Bài giảng Economics - Chapter 3 Business Ethics and Social Responsibility

Chapter ThreeBusiness Ethicsand Social ResponsibilityComparison of Business Ethics and Social ResponsibilityBusiness Ethics Refers to the principles and standards that define acceptable conduct in the world of business.Social Refers to a business’s obligation Responsibility to maximize its positive impact and minimize its negative impact on society.3-1Ethical IssueAn identifiable problem, situation, or opportunity that requires a person to choose from among several actions that may be evaluated as right or wrong, ethical or unethical.3-2Reactions to Unethical EmployersWhat happened when surveyed employees found out their employers were doing something that was against the employee’s ethical standardstried to resolve the situation without losing job 40%talked to boss 38%did nothing 9%quit 5%other 1%not sure 7%3-3Source: Yankelovich Partners Survey,PRNewswire, October 6, 1998.Reasons for Not Reporting Observed Misconduct1. Fear of not being considered a team player2. Didn’t believe corrective action would be taken3. Feared retribution or retaliation form supervisor or management4. No one else cares about business ethics so why should I?5. Didn’t trust organization to keep report confidential3-4Source: 1997 Society for Human Resource Management/EthicsResource Center Business Ethics Survey Report, p. 21.Ethical Issue CategoriesConflict of interestFairness and honestyCommunicationsBusiness associations3-5Questions to Consider in Determining Whether an Action is EthicalAre there any potential legal restrictions or violations that could result from the action?Does you company have a specific code of ethics or a policy on the action?Is this activity customary in your industry? Are there any industry trade groups that provide guidelines or codes of conduct that address this issue?3-6aQuestions to Consider in Determining Whether an Action is EthicalWould this activity be accepted by your coworkers? Will your decision or action withstand open discussion with coworkers and managers and survive untarnished?How does this activity fit with your own beliefs and values?3-6bFramework for Ethical and Moral Decision making Recognize a moral issueGet the factsEvaluate the alternatives from various moral perspectivesMake a decisionAct, then reflect on the decision later3-6cCodes of Ethics Formalized rules and standards that describe what a company expects of its employees3-6dThree Factors that Influence Business Ethics3-7IndividualStandardsandValuesManagers’andCoworkers’InfluenceOpportunity:Codes andComplianceRequirementsEthical/UnethicalChoicesin BusinessWhistle Blower CasesWho paid? SmithKline Beecham Clinical LaboratoriesHow much? $325 millionWhistle-blower share? $52 million ($42.3 million being appealed)Allegations? Paid kickbacks to doctors and billed Medicare for unordered tests3-8aSource: “Taxpayers Against Fraud”, USA Today,November 9, 1998, p. 15B.Whistle Blower CasesWho paid? United TechnologiesHow much? $150 millionWhistle-blower share? $22.5 millionAllegations? Billed U.S. military for work not yet performed3-8bSource: “Taxpayers Against Fraud”, USA Today,November 9, 1998, p. 15B.Arguments for Social ResponsibilityEthical Responsibilitiesbeing ethical; doing what is right, just,and fair; avoiding harmVoluntaryResponsibilitiesbeing a “good corporate citizen”;contributing to thecommunity and quality of life3-9Source: Adapted from Archie B. Carroll, “The Pyramid of CorporateSocial Responsibility: Toward the Moral Management of Organizational Stakeholders.” Business Horizons 34 (July/August 1991): 42.Legal Responsibilitiesobeying the law (society’s codification of rightand wrong); playing by the rules of the gameEconomic Responsibilitiesbeing profitableArguments for Social Responsibility1. Business helped to create many of the social problems that exist today, so it should play a significant role in solving them, especially in the areas of pollution reduction and cleanup.2. Businesses should be more responsible because they have the financial and technical resources to help solve social problems.3. As members of society, businesses should do their fair share to help others.4. Socially responsible decision making by businesses can prevent increased government regulation.5. Social responsibility is necessary to ensure economic survival: If businesses want educated and healthy employees, customers with money to spend, and suppliers with quality goods and services in years to come, they must take steps to help solve the social and environmental problems that exist today.3-10Arguments Against Social Responsibility3-111. It sidetracks managers from the primary goal of business–earning profits. Every dollar donated to social causes or otherwise spent on society's problems is a dollar less for owners and investors.2. Participation in social programs gives businesses greater power, perhaps at the expense of particular segments of society.3. Some people question whether business has the expertise needed to assess and make decisions about social problems.4. Many people believe that social problems are the responsibility of government agencies and officials, who can be held accountable by voters.Social Responsibility IssuesOrganizational relationships with owners and stockholdersEmployee relationsConsumer relationsEnvironmental concernsanimal rightspollutionCommunity relations3-12John F. Kennedy’sConsumer Bill of RightsRight to safetyRight to be informedRight to chooseRight to be heard3-13Solve the Dilemmaa. What are some of the ethical issues involved in giving a customer an award for consumption behavior without notifying him/her first?b. Do you see this as a potential violation of privacy?c. How would you handle the situation if you were Jon?3-14Explore Your Career OptionsHow do you explain the emergence of career opportunities in the field of business ethics and social responsibility?3-15Additional Discussion Questions and Exercises1. What makes ethical decisions so difficult?2. Many organizations are primarily concerned with earning a profit or a return on their investment. Does this concern for owners and investors present an ethical dilemma for companies when weighing business decisions that favour employees and/or the general public?3. The right to be heard is one of the four rights of consumers. How are some corporations addressing this consumer concern?3-16aAdditional Discussion Questions and Exercises4. Find examples of environmental issues in newspapers or business journals. Do these issues influence businesses?5. Imagine you are a salesperson. When does offering a gift, such as basketball tickets, become a bribe rather than just a sales practice?3-16bChapter 3 Quiz3-17a1. Which of the following has the greatest effect on ethical behaviour in organizations? a. authority of an employee’s superiors b. an employee’s perception of the ethics of coworkers and managers c. an employee’s personal beliefs about what is right or wrong d. investor’s perceptions of ethics2. Copying someone else’s work and presenting it as you own is a. ethics. b. bribe. c. plagiarism. d. greenmail.Chapter 3 Quiz3-17b3. A code of ethics is a. a set of formalized rules and standards describing what the company expects of its employees. b. a government legislation enforced by government agencies. c. a set of principles that describe what a person believes is the right way to behave. d. the impact of a business’s activities on society.4. Which one of the following is NOT one of the four rights provided in John F. Kennedy’s consumer bill of rights?  a. right to safety b. right to be informed c. right to sue d. right to chooseVIDEO QUESTIONS3-18Is it the responsibility of coffee consumers to ensure that small producers receive a fair price for their product? Why or why not?If the price paid to the growers represents only ten percent of the retail price of coffee, why is the retail price of Fair Trade coffee approximately double the regular price?Who benefits the most from the higher price paid by consumers for Fair Trade labeled coffee?What alternative approach to the problem of poverty among small producers can you suggest?