ethics and social responsibility
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ETHICS AND SOCIAL RESPONSIBILITY. By: Mrs. Belen Apostol. Ethics. Ethics refers to the study of morals and moral choices of human being. The behavior of individuals and groups which are governed by standards, rules, and codes of conduct consist of the subjects covered by ethics. - PowerPoint PPT PresentationTRANSCRIPT
ETHICS AND SOCIAL ETHICS AND SOCIAL RESPONSIBILITYRESPONSIBILITY
By: Mrs. Belen Apostol
EthicsEthicsEthics refers to the study
of morals and moral choices of human being.
The behavior of individuals and groups which are governed by standards, rules, and codes of conduct consist of the subjects covered by ethics.
What is Business What is Business Ethics?Ethics?The moral principles defining right
and wrong behavior of businesspersons and their agents
It implores them to adhere to certain ethical conduct when dealing with anybody especially those affected by their business activities.
The Need for Ethical The Need for Ethical BehaviorBehavior
Ethical behavior is needed to make the “playing field” free and orderly. If the business person does not adhere to ethical principles, public opinion may pressure the government to act. It may turn out, later, that the business person will be in a worse situation then when no law is passed to force him to act ethically.
Areas of Concern for Areas of Concern for Business EthicsBusiness Ethics
Ethics covers all areas encompassed by business transactions. The ethical conduct of a business person may be measured against how the following are adhered to:
1.Laws and regulations promulgated by the government; and2. Specific ethical conduct not yet passed into law
Laws and regulations Laws and regulations requiring ethical behaviorrequiring ethical behaviorProduct safety and quality;Fair employment practices;Fair marketing and selling
practices;The use of confidential
information for personal gain;Community involvement;Bribery; andIllegal payments to foreign
governments to obtain business.
Product safety and quality
Fair employmentpractices;
Fair marketing and selling practices;
The use of confidential information for personal gain;
Community involvement;
Bribery
Illegal payments to foreign governments to obtain business.
Current Issues in EthicsCurrent Issues in EthicsOwners of food stalls serving spoiled food
to customers;Business owners making “fictitious
insurance claims”;School awarding diplomas to undeserving
persons;A contractor bribing a government official
to manipulate the bidding of contracts;A drug manufacturer making false claims
regarding the efficacy of his product; andA television station copying the format of
a rival station’s show.
Coverage of Company Coverage of Company Sponsored Ethics Sponsored Ethics ProgramProgram
A very important listing of problem areas which may be used as a basis for formulating company policies on ethical conduct is as follows:
Drug and alcohol abuseEmployee theftConflict of interestQuality controlMisuse of proprietary information
Coverage of Company Coverage of Company Sponsored Ethics ProgramSponsored Ethics Program
Abuse of expense accountsPlant closings and layoffsMisuse of company assetsEnvironmental pollutionMethods of gathering competitor’s
informationInaccuracy of books and recordsReceiving excessive gifts and entertainmentFalse or misleading advertising
The Improvement of The Improvement of Ethical PerformanceEthical Performance
Improvement in the ethical conduct of business and those involved in it may be made through any of the following ways:
1.Ethics training2.Ethical advocates3.Ethical codes; and4.Whistle blowing.
Ethics TrainingEthics Training
Learning takes two forms:
1.Through formal classroom instruction, and
2.Through actual hands-on experience and observation
Ethical AdvocatesEthical Advocates
An ethical advocate is a person who is knowledgeable about business ethics, employed by the company, and acts as the company’s conscience. He sits at the board of directors and sees to it that every policy adapted conforms to ethical standards.
Ethical CodesEthical Codes
A code of ethics is a formal document that provides clear direction to management and employees in the performance of their duties.
Whistle-BlowingWhistle-BlowingThere are instances when employees
are helpless that they cannot implement the right ethical conduct required in specific situations. When almost everybody from top to lower management acts outside of ethical norms, the employee who feels he must do something that resorts to reporting the perceived unethical practice to outsiders such as the press, government agencies like the ombudsman and the Presidential Anti-Graft commission, or public
interest groups.
