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Ethics and Social Responsibility in Business

Explore the study of ethics and how it applies to business behavior. Discover the importance of societal welfare, ethical awareness, and ethical leadership in organizations. Learn about the responsibilities of businesses to the general public, customers, employees, and investors.

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Ethics and Social Responsibility in Business

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  1. Chapter 2

  2. Concern for Ethical and Societal Issues Ethics: Ethics is the study dealing with what is the proper course of action for man. It answers the question, "What do I do?" It is the study of right and wrong in human endeavours.  Business Ethics: Business ethics are moral principles that guide the way a business behaves. The same principles that determine an individual’s actions also apply to business.

  3. Concern for Ethical and Societal Issues Social responsibility: The primary objective is the enhancement of society’s welfare through philosophies, policies, procedures and actions. • Businesses must find a balance between what’s right and what’s profitable. • Often no clear-cut choices. • Often shaped by the organization’s ethical climate.

  4. Development of Individual Ethics*

  5. On-the-Job Ethical Dilemmas Telling the truth and adhering to deeply felt ethical principles in business decisions. Situation in which a business decision may be influenced for personal gain. Business people expect employees to be loyal and truthful, but ethical conflicts may arise. Employee’s disclosure of illegal, immoral, or unethical practices in the organization.

  6. How Organizations Shape Ethical Conduct

  7. Ethical Awareness Code of ConductFormal statement that defines how the organization expects and requires employees to resolve ethical questions.

  8. Ethical Education Codes of conduct cannot detail a solution for every ethical situation, so corporations provide training in ethical reasoning.

  9. Ethical Action Codes of conduct and ethical education help employees to recognize and reason through ethical problems. In addition, firms must also provide structures and approaches that allow decisions to be turned into ethical actions. Texas Instruments gives its employees a reference card to help them make ethical decisions on the job. The size of a standard business card, it lists the following guidelines: • 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.

  10. Ethical Leadership Executives must demonstrate ethical behavior in their actions.

  11. Acting Responsibly to Satisfy Society* • Social Responsibility • It is the management’s consideration and acceptance of the obligation to consider 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. • .

  12. Areas of Responsibility

  13. Responsibilities to the General Public • Public Health Issues. What to do about inherently dangerous products such as alcohol, tobacco, steroids, etc. • 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.

  14. Responsibilities to Customers • The Right to Be Safe. Safe operation of products, not 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.

  15. Responsibilities to Employees • Workplace Safety – providing a safe and healthy work place for employees. • Quality-of-Life Issues. Balancing work and family through flexible work schedules, subsidized child care, etc. • Ensuring Equal Opportunity on the Job. Providing equal opportunities to all employees without discrimination; many aspects regulated by law. • Age Discrimination. Being unbiased towards employees with regards to their ages.

  16. 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 (SEC)and state regulations.

  17. Organizational Stakeholders

  18. World’s Best Companies in terms of Social Responsibility Source: http://money.cnn.com/magazines/fortune/mostadmired/2011/best_worst/worst4.html

  19. Source: http://ethisphere.com/wme/

  20. REALITIES OF ETHICS......

  21. A CSR INITIATIVE IN BANGLADESH....

  22. A view of the 4th Standard Chartered - Financial Express CSR Award giving ceremony Renata, DBL, Nestle BD receive StanChart-FE CSR Award 2010-11 Source:http://www.thefinancialexpress-bd.com/more.php?news_id=121960&date=2012-03-02

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