Presentation is loading. Please wait.

Presentation is loading. Please wait.

Chapter 3 Copyright ©2012 by Cengage Learning Inc. All rights reserved 1 Lamb, Hair, McDaniel CHAPTER 3 Ethics and Social Responsibility 2011-2012 © Quayside/Shutterstock.com.

Similar presentations


Presentation on theme: "Chapter 3 Copyright ©2012 by Cengage Learning Inc. All rights reserved 1 Lamb, Hair, McDaniel CHAPTER 3 Ethics and Social Responsibility 2011-2012 © Quayside/Shutterstock.com."— Presentation transcript:

1 Chapter 3 Copyright ©2012 by Cengage Learning Inc. All rights reserved 1 Lamb, Hair, McDaniel CHAPTER 3 Ethics and Social Responsibility © Quayside/Shutterstock.com

2 Chapter 3 Copyright ©2012 by Cengage Learning Inc. All rights reserved 2 LO 1 Explain the concept of ethical behavior LO 2 Describe ethical behavior in business LO 3 Discuss corporate social responsibility Learning Outcomes

3 Chapter 3 Copyright ©2012 by Cengage Learning Inc. All rights reserved 3 The Concept of Ethical Behavior Explain the concept of ethical behavior LO 1

4 Chapter 3 Copyright ©2012 by Cengage Learning Inc. All rights reserved 4 Ethical Behavior The moral principles or values that generally govern the conduct of an individual or a group. Example: There is no law for “cutting in line.” Cutting in line would anger most other people. LO 1

5 Chapter 3 Copyright ©2012 by Cengage Learning Inc. All rights reserved 5 Ethical Behavior in Business Describe ethical behavior in business LO 2

6 Chapter 3 Copyright ©2012 by Cengage Learning Inc. All rights reserved 6 Ethical Behavior in Business Ethics Morals The moral principles or values that generally govern the conduct of an individual. The rules people develop as a result of cultural values and norms. Morals involve “good” and “bad” as well as “deviant” behaviors LO 2

7 Chapter 3 Copyright ©2012 by Cengage Learning Inc. All rights reserved 7 Ethical Development Levels Pre-conventional Morality Conventional Morality Post-conventional Morality More Mature More Childlike Based on what will be punished or rewarded Self-centered, calculating, selfish Moves toward the expectations of society Concerned over legality and the opinion of others Concern about how they judge themselves Concern if it is right in the long run LO 2

8 Chapter 3 Copyright ©2012 by Cengage Learning Inc. All rights reserved 8 Dell: An Ethics Case Documents from a lawsuit revealed that Dell shipped over 11.8 million faulty computers between 2003 and An internal investigation revealed extensive problems, but Dell tried to cover up the problem, telling its sales team not to mention bring it up. Dell at times used faulty components to fix broken computers. Dell took a $300 million charge to fix the computers, but only in response to stakeholder demands. What level of ethical development is Dell operating at? Beyond the Book

9 Chapter 3 Copyright ©2012 by Cengage Learning Inc. All rights reserved 9 Ethical Decision Making Influential Factors Extent of Problems Top Management Actions Potential Consequences Social Consensus Probability of Harm Time Until Consequences Number Affected LO 2

10 Chapter 3 Copyright ©2012 by Cengage Learning Inc. All rights reserved 10 Creating Ethical Guidelines A Code of Ethics: Helps identify acceptable business practices Helps control behavior internally Avoids confusion in decision making Facilitates discussion about right and wrong LO 2 © iStockphoto.com/Steve Cady

11 Chapter 3 Copyright ©2012 by Cengage Learning Inc. All rights reserved 11 Ethics in Other Countries Prohibits U.S. corporations from making illegal payments to foreign officials. Has been criticized for putting U.S. businesses at a disadvantage. Has encouraged some countries to implement their own anti-bribery laws. LO 2 Foreign Corrupt Practices Act (FCPA)

12 Chapter 3 Copyright ©2012 by Cengage Learning Inc. All rights reserved 12 Corporate Social Responsibility Discuss corporate social responsibility LO 3

13 Chapter 3 Copyright ©2012 by Cengage Learning Inc. All rights reserved 13 Sustainability Socially responsible companies will outperform their peers. It is in business’s best interest to find ways to attack society’s ills. LO 3

14 Chapter 3 Copyright ©2012 by Cengage Learning Inc. All rights reserved 14 LO 3 Exhibit 3.1 Pyramid of Corporate Social Responsibility

15 Chapter 3 Copyright ©2012 by Cengage Learning Inc. All rights reserved 15 Arguments Against Social Responsibility Businesses should focus on making a profit and leave social and environmental concerns to nonprofits. Milton Friedman argued that the free market, and not companies, should decide what is best for the world— socially responsible companies are using shareholders’ money to further their own agendas. LO 3

16 Chapter 3 Copyright ©2012 by Cengage Learning Inc. All rights reserved 16 Growth of Social Responsibility According to a recent study, the percentage of firms that consider social responsibility factors when making business decisions: LO 3 Brazil 62% 54%Canada Australia52% 47% United States India38% 35%China Mexico26%

17 Chapter 3 Copyright ©2012 by Cengage Learning Inc. All rights reserved 17 Cost of Ignoring Social Responsibilities Some surveys indicate that consumers would be willing to pay more for a socially responsible company’s product. Making false claims about social responsibility can be especially costly. LO 3

18 Chapter 3 Copyright ©2012 by Cengage Learning Inc. All rights reserved 18 Green Marketing The development and marketing of products designed to minimize negative effects on the environment or improve the environment. –Environmentally aware customers pay more for products –Companies must try to educate customers of environmental benefits LO 3

19 Chapter 3 Copyright ©2012 by Cengage Learning Inc. All rights reserved 19 Beyond the Book Chapter 3 Videos Method – Social Responsibility, Ethics, and the Marketing Environment Does method have a societal marketing orientation, or is it just a market-oriented company that integrates a number of environmental practices into its operation? Explain k_content/ _lamb/company_c lips/ch03.html


Download ppt "Chapter 3 Copyright ©2012 by Cengage Learning Inc. All rights reserved 1 Lamb, Hair, McDaniel CHAPTER 3 Ethics and Social Responsibility 2011-2012 © Quayside/Shutterstock.com."

Similar presentations


Ads by Google