Post on 15-Jan-2016
Ethics and Ethics and Corporate Corporate
ResponsibilityResponsibilityChapter Three
McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.
EthicsEthics
Ethics The system of rules
that governs the ordering of values
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Telling the Truth and Lying: Possible Telling the Truth and Lying: Possible OutcomesOutcomes
3-3Table 3.1
EthicsEthics
Ethical issue Situation, problem,
or opportunity in which an individual must choose among several actions that must be evaluated as morally right or wrong
Business ethics The moral principles
and standards that guide behavior in the world of business.
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Ethical SystemsEthical Systems
Moral philosophy Principles, rules, and values people use in
deciding what is right or wrong
Universalism The ethical system stating that all people should
uphold certain values that society needs to function.
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Ethical SystemsEthical Systems
Egoism An ethical system defining acceptable behavior
as that which maximizes consequences for the individual
Utilitarianism An ethical system stating that the greatest good
for the greatest number should be the overriding concern of decision makers.
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Ethical SystemsEthical Systems
Relativism Philosophy that bases ethical behavior on the
opinions and behaviors of relevant other people
Virtue ethics Classification of people based on their level of
moral judgment.
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Ethical SystemsEthical Systems
Kohlberg’s model of cognitive moral development Perspective that what is moral comes from what
a mature person with “good” moral character would deem right.
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Some Ethical Issues inSome Ethical Issues inBusinessBusiness
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A Process for Ethical Decision MakingA Process for Ethical Decision Making
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Figure 3.1
The Business Costs of Ethical FailureThe Business Costs of Ethical Failure
3-11Figure 3.2
Corporate Social ResponsibilityCorporate Social Responsibility
Economic responsibilities To produce goods and
services that society wants at a price that perpetuates the business and satisfies its obligations to investors.
Legal responsibilities To obey local, state,
federal, and relevant international laws
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Corporate Social ResponsibilityCorporate Social Responsibility
Philanthropic responsibilities Additional behaviors
and activities that society finds desirable and that the values of the business support.
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Pyramid of Global Corporate SocialPyramid of Global Corporate SocialResponsibility and PerformanceResponsibility and Performance
3-14Figure 3.3
Ecocentric ManagementEcocentric Management
Ecocentric management Goal is the creation of sustainable economic
development and improvement of quality of life worldwide for all organizational stakeholders.
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