3600ethics
TRANSCRIPT
The Ethical and Social Environment
Week of 1-21
Determinants of Individual Ethics
Family
IndividualEvents
Individual Ethics
Peers
Values and Morals
Individual Ethics
Ethical Behavior Ethical behavior is in the eye of the beholder However, it also refers to behavior that
conforms to generally accepted social norms
Best guide for individual ethics is to ask yourself “Would it be okay if Mom knew I was doing this?”
Individual Ethics
Are these behaviors unethical? Using office supplies for personal use “Surfing the Net” on business time Selling a product you know to be defective Selling company stock before the general
public knows about something that will decrease the value of that stock.
? Discussion Questions ?
Have you ever been faced with an ethical dilemma at work?
What happened, and how did you resolve the issue?
Individual Ethics
Problem is that ambiguous situations can be interpreted in different ways
Ethics in Organizations
Managing Ethical Behavior Must begin with top management Training Code of Ethics
A formal, written statement of the values and ethical standards that guides a firm’s actions
Individual behavior
Arguments for Social Responsibility
Business creates problems and should therefore help to solve them
Corporations are citizens in our society Business often has the resources necessary to
solve problems Business is a partner in
our society, along with the government and general population.
Arguments Against Social Responsibility
Business lacks the expertise to manage social programs
Involvement in social programs gives business too much power
There is potential for conflict of interest The purpose of business in U.S. society is to
generate profit for owners.
Corporate Social Responsibility Hierarchy
Economic
Discretionary
Ethical
Legal
Economic Responsibilities -Be Profitable
Basic economic unit of society Produce the goods and services that society
wants and maximize profits for its owners The only social responsibility = profit-
maximizing.
Legal Responsibilities - Obey the Law Local governments State legislators Federal regulatory agencies.
Ethical Responsibilities -Do What is Right
Not necessarily codified into law May not serve the firm's direct economic
interests To be ethical organization decision makers
should: Act with equity, fairness, and impartiality Respect the rights of individuals Treat individuals differently only when
relevant to the organization's goals.
Discretionary Responsibilities -Contribute to Quality of Life
Purely voluntary and guided by a company's desire to make social contributions not mandated by economics, law, or ethics
Philanthropic contributions Goes beyond what society expects
a firm to contribute to the community's welfare.
Corporate Reactions to Ethical Crises
Obstructive - Fight All the Way
Deny all responsibility Claim that evidence of wrongdoing is
misleading or distorted Place obstacles to delay
investigation Tends to occur in firms
whose actions are based on economic considerations.
Defensive - Do Only What is Legally Required
Company admits to some errors of omission or commission
Defends itself but is not obstructive
Tend to work within the letter of the law.
Accommodative - Accept Ethical Responsibility
Accepts social responsibility for actions Try to meet economic,
legal, and ethical responsibilities
Curtail ethically questionable activities.
Proactive -Take Social Initiatives
Take the lead in social issues
Learn what is in the public interest and respond without pressure from stakeholders
Use discretionary responsibilities to enhance community welfare.