Introduction to Business Chapter 2

bribes

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

whistleblowing

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

plagiarism

the act of taking someone else's work and presenting it as your own without mentioning the source

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

ethical issues

an identifiable problem, situation or opportunity that requires a person to choose from among several actions that may be evaluated as right or wrong, ethical or unethical.

Detect some of the ethical issues that may arise in business.

An ethical issue is an identifiable problem, situation or opportunity requiring a person or organization to choose from among several actions that must be evaluated as right and wrong. Ethical issues can be categorized in the context of their relation with conflicts of interest, fairness and honest, communications and business associations.

Explain the four dimensions of social responsibility

The four dimensions of social responsibility are economic or financial visibility (being profitable), legal (obeying the law), ethical (doing what is right, just and fair), and philanthropic or voluntary (being a good corporate citizen)

Describe the importance of business ethics and social responsibility

*Business ethics refers to principles and standards that define acceptable business conduct. *Acceptable business behavior is defined by customers, competitors, government regulators, interest groups, the public and each individual's personal moral principles and values. *Social responsibility is the obligation an organization assumes to maximize its positive impact and minimize its negative impact on society. *Socially responsible businesses win the trust and respect of their employees, customers and society and in the long run increase profits. *Ethics is important in business because it builds trust and confidence in business relationships. *Unethical actions may result in negative publicity, declining sales and even legal action

Evaluate an organization's social responsibilities to owners, employees, consumers and the environment and the community

*Businesses must maintain proper accounting procedures, provide all relevant information about the performance of the firm to investors, and protect the owners' rights and investments *In relations with employees, businesses are expected to provide a safe workplace, pay employees adequately for their work, and treat them fairly *Consumerism refers to the activities undertaken by independent individuals, groups, and organizations to protect the rights of consumers *Increasingly, society expects businesses to take greater responsibility for the environment, especially with regard to animal rights, as well as water, air, land and noise pollution. *Many businesses engage in activities to make the communities in which they operate better places for everyone to live and work.

What are the arguments against social responsibility in business?

*It sidetracks managers from the primary goal of business - earning a profit. The responsibility of business to society is to earn profits and create jobs. *Participation in social programs gives businesses greater power, perhaps at the expense of concerned stakeholders. *does business have the expertise needed to assess and make decisions about social and economic issues? *social problems are the responsibility of the government agencies and officials, who can be held accountable by voters. * Creation of nonprofits and contributions to them are the best way to implement social responsibility

Specify how businesses can promote ethical behavior.

Businesses can promote ethical behavior by employees by limiting their opportunity to engage in misconduct. Formal codes of ethics, ethical policies, and ethics training programs reduce the incidence of unethical behavior by informing employees what is expected of them and providing punishments for those who fail to comply.

What are the arguments for social responsibility in business?

For: * Social responsibility rests on stakeholder engagement and results in benefits to society and improved performance *Businesses are responsible because they have the financial and technical resources to address sustainability, health and education *As members of society, businesses and their employees should support society through taxes, contributions and social causes * Socially responsible decision making by businesses can prevent increased government regulation. * Social responsibility is necessary to ensure economic survival: if businesses want educated and healthy employees, customers with money to spend and suppliers with quality goods and services in years to come, they must take steps to help solve the social and environmental problems that exist today.

social responsibility

a business's obligation to maximize its positive impact and minimize its negative impact on society

sustainability

conducting activities in a way that allows for the long-term well-being of the natural environment, including all biological entities; involves the assessments and improvement of business strategies, economic sectors, work practices, technologies and lifestyles.

code of ethics

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

business ethics

principles and standards that determine acceptable conduct in business