Chap 4 conducting business ethically and responsibly
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This document provides an overview of conducting business ethically and responsibly. It discusses ethics in the workplace, assessing ethical behavior, and company practices to encourage ethical behavior. It also covers social responsibility, including the stakeholder model of responsibility and areas of social responsibility toward the environment, customers, employees, and investors. The document discusses implementing social responsibility programs and managing social responsibility.
Chap 4 conducting business ethically and responsibly
- 1. Chapter 4 Conducting Business Ethically and Responsibly
- 2. Sr. Chapter Chapter Heading No.No. 1. 3 Understanding the Global context of business (031012) 2. 4 Conducting Business Ethically and Responsibly (250212) 3. 6 Organizing the Business Enterprise 4. 7 Understanding Entrepreneurship and Small Business 5. 8 Managing Human Resources 6. 9 Understanding Employee Motivating, Satisfying and Leadership 7. 11 Understanding Marketing Processes and Consumer Behavior 8. 16 Managing Quality and Productivity 9. 17 Managing Information Systems and Communication Technology 10. 19 Understanding Money and Banking 11. 20 Intermediate Term and Lease Financing
- 3. Marks Distribution 50 Terminal Examination 20 Mid Term Examination 15 Quizzes 15 Final Assignment 3
- 4. ETHICS IN THE WORKPLACE Assessing ethical behavior Company practices and Business Ethics SOCIAL RESPONSIBILITY The Stakeholder Model of Responsibility The evolution of Social Responsibility Contemporary Social Consciousness AREAS OF SOCIAL RESPONSIBILITY Responsibility Towards the Environment Responsibility Towards Customers Responsibility Towards Employees Responsibility Towards Investors IMPLEMENTING SOCIAL RESPONSIBILITY PROGRAMS approaches to social responsibility Managing Social Responsibility programs Social responsibility and the Small business
- 5. Ethics in the Workplace Ethics Social Beliefs about Responsibility right and wrong Obligation of a and actions that business to contribute reflect beliefs to society © 2009 Pearson Education, Inc.
- 6. Definitions • Business • A business (also known as enterprise or firm) is an organization engaged in the trade of goods, services, or both to consumers. Businesses may be privately owned, not-for-profit or state-owned. • Ethics: • Beliefs about what is right and wrong or good and bad in actions that affect others • Or • Ethics are moral principles by which people conduct themselves personally, socially, and professionally
- 7. Definitions • Personal ethics: • moral principles that guide an individual • Business ethics: • rules, based on moral principles, used by a business/ manager/ employer. • Ethical Behavior • Behavior conforming to generally accepted social norms concerning beneficial and harmful actions • Unethical Behavior • Behavior that does not conform to generally accepted social norms concerning beneficial and harmful actions
- 8. Definitions • whistleblower • (an informant who exposes wrongdoing within an organization in the hope of stopping it) "the law gives little protection to whistleblowers who feel the public has a right to know what is going on";
- 9. Assessing Ethical Behavior • Ethical Norms and the Issues They Entail – Utility: Does a particular act optimize the benefits to those who are affected by it? Do all relevant parties receive “fair” benefits? – Rights: Does the act respect the rights of all individuals involved? – Justice: Is the act consistent with what’s fair? – Caring: Is the act consistent with people’s responsibilities to each other?
- 10. Classifying Business Decisions Ethical Ethical Ethical but and Illegal Legal Unethical Unethical and but Unethical Illegal Legal Illegal Legal
- 11. ETHICS 11
- 12. Company Practices and Business Ethics • Encouraging Ethical Behavior Involves: – Adopting written codes of conduct and establishing clear ethical positions for the conduct of business – Having top management demonstrate its support of ethical standards – Instituting programs to provide periodic ethics training – Establishing ethical hotlines for reporting and discussing unethicalPearson Education, Inc.and activities © 2009 behavior
- 13. Factors That Cause Workers To Act Unethically Pressure to meet sales, budget or profit goals Lack of recognition Personal financial worries Balancing work & family Poor communication
- 14. Top Five Unethical/Illegal Behaviors of Workers Cut corners in quality control Covered up incidents Abused or lied about sick days Lied to or deceived customers Put inappropriate pressure on others
- 15. Fostering Ethical Behavior Leadership Codes of Conduct Compliance-based Integrity-Based Social Audits Whistle Blowing
- 16. Factors Influencing Managerial Ethics Individual Organizational Environmental Values Top Level Competition Work Mgmt. Philosophy Economic Background Conditions The Firm’s Family Status Reward System Social/Cultural Job Dimensions Institutions Personality
- 17. Business Mission Statement Why? What? How?
- 18. Telenor Pakistan 18
- 19. Proctor & Gamble 19
- 20. Uni-lever Pakistan 20
- 23. Three Levels of Social Responsibility Societal Responsibility Stakeholder Responsibility General Profit Responsibility Ecological Customers Employees Public Environment Owners/Stockholders Suppliers/Distributors Public Interest Groups Source: Marketing, 5/E by Berkowitz, Kerin, Hartley, and Rudelius.
- 24. RESPONSIBILITY TO…… EMPLOYEES Creating Jobs that Work CUSTOMERS Value, Honesty and Communication INVESTORS Fair Stewardship and Full Disclosure COMMUNITY Business and the Greater Good ENVIRONMENT Sustainable Development © 2009 South-Western, a division of Cengage Learning 24
- 25. Responsibility to Employees Working Economic Conditions Security Equal Employment Child Opportunity Care/Parental Affirmative Action Leave Diversity Training Employee Dignity Conflict of Interest
- 26. What Concerns Workers Most on the Job? Percen Hazardous Materials t 23% Injury 20% Repetitive job motions 10% Poor ventilation 7% HIV/Aids 6%
- 27. Responsibility to Customers/Environment Right To Safety Right To Be Heard Right To Be Informed Quality Of Life Right To Choose Ecology/Pollution
- 28. Responsibility to Society, Investors, & Suppliers Fairness Honesty Timely Action Appropriate Compensation Philanthropy
- 29. Why People Volunteer Total is more than 100% because respondents could give more than one reason. Learn Issues/Problems Be With People They Enjoy Help People 0 20 40 60 80 100 Percent of Respondents
- 30. Contributions to Charity (In Billions of Dollars) $9 $10 $12 Individuals Foundations Bequests Corporations $120 Source: Forbes Dec. 15, 1997
- 31. New Economy & New Philanthropy Foundation Donation Bill & Melinda Gates Foundation $21.8* Ford Foundation 13.1 Packard Foundation 13.0 Lilly Foundation 11.2 Robert Wood Johnson Foundation 8.3 *In Billions Source: Business Week, Mar. 13, 2000
- 32. Corporate Annual Giving Merck $221.0* Johnson & Johnson 176.2 Pfizer 123.9 Eli Lilly 121.4 IBM 116.1 Microsoft 104.7 Intel 101.0 Bank of America 91.5 Source: The Taft Group * In Millions
- 33. Most Admired Companies by Industry Industry Company Apparel Levi-Strauss Airlines Southwest Food Services McDonald’s Food Products Campbell’s Beverages Coca-Cola Electronics Intel Source: Fortune Magazine
- 34. International Ethics & Social Responsibilities U.S. not unique Japan/S. Korea/China = influence peddling Mexico = child labor Leaders being held to new/higher standards Chinese prison labor McDonald’s using rain forest land for cattle grazing