adeyl khan, faculty, bba, nsu business ethics and social responsibility

Adeyl Khan, Faculty, BBA, NSU

Chapter 2Business Ethics and Social Responsibility

Adeyl Khan, Faculty, BBA, NSU2

Glossary!Profit

Profit is the reward for businesspeople who take the risk involved to offer goods and services to customers.

Stakeholders Customers, investors, employees, and public

affected by or with an interest in a company


Walmart’s Ambitious Goals“Sustanability 360” Initiatives1) to be supplied 100 percent by renewable

energy;2) to create zero waste; and,3) to sell products that sustain our resources

and the environment.

Are these goals attainable? How?Choice: Profit or just benefits to

employee, customers, Environment/Society? Sustainable: long term, short term. 3Goodwill!


Concern for Ethical and Societal IssuesBusiness Ethics- The standards of conduct and

moral values governing actions and decisions in the work environment. Social responsibility.

Balance between what’s right and what’s profitable. Often no clear-cut choices. Your career! Often shaped by the organization’s ethical climate.

Sarbanes-Oxley Act- 2002 law that added oversight for the nation’s major companies and a special oversight board to regulate public accounting firms that audit the financial records of these corporations.

Prius


The Contemporary Ethical EnvironmentCorporate social responsibilityHigh profile investigations and arrests in

headlines.Vast majority of businesses ethical.New corporate officers charged with

deterring wrongdoing and ensuring ethical standards. (Sarbanes-Oxley Act)- Table 2.1

Johnson & Johnson Credo


• Individuals can make the difference in ethical expectations and behavior

– Putting own interest ahead of the organization

– Lying to employee

– Misrepresenting hours

– Safety violations

– Internet Abuse

• Technology is expanding unethical behavior

Individuals Make

A Difference

Everybody is

doing it!


Development of

Individual Ethics


Situation in which a business decision may be influenced for personal gain. (Doctors & Labs)

Telling the truth and adhering to deeply felt ethical principles in business decisions. (Embellishing resume, take office resources!)

Businesspeople expect employees to be loyal and truthful, but ethical conflicts may arise.

Employee’s disclosure of illegal, immoral, or unethical practices in the organization. (Dumping tannery garbage at burigange)

On-the-Job Ethical

DilemmasRMG from Bangladesh

Diamonds from Myanmar


How Organizations

Shape Ethical

Conduct


Statement of Values/

Code of Conduct Formal statement that

defines how the organization expects

and requires employees to resolve

ethical questions.

Ethical

Awareness


Codes of conduct cannot detail a solution

for every ethical situation, so

corporations provide training in ethical

reasoning.

Ethical Education

Online assessment!


Helping employees recognize and reason

through ethical problems and turning

them into ethical actions.

Ethical Action


Ethical Action …

Reference card to help make ethical decisions

• Is the action legal?• Does it comply with our values?• If you do it, will you feel bad?• How will it look in the newspaper?• If you know it’s wrong, don’t do it!• If you’re not sure, ask.• Keep asking until you get an answer.


Executives must demonstrate ethical

behavior in their actions.

Ethical Leadership


Acting Responsibly to Satisfy SocietySocial Responsibility

Management’s consideration of profit, consumer satisfaction, and societal well-being of equal value in evaluating the firm’s performance.

Contributions to the overall economy, job opportunities, and charitable contributions and service.

Organizations measure through social audits. Considering conservation, employment

practices, environmental protection and philanthropy

Let outsiders measure- interest groups!Compare with profit & employment


Areas of

Responsibility


Responsibilities to the General Public• Public Health Issues. What to do about inherently

dangerous products such as alcohol, tobacco, vaccines, and 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 and diversity initiatives.

• Corporate Philanthropy. Cash contributions, donations of equipment and products, and supporting the volunteer efforts of company employees.


Responsibilities to Customers• 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.


Responsibilities to Employees• Workplace Safety. Monitored by

Occupational Safety and 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 and Sexism. Avoiding unwelcome actions of a sexual nature; equal pay for equal work without regard to gender.

http://www.osha.gov/

http://www.dol.gov/esa/whd/fmla/

http://www.eeoc.gov/policy/adea.html


Responsibilities to Investors• Obligation to make profits for shareholders.

• Expectation of ethical and moral behavior.

• Investors protected by regulation by the Securities and Exchange Commission and state regulations.

http://www.sec.gov/


Reading assignmentSummary of learning goals

Business terms

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Group Work G-C2

Do the case 2.1 (Honda …)

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Learning Goals

Explain the concepts of business ethics and social responsibility.

Describe the factors that influence business ethics.

List the stages in the development of ethical standards.

Identify common ethical dilemmas in the workplace.

Discuss how organizations shape ethical behavior.

Describe how businesses’ social responsibility is measured.

Summarize the responsibilities of business to the general public, customers, and employees.

Explain why investors are concerned with business ethics and social responsibility.

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adeyl khan, faculty, bba, nsu business ethics and social responsibility

Documents

ethical conduct adeyl

ethical awareness adeyl

ethical actions

ethical standards

ethical situation

ethical reasoning

ethical questions

ethical conflicts