ethics and social responsibility

43
ETHICS AND SOCIAL ETHICS AND SOCIAL RESPONSIBILITY RESPONSIBILITY By: Mrs. Belen Apostol

Upload: lars-gentry

Post on 03-Jan-2016

63 views

Category:

Documents


0 download

DESCRIPTION

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 Presentation

TRANSCRIPT

Page 1: ETHICS AND SOCIAL RESPONSIBILITY

ETHICS AND SOCIAL ETHICS AND SOCIAL RESPONSIBILITYRESPONSIBILITY

By: Mrs. Belen Apostol

Page 2: ETHICS AND SOCIAL RESPONSIBILITY
Page 3: ETHICS AND SOCIAL RESPONSIBILITY

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.

Page 4: ETHICS AND SOCIAL RESPONSIBILITY

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.

Page 5: ETHICS AND SOCIAL RESPONSIBILITY

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.

Page 6: ETHICS AND SOCIAL RESPONSIBILITY

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

Page 7: ETHICS AND SOCIAL RESPONSIBILITY

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.

Page 8: ETHICS AND SOCIAL RESPONSIBILITY

Product safety and quality

Page 9: ETHICS AND SOCIAL RESPONSIBILITY

Fair employmentpractices;

Page 10: ETHICS AND SOCIAL RESPONSIBILITY

Fair marketing and selling practices;

Page 11: ETHICS AND SOCIAL RESPONSIBILITY

The use of confidential information for personal gain;

Page 12: ETHICS AND SOCIAL RESPONSIBILITY

Community involvement;

Page 13: ETHICS AND SOCIAL RESPONSIBILITY

Bribery

Illegal payments to foreign governments to obtain business.

Page 14: ETHICS AND SOCIAL RESPONSIBILITY

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.

Page 15: ETHICS AND SOCIAL RESPONSIBILITY

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

Page 16: ETHICS AND SOCIAL RESPONSIBILITY

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

Page 17: ETHICS AND SOCIAL RESPONSIBILITY

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.

Page 18: ETHICS AND SOCIAL RESPONSIBILITY

Ethics TrainingEthics Training

Learning takes two forms:

1.Through formal classroom instruction, and

2.Through actual hands-on experience and observation

Page 19: ETHICS AND SOCIAL RESPONSIBILITY

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.

Page 20: ETHICS AND SOCIAL RESPONSIBILITY

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.

Page 21: ETHICS AND SOCIAL RESPONSIBILITY

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.

Page 22: ETHICS AND SOCIAL RESPONSIBILITY

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.

Page 23: ETHICS AND SOCIAL RESPONSIBILITY

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.

Page 24: ETHICS AND SOCIAL RESPONSIBILITY

OwnersOwners

The interest of the owners (the sole proprietor, the partners, or stockholders) is expected to be of highest priority.

Page 25: ETHICS AND SOCIAL RESPONSIBILITY

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.

Page 26: ETHICS AND SOCIAL RESPONSIBILITY

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)

Page 27: ETHICS AND SOCIAL RESPONSIBILITY

Minority GroupsMinority Groups

Management must avoid treating them outright as inferior so as not to affect their employment and promotion chances.

Page 28: ETHICS AND SOCIAL RESPONSIBILITY

WomenWomen

The view that management must have is to regard women as a force with potentials “to lead” as much as “to follow”

Page 29: ETHICS AND SOCIAL RESPONSIBILITY

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.

Page 30: ETHICS AND SOCIAL RESPONSIBILITY

The HandicappedThe Handicapped

The firm’s management must be responsible for removing hazards and obstacles which prevent them from doing their jobs effectively.

Page 31: ETHICS AND SOCIAL RESPONSIBILITY

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.

Page 32: ETHICS AND SOCIAL RESPONSIBILITY

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;

Page 33: ETHICS AND SOCIAL RESPONSIBILITY

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.

Page 34: ETHICS AND SOCIAL RESPONSIBILITY

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.

Page 35: ETHICS AND SOCIAL RESPONSIBILITY

Social Responsibility Social Responsibility StrategiesStrategies

The approaches are expressed in four basic social responsibility strategies as follows:

Reaction strategyDefense strategyAccommodation strategy, andProactive strategy

Page 36: ETHICS AND SOCIAL RESPONSIBILITY

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.

Page 37: ETHICS AND SOCIAL RESPONSIBILITY

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.

Page 38: ETHICS AND SOCIAL RESPONSIBILITY

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.

Page 39: ETHICS AND SOCIAL RESPONSIBILITY

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.

Page 40: ETHICS AND SOCIAL RESPONSIBILITY

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.

Page 41: ETHICS AND SOCIAL RESPONSIBILITY

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.

Page 42: ETHICS AND SOCIAL RESPONSIBILITY

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.

Page 43: ETHICS AND SOCIAL RESPONSIBILITY

Thank you for listening!