Ethics and Social Responsibility

Shyla Miller

Aneyshia Minter

Na’Tashia Henderson

Fehad Shalout

Section 4.1: Ethics In Business

The Importance of Ethics– Ethics-a set of moral principles or values that

govern behavior

Codes of Ethics– Code of Ethics-a document that outlines the

principles of conduct to be used in making decisions within the organization

Content of Ethical Codes

Behaving Ethically

Behaving Honestly– Sarbanes-Oxley Act of 2002– Employee Theft – Lying About Hours Worked– Falsifying Records

Dealing With Ethical Dilemmas– Ethical dilemmas are situations in which the ethical

course of action is not clear

Laws Relating to Ethics in Business

Competitive Behavior: Since the late 19th century the federal government has regulated companies to ensure they do not engage in anticompetitive behavior

– The Sherman Act– The Clayton Act– The Wheeler-Lea Act

Consumer Protection: Several laws protect consumers against unethical and unsafe business

practices. – Food and Drugs– Consumer Products– Loans

Laws Relating to Ethics in Business con’t

Environmental Protection: Since the late 1960s environmental protection has been an important social and economic issue.

The National Environmental Policy Act of 1969The Clean Air Act of 1970The Toxic Substances Control Act of 1976The Clean Water Act of 1977

Ethical Standards and Culture

Corporate Gift Giving– Gift giving customs differ

around the world.– United States VS Japan– Regardless of local

practices, American managers operating abroad must abide by the standards set in the US

Intellectual Property– Refers to ownership of

ideas, such as inventions, books, movies, and computer programs

– Protected by patents, trademarks, and copyright laws

– Although the US has tough laws governing IP, enforcing those laws is a problem

Section 4.2: Social Responsibility

Changing Views of Social Responsibility – Social responsibility-the obligation that individuals or

businesses have to help solve social problemsProfit MaximizationTrusteeship ManagementSocial Involvement

– Stakeholders-a company’s employees, customers, suppliers, and the community

Measuring Social Responsibility

Social audit– Philanthropy and Volunteerism– Environmental Awareness– Sensitivity to Diversity and Quality of Work

Life