Professional Documents
Culture Documents
Responsibility
Chapter 2
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©2007 Prentice Hall
Chapter 2 Objectives
After studying this chapter, you will be able to:
• Discuss what it means to practice good business
and explain the three factors that influence ethical
behavior
• Identify three steps that businesses are taking to
encourage ethical behavior
• List four questions you might ask yourself when
trying to make an ethical decision
• Explain the difference between an ethical dilemma
and ethical lapse
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©2007 Prentice Hall
Chapter 2 Objectives, cont.
• Explain the controversy surrounding corporate
social responsibility
• Discuss how a business can become more
socially responsible
• Define sustainable development and explain the
strategic advantages of managing with
sustainability as a priority
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Two Sets of Ideals
Ethics
Social Responsibility
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What is Ethical Behavior?
• Definition
• Competing Fairly and
Honestly
• Communicating
Truthfully
• Not Causing Harm to
Others
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Competing Fairly and Honestly
• Trade Secrets
• Industrial Espionage
• Pretexting
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Communicating Truthfully
• Tell the Truth, Whole Truth and
Nothing but the Truth
• Transparency
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Not Causing Harm to Others
• Insider Trading
• Conflict of Interest
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Corporate Fraud
Adelphia
WorldCom
Ford and
Firestone
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Corporate Fraud
Enron
Tyco
Arthur Andersen
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Ethical Business Behavior
Organizational
Behavior
Influential Factors
Factors Knowledge
Influential
Cultural
Differences
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Be an Ethical Leader
• Lead by example
• Don’t tolerate
unethical behavior
• Inspire concretely
• Acknowledge reality
• Communicate
• Be honest
• Hire good people
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The Four Questions
• Is it balanced?
• Is it feasible?
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Ethical Situations
Ethical Dilemma
Ethical Lapse
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Business and Society
• Consumers expect benefits that require money.
• Business generates a majority of money in a
free-market economy.
• Standard of living is generally derived from
profit-seeking companies.
• Businesses cannot hope to operate profitably
without the many benefits provided by a safe
and relatively predictable business environment.
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Corporate Social Responsibility
Perspectives
• Minimalist
• Defensive
• Cynical
• Conscientious
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Efforts to Increase Social
Responsibility
Social Philanthropy
Audit
Cause-Related
Marketing
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Reduce Pollution
Industrial Discharges
Vehicle Emissions
Chemical Spills
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Responsibility Toward
Consumers
• Consumerism:
The right to safe products
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Responsibility Toward
Employees
• Equal Opportunity
EEOC
• Affirmative Action
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Responsibility Toward
Employees
• OSHA
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Global Responsibilities
• Bribery
• Environmental Abuse
• Unscrupulous
Business Practices
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©2007 Prentice Hall