Business Ethics and Social Responsibility http://www.wileybusinessupdates.com Chapter 2 1 Explain the concern for ethical and societal issues. Describe the contemporary ethical environment. Discuss how organizations shape ethical conduct. 1 Learning Objectives Describe how businesses can act responsibly to satisfy society. Explain the ethical responsibilities of businesses to the general public. Describe the responsibilities to investors and the financial community. 2 3 4 5 6 2 Business Ethics The standards of conduct and moral values governing actions and decisions in the work environment. Social responsibility Balance between what’s right and what’s profitable Often no clear-cut choices Often shaped by the organization’s ethical climate Concern for Ethical and Societal Issues 3 Ethical Challenges Situation in which a business decision may be influenced for personal gain. Telling the truth and adhering to deeply felt ethical principles in business decisions. Businesspeople expect employees to be loyal and truthful, but ethical conflicts may arise. 4 The Contemporary Ethical Environment High-profile investigations and arrests in headlines. Vast majority of businesses are ethical. New corporate officers charged with deterring wrongdoing and ensuring ethical standards. See how Walmart highlights corporate responsibility on its website. 5 Individuals can make the difference in ethical expectations and behavior. Putting own interest ahead of the organization Lying to employee Misrepresenting hours Safety violations Internet abuse Technology is expanding unethical behavior. Individuals Make a Difference 6 Development of Personal Ethics 7 How Organizations Shape Ethical Conduct Code of Conduct: Formal statement that defines how the organization expects and requires employees to resolve ethical questions 8 Ethical Leadership Executives must demonstrate ethical behavior in their actions. use clear, explicit language rather than euphemisms for corrupt behavior encourage behavior that generates and fosters ethical values practice moral absolutism, insisting on doing right even if it proves financially costly Codes of conduct cannot detail a solution for every ethical situation, so corporations provide training in ethical reasoning. 9 Whistle-blowing is an employee’s disclosure to company officials, government authorities, or the media of illegal, immoral, or unethical practices.” Sarbanes-Oxley Act A 2002 law that added oversight for the nation’s major companies and a special oversight board to regulate public accounting firms that audit the financial records of these corporations. Whistle-Blowing 10 Acting Responsibly to Satisfy Society Social Responsibility Management’s consideration of profit, consumer satisfaction, and societal well-being of equal value in evaluating the firm’s.

1. Business Ethics and
Social Responsibility
http://www.wileybusinessupdates.com
Chapter
2
1
Explain the concern for ethical and societal issues.
Describe the contemporary ethical environment.
Discuss how organizations shape ethical conduct.
1
Learning Objectives
Describe how businesses can act responsibly to satisfy society.
Explain the ethical responsibilities of businesses to the general
public.
Describe the responsibilities to investors and the financial
community.

2. 2
3
4
5
6
2
Business Ethics
The standards of conduct and moral values governing actions
and decisions in the work environment.
Social responsibility
Balance between what’s right and what’s profitable
Often no clear-cut choices
Often shaped by the organization’s ethical climate

3. Concern for Ethical and
Societal Issues
3
Ethical Challenges
Situation in which a business decision may be influenced for
personal gain.
Telling the truth and adhering to deeply felt ethical principles in
business decisions.
Businesspeople expect employees to be loyal and truthful, but
ethical conflicts may arise.
4

4. The Contemporary Ethical Environment
High-profile investigations and arrests in headlines.
Vast majority of businesses are ethical.
New corporate officers charged with deterring wrongdoing and
ensuring ethical standards.
See how Walmart highlights corporate responsibility on its
website.
5
Individuals can make the difference in ethical expectations and
behavior.
Putting own interest ahead of the organization
Lying to employee
Misrepresenting hours
Safety violations
Internet abuse
Technology is expanding unethical behavior.

5. Individuals Make a Difference
6
Development of Personal Ethics
7
How Organizations Shape Ethical Conduct

6. Code of Conduct: Formal statement that defines how the
organization expects and requires employees to resolve ethical
questions
8
Ethical Leadership
Executives must demonstrate ethical behavior in their
actions.
use clear, explicit language rather than euphemisms for corrupt
behavior
encourage behavior that generates and fosters ethical values
practice moral absolutism, insisting on doing right even if it
proves financially costly
Codes of conduct cannot detail a solution for every ethical
situation, so corporations provide training in ethical reasoning.
9

7. Whistle-blowing is an employee’s disclosure to company
officials, government authorities, or the media of illegal,
immoral, or unethical practices.”
Sarbanes-Oxley Act A 2002 law that added oversight for the
nation’s major companies and a special oversight board to
regulate public accounting firms that audit the financial records
of these corporations.
Whistle-Blowing
10
Acting Responsibly to Satisfy Society
Social Responsibility

