Social and Ethical Responsibility Glencoe Entrepreneurship: Building a Business Social Responsibility Ethical Responsibility 24.1 Section 24.2 Section 24

Glencoe Entrepreneurship: Building a Business Social Responsibility SECTION 24.1 Chapter 24 Social and Ethical Responsibility Explain the relationship between entrepreneurs and social responsibility. Discuss how entrepreneurs can contribute to their communities. Section Objectives

Glencoe Entrepreneurship: Building a Business Social Responsibility SECTION 24.1 Chapter 24 Social and Ethical Responsibility Businesses must do more than provide jobs and make a profit. They also are expected to run their business responsibly. The Main Idea

Glencoe Entrepreneurship: Building a Business Social Responsibility SECTION 24.1 Chapter 24 Social and Ethical Responsibility Content Vocabulary philanthropy social responsibility Environmental Protection Agency (EPA)

Glencoe Entrepreneurship: Building a Business Social Responsibility SECTION 24.1 Chapter 24 Social and Ethical Responsibility Being a responsible entrepreneur involves more than philanthropy. philanthropy the act of making charitable donations to improve the welfare of society Entrepreneurs and Social Responsibility

Glencoe Entrepreneurship: Building a Business Social Responsibility SECTION 24.1 Chapter 24 Social and Ethical Responsibility For a business to survive, it must exhibit social responsibility. Social Responsibility the principle that companies should contribute to the welfare of society and not be solely devoted to maximizing profits Entrepreneurs and Social Responsibility

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Glencoe Entrepreneurship: Building a Business Social Responsibility SECTION 24.1 Chapter 24 Social and Ethical Responsibility Guidelines for your responsibility to customers include: Do not mislead customers. Give complete information regarding proper use. Label unsafe products as such. Offer the best quality products at the lowest prices. Your Responsibility to Customers

Glencoe Entrepreneurship: Building a Business Social Responsibility SECTION 24.1 Chapter 24 Social and Ethical Responsibility The Environmental Protection Agency (EPA) enforces environmental laws and regulations. Environmental Protection Agency an independent federal agency established to coordinate programs and enforce regulations aimed at reducing pollution and protecting the environment Your Responsibility to the Environment

Glencoe Entrepreneurship: Building a Business Social Responsibility SECTION 24.1 Chapter 24 Social and Ethical Responsibility To protect the environment: Employ environmental affairs personnel. Eliminate wasteful practices and emissions of pollutants from manufacturing processes. Improve products to increase efficiency. Your Responsibility to the Environment

Glencoe Entrepreneurship: Building a Business Social Responsibility SECTION 24.1 Chapter 24 Social and Ethical Responsibility Many small businesses have found ways to be generous to the community, including: donating their products and services involving employees in philanthropy joining with other companies to promote social responsibility Contributing to the Community

Glencoe Entrepreneurship: Building a Business Social Responsibility SECTION 24.1 Chapter 24 Social and Ethical Responsibility As a small business owner, you have a responsibility to treat your employees fairly. You can offer flextime, health care, telecommuting, on-site child care, and assistance to employees with impairments. Being a Socially Responsible Employer

Glencoe Entrepreneurship: Building a Business Social Responsibility SECTION 24.1 Chapter 24 Social and Ethical Responsibility Personal responsibility is the basis of social responsibility. Responsible employees maintain high ethical standards when dealing with coworkers, management, and customers. Being a Socially Responsible Employer

Glencoe Entrepreneurship: Building a Business Social Responsibility SECTION 24.1 Chapter 24 Social and Ethical Responsibility After You Read 1.Explain the relationship between entrepreneurs and social responsibility. Beyond the philanthropic side of social responsibility, entrepreneurs have a duty to create safe products, treat customers and employees fairly, and run honest businesses.

Glencoe Entrepreneurship: Building a Business Social Responsibility SECTION 24.1 Chapter 24 Social and Ethical Responsibility After You Read 2.Discuss how entrepreneurs can contribute to their communities. Entrepreneurs can contribute by donating products and services, getting employees involved in philanthropy, and joining with other companies to promote social responsibility.

