Ethics and Social Responsibility Shyla Miller Aneyshia Minter Na’Tashia Henderson Fehad Shalout

Section 4.1: Ethics In Business The Importance of Ethics – Ethics-a set of moral principles or values that govern behavior Codes of Ethics – Code of Ethics-a document that outlines the principles of conduct to be used in making decisions within the organization Content of Ethical Codes

Behaving Ethically Behaving Honestly – Sarbanes-Oxley Act of 2002 – Employee Theft – Lying About Hours Worked – Falsifying Records Dealing With Ethical Dilemmas – Ethical dilemmas are situations in which the ethical course of action is not clear

Laws Relating to Ethics in Business Competitive Behavior: Since the late 19 th century the federal government has regulated companies to ensure they do not engage in anticompetitive behavior – The Sherman Act – The Clayton Act – The Wheeler-Lea Act Consumer Protection: Several laws protect consumers against unethical and unsafe business practices. – Food and Drugs – Consumer Products – Loans

Laws Relating to Ethics in Business con’t Environmental Protection: Since the late 1960s environmental protection has been an important social and economic issue. The National Environmental Policy Act of 1969 The Clean Air Act of 1970 The Toxic Substances Control Act of 1976 The Clean Water Act of 1977

Ethical Standards and Culture Corporate Gift Giving – Gift giving customs differ around the world. – United States VS Japan – Regardless of local practices, American managers operating abroad must abide by the standards set in the US Intellectual Property – Refers to ownership of ideas, such as inventions, books, movies, and computer programs – Protected by patents, trademarks, and copyright laws – Although the US has tough laws governing IP, enforcing those laws is a problem

Section 4.2: Social Responsibility Changing Views of Social Responsibility – Social responsibility-the obligation that individuals or businesses have to help solve social problems Profit Maximization Trusteeship Management Social Involvement – Stakeholders-a company’s employees, customers, suppliers, and the community

Measuring Social Responsibility Social audit – Philanthropy and Volunteerism – Environmental Awareness – Sensitivity to Diversity and Quality of Work Life