Adeyl Khan, Faculty, BBA, NSU Chapter 5, 6, 7. Adeyl Khan, Faculty, BBA, NSU.
Adeyl Khan, Faculty, BBA, NSU Business Ethics and Social Responsibility.
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Transcript of 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
Adeyl Khan, Faculty, BBA, NSU
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!
Adeyl Khan, Faculty, BBA, NSU
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
Adeyl Khan, Faculty, BBA, NSU
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
Adeyl Khan, Faculty, BBA, NSU
• 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!
Adeyl Khan, Faculty, BBA, NSU
Development of
Individual Ethics
Adeyl Khan, Faculty, BBA, NSU
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
Adeyl Khan, Faculty, BBA, NSU
How Organizations
Shape Ethical
Conduct
Adeyl Khan, Faculty, BBA, NSU
Statement of Values/
Code of Conduct Formal statement that
defines how the organization expects
and requires employees to resolve
ethical questions.
Ethical
Awareness
Adeyl Khan, Faculty, BBA, NSU
Codes of conduct cannot detail a solution
for every ethical situation, so
corporations provide training in ethical
reasoning.
Ethical Education
Online assessment!
Adeyl Khan, Faculty, BBA, NSU
Helping employees recognize and reason
through ethical problems and turning
them into ethical actions.
Ethical Action
Adeyl Khan, Faculty, BBA, NSU
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.
Adeyl Khan, Faculty, BBA, NSU
Executives must demonstrate ethical
behavior in their actions.
Ethical Leadership
Adeyl Khan, Faculty, BBA, NSU
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
Adeyl Khan, Faculty, BBA, NSU
Areas of
Responsibility
Adeyl Khan, Faculty, BBA, NSU
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.
Adeyl Khan, Faculty, BBA, NSU
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.
Adeyl Khan, Faculty, BBA, NSU
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.
Adeyl Khan, Faculty, BBA, NSU
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.
Adeyl Khan, Faculty, BBA, NSU
Reading assignmentSummary of learning goals
Business terms
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Adeyl Khan, Faculty, BBA, NSU
Group Work G-C2
Do the case 2.1 (Honda …)
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Adeyl Khan, Faculty, BBA, NSU
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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