Social and Ethical Responsibility Back to Table of Contents.

Social and Ethical Responsibility


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Social and Ethical Responsibility Social and Ethical Responsibility

2

Chapter 24

Social and Ethical Social and Ethical ResponsibilityResponsibility

Social ResponsibilitySocial Responsibility

Ethical ResponsibilityEthical Responsibility

24.1

24.2


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Explain the relationship between entrepreneurs and social responsibility.

Explain how to develop a code of ethics.

List special ethical problems that entrepreneurs face.

Section 24.1 Social Responsibility

24.1


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Businesses must do more than provide jobs and make a profit.

They also are expected to run their business responsibly.


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philanthropy

social responsibility

Environmental Protection Agency (EPA)


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Entrepreneurs and Social Responsibility

Being a responsible entrepreneur involves more than philanthropy.

philanthropy the act of making charitable donations to improve the welfare of society



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For a business to survive, it must exhibit social responsibility.

social responsibility the principle that companies should contribute to the welfare of society and not be solely devoted to maximizing profits



Section 24.1 Social Responsibility 8


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Your Responsibility to Customers

Guidelines for your responsibility to customers include:


Do not mislead customers.

Give complete information regarding proper use.

Label unsafe products as such.

Offer the best quality products at the lowest prices.


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Your Responsibility to the Environment

The Environmental Protection Agency (EPA) enforces environmental laws and regulations.

environmental protection agency an independent federal agency established to coordinate programs and enforce regulations aimed at reducing pollution and protecting the environment



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Your Responsibility to the Environment

To protect the environment:


Employ environmental affairs personnel.

Eliminate wasteful practices and emissions of pollutants from manufacturing processes.

Improve products to increase efficiency.


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Contributing to the Community

Many small businesses have found ways to be generous to the community, including:


donating their products and services

involving employees in philanthropy

joining with other companies to promote social responsibility


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Being a Socially Responsible Employer

As a small business owner, you have a responsibility to treat your employees fairly.

You can offer flextime, health care, telecommuting, on-site child care, and assistance to employees with impairments.



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Being a Socially Responsible Employee

Personal responsibility is the basis of social responsibility.

Responsible employees maintain high ethical standards when dealing with coworkers, management, and customers.



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1. Explain the relationship between entrepreneurs and social responsibility.


Beyond the philanthropic side of social responsibility, entrepreneurs have a duty to create safe products, treat customers and employees fairly, and run honest businesses.

24.1


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2. Discuss how entrepreneurs can contribute to their communities.


Entrepreneurs can contribute by donating products and services, getting employees involved in philanthropy, and joining with other companies to promote social responsibility.

24.1


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Define ethics and ethical behavior.

Explain how to develop a code of ethics.

List special ethical problems that entrepreneurs face.

Section 24.2 Ethical Responsibility

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Ethics are guidelines for human behavior.

They are the moral code by which people live and conduct business.

Ethics help people decide how to act in situations where moral issues are involved.


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ethics

ethical behavior

business ethics


code of ethics

conflict of interest

bribes

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What Does It Mean to Be Ethical?

It is important for an entrepreneur to have clear ethics policies governing ethical behavior, because not everyone has the same standards.

ethics guidelines for human behavior; the moral code by which people live and conduct business


ethical behavior conduct that adheres to the moral code by which people live and conduct business


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Understanding Your Values

The benefits of understanding your value system are:


You make better decisions because you base them on your values.

You are able to persuade others to agree with you when you are confident about your values.

You usually do not regret decisions you make based on your values.


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What Are Business Ethics?

A business owner without good business ethics can not expect his or her employees to act ethically.

business ethics the study of behavior and morals in a business situation



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Are Everyone’s Ethics the Same?

People do not share the same ethical values.

Because not everyone has high ethical standards, entrepreneurs need to create clear ethics policies.



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Developing a Code of Ethics

Many entrepreneurs develop an explicit code of ethics that spells out appropriate business conduct.

code of ethics ethical behavior guidelines that govern the day-to-day activities of a profession or organization



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Written Versus Unwritten Codes

Codes of ethics can be written or unwritten.


Follow these steps to create guidelines:

1. Brainstorm ethical dilemmas.

2. Discuss potential solutions.

3. Write a set of general guidelines.

4. Improve your code.


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Special Problems for Entrepreneurs

Entrepreneurs have some typical ethical problems.


Conflicts of interest

Bribes

Desperate measures

Cultural differences

Patent of copyright infringement


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Conflict of Interest

If an entrepreneur faces a conflict of interest, he or she should not put aside ethics to meet a short-term goal.

conflict of interest a clash between a person’s private interests and his or her responsibilities in a position of trust



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Bribes

In some parts of the world, bribes are an accepted part of doing business.

bribe a payment made to secure special services for a business or special consideration for its products


Bribes are illegal in the United States.


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1. Define ethics and ethical behavior.


Ethics are guidelines for human behavior. They are the moral code by which people live and conduct business. Ethical behavior is conduct that adheres to a moral code.

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2. Explain how to develop a code of ethics.


(1) Brainstorm ethical dilemmas. (2) Discuss potential solutions. (3) Write a set of general guidelines, that offer a range of acceptable ways to deal with different situations. (4) Improve the code. When a new situation or solution occurs, add it to the guidelines.

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3. List special ethical problems that entrepreneurs face.


Entrepreneurs face conflict of interest, a conflict between an individual’s private interests and his or her responsibilities in a position of trust; desperate measures, doing what has to be done to survive; cultural differences when dealing with an international market; bribes; and patent or copyright infringement.

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Web sites often include elements that can limit their usability for many people.

Make sure that the site you create is accessible to all.

Accessibility for All



Tech Termsaccessible

the capability of a Web site that allows all types of people to access and use the site’s content

cascading style sheets (CSS)

a feature of HTML that gives users more control over how Web pages are displayed



Tech Termsscreen readers

devices that read a Web site’s content aloud, especially important for persons with visual impairments

World Wide Web Consortium (W3C)

an organization that produces standards for the World Wide Web



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