1. Business Ethics & Social
Responsibility
MGMT 447

2. Business Ethics
• Differ from general ethics
▫ Stakeholders vested in the ethical performance of
the organization
▫ Your work environment may provide situations
that clash with your personal value system

3. Organizational Culture
• The values, beliefs, norms shared by employees
of the organization
• Sums up the policies and procedures of the
functional departments within the organization

4. Value Chain
• R&D
• Manufacturing
• Marketing
• Sales
• Customer Service

5. Value Chain cont…
• Human Resource Management
• Finance
• Information Systems
• Management

6. R&D
• Create new products
▫ Incorporate customer feedback
▫ Competitive feedback
▫ Strategic input
• Ethical Dilemma
▫ Creating products of the highest quality, safety, &
reliability all within a predetermined
manufacturing cost

7. Manufacturing
• Build the designs created by R&D
• Ethical Dilemmas
▫ Build it fast or build it right?

8. Marketing
• Includes
▫ Advertising
▫ PR
▫ Sales
• Ensures the product reaches satisfied customers
• Ethical Dilemmas
▫ Do customers really “need” these products
▫ Is this manipulation or placing a product in the
hands of customers to better the customers’ lives?

9. Marketing cont…
• So who does a company owe responsibility to?
▫ Stockholders
▫ Customers
• AMA Code of Ethics
▫ http://www.marketingpower.com/AboutAMA/Pa
ges/Statement%20of%20Ethics.aspx
• DMA Code of Ethics
▫ http://www.dmaresponsibility.org/guidelines/

10. Human Resources
• Job description
• Recruitment/Selection of “right” candidate
• New employee orientation
• Payroll and benefits management
• Performance review documentation
• Disciplinary/training documentation
• Career Development Program Plan
• Final Paperwork/Benefit Severance/Exit
Interview

11. HR Cont…
• Ethical Dilemmas
▫ Arise when there’s a failure to plan ahead
• Should HR be at center of corporate code of
ethics as its voice of reason?
▫ Ensure ethics is a top priority
▫ Ensure leadership selection & development
▫ Ensure proper programs & policies are in place
▫ Aware of ethical issues (legislation, etc)

12. Finance
• Financial transactions
• Accounting function
• Auditing function
▫ Internal
▫ Conflict of Interest