Unit 2: Ethical Concepts in Business Organisations PDF

UNIT 2: ETHICAL CONCEPTS IN BUSINESS ORGANISATIONS ================================================== Being a Professional of Integrity ================================= - Describe the role of ethics in a business environment - Explain what it means to be a professional of integrity - Dist...

UNIT 2: ETHICAL CONCEPTS IN BUSINESS ORGANISATIONS ================================================== Being a Professional of Integrity ================================= - Describe the role of ethics in a business environment - Explain what it means to be a professional of integrity - Distinguish between ethical and legal responsibilities - Describe three approaches for examining the ethical nature of a decision Acting with Integrity --------------------- +-----------------------------------+-----------------------------------+ | [[https://www.patagonia.com/one-p | Since 1985, Patagonia has | | ercent-for-the-planet.html]{.unde | **pledged 1% of sales to the | | rline}](https://www.patagonia.com | preservation and restoration of | | /one-percent-for-the-planet.html) | the natural environment.** We\'ve | | | awarded over \$140 million in | | | cash and in-kind donations to | | | domestic and international | | | grassroots environmental groups | | | making a difference in their | | | local communities. | | | | | | By contributing 1% of total | | | annual sales to grassroots | | | environmental groups, members of | | | 1% for the Planet affect real | | | change. And members receive other | | | benefits: The satisfaction of | | | paving the way for more | | | **corporate responsibility** in | | | the business community and the | | | recognition, support and | | | patronage of conscientious | | | consumers who value serious | | | commitment to the environment. | +-----------------------------------+-----------------------------------+ such a code? Essentially, a commitment to treat with honesty and integrity customers, clients, employees, and others affiliated with a business. Here's a **new oath recently created by Business** **students**: +-----------------------------------------------------------------------+ | **As a business leader I recognize my role in society.** | | | | My purpose is to lead people and manage resources to create value | | that no single individual can create alone. | | | | My decisions affect the well-being of individuals inside and outside | | my enterprise, today and tomorrow. | | | | Therefore, **I promise** that: | | | | - I will manage my enterprise with loyalty and care, and will not | | advance my p\_\_\_\_\_l i\_\_\_\_\_\_\_\_s at the expense of my | | enterprise or society. | | | | - I will understand and uphold, in letter and spirit, the laws and | | contracts governing my conduct and that of my enterprise. | | | | - I will refrain from c\_\_\_\_\_\_\_\_\_n, unfair competition, or | | business practices harmful to society. | | | | - I will protect the human rights and dignity of all people | | affected by my enterprise, and I will o\_\_\_\_\_\_\_e | | discrimination and exploitation. | | | | - I will protect the right of f\_\_\_\_\_\_e g\_\_\_\_\_\_\_\_s to | | advance their standard of living and enjoy a healthy planet. | | | | - I will report the performance and risks of my enterprise | | accurately and honestly. | | | | - I will invest in developing myself and others, helping the | | management profession continue to advance and create | | s\_\_\_\_\_\_\_\_\_e and inclusive prosperity. | | | | In exercising my professional duties according to these | | p\_\_\_\_\_\_\_s , I recognize that my behavior must set an example | | of i\_\_\_\_\_\_\_y , eliciting trust and esteem from those I serve. | | I will remain accountable to my peers and to s\_\_\_\_\_\_y for my | | actions and for upholding these standards. This oath I make freely, | | and upon my h\_\_\_\_\_\_\_r. | +-----------------------------------------------------------------------+ Ends, Means, and Character in Business -------------------------------------- Ethics and Profitability ======================== - Differentiate between short-term and long-term perspectives - Differentiate between *stockholder* and *stakeholder* - Discuss the relationship among ethical behavior, goodwill, and profit - Explain the concept of corporate social responsibility Profitability and Success: Thinking Long Term --------------------------------------------- Stockholders, Stakeholders, and Goodwill ----------------------------------------  A Brief Introduction to Corporate Social Responsibility ------------------------------------------------------- **time that they do *well.*** This is a simplistic summation, but it speaks to how CSR plays out within any corporate setting. [The idea is that a corporation is entitled to make money, but it should not only make money. It should also be a good civic neighbor and commit itself to the general prospering of society as a whole. It ought **to make the communities of which it is part better at the same time it pursues legitimate profit goals**. These ends are not mutually exclusive, and it is possible---indeed, praiseworthy---to strive for both. When a company approaches business in this fashion, it is engaging in a commitment to corporate social responsibility]. Recommended reading to review the above concepts:\ **Why Good Business Ethics Are Still Essential in Management. by V,Kafidoff** [[https://inside.6q.io/good-business-ethics-essential/]](https://inside.6q.io/good-business-ethics-essential/) Key Terms ========= #### Being a Professional of Integrity #### Ethics and Profitability  Assessment Questions ========================================== 1. Which of these concepts relates to utilitarianism? A. consequences B. actions C. character D. duty 2. 3. Explain why ethical responsibilities go beyond legal compliance. 4. Describe the difference between normative and descriptive ethical theories. 5. Which of the following is not a stakeholder? E. the media F. corporate culture G. the environment H. customers 6. 7. What is corporate social responsibility (CSR)? 8. Describe a practical way to prioritize the claims of stakeholders. 9. Describe how a company's ethical business practices affect its goodwill. 10. 11. I. deontology J. utilitarianism K. virtue ethics L. none of the above 12. Endnotes ======== 1. Ikujiro Nonaka and Hirotaka Takeuchi, "The Big Idea: The Wise Leader," *Harvard Business Review*, May 2011. https://hbr.org/2011/05/the- big-idea-the-wise-leader. 2. Jia Lynn Yang, "Maximizing Shareholder Value: The Goal That Changed Corporate America," *Washington Post*, August 26, 2013. 3. 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