Scribd
Upload
23 views

Business Ethics and Social Responsibility

The document discusses business ethics and social responsibility. It covers how businesses must consider ethical and social issues in their decisions and how this affects stakeholders like employees, customers, investors, and the environment. It also discusses laws like Sarbanes-Oxley that aim to promote ethical conduct and transparency. Finally, it examines how organizations can shape ethical behavior through codes of conduct, education, leadership, and ensuring responsibilities to various stakeholders are met.

Uploaded by

Muhammad Arslan Qadir
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
23 views

Business Ethics and Social Responsibility

The document discusses business ethics and social responsibility. It covers how businesses must consider ethical and social issues in their decisions and how this affects stakeholders like employees, customers, investors, and the environment. It also discusses laws like Sarbanes-Oxley that aim to promote ethical conduct and transparency. Finally, it examines how organizations can shape ethical behavior through codes of conduct, education, leadership, and ensuring responsibilities to various stakeholders are met.

Uploaded by

Muhammad Arslan Qadir
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 20

Business Ethics and Social Responsibility

CONCERN FOR ETHICAL AND SOCIETAL ISSUES

• Business ethics, the standards of conduct and moral values governing actions and decisions in the work
environment.

• Businesses also must take into account a wide range of social issues,
including how a decision will affect the environment, employees, and customers.
THE CONTEMPORARY ETHICAL ENVIRONMENT

• Business ethics are now in the spotlight as never before.

• Companies realize that they have to work harder to earn the trust of the general public

• This movement toward corporate social responsibility should benefit all—consumers, investors, the
environment, and the companies themselves.
SARBANES-OXLEY ACT OF 2002

• Federal legislation designed to deter and punish corporate and accounting fraud and corruption and to
protect the interests of workers and shareholders through enhanced financial disclosures, criminal
penalties on CEOs and CFOs who defraud investors, safeguards for whistle-blowers, and establishment
of a new regulatory body for public accounting firms
INDIVIDUALS MAKE A DIFFERENCE

•Examples??????
DEVELOPMENT OF INDIVIDUAL ETHICS

• Three Stages
1. Pre-conventional
2. Conventional
3. Post-conventional
ON-THE-JOB ETHICAL DILEMMAS

• affect your own future


• future of your fellow workers,
• your company
• customers
COMMON BUSINESS ETHICAL CHALLENGES
COMMON BUSINESS ETHICAL CHALLENGES (CONT.)
• Honesty and Integrity

• Loyalty versus Truth

• Conflict of Interest
situation in which an employee must choose between a business’s welfare and personal gain.

• Whistle-blowing
is an employee’s disclosure to company officials, government authorities, or the media of illegal, immoral,
or unethical practices.
HOW ORGANIZATIONS SHAPE ETHICAL CONDUCT

• ethical awareness,
• ethical education,
• ethical action, and
• ethical leadership.
ETHICAL AWARENESS AND ETHICAL EDUCATION

• Code of conduct
formal statement that defines how an organization expects its employees to resolve ethical issues.

• Ethical Education
Businesses must provide the tools employees need to evaluate the options and arrive at suitable decisions.
ETHICAL ACTION

• Ethical Action
Some Examples
• Is the action legal?
• 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!
ETHICAL LEADERSHIP

• Executives must not only talk about ethical behavior but also demonstrate it in their actions.
• affect a firm’s stakeholders
• Stakeholder (customers, investors, employees, and public) affected by or with an interest in a company.
ACTING RESPONSIBLY TO SATISFY SOCIETY

• Social responsibility
business’s consideration of society’s well-being and consumer satisfaction, in addition to profits.
• social audits
formal procedures that identify and evaluate all company activities that relate to social issues.
ACTING RESPONSIBLY TO SATISFY SOCIETY
RESPONSIBILITIES TO THE GENERAL PUBLIC

• Public-Health Issues

• Protecting the Environment


RESPONSIBILITIES TO CUSTOMERS

• Consumerism
Public demand that a business consider the wants and needs of its customers in making decisions.
 The Right to Be Safe.
 The Right to Be Informed.
 The Right to Choose.
 The Right to Be Heard.
RESPONSIBILITIES TO EMPLOYEES

• Workplace Safety
• Quality-of-Life Issues
• Ensuring Equal Opportunity on the Job
 Equal Employment Opportunity Commission (EEOC)
RESPONSIBILITIES TO INVESTORS AND THE FINANCIAL
COMMUNITY

• Although a fundamental goal of any business is to make a profit for its shareholders, investors and the
financial community demand that businesses behave ethically and legally. When firms fail in this
responsibility, thousands of investors and consumers can suffer.

You might also like