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Business in Action Ch2

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Business in Action Ch2

  1. 1. Practicing Ethical Behavior and Social Responsibility
  2. 2. Two Important Concepts Social Responsibility Ethical Behavior
  3. 3. What Is Ethical Behavior? Competing Fairly and Honestly Communicating Truthfully Not Causing Harm to Others
  4. 4. Factors Influencing Ethical Behavior Cultural Differences Knowledge Organizational Behavior
  5. 5. Business Ethics Top-Management Commitment Reporting System Code of Ethics Compliance Officer
  6. 6. Making Ethical Decisions Is It Ethical? Philosophical Approaches Stakeholder Issues Outsiders Supervisors Employees Utilitarianism Individual, Legal and Human Rights Principles of Justice Legality and Balance Acceptability Feasibility
  7. 7. Types of Ethical Situations Ethical Dilemma Ethical Lapse
  8. 8. Social Responsibility in Business Early 20 th Century Middle 20 th Century Early 21 st Century Maximize Profits Provide Jobs and Pay Taxes Balance Profits and Social Issues
  9. 9. Percentage of Executives Who “Strongly Agree” or “Agree” That Companies Should: <ul><li>Be environmentally responsible </li></ul><ul><li>Be ethical in operations </li></ul><ul><li>Earn profits </li></ul><ul><li>Employ local residents </li></ul><ul><li>Pay taxes </li></ul><ul><li>Encourage and support employee volunteering </li></ul><ul><li>Contribute money and leadership to charities </li></ul><ul><li>Be involved in economic development </li></ul><ul><li>Be involved in public education </li></ul><ul><li>Involve community representatives in business decisions </li></ul><ul><li>Target a portion of purchasing toward local vendors </li></ul><ul><li>Help improve quality of life for low-income populations </li></ul>Percentage 100 100 96 94 94 89 85 75 73 62 61 54
  10. 10. Balancing Business and Stakeholders’ Rights Business Safe Products Product Choice Consumers Informed Purchase Employees Equity Health & Safety Investors Profits Fair Disclosure Society Clean Environment
  11. 11. Efforts to Increase Social Responsibility Social Audit Philanthropy Cause-Related Marketing
  12. 12. Causes of Pollution Industrial Discharges Vehicle Emissions Chemical Spills
  13. 13. Government Efforts to Reduce Pollution The Environmental Protection Agency Regulate Air and Water Reduce Automobile Emissions License Pesticides Control Toxic Substances Safeguard Drinking Water
  14. 14. Business Efforts to Reduce Pollution Environmental Issues Environmental Staff Performance Expectations Performance Rewards Long-Term Cost Product Development Supplier Expectations Training and Awareness
  15. 15. Responsibility Toward Consumers The Right to Safe Products The Right to Be Informed The Right to Choice The Right to Be Heard
  16. 16. Responsibility Toward Investors Social Responsibility Business Ethics
  17. 17. Responsibility Toward Employees Equal Employment Opportunity Affirmative Action Occupational Health and Safety Americans with Disabilities Act
  18. 18. Global Ethics and Social Responsibility Bribery Environmental Abuse Unscrupulous Business Practices

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