Chapter 2: Business Ethics& Social Responsibility

Social Responsibility

An organization's obligation to maximize its positive impact and minimize its negative impact on society

alternative energy

Any source of energy other than fossil fuels that is used for constructive purposes.

Divisions of the Federal Trade CommissionsBureau of Consumer Protection

Division of Privacy and Identity Protection Division of Advertising Practices Division of Consumer & Business Education Division of Enforcement Division of Marketing Practices Division of Consumer Response & Operations Division of Financial Practices Division of Litigation Technology & Analysis

questions to consider about ethical issues

Does your decision conflict with any of the core ethical values? Think of someone whose moral judgment you respect. What would that person do? How will your decision affect others? Are my actions legal? Are there regulations, rules, or policies that restrict your choices/ actions? Would your decision be perceived as unethical? How would your decision look if it were reported on the news or in another public forum? What would a reasonable person do? How would they percieve your decision? Would you be proud of your choice if your child were to find out? Would you want them to make the same choice? Could you rationally and honestly defend your decision? Will you sleep soundly tonight?

why a code of ethics is important

Establishes moral standards Sets rules of conduct Helps employees act in line with organizational values Standardizes core values Improves workplace environment Attracts top talent Communicates company culture and expectations Provides a framework for employees Helps employees act in gray areas of ethics Sets minimum expectations for staff

three factors that influence business ethics

Individual standards and values, Managers and Co-workers influence, Opportunity: Codes and compliance requirements

unemployment

Measures the number of people who are able to work, but do not have a job during a period of time.

Abusive/Intimidating Behavior

Physical threats, false accusations, being annoying, profanity, insults, yelling, harshness, ignoring someone, and unreasonableness.

pollution

Release of harmful materials into the environment

social responsibility requirements

Stage 1: Financial Viability Stage 2: Compliance with Legal and Regulatory Requirements Stage 3: Ethics, Principles, and Values Stage 4: Philanthropic Activities

Misuse of Company Resources

using company resources for your personal use, outside of agreed upon uses

Arguments for Social Responsibility

1. Business creates problems and should therefore help solve them. 2. Corporations are citizens in our society. 3. Business often has the resources necessary to solve problems. 4. Business is a partner in our society, along with the government and general population.

arguments against social responsibility

1. The purpose of business in US society is to generate profit for owners. 2. Involvement in social programs gives business too much power. 3. There is potential for conflicts of interest. 4. Business lacks the expertise to manage social programs.

response to environmental issues

-Greenwashing -Recycling -Green business

Conflict of interest

A situation in which a person in a position of responsibility or trust has competing professional or personal interests that make it difficult to fulfill his or her duties impartially.

ethical issues

an identifiable problem, situation, or opportunity requiring a choice among several actions that must be evaluated as right or wrong, ethical or unethical

communications

deception, truth, labeling, false advertising, etc.

current social responsibility issues

diversity, equity, inclusion, global philanthropy, virtual volunteering, support for small business, growing sustainability support

misuse of company time

engaging in activities that are not necessary for the job

Role of Ethics

ethical conflicts leads to legal disputes

code of ethics

formalized rules and standards that describe what a company expects of its employees

sustainability

long-term well-being of natural environment including all biological entities

Bribes

payments, gifts, or special favors intended to influence the outcome of a decision

business ethics

principles and standards that determine acceptable conduct in business

business relationships

relationships with customers, suppliers, and co-workers, keeping company secrets, meeting obligations, avoiding undue pressure, managers' responsibility to create ethical work environment and provide a positive example

employee relations

responsible for maintaining a safe, healthy, and productive work environment for all employees.

whistle blowing

the act of an employee exposing an employer's wrongdoing to outsiders, such as the media or government regulatory agencies

community relations

the activities that a business uses to acquire or maintain the respect of the community

Consumerism

the activities that independent individuals, groups, and organizations undertake to protect their rights as consumers

corporate citizenship

the extent to which businesses meet the legal, ethical, economic, and voluntary responsibilities placed on them by their stakeholders

Plagiarism

the practice of taking someone else's work or ideas and passing them off as one's own.