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Ob j ec t i v es
 Explain the concepts of business ethics and social
responsibility.

 Analyze and judge common ethical dilemmas in the

workplace using case studies.

 Identify the factors that influence ethical and unethical

business practices.

 Describe the stages in the development of ethical

standards.
 i n ess E th ics ?
Wha t a re B u s

 Business Ethics:
 The standards of conduct and rules based on moral
principles governing how businesses and
employees should conduct themselves.

 Social responsibility
 Balance between what’s right and what’s profitable
 Often no clear-cut choices
 Often shaped by the organization’s ethical climate
 g o Sca n d a l
Wells Far
 Wells Fargo employees secretly opened unauthorized accounts
to hit sales targets and receive bonuses

 Bank employees opened over 1.5 million deposit accounts that

may not have been authorized

 Wells Fargo employees also submitted applications for 565,443

credit card accounts without their customers' knowledge or
consent
 a Stew a r t
Marth
 There are several high profile investigations and
arrests in the headlines

 Martha Stewart had a billion dollar empire when she made

a decision to sell a stock based on an insider trading tip
from her stock broker in 2004.

 Martha Stewart Article “She would never have felt the loss—
she was coming up on a billion
dollars, and by selling those shares
“She was sentenced to she avoided a loss of $45,673—but
prison for five she couldn’t resist the chance to daub
months… and became at the blot on her investment record.”
the very emblem of
corporate greed.”
 ENRON

 Corporate officers and traders charged with

fraud, conspiracy and insider trading in 2001

 ENRON was the Largest Corporate Fraud case in American

history.

 ENRON executives’ and traders’ greed eliminated:

 4,500 ENRON jobs
 85,000 Arthur Anderson jobs
 Investors lost over 60 billion dollars within a few days; for
many it meant losing their old-age security.
 l B u sin ess
Unethica
Practices
 Individuals can make unethical choices like:
 Conflict of Interest
 Bribery, gift-giving and receiving
 Invasion of privacy or confidentiality
 Dishonest hiring practices
 Insurance Fraud / Credit Card Fraud
 Internet Abuse

 Conflict of Interest:
 Situation in which a business decision may be influenced
for personal gain.
 ob E thi ca l
On-the-J
Dilemmas
Situation in which a business
decision may be influenced
for personal gain.
Employee’s disclosure
of illegal, immoral, or
unethical practices in
the organization.
Telling the truth and
adhering to deeply felt
ethical principles in
business decisions.
Business people expect
employees to be loyal
and truthful, but ethical
conflicts may arise.
 g a n i z a ti on s
How Or ct
E th ic a l C o n d u
Sh a p e
 Code of Ethics/Conduct:
 A formal set of guidelines for maintaining ethics in the
workplace.

 Codes of Ethics cannot detail a solution for every ethical

situation, so corporations provide training in ethical reasoning
along with a Code of Ethics.
 v iron men t
Ethical En

 Ethical Leadership:
 Executives must
demonstrate ethical
behavior in their actions.

 Ethical Action:
 Helping employees
recognize and reason
through ethical problems and
turning them into ethical
actions.
 p on si b ili t y
Social Res
 Social Responsibility:
 The duty to do what is best for the
good of society.
 Management’s consideration of profit,
consumer satisfaction, and societal
well-being of equal value in evaluating
the firm’s performance.
 Contributions to the overall economy,
job opportunities, and charitable
contributions and service.

https://www.youtube.com/watch?v=lnmvXSYt98c
 xa mp l e s
C S R E
• Ben & Jerry’s • Warby Parker
 xa mp l e s
C S R E
• Dawn • Disney Corporation
 i b ili ties t o
Respons
e ra l P u b l ic
the Gen
 Public Health Issues: What to do about inherently
dangerous products such as alcohol, tobacco, vaccines,
and steroids.
 Protecting the Environment: Using resources efficiently,
minimizing pollution.
 Recycling: Reprocessing used materials for reuse.
 Developing the Quality of the Workforce: Enhancing
quality of the overall workforce through education and
diversity initiatives.
 Corporate Philanthropy: Cash contributions, donations of
equipment and products, and supporting the volunteer
efforts of company employees.
 i b ili ti es to
Respons
C u sto m e rs
 The Right to Be Safe: Safe operation of products, avoiding
product liability.

 The Right to Be Informed: Avoiding false or misleading

advertising and providing effective customer service.

 The Right to Choose: Ability of consumers to choose the

products and services they want.

 The Right to Be Heard: Ability of consumers to

express legitimate complaints to the appropriate parties.
 i b ili tie s to
Respons
E mp l oy e e s
 Workplace Safety: Monitored
by (OSHA) Occupational Safety
and Health Administration.
 Quality-of-Life Issues:
Balancing work and family
through flexible work schedules,
subsidized child care, and
regulation such as the Family
and Medical Leave Act of 1993.
 Ensuring Equal Opportunity
on the Job: Providing equal
opportunities to all employees
without discrimination; many
aspects regulated by law.
 US Equal Employment
Opportunity Commission
(EEOC): Discrimination by
Type protected by EEOC -
Protects workers against many
different types of
discrimination.
 Sexual Harassment and
Sexism: Avoiding unwelcome
actions of a sexual nature;
equal pay for equal work
without regard to gender.
 i b ili ties to
Respons
Investors
 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.
 C a se Stu d i es

We will go to the computer lab to look at

three different Business Ethics Case
Studies.
You will use the website provided to read
the case studies and answer the following
questions:
1. What is the ethical issue?

2. What ethical action should be taken?

 CSR A ctiv i t y

Corporate Social Responsibility

Use the internet to find a company that is
“Socially Responsible” like General Mills
(Yoplait) or Proctor and Gamble (Tide)
On the worksheet provided, give a brief
overview of your company, and what
programs they have participated in or
implemented to be socially responsible
corporate citizens.