Business Ethics and Social Responsibility Study Guide PDF

**CHAPTER 4 -- STUDY GUIDE** **Business Ethics and Social Responsibility** *Instructions: Fill in the Study Guide as you read the chapter and in class.* **Concern for Ethical and Societal Issues** Business ethics: Business ethics are the standards of conduct and moral values that lead to our act...

**CHAPTER 4 -- STUDY GUIDE** **Business Ethics and Social Responsibility** *Instructions: Fill in the Study Guide as you read the chapter and in class.* **Concern for Ethical and Societal Issues** Business ethics: Business ethics are the standards of conduct and moral values that lead to our actions and decisions in the business environment Business ethics are impacted by: 1.ethical values of executive and individual employees at all levels 2.Ethical climate within an organization or even within a country; an acceptable age to start working may be 16 in your own country but 10 in another. 3.having many responsibilities? To firms, employees, investors, and society? OR: codes of conduct and ethics standards Example: **The Contemporary Ethical Environment** Business ethics in the spotlight -- Example 1: Johnson and Johnson: - Their credo that highlights their responsibility to their patients, doctors, nurses. - To provide high quality and value - Partners must have an opportunity to make fair profit. - Inclusive work environment that is safe, fair, secure, diverse. - Responsibilities to communities; charities, education, protecting the environment. - Responsibility to stockholders. Business ethics in the spotlight -- Example 2: Telfer School of Managements MBA Oath - A responsibility to stakeholders. - To act with integrity and respect. - To be environmentally sustainable. - To accept responsibility for own actions. - Impact of individuals: - THEIR BEHAVIOUR CAN AFFECT THE EXPECTATIONS and actions of those who wok for them and with them. - Example: Aspects that shape an individual's morals and ethics: 1. Experiences; family, religious background. On-the-job ethical dilemmas: 1. 2. 3. 4. **How Organizations Shape Ethical Conduct** 1.conflict of interest - Person is faced with a situation where an action that benefit one has the potential to harm another. - May pose specific challenge when businesspersons own interests and the interest of a person to whom they have a duty to collide. - Real estate agent representing both the buyer and the seller - Lawyers. - They can be held ethically by - Avoiding them - Disclosing them. 2.honesty and integrity - Tell the truth and behaving according to ones deeply felt ethical principles in business situations. - Doing what you say you will do and accepting responsibility for your mistakes. - Inspires trust 3.loualty vs truth - Employees may need to decide between loyalty and truth 4.whistle blowing. - An employees disclosure to company officials, government authorities, or the media or illegal, immoral, or unethical practices. - No laws protect whistle-blowers in Canada, but some companies do. **Acting Responsibly to Satisfy Society** Corporate social responsibility (CSR): - Managements acceptance of its obligation (performance-wise) to consider profit as equal as qualitative indicators such as customer satisfaction. Employee satisfaction, and societal well-being. Why do business adopt CSR? 1.because it is required by law 2\. because it enhances the company's image 3.management believes it is the ethical course of action Ways to measure CSR: Social audits; formal procedures that identify and evaluate all company related activities related to social issues, such as conservation, employment practices, environemtnal protection and philanthropy. - Tell how well a company is performing in these areas. Example: **Responsibilities to the general public:** [1.dealing with public health issues] \- what should businesses do about dangerous products such as tobacco and alcohol? \- coca cola supports a fitness program. \- problem of substance use. 2[.protecting the environment] - Businesses often violate environmental reservoirs, or are the cause of acid rain. - Other businesss leave behind large waste materials. - Ways to address the problem of pullants: - Minimizing pollution - Recycling- reprocessing used materials for reuse. - Companies also use green-marketing strategy- claiming their goods are environmentally friendly. - Companies may also focus on developing a sustainable agriculture. - Solar energy - Geothermal energy - Biodiesel - Wind power 3.developing the quality of the workforce - A countries true wealth is in its people- educated and skilled workforce. - Education plays and important role in earnings. - Organizations must encourage people to stay in school. - They also face challenges helping women, minorities, and physically challenged people - Failure to do so results in bad public image and waste of nations workforce. 4.to support charitable and societal causes and organizations that work toward the greater good. - an organization's contribution to the communities where it earns profits. - Includes cash, donations of equipment and products, and supporting volunteer efforts of company empolyees. - This can lead to a higher employee morale, enhanced company image, and improved custoemer relationships. - Cause-related marketing= when a company contributes to a cause and hen create advertising that features the companys sponsorship. - Volunteerism- thousands of businesses encourage their empolyees to contribute their ime to such organizations. Responsibilities to customers: There are 4 basic rights of consumers below, but the consumers association of Canada also includes four oother principles from the concsumers international website; The right to satisfaction of basic needs, The right to redressThe right to consumer educationThe right to a healthy environment 1.the right to be safe - Moral and legal obligations to make sure their products are safe to use. - Product liability= responsibility of manufacturers for injuries and damages caused by their products. - When a product causes harm, the company can either correct the problem or recall the item. 2. The right to be informed a. To get enough education and product information to make responsible buying decisions. b. If they dont follow these rules they may face consequences by the competition bureau and consumer protection organizationa. c. Government plays a role in making sure the rules are followed. d. Include toll-free numbers so consumers can get answers to questions. 3. The right to choose e. They right to choose the goods and services they need and the goods they want to purchase. 4. The right to be heard f. Consumers should be able to express their valid complains to the appropriate people. Responsibilities to employees: 1.workplace safety \- health and safety of workers on the job. \- CCOHS is the one promoting workplace health safety. \- workers compensation programs are mostly managed at the provincial level. \- standards can range from broad guidelines on storing hazardous materials to specific standards for worker safety in industries such as construction, manufacturing, and mining. \- most fatalities occur because of unsafe equipment, inadequate safety training, and dangerous work that is illegal. 2\. Quality of life issues \- balancing work and family. \- Sandwhich generatin= refers to people caring for two generations; children and parents. \- can deal with this by providing flexible work schedule, paid time off for vacation or illness. 3.ensuring equal opportunity on the job \- technological advanaces are expanding the way people with disabilities can contribute in the workplace. \- employment equity act was created for two reasons: 1\. to increase job opportunities for women and minorities 2\. to help end discrimination in any personnel action that is based on race, colour, religion, disability, gender, or natinal origin. 4- age discrimination=. - Some companies find it cheaper to hire younger employees. 5. SEXUAL harassment and sexism g. Employee has a responsibility to ensure that all workers are treated fairly and are safe from sexual harassment. i. SH- refers to unwelcome and inappropriate actions of sexual nature. ii. Two tpes of sexual harassment: 1. when an employee is pressured to go along with unwelcome advances and requests for sexual favours in return for job security, promotions, and raises. 2. Hostile work envioronment= an employee feels hassled or degraded because of unwelcomed flirting, comments, or jokes.