BUSINESS ETHICS- The principles and standard that define acceptable conduct

in business.
ETHICAL ISSUES is an identifiable problem, situation, or opportunity that requires a
person to choose from among several actions that may be evaluated as right or
wrong , ethical or unethical.
REASON FOR NOT REPORTING OBSERVED MISCONDUCT
Didnt believe corrective action would be taken
Feared retribution or retaliation from supervisor or management
Feared they wouldnt remain anonymous
Thought someone else would report the misconduct
Didnt know who to contact
WHISTLEBLOWING ~ the act of an employee exposing the employers wrongdoing to
outsiders ! media " government regulatory agencies
CONFLICT OF INTEREST occurs when a person must choose whether to advance
their own personal interest or those of others.
THE HEART OF BUSINESS ETHICS - general values of decision makers.
THREE (3) FACTORS THAT INFLUENCE BUSINESS ETHICS:
#ndividual standards and values
$anagers and coworkers influence
%pportunity codes and compliance requirements
CODE OF ETHICS ~ formali&ed rules and standards that describe what a company
expects of its employees
SOCIAL RESPONSIBILITY a business obligation to maximi&e its positive
impact and minimi&e its negative impact on the society.
THE NATURE OF SOCIAL RESPONSIBILITY
'conomics ( earn profits
)egal ( comply with the law
'thical ( not *ust +for profit, only
-oluntary " philanthropic . /discretionary0 promote human welfare and
goodwill
ARGUMENT FOR SOCIAL RESPONSIBILITY
1usiness helped to create many of the social problems that exist today,
so it should play a significant role in solving them
1usiness should be more responsible because they have the financial
and technical resources to help solve social problems
2s members of society, business should do their fair share to help
others
TO WHOM ARE ORGANIZATION SOCIALLY RESPONSIBLE
SHAREHOLDERS the company owners
STA!EHOLDERS person or groups who are interested in and affected by
the organi&ations action. They have stake in what those actions are.
PRIMARY STAKEHOLDERS are groups on which the organization depends
for its long-term survival.
Shareholders
Employees
Customers
Suppliers
Goer!me!t
Lo"al "ommu!ities
SECO#DARY STAKEHOLDERS such as the media and special interest
groups, can influence or be influenced by a company.
SHAREHOLDER MODEL 2 view of social responsibility that holds that an
organi&ations overriding goal should be to maximi&e profit for the benefit of
shareholders
STA!EHOLDER MODEL a theory of corporate responsibility that holds that
managements most important responsibility, long term survival, is achieved by
satisfying the interest of multiple corporate stakeholders.
SOCIAL RESPONSIVENESS ~ refers to a companys strategy for responding to
shareholders expectation concerning economic, legal, ethical or discretionary
responsibility.
" STRATEGIES FOR RESPONDING TO SOCIAL RESPONSIBILITY.
REACTIVE STRATEGY will do less than stakeholders expect. #t may deny
responsibility for a problem or fight any suggestion that it should solve a
problem.
DEFENSIVE STRATEGY will admit responsibility for a problem but would do
the least required to meet stakeholders expectations.
ACCOMODATIVE STRATEGY will accept responsibility for a problem and take a
progressive approach by doing all that could be expected to solve the
problem.
PROACTIVE STRATEGY will anticipate responsibility for a problem before it
occurs, do more than expected to address a problem, and lead its industry in
its approach.
TAKE HOME SEATWORK CASE 2
Devon thought it might be difficult to make friends when he went to college, but
three weeks into his freshman year, he had already found two of the best friends he
could ask for. They did everything together, from basketball to homework. 2nd, as
luck would have it, Devon randomly shared the same class as one of these friends,
3ory.
#n that class, Devon noticed that his friend cheated profusely. 4ot only would 3ory
plagiari&e assignments, but he would also use his phone to cheat on tests. 5till they
were friends6 whatever 3ory did in class was his own business and shouldnt matter
to the friendship, Devon thought.
%ne night, however, the three friends were playing poker, and 3ory kept getting
good hand after good hand. 2s much as Devon wanted to call it coincidence, he
couldnt help thinking of 3ory cheating in class. %n a later day, Devon played
against his two friends in basketball6 3ory claimed he was fouled even though
Devon didnt see it.
4ow, 3ory has asked to +look over, Devons essay for their class..*ust to give 3ory
an idea of where to start. Devon wants to help his friend out, but worries about
what 3orys real intentions might be.
#s Devon *ust being paranoid7 8ould it make sense for Devon to trust his other
friend more than 3ory7 Does cheating in class reflect anything about your character
outside of it7