What is Social What is Social ResponsibilityResponsibilitySocial responsibility refers to the concern of business for the welfare of the society.
that the firm must perform its function without harming the community
improve the quality of lifeproduce goods or services that will not
adversely affect any component of the society
make profits but not to the public detriment of society.
Interested GroupsInterested Groups
There are various groups with interests that are different from one another. These interests must be properly considered by the business firm it will have to be successful.
OwnersOwners
The interest of the owners (the sole proprietor, the partners, or stockholders) is expected to be of highest priority.
ConsumersConsumers
Consumers, like any other group, have rights. The basic rights of consumers include those concerning representation, information, a healthy environment, safety, basic goods and services, choice, consumer education and redress.
EmployeesEmployeesAmong the specific points of interest in
caring about employees are:1.Health and safety;2.Appropriate salaries and employee
benefits;3.Right to speak out;4.Right to privacy; and 5.Right to job security except when
discipline is concerned. (security of tenure)
Minority GroupsMinority Groups
Management must avoid treating them outright as inferior so as not to affect their employment and promotion chances.
WomenWomen
The view that management must have is to regard women as a force with potentials “to lead” as much as “to follow”
Older PeopleOlder People
Older people have distinct needs that must be the concern of business. Many of them are highly qualified and able to perform special tasks which younger persons cannot do.
The HandicappedThe Handicapped
The firm’s management must be responsible for removing hazards and obstacles which prevent them from doing their jobs effectively.
The Community at largeThe Community at large
There are business activities that may affect any of the widely diverse interest of people. The modern manager must have multiple abilities and an open mind if he wants to succeed in his endeavor.
Benefits and costs of Social Benefits and costs of Social ActionsActions
BenefitsImproved employee satisfaction and
motivationCompany becomes more aware of
changing consumer tastes and preferences;
Greater demand for the company’s products or services;
Benefits and costs of Benefits and costs of Social ActionsSocial ActionsPreference by investors to buy
the firm’s stocks; andElimination of possible legislative
controls on business activities.
Benefits and costs of Benefits and costs of Social ActionsSocial ActionsCostsThe money spent in direct
support of social projects;Reduction of competitive power;
andThe private provision of social
services and programs may later on, be also regulated by the government.
Social Responsibility Social Responsibility StrategiesStrategies
The approaches are expressed in four basic social responsibility strategies as follows:
Reaction strategyDefense strategyAccommodation strategy, andProactive strategy
Reaction StrategyReaction Strategy
The company allows a condition or potential problems to go unresolved until the public finds out about it. When a problem is brought before the company, the firms reacts by denying responsibility, then attempts to resolve the problem, deal with its consequences, then continue doing business to minimize the negative impact.
Defense StrategyDefense Strategy
The company tries to minimize or avoid additional obligations. Among the tactics used are legal maneuvering and seeking the support of groups that prefer the company’s way of doing business.
Accommodation StrategyAccommodation Strategy
This is done when special interest groups are taking the side of the opposition, or when the business perceives that if it does not react, a law will be passed by Congress to ensure compliance. This means that the company is forced to accept its economic, legal, and ethical responsibilities.
Proactive StrategyProactive Strategythe firm goes beyond what is legally and
ethically required. There are a number of companies using the proactive strategy. This is undertaken through sponsorship of cultural shows offered free to the public, scholarship to financially-handicapped but deserving students, providing financial support to the upkeep of endangered animal species, and many other similar concerns.
Social AuditsSocial Audits
A social audit refers to the systematic examination of all the activities achieving social goals such as employment of the handicapped and those belonging to the cultural minorities, adaption of anti-pollution campaign, improvement of working conditions, community development, donations to worthy causes, and various consumer issues.
Social AuditsSocial Audits
A social audit may be done through the preparation of the following:
1.A summary of program areas, such as consumer affairs, as well as the reasons for undertaking certain social activities and not others.
2.A report of specific programs and the priorities for each set of activities.
Social AuditsSocial Audits3. A listing of objectives for each priority
activity and a description of how the organization is striving to reach the objective.
4. A summary report of the costs of each program area and activity to the company
5. A summary using quantitative measures, whenever possible, of the extent of achievement of each social objective.
Thank you for listening!