Ethical Responsibility Glencoe Entrepreneurship: Building a Business SECTION 24.2 Chapter 24 Social and Ethical Responsibility Define ethics and ethical behavior. Explain how to develop a code of ethics. List special ethical problems that entrepreneurs face. Section Objectives

Ethical Responsibility Glencoe Entrepreneurship: Building a Business SECTION 24.2 Chapter 24 Social and Ethical Responsibility Ethics are guidelines for human behavior and form the basis for a person’s character. They are the moral code by which people live and conduct business. Ethics help people decide how to act in situations where moral issues are involved by setting standards for moral behavior. The Main Idea

Ethical Responsibility Glencoe Entrepreneurship: Building a Business SECTION 24.2 Chapter 24 Social and Ethical Responsibility Content Vocabulary ethics ethical behavior business ethics code of ethics conflict of interest bribes

Ethical Responsibility Glencoe Entrepreneurship: Building a Business SECTION 24.2 Chapter 24 Social and Ethical Responsibility It is important for an entrepreneur to have clear ethics policies governing ethical behavior, because not everyone has the same standards. ethics guidelines for human behavior; the moral code by which people live and conduct business What Does It Mean to Be Ethical? ethical behavior conduct that adheres to the moral code by which people live and conduct business

Ethical Responsibility Glencoe Entrepreneurship: Building a Business SECTION 24.2 Chapter 24 Social and Ethical Responsibility The benefits of understanding your value system are: You make better decisions because you base them on your values. You are able to persuade others to agree with you when you are confident about your values. You usually do not regret decisions you make based on your values. Understanding Your Values

Ethical Responsibility Glencoe Entrepreneurship: Building a Business SECTION 24.2 Chapter 24 Social and Ethical Responsibility A business owner without good business ethics can not expect his or her employees to act ethically. business ethics the study of behavior and morals in business situations What Are Business Ethics?

Ethical Responsibility Glencoe Entrepreneurship: Building a Business SECTION 24.2 Chapter 24 Social and Ethical Responsibility Are Everyone’s Ethics the Same? People do not share the same ethical values. Because not everyone has high ethical standards, entrepreneurs need to create clear policies that communicate what is and what is not acceptable conduct in the workplace.

Ethical Responsibility Glencoe Entrepreneurship: Building a Business SECTION 24.2 Chapter 24 Social and Ethical Responsibility Many entrepreneurs develop an explicit code of ethics that spells out appropriate business conduct. code of ethics ethical behavior guidelines that govern the day-to-day activities of a profession or organization Developing a Code of Ethics

Ethical Responsibility Glencoe Entrepreneurship: Building a Business SECTION 24.2 Chapter 24 Social and Ethical Responsibility Written Versus Unwritten Codes Codes of ethics can be written or unwritten. Follow these steps to create guidelines: 1.Brainstorm ethical dilemmas. 2.Discuss potential solutions. 3.Write a set of general guidelines. 4.Improve your code.

Ethical Responsibility Glencoe Entrepreneurship: Building a Business SECTION 24.2 Chapter 24 Social and Ethical Responsibility Special Problems for Entrepreneurs Entrepreneurs may face some of the following typical ethical problems: Conflicts of interest Desperate measures Cultural differences Bribes Patent or copyright infringement

Ethical Responsibility Glencoe Entrepreneurship: Building a Business SECTION 24.2 Chapter 24 Social and Ethical Responsibility If an entrepreneur faces a conflict of interest, he or she should not put aside ethics to meet a short-term goal. conflict of interest a clash between a person’s private interests and his or her responsibilities in a position of trust. Conflict of Interest

Ethical Responsibility Glencoe Entrepreneurship: Building a Business SECTION 24.2 Chapter 24 Social and Ethical Responsibility In some parts of the world, bribes are an accepted part of doing business. Bribes are illegal in the United States. bribe a payment made to secure special services for a business or special consideration for its products Bribes

Ethical Responsibility Glencoe Entrepreneurship: Building a Business SECTION 24.2 Chapter 24 Social and Ethical Responsibility After You Read 1.Define ethics and ethical behavior. Ethics are guidelines for human behavior. They are the moral code by which people live and conduct business. Ethical behavior is conduct that adheres to a moral code.

Ethical Responsibility Glencoe Entrepreneurship: Building a Business SECTION 24.2 Chapter 24 Social and Ethical Responsibility After You Read 2.Explain how to develop a code of ethics. (1) Brainstorm ethical dilemmas. (2) Discuss potential solutions. (3) Write a set of general guidelines that offer a range of acceptable ways to deal with different situations. (4) Improve the code. When a new situation or solution occurs, add it to the guidelines.

Ethical Responsibility Glencoe Entrepreneurship: Building a Business SECTION 24.2 Chapter 24 Social and Ethical Responsibility After You Read 3.List special ethical problems that entrepreneurs face. Entrepreneurs face conflicts of interest, conflicts between an individual’s private interests and his or her responsibilities in a position of trust; desperate measures, doing what has to be done to survive; cultural differences when dealing with an international market; bribes; and patent or copyright infringement.

Social and Ethical Responsibility Glencoe Entrepreneurship: Building a Business Social Responsibility Ethical Responsibility 24.1 Section 24.2 Section 24 End of Chapter 24 Social and Ethical Responsibility