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What is Ethics?. Our Text: The system of rules that governs the ordering of values. The Handout: the rules or standards which govern the conduct of a person or a group.
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What is Ethics? • Our Text: The system of rules that governs the ordering of values. • The Handout: the rules or standards which govern the conduct of a person or a group. • Others: the principles and standards of moral behavior that are accepted by society as right or good (as apposed to wrong or bad).
What is Ethical Behavior (as applied to business)? • Competing Fairly and Honestly • Communicating Truthfully • Not Causing Harm to Others
What is Social Responsibility • The idea that business has certain obligations to society beyond the pursuit of profits—developed early in the 20th century.
Ch. 5 Outline (Not From Text) 1. Ethics in the Workplace 2. Social Responsibility in Business 3. Business’s Efforts to Increase Social Responsibility 4. Ethics and (Corporate) Social Responsibility Around the World
Competing Fairly and Honestly Communicating Truthfully Not Harming Others What is Ethical Behavior?
Cultural Differences Knowledge Organizational Behavior Legislation Factors InfluencingEthical Behavior
Ethical Dilemma vs. Ethical Lapse • Ethical dilemma – a situation in which one must choose between two conflicting but arguably valid sides. • Ethical lapse – a situation in which an individual makes a decision that is clearly wrong, such as divulging trade secrets to a competitor.
Social Responsibility in Business Early 20th Century Middle 20th Century Early 21st Century Maximize Profits Provide Jobs and Pay Taxes Balance Profits and Social Issues
Balancing Business and Stakeholders’ Rights Business Investors Consumers Employees Society Profits Fair Disclosure Informed Purchase Equity Health & Safety Clean Environment Safe Products Product Choice
ResponsibilityToward Consumers The Right to Safe Products The Right to Be Informed The Right to Choice The Right to Be Heard
Responsibility TowardEmployees Equal Employment Opportunity Affirmative Action Americans with Disabilities Act Occupational Health and Safety
Equality in Employment and The Elimination of Discrimination • Civil Rights Act of 1964 • Civil Rights Act of 1991 • Affirmative Action • Diversity Initiatives • American Disabilities Act of 1990