Business CH 4 - Review
Describe business ethics and ethical dilemmas.
Business ethics is the application of right and wrong, good and bad, in a business setting. Ethical dilemmas arise when you face business decisions that throw your values into conflict. These are decisions that force you to choose among less-than-ideal options because whatever choice you make will have some significant negative consequences.
Discuss how ethics relates to both the individual and the organization.
Ethical choices begin with ethical individuals. To help people make good choices, experts have developed frameworks for reaching ethical decisions. While the specifics vary, the core principles of most decision guides are similar: Do you fully understand each dimension of the problem? Who would benefit? Who would suffer? Are the alternative solutions legal? Are they fair? Does your decision make you comfortable at a "gut feel" level? Could you defend your decision on the nightly TV news? Have you considered and reconsidered your responses to each question?
Define ethics and explain the concept of universal ethical standards.
Ethics is a set of beliefs about right and wrong, good and bad. Who you are as a human being, your family, and your culture all play a role in shaping your ethical standards. The laws of each country usually set minimum ethical standards, but truly ethical standards typically reach beyond minimum legal requirements. Despite some significant cultural and legal differences, people around the globe tend to agree on core values, which can serve as a starting point for universal ethical standards across a wide range of situations: trustworthiness, respect, responsibility, fairness, caring, and citizenship.
Describe how companies evaluate their efforts to be socially responsible.
Many companies—even some entire industries—monitor themselves. The process typically involves establishing objectives for ethics and social responsibility and then measuring achievement of those objectives on a systematic, periodic basis. Other groups play watchdog roles as well. Key players include activist customers, investors, unions, environmentalists, and community groups.
Explain the role of social responsibility in the global arena.
Social responsibility becomes more complex in the global arena, largely due to differences in the legal and cultural environments. Bribery and corruption are key issues, along with concern for human rights and environmental standards.
Define social responsibility and examine the impact on stakeholder groups.
Social responsibility is the obligation of a business to contribute to society. Enlightened companies carefully consider the priorities of all stakeholders—groups who have an interest in their actions and performance—as they make key decisions. Core stakeholder groups for most businesses are listed below, along with key obligations. Employees: Treat employees with dignity, respect, and fairness. Ensure that hard work and talent pay off. Help workers balance emerging work-life priorities. Customers: Provide quality products at a fair price. Ensure that customers are safe and informed. Support consumer choice and consumer dialogue. Investors: Create an ongoing stream of profits. Manage investor dollars according to the highest legal and ethical standards. Support full disclosure. Community: Support nonprofit groups that improve the community and fit with your company. Minimize the negative environmental impact of your business.
