ch. 24: social and ethical responsibility. social responsibility what is social responsibility? ...
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Ch. 24: Social and Ethical
Responsibility
Social Responsibility
What is Social Responsibility? More than running your enterprise
responsibility every day Companies should contribute to the
welfare of society and not be devoted solely to profits
Contract with Society Make safe products, treat customers
and employees well, & Run Honestly
Social Responsibility
What is Social Responsibility? More than just Philanthropy
Making charitable donations to improve human welfare
Responsibility to Customers No Misleading (Quality, Performance,
Safety)
Free Market Protects Consumers
Truth in Lending Act - Inform
The Fair Credit Billing Act – Complaints
Customer Service = Competitive Advantage
Social Responsibility
What is Social Responsibility? Responsibility to the Environment
Demonstrate to customers that they are environmentally responsible
Environmental Protection Agency (EPA - 1970)
Independent Federal Agency – Coordinate programs and enforce regulations aimed at reducing pollution and protecting the environment
Business and the Environment May mean higher costs, but the company can
also charge higher prices
Contributing to the Community
What is Social Responsibility? Employer– Happy Employees =
Productive Offer Flex Time
Health Care
Assistance to Physically Challenged
Employees Honest
Trustworthy
Integrity
What Does it Mean to be Ethical
Ethics Guidelines for human behavior
The Moral code by which people live and conduct business
Help people determine how to act where moral issues are involved
Understanding your Values 6 Basic Values
Trustworthiness, Respect, Responsibility, Fairness, Caring, and Citizen
What Does it Mean to be Ethical
Business Ethics Study of Behavior and Morals in Business
Situations
Begin at the Top
Bosses/Owners who act unethically cannot expect employees to act ethically
Difference in Ethics Not everyone has high ethical standards
Develop Clear Policies for what IS and what IS NOT Accepted
Developing Code of Ethics
Code of Ethics Ethical Behavioral Guidelines that govern
day to day activities or a profession or organization
Helps to defend the company against criminal action
Company does not condone actions of employees
Written or Unwritten Typically grow from unwritten to written
As # of employees grow, so to does misunderstandings - YUMATSU
Developing Code of Ethics
Code of Ethics – 4 Steps 1. Brainstorm Ethical Dilemmas
Problems the company might face due to the type of business
2. Discuss Potential Solutions Suggestions on how to handle situations
Understand different cultures and values
3. Write Set of General Guidelines Range of Acceptable ways to deal with
situations
4. Improve Your Code
Special Problems for Entrepreneurs
Conflict of Interest Clash between a person’s private interest
and his/her responsibilities in a position of trust
Desperate Measures Live by one’s code of ethics no matter
how difficult that might be
Cultural Differences Understand the ethical expectations of
the country’s culture
What is permitted by Law
Special Problems for Entrepreneurs
Bribes Payments to secure special services –
ILLEGAL in US
Patent or Copyright Infringement Long Term Vs Short Term
Acting unethically may create short term profits but long term problems
Integrity and Reputation will keep customers coming back
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