© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 2 | Slide 1

Chapter 2: Being Ethical and Socially Responsible

© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 2 | Slide 2

Learning Objectives

1. Understand what is meant by business ethics.2. Identify the types of ethical concerns that arise in the

business world.3. Discuss the factors that affect the level of ethical

behavior in organizations.4. Explain how ethical decision making can be

encouraged.5. Describe how our current views on the social

responsibility of business have evolved.6. Explain the two views on the social responsibility of

business and understand the arguments for and against increased social responsibility.

© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 2 | Slide 3

Learning Objectives (cont.)

7. Discuss the factors that led to the consumer movement and list some of its results.

8. Analyze how present employment practices are being used to counteract past abuses.

9. Describe the major types of pollution, their causes, and their cures.

10. Identify the steps a business must take to implement a program of social responsibility.

© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 2 | Slide 4

Ethics• The study of right and wrong and of the morality of

the choices individuals make• An ethical decision is one that is “right” according to

some standard of behavior

Business ethics• The application of moral standards to business

situations

Business Ethics Defined

© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 2 | Slide 5

Fairness and Honesty Organizational Relationships Conflict of Interest Communications

Ethical Issues

© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 2 | Slide 6

Individual Factors Affecting Ethics Social Factors Affecting Ethics “Opportunity” as a Factor Affecting Ethics

Factors Affecting Ethical Behavior

© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 2 | Slide 7

Government’s Role in Encouraging Ethics Trade Associations’ Role in Encouraging Ethics Individual Companies’ Role in Encouraging

Ethics

Encouraging Ethical Behavior

© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 2 | Slide 8

“Social responsibility is the recognition that business activities have an impact on society

and the consideration of that impact in business decision making.”

Historical Evolution of Business Social Responsibility

Social Responsibility

© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 2 | Slide 9

The Economic Model The Socioeconomic Model The Pros and Cons of Social Responsibility

1. Arguments for Increased Social Responsibility

2. Arguments Against Increased Social Responsibility

Two Views of Social Responsibility

© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 2 | Slide 10

The Six Basic Rights of Consumers1. The Right to Safety2. The Right to Be Informed3. The Right to Choose4. The Right to Be Heard5. Additional Consumer Rights

Major Consumerism Forces

Consumerism

© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 2 | Slide 11

Affirmative Action Programs Training Programs for the Hard-core

Unemployed

Employment Practices

© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 2 | Slide 12

Effects of Environmental Legislation1. Water Pollution2. Air Pollution3. Land Pollution4. Noise Pollution

Who Should Pay for a Clean Environment?

Concern for the Environment

© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 2 | Slide 13

Developing a Program of Social Responsibility1. Commitment of Top Executives2. Planning3. Appointment of a Director4. The Social Audit

Funding the Program

Implementing a Program of Social Responsibility