing used materials for reuse. vaccines. • Recycling.

• The Right to Choose. . avoiding product liability. Ability of consumers to choose the products and services they want. Avoiding false or misleading advertising and providing effective customer service. • The Right to Be Heard. Ability of consumers to express legitimate complaints to the appropriate parties. Safe operation of products.• The Right to Be Safe. • The Right to Be Informed.

Avoiding unwelcome actions of a sexual nature. and regulation such as the Family and Medical Leave Act of 1993. • Sexual Harassment and Sexism. subsidized child care. • Ensuring Equal Opportunity on the Job. • Age Discrimination. . many aspects regulated by law. • Quality-of-Life Issues. Monitored by Occupational Safety and Health Administration. Balancing work and family through flexible work schedules.• Workplace Safety. equal pay for equal work without regard to gender. Age Discrimination in Employment Act of 1968 protects workers age 40 or older. Providing equal opportunities to all employees without discrimination.

• Obligation to make profits for shareholders. . • Expectation of ethical and moral behavior. • Investors protected by regulation by the Securities and Exchange Commission and state regulations.