Ethical Behavior & Social

Responsibility
Chapter 4
Ethics
• An understanding of
standards of moral
behavior
• Behavior toward others
that is accepted by society
as right versus wrong
Ethics
• Religion and culture are
generally our sources of
ethics

• Starr: Friends, Family???

 Compliance-Based
Ethics Codes

• Preventing unlawful
behavior by increasing
control and penalizing
wrongdoers

• i.e. WAC & RCWs

Integrity-Based Ethics Codes
• The organization’s
guiding values and
creating environment
that supports ethically
sound behavior

• i.e. SCC Policies

 Situational Ethics

• Many individuals
believe ethical
behavior is
determined by
what is best for
them at the time
Ethics
• First step in ethical
decision-making
process is to ask:
–Is my proposed action
legal?
Corporate Social Responsibility

• Concern businesses
have for welfare of
society
• Corporate Philanthropy:
Indicator of social
responsibility, includes
charitable donations
Corporate Social Responsibility

• Corporate Responsibility:
Dimension of social
responsibility, from hiring
minority workers to
making safe products
• Corporate Policy: Position
firm takes on social and
political issues
Insider Trading
• Insiders using private
company information
to further their own
fortunes or those of
their family and
friends
Social Audit
• Systematic evaluation
of company's
progress toward
implementing
programs that are
socially responsible