Exploring Business V 2 1 By Karen Collins

Exploring Business V 2. 1 By Karen Collins

Published by: Flat World Knowledge, Inc. 1111 19 th Street Northwest Washington, DC 20036 © 2015 by Flat World Knowledge, Inc. All rights reserved. Your use of this work is subject to the License Agreement available here http: //www. flatworldknowledge. com/legal. No part of this work may be used, modified, or reproduced in any form or by any means except as expressly permitted under the License Agreement. © 2015 Flat World Knowledge 1

Chapter 2 Business Ethics And Social Responsibility © 2015 Flat World Knowledge 2

Chapter Objectives • Define business ethics and explain what it means to act ethically • Solve ethical dilemmas and make ethical decisions • Identify ethical issues in business and rationalizations for unethical behavior • Specify actions managers take in creating & sustaining ethical companies • Explain how organizations are responsible to stakeholders • Identify threats to the natural environment and how businesses are addressing these threats © 2015 Flat World Knowledge 3

Unethical Headlines om C rld o W ron n E ol? Contr Lost ia h p l Ade o c y T © 2015 Flat World Knowledge 4

Business Ethics and Corporate Social Responsibility • What Is Ethics? – Ethical Behavior – Business Ethics • What Is Social Responsibility? – Corporate Social Responsibility – Stakeholders © 2015 Flat World Knowledge 5

When is an Organization Behaving Ethically • Treats Others Fairly • Fairness Is a Top Priority • Everyone is Accountable for His or Her Actions • Communicates Core Values and Principles • Demands and Rewards Integrity © 2015 Flat World Knowledge 6

Good Corporate Citizens • Starbucks • Intel • Gap • Merck • Campbell Soup © 2015 Flat World Knowledge • • • Cisco Southwest Airlines AT & T Hasbro Mattel Coca-Cola 7

Employee Attitudes In Unethical Companies • Uneasy About Work They Do • Object To Way They’re Treated • Uncomfortable About the Way Coworkers are Treated • Question Correctness of Management Directives & Policies © 2015 Flat World Knowledge 8

Why Study Ethics? • Business World Students Will Face is Constantly Changing • Understand What Is and Isn’t Ethically Acceptable • Knowing Right from Wrong Makes You a Marketable Job Candidate © 2015 Flat World Knowledge 9

Ethical Self-Examination 1. I’m Always Ethical 2. I’m Mostly Ethical 3. I’m Somewhat Ethical 4. I’m Seldom Ethical 5. I’m Never Ethical © 2015 Flat World Knowledge 1 0

Ethical Challenges “…arise in business because…multiple stakeholders…make conflicting demands. ” © 2015 Flat World Knowledge 11

Ethical Challenges • Dilemmas (Right vs. Right) • Ethical Decision (Right Choice or Wrong Choice? ) • Ethical Lapse (Unethical Decision) © 2015 Flat World Knowledge 12

How to Face an Ethical Dilemma © 2015 Flat World Knowledge 13

How to Avoid an Ethical Lapse © 2015 Flat World Knowledge 14

Ethical Issues 1) 2) 3) 4) 5) Bribes versus Gifts Conflicts of Interest Conflicts of Loyalty Issues of Honesty and Integrity Whistle-Blowing © 2015 Flat World Knowledge 15

Bribes vs. Gifts • • Cost of Item Timing of Giving Type of Item Connection between Giver and Receiver • Check Company Policy © 2015 Flat World Knowledge 16

Conflicts Of Interest • Must Choose between Promotion of Personal Interests and Interests of Others - Can Interfere With Best Interests of Company and Stakeholders © 2015 Flat World Knowledge 17

Conflicts Of Loyalty To? • Employer • Family/Friend © 2015 Flat World Knowledge 18

How to Maintain Honesty and Integrity © 2015 Flat World Knowledge 19

Whistle-Blowing • Applauded or Shunned • Career Suicide © 2015 Flat World Knowledge 20

Rationalizations • My Behavior Isn’t Really • • • Illegal Or Immoral My Action Is In Everyone’s Best Interests No One Will Find Out What I’ve Done The Company Will Condone My Action And Protect Me © 2015 Flat World Knowledge 21

Organizational Behavior Employee Actions Aren’t Based on Personal Values Alone. They’re Also Influenced by Other Members of the Organization. © 2015 Flat World Knowledge 22

Organizational Culture Ways of Doing Things that Evolve through Shared Values • Influenced by Top Managers • Tells Organization Members What’s Acceptable Behavior • And What Happens if Rules are Broken © 2015 Flat World Knowledge 23

Ethical Leadership • Leaders Should Keep in Constant Touch with Subordinates about Ethical Policies and Expectations • Serve as Role Models of • Ethical Behavior • Hold Subordinates Accountable © 2015 Flat World Knowledge 24

Code Of Conduct Principles & Guidelines Employees Must Follow When Doing their Jobs • Topics • Use Of Company Resources • Conflicts Of Interest • Protection Of Private • Company Information • How Code is Enforced • Reporting Wrongdoing © 2015 Flat World Knowledge 25

Corporate Social Responsibility “…the approach…an organization takes in balancing its responsibilities toward different stakeholders when making…decisions. ” © 2015 Flat World Knowledge 26

Model Of Corporate Responsibility © 2015 Flat World Knowledge 27

Social Responsibility And Stakeholders • Owners • Employees • Customers • Communities © 2015 Flat World Knowledge 28

Stakeholders - Owners Managers Responsible for: • Increasing Owners’ Investment • Providing Accurate & Reliable Information • Keeping Assets ($, Equipment etc. ) Safe © 2015 Flat World Knowledge 29

Stakeholders - Employees • • • Guard Workers’ Safety & Health Freedom From Sexual Harassment Value Diversity Provide Equal Opportunities Pay Fair Wages © 2015 Flat World Knowledge 30

Wage Gaps © 2015 Flat World Knowledge 31

Stakeholders - Customers • Right To Safe Products • Right To Be Informed • Right To Choose • Right To Be Heard © 2015 Flat World Knowledge 32

Stakeholders - Community • Financial Contributions • Volunteerism • Supporting Social Causes • Environmentalism • Land Pollution • Air Pollution • Water Pollution © 2015 Flat World Knowledge 33

Five Faces Of Corporate Responsibility • Defensive • Compliant • Managerial • Strategic • Civil © 2015 Flat World Knowledge 34