Business Ethics

ETHICS The set of principles by which people in a society conduct themselves in regard to good and right behavior

VALUES Our personal, fundamental beliefs that we use to define what is most important to us in life, which determines our view of right and wrong

To be able to identify a Business’ Social Responsibility. Learning goal To be able to identify a Business’ Social Responsibility.

Business ethics The set of principles by which a business should conduct itself in relation to its social responsibility.

Social Responsibility The duty to do what is best for the good of society. Customers Employees Environment

customers Businesses should offer a good, safe product or service at a reasonable price. Food and Drug Administration (FDA) – Government agency that protects consumers from dangerous or falsely advertised products.

employees Safe Working Conditions Occupational Safety and Health Administration (OSHA) – A division of the Department of Labor that sets and enforces work-related health and safety rules.

. . . employees Equal Treatment and Fair Pay Equal Pay Act (1964) – Requires men and women to be paid the same wages for doing equal work. since then = ½ a penny of improvement per year Women still only earn 75% of what men do in the same job. (March 2011) Americans with Disabilities Act – Bans discrimination against persons with physical or mental disabilities.

environment Businesses have an obligation to conserve resources, and protect the environment around them. Environmental Protection Agency (1970) – Federal agency that enforces rules that protect the environment and control pollution.

To be able to identify a Business’ Social Responsibility. Learning goal To be able to identify a Business’ Social Responsibility.

Business Ethics

Learning goal To be able to consider and evaluate an Employee’s Social Responsibility.

Those things that workers are owed by their employers. Employee rights Those things that workers are owed by their employers. Examples: Safe working conditions Equal pay and treatment Insurance? Paid Time Off? Retirement Benefits?

Ethical obligations that employees have to their employers. Employee duties Ethical obligations that employees have to their employers. Examples: Honesty Loyalty to the company Giving a fair day’s work

Code of ethics A written set of ethical guidelines that workers are expected to follow More than 85% of corporations in America have one Ex: abuse of sick time, theft, drug & alcohol abuse, and confidentiality Businesses can be held legally responsible for their employees’ actions!

“Others” = their employer! Conflict of interest When people who have agreed to act in the best interest of others are tempted to act in their own interest instead. “Others” = their employer!

Whistle-blowing Reporting unethical or illegal actions by a superior or co-worker to authorities or the media. Could save lives, save taxpayers money, or bring criminals to justice Could be false, or even a misunderstanding!

Learning goal To be able to consider and evaluate an Employee’s Social Responsibility.

Business Ethics

Learning goal To be able to discuss the need for Affirmative Action, and the consequences of Preferential Selection.

Civil Rights Act (1964) Prohibits all discrimination on the grounds of race, color, gender, religion or national origin. What is Discrimination? Any exclusionary practice not necessary to an institution’s activities.

Affirmative action Positive steps taken to increase the representation of women and minorities in areas of employment, education, and business from which they have been historically excluded.

Preferential selection Businesses must research the numbers of those minorities (and women) who would be hired if they were NOT discriminating. These numbers determine the quotas that businesses must meet!

Learning goal To be able to discuss the need for Affirmative Action, and the consequences of Preferential Selection.