dete __1/29/19__ Class: 3rd Name: eRe SECTION 4.1...ETHICS IN BUSINESS ETHICS: a set or moral principles or values that govern behavior. this in Business: Susinesses develop ethics to help them determine how to behave. These ‘ethics reflect a company’s belles about what actions ate appropriate and fair among people. ‘CODE of ETHICS: A document that outlines the principles of conduct to be used in making decisions within the organization Some areas that a code of ethics cover ‘Trading in securities/using confidential info ‘Acquiring and using info about competitors Security Payments to obtain business Political activities, Protection of the Environment Merely estabishing a code of ethics does net prevent unethical behavior. To be effective, they ‘must be enforced Behaving honestly —what are some situations that are cause a breakin the code of ethics when dealing with honest Lying to your boss when necessary DEALING with ETHICAL DILEMMAS: 1. Have you defined the problem accurately? 2. How would you define the problem i you stood on the other sie ofthe fence? 3, Wom could your decision or action injure? Can you dscuss the problem with the affected parties before you make your decision? 4. Are you confident that your positon willbe as valid aver a ong period of time as seems5. Could you éisclose without qualm your decision or ation to your boss, your CEO, the board of directors, your family, and society asa whole? LAWS RELATING TO ETHICS in Business ‘THE SHERMAN ACT: The purpose ofthe law is to ensure that companies remain able to compete faity ‘THE CLAYTON ACT: Makes itillgal to charge ifferent prices to different wholesale customers. It also bans the practice of requiring a customer to purchase @ second good. ‘THE WHEELER-LEA ACT: Bans unfair or deceptive acts or practices, including false advertising, ‘Business must inform consumers of possible negative consequences of using their products ‘CONSUMER PROTECTION Several laws protect consumers inthe United States against unethical and unsafe business practices. FOOD and DRUGS: Bans the sale of impure, improperly labeled, falsely guaranteed, and nhealthful foods, drugs, and cosmetics ‘CONSUMER PRODUCTS: Establishes minimum product safety standards on consumer products LOANS: A series of laws protects US. consumers against unfair lending practices ENVIRONMENTAL PROTECTIOI The National Environmental Policy Act of 1969: Created the Environmental Protection Agency (EPA) whose mission isto protect human health and safeguard the ar, water, and land. The Clean Air Act of 1970:Regulates ar emissions. ‘The Toxie Substances Control Act of 1976 Enacted to give the EPA the ably to track the 75,000 industrial chemicals currently produced in or imported into the US Te Clean Water Act of 1977:Gives the EPA the authority to set standards onthe type and ‘quantity of pollutants that industries can put into bodies of water. ETHICAL STANDARDS and CULTURE: 2 | Page‘Standards of business ethic differ around the world, Busines practices that are acceptable in ‘one country may be considered unethical in others ‘CORPORATE GIFT GIVING: Depends on culture, country, et Us—government officials are not allowed to accept expensive git rom businesses INTELLECTUAL PROPERTY: Refers to ownership of ideas, suchas inventions, Books, movies, and ‘computer programs. SECTION 4.2...SOCIAL RESPONSIBILITY Social Responsibility: Refers t the obligation that individuals or businesses have to help solve sotial problems. Profit Maximization Inthe 19th century and early 20th century businesses believed thelr role was simply to maximize profit ‘Trusteeship Management: the 1820s and 1930s businesses recognized they had obligations to their employees, their customers and their creditors. Social Involvement: During the 1960s they began to believe that corporations should use their Influence and nancial resources to address social problems. STAKEHOLDERS: Include a company’s employees, customers, supplier and the community! MEASURING SOCIAL RESPONSIBILITY: Social Audit isa review ofa business's social responsiveness Philanthropy: Efforts to improve human welfare Volunteerism: Companies grant paid time off to emaloyees to participate in charitable events Environmental AwarenessiLimitin the damage their operations cause tothe environment. Sensitivity to Diversity and Quality of Work Life ‘Maintaln ethnically clverse workforces that reflect the societies in which they operate and adopting policies that contribute to the quality 3 1 Page