8. Management’s consideration of 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.
11
Acting Responsibly to Satisfy Society
Workplace Safety. Monitored by Occupational Safety and
Health Administration.
Quality-of-Life Issues. Balancing work and family through
flexible work schedules, subsidized child care, and regulation
such as the Family and Medical Leave Act of 1993.
Ensuring Equal Opportunity on the Job. Providing equal
opportunities to all employees without discrimination; many
aspects regulated by the Equal Employment Opportunity
Commission.
Age Discrimination. Age Discrimination in Employment Act of
1968 protects workers age 40 or older.
Sexual Harassment and Sexism. Avoiding unwelcome actions of
a sexual nature; equal pay for equal work without regard to

9. gender.
12
Ethical Responsibilities to the General Public
Public Health Issues. What to do about inherently dangerous
products such as alcohol, tobacco, vaccines, and steroids.
Protecting the Environment. Using resources efficiently,
minimizing pollution.
Green marketing
Sustainability
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.
13

10. Responsibilities to Customers
CONSUMERISM
The Right to Be Safe. Safe operation of products, 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.
14

11. Responsibilities to Investors and the Financial Community
Obligation to make profits for shareholders.
Expectation of ethical and moral behavior.
Protection of investors by the
Securities and Exchange Commission
and state regulations.
15
The Changing Face
of Business http://www.wileybusinessupdates.com
Chapter
1
1
Define the term business.

12. Identify and describe the factors of production.
Describe the private enterprise system.
Identify the six eras in the history of business.
Explain how today’s business workforce and the nature of work
itself is changing.
Identify the skills and attributes needed for the 21st century
manager.
Outline the characteristics that make a company admired .
1
Learning Objectives
2
3
4
5
6
7
2
Profit-seeking activities and enterprises provide goods and

13. services necessary to an economic system.
Profit is the reward earned by business people who take the risk
involved in blending people, technology, and information to
create and market want-satisfying goods and services.
What is Business?
3
Not-for-profit organizations are business-like establishments
that have primary objectives other than profits.
Although they place public service over profit making, they still
need money to achieve their goals
These organizations are a major part of the U.S. economy
Not-For-Profit Organizations

14. 4
Factors of Production
Natural Resources
Capital
Human Resources
Entrepreneurship
5
Capitalism
Adam Smith is the father of capitalism.
“Invisible Hand”
Economic system determines business ownership, profits, and
resources
Rewards firms for their ability to serve the needs of consumers
Minimized government intervention
Competition is the battle among businesses for consumer
acceptance.

15. The Private Enterprise System
6
Basic Rights in a Private Enterprise System
7
Six Eras in the History of U.S. Business

16. 8
Relationship Era
Firms seek ways to build long-term customer loyalty by
carefully managing every interaction
Based on connections between: business and customers;
employers and employees; technology and manufacturing; and
separate companies
Managing Relationships through Connections
9
Dedicated workers who can foster strong ties with customers
Capable of high-quality production
Able to compete in global markets
Technically savvy

17. Today’s Business Workforce
10
By 2025, the number of U.S. workers 65 or older will reach 64
million.
Many baby boomers are hitting the peak of their careers, while
Generations X and Y are launching their careers.
Technology has intensified the hiring challenge by requiring
workers to have ever more advanced skills.
U.S. Census Bureau
Changes in the Workforce:
Aging Population
11
Economists predict the U.S. labor pool could soon fall short by
as many as 10 million people.
The two fastest-growing ethnic populations in the United States
are Hispanics and people of Asian origin.
Employee teams with individuals of different genders, ethnic
backgrounds, cultures, religions, ages, and physical and mental

18. abilities are more effective.
Changes in the Workforce:
Shrinking Labor Pool/Diversity
12
Outsourcing is using outside vendors to produce goods or fulfill
services and functions that were previously handled in-house or
in-country.
Offshoring is the relocation of business processes to lower-cost
locations overseas.
Onshoring is returning production to its original manufacturing
location because of changes in costs or process
Changes in the Workforce:
Outsourcing

19. 13
Younger workers are looking to something other than work-
comes-first
Telecommuting and job-sharing
Part-time and temporary workers are growing
Collaboration is replacing working alone
Value risk-taking and innovation
Changes in the Workforce: Flexibility and
Innovation through Collaboration
14
Critical-thinking
Creativity
Ability to lead change
Vision

20. The 21st-Century Manager
15
Critical thinking is the ability to analyze and assess information
to pinpoint problems or opportunities.
Creativity is the capacity to develop novel solutions to
perceived organizational problems.
Critical Thinking and Creativity
16
Guide employees and organizations through changes
Managers must be comfortable with tough decisions.
Factors that require organizational change can come from
external and internal sources.

21. Ability to Lead Change
17
Solid profits
Stable growth
Safe and challenging work environment
High-quality goods and services
Business ethics and social responsibility
What Makes a Company Admired?
18
New Technologies
Population Shifts
Emerging nations
Shrinking Global Barriers
Trade, communication, transportation

22. The Future of Business
19