Group 1

CHAPTER 3

ETHICS AND
SOCIAL
RESPONSIBILITY
Presented by:
Christine C. Acudesin Cristal Paglalunan
Kirsten Louise Despi Strawberry Paulin Igoy
 Content
01 Business Ethics

02 The Need for Ethical Behavior

03 Areas of Concerns for Business Ethics

04 Current Issues in Ethics

Coverage of Company Sponsored Ethics

05 Program

06 The Improvement of Ethical

Performance
 Content
07 Social Responsibility

08 Interest Groups

09 Benefits and Costs of Social Actions

10 Comparing Costs and Benefits

11 Social Responsibility Strategies

12 Social Audits
 BUSINESS
ETHICS
a moral principles defining right and wrong behavior of
businesspersons and agents
THE NEED FOR ETHICAL
BEHAVIOR
PUBLIC OPINION

Issue on Business Ethics

Some issues are Some issues are left to the business person to
considered by the congress consider

A few issues are Some issues are A few issues are Some issues are
passed into law disregarded considered disregarded
 AREAS OF CONCERN
FOR BUSINESS ETHICS

1. Laws and 2. Specific ethics

regulations required but not yet
promulgated by the passed into law
government
Concerns relating to laws and regulations requiring
ethical behavior:
01 Product safety and quality;

02 Fair employment practices;

03 Fair marketing and selling practices;

04 The use of confidential information for personal gain;

05 Community involvement;

06 Bribery; and

07 Illegal payments to foreign governments to obtain business

CURRENT ISSUES IN ETHICS

Owners of food stalls serving spoiled food to customers;

Business owners making fictitious insurance claims;

Schools awarding diplomas to underserving persons;

Schools awarding diplomas to underserving persons;

A drug manufacturer making false claims regarding the efficacy of his product; and

A television station copying format of a rival station’s show.

COVERAGE OF COMPANY
SPONSORED ETHICS PROGRAM
01 Drug and alcohol 11 Inaccuracy of books and records
02 Employee theft 12 Receiving excessive gifts and entertainment
03 Conflicts of interest
04 Quality control 13 False or misleading advertising
05 Misuse of proprietary information
06 Abuse of expense accounts
07 Plant closings and layoffs
08 Misuse of company assets
09 Environmental pollution
10 Methods of gathering competitor ’s
information
 THE IMPROVEMENT
OF ETHICAL
PERFORMANCE

1 Ethics
Training

2 Ethical
Advocates

3 Ethical Codes

4 Whistle-
Blowing
 SOCIAL
RESPONSIBILITY
refers to the concern of business for the welfare of the society.
INTEREST GROUPS
OWNERS

THE COMMUNITY CONSUMERS

AT LARGE

THE HANDICAPPED EMPLOYEES

BUSINESS

OLDER PEOPLE MINORITY GROUPS

WOMEN
 specific points of interests in caring about
employees are:

Health Appropriate The right The right The right

and salaries to speak to privacy to job
Safety and employee out security
benefits
 BENEFITS AND
COSTS OF SOCIAL
ACTIONS
 Benefits
01 Improved Employee Satisfaction and Motivation

02 Becoming More Aware of Changing Consumer Tastes and

Preferences

03 Greater Demand for the Company’s Products and Services

04 Preference for Socially Responsible Companies by

Investors

05 Elimination of Legislative Controls on Business Activity

 Costs
01 Money Spent in Support of Social Projects

02 Reduction of Competitive Power

03 Government Regulations May Also be Imposed

 COMPARING
COSTS AND BENEFITS

COSTS BENEFITS
Social
Responsibility deny or ignore
01 Reaction: responsibility
Strategies

Defense: put up a fight 02

accept social responsibility

03 Accommodation: in response to p ressure

take the initiative; establish a

Proaction: positive model for the industry 04
SOCIAL AUDITS

A summary of program areas such as consumer affairs, as well as the reasons for undertaking
certain social activities and not others.

A report of specific progress and the priorities for each set of activities.

A listing of objectives for each priority activity and a description of how the organization is
striving to reach these objectives.

A summary report of the costs of each program area and activity to the company.

A summary using quantitative measures of the extent of achievement of each social objective whenever possible.
 GROUP 1

THANK
YOU!