CH 4 Business Ethics and Social Responsibility Why is understanding business ethics and social...
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Transcript of CH 4 Business Ethics and Social Responsibility Why is understanding business ethics and social...
![Page 1: CH 4 Business Ethics and Social Responsibility Why is understanding business ethics and social responsibility important to you as a business person, consumer,](https://reader031.fdocuments.in/reader031/viewer/2022020219/56649ce05503460f949a9872/html5/thumbnails/1.jpg)
CH 4 Business Ethics and
Social Responsibility
Why is understanding business ethics and social responsibility important to you as a business
person, consumer, and citizen?
![Page 2: CH 4 Business Ethics and Social Responsibility Why is understanding business ethics and social responsibility important to you as a business person, consumer,](https://reader031.fdocuments.in/reader031/viewer/2022020219/56649ce05503460f949a9872/html5/thumbnails/2.jpg)
Ch 4 Targets• Define social responsibility issues.• Explain business ethics.• Explain the legal responsibility of
business ethics.• Give reasons why ethical behavior is good
for business.• List some important ethical questions.• Explain how ethics is related to the
consumer, employee, and society.
![Page 3: CH 4 Business Ethics and Social Responsibility Why is understanding business ethics and social responsibility important to you as a business person, consumer,](https://reader031.fdocuments.in/reader031/viewer/2022020219/56649ce05503460f949a9872/html5/thumbnails/3.jpg)
What is Ethics?
Ethics Set of moral principles by which people conduct
themselves personally, socially, or professionally.
Business ethics Set of laws about how a business should conduct itself.
Legal Responsibility Social Responsibility
Responsibility to Customers Responsibility to Employees
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Graphic OrganizerImportant Ethical QuestionsDoes it violate the law or policies?
ETHICAL DECISION
Would this sacrifice long-term benefits for short-term gain?
What if everyone did this, but it’s bad?
UNETHICAL
NO
NO
NO
YES
YES
YES
MAY BE UNETHICAL
UNETHICAL
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Ethics as Good Business
Affect your business indirectly Repeat customers High employee turnover
Affect your business directly Fines
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Legal Responsibility
How do business make sure that their employees follow the laws?
Code of Ethics Set of strict guidelines for maintaining ethics in
the workplace.
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Social Responsibility
Social responsibility Duty to do what is best for the good of society.
The ethical obligations of a business are to: Provide safe products Create jobs Protect the environment Contribute to the standard of living in society• Conflict of Interest
• Business is tempted to put profits before social welfare
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Responsibility to the Employees
Businesses have a social responsibility to create jobs. Safe Working Conditions Equal Treatment Fair Pay
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Responsibility to the Employees (Legal)
Sweatshops Factories that pay workers poorly, are unhealthy, and treat
workers badly Occupational Safety and Health Administration
(OSHA) Division of the Department of Labor that sets and enforces work-related health and safety rules
Equal Pay Act Requires that men and women be paid the same wages for
doing equal work. Americans with Disabilities Act
Bans discrimination against persons with physical or mental disability.
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Social Responsibility: To Customers
• Food and Drug Administration (FDA)• Government agency• Protects consumers from dangerous or falsely
advertised products• The FDA governs advertising and labeling of over-the-
counter medicines• Consumer Product Safety Commission (CPSC)
• Government agency• Protects consumer from dangerous consumer goods• Oversees recalls involving • Recalls.gov
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Social Responsibility: To Society
Environmental Protection Agency (EPA), 1970 Federal agency that enforces rules that protect
the environment and control pollution.
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Ch 4 Target Review• Explain business ethics.
• Set of laws about how a business should conduct itself• Explain the legal responsibility of business
ethics.• Business are responsible for the safety of employees
• Give reasons why ethical behavior is good for business.
• Most business rely on repeat customers• Employees are loyal• New customers
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Ch 4 Target Review• List some important ethical questions.
• Is this against the law?• What if everyone did this?• Am I sacrificing long term benefits for short
term gains?• Define social responsibility.
• Duty to do what is best for the society• Explain how ethics is related to the
consumer, employee, and society.• Consumer – protection from dangerous or
falsely advertised products• Employee – create jobs with equal treatment• Society – environmental protection
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Activity
Create a code of ethics to include in your business plan. Page 79 Guidelines for writing a code of ethics Be sure to include all 7 parts in your code (note it
does not mean make a list) Look at other codes of ethics for ideas
Student handbook is a ‘code of ethics’ Reviewed every year Includes how it will be enforced