BUSINESS ETHICS AND SOCIAL RESPONSIBILITIES OF BUSINESS BUSINESS

BUSINESS ETHICS AND SOCIAL RESPONSIBILITIES OF BUSINESS

BUSINESS ETHICS/CORPORATE ETHICS • Business Ethics otherwise known as Corporate Ethics is a form of applied ethics or professional ethics that examines ethical principles and moral or ethical problems that arise in a business environment. • Business ethics has both normative and descriptive dimensions. As a corporate practice and a career specialization, the field is primarily normative. Academics attempting to understand business behaviour employ descriptive methods. • The arrange and quantity of business ethical issues reflects the interaction of profit-maximizing behaviour with non-economic concerns. Interest in business ethics accelerated dramatically during the 1980 s and 1990 s, both within major corporations and within academia.

ETHICAL ISSUES IN BUSINESS • Adulteration in edible items • Product safety/Unequal standards • Product storage and logistics irresponsibility • Customers as quantity of consumption • Surrogate advertising/Treacherous campaigns • Finished accountability after selling the product • Less expenditure on social causes/wellbeing • Environmental issues

COMMON ETHICAL CHALLENGES Situation in which a business decision may be influenced for personal gain Conflict of Interest Honesty & Integrity Telling the truth & adhering to deeply felt ethical principles in business decisions Ethical Challenges Employee’s disclosure of illegal, immoral or unethical practices in the organisation Whistle Blowin g Loyalty vs Truth Business people expect employees to be loyal & truthful, but ethical conflicts may arise

S N O I T A S I T N C A U G D R O N O C L HOW ICA H T E E P A H S Ethical Leadership Ethical Action Ethical Education Ethical Awareness Structure of an Ethical Environment

Ethical Awareness: Conduct of Conduct – Formal statement that defines how the organisation expects & requires employees to resolve ethical questions. Ethical Education: Codes of conduct cannot detail a solution for every ethical situation, so corporations provide training in ethical reasoning. Ethical Action: Helping employees recognize & reason through ethical problems & turning them into ethical actions. Ethical Leadership: Executives must demonstrate their ethical behaviour in actions.

F O S A Y T ARE I L I B I S N O P S RE Business’s Social Responsibility To the General Public To Customers To Investors & the Financial Community To Employees

O T S E I T I L I B I S N IC L O B P S U E P R L A R E N E G E TH • Public Health Issues: What to do about inherently dangerous products such as alcohol, tobacco, vaccines & 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 & diversity initiatives. • Corporate Philanthropy: Cash contributions, donations of equipment and products & supporting the volunteer efforts of company employees.

O T S E I IT L I B I S N O P S RE S R E M CUSTO 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

O T S E I IT L I B I S N O P S E R S E E Y O EMPL ◦ Workplace Safety: Monitored by Occupational Safety & 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. ◦ Age Discrimination: Age Discrimination in Employment Act of 1968 protects workers age 40 or older. ◦ Sexual Harassment & Sexism: Avoiding unwelcome actions of a sexual nature; equal pay for equal work without regard to gender.

O T S E I IT L I B I S N O P S RE S R O T INVES • Obligation to make profits for shareholders. • Expectation of ethical and moral behaviour. • Investors protected by regulation by the Securities and Exchange Commission and state regulations.