CORPORATE ETHICS & SOCIAL RESPONSIBILITY. What is “Business Ethics”? A collection of principles and rules that define correct and incorrect behavior/conduct.

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Presentation transcript:

CORPORATE ETHICS & SOCIAL RESPONSIBILITY

What is “Business Ethics”? A collection of principles and rules that define correct and incorrect behavior/conduct for a member of an organization. Notions of what is right and wrong vary from manager to manager, business to business, and country to country.

Ethical Issues in Business Accepting business gifts Bribing government officials Respecting the privacy and dignity of employees Using company property for personal use

Laws Relating to Ethics in Business Competition laws Consumer Protection laws Environmental Protection laws Employment laws

General Content of Ethical Codes Honesty Product safety and quality Pricing, billing, and contracting Trading in securities/using confidential information Protection of the environment Payments to obtain business Political activities

Code of Ethics in a Business Environment Removes or reduces opportunities for unethical conduct Must have full support of top-level managers Notions of what is right or wrong changes over time Values differ among nations –Corporate gift-giving –Intellectual property Copyrights Patents Trademarks

Stakeholders & Social Obligations Owed to Them StakeholderSocial Obligations Owed Stockholders/owners of the organizationTo increase the value of the organization Suppliers of materialsTo deal with them fairly Banks and other lendersTo repay debts Government agenciesTo abide by laws Employees and unions To provide safe working environment and negotiate fairly with union-representatives ConsumersTo provide safe products Competitors To compete fairly and to refrain from restraints of trade Local communities and society at large To avoid business practices that harm the environment

Conclusion ‘To ensure a sustainable future, it is necessary that organization also ensures that all workers are able to play appropriate roles, both in the workplace and the wider community, in contributing to social, economic and environmental sustainability.’