2. Social and Ethical Responsibility
Chapter 24
Social and Ethical Responsibility
Social Responsibility
24.1
24.2
Ethical Responsibility

3. Explain how to develop a code of ethics.
24.1
Explain the relationship between entrepreneurs and social responsibility.
Explain how to develop a code of ethics.
List special ethical problems that entrepreneurs face.
Section 24.1 Social Responsibility

4. Businesses must do more than provide jobs and make a profit.
24.1
Businesses must do more than provide jobs and make a profit.
They also are expected to run their business responsibly.
Section 24.1 Social Responsibility

5. social responsibility Environmental Protection Agency (EPA)
24.1
philanthropy
social responsibility
Environmental Protection Agency (EPA)
Section 24.1 Social Responsibility

6. Entrepreneurs and Social Responsibility
Being a responsible entrepreneur involves more than philanthropy.
philanthropy the act of making charitable donations to improve the welfare of society
Section 24.1 Social Responsibility

7. Entrepreneurs and Social 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
Section 24.1 Social Responsibility

8. Entrepreneurs and Social Responsibility
Section 24.1 Social Responsibility 8

9. Your Responsibility to Customers
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.
Section 24.1 Social Responsibility

10. Your Responsibility to the Environment
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
Section 24.1 Social Responsibility

11. Your Responsibility to the Environment
To protect the environment:
Employ environmental affairs personnel.
Eliminate wasteful practices and emissions of pollutants from manufacturing processes.
Improve products to increase efficiency.
Section 24.1 Social Responsibility

12. Contributing to the Community
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
Section 24.1 Social Responsibility

13. Being a Socially Responsible Employer
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.
Section 24.1 Social Responsibility

14. Being a Socially Responsible Employee
Personal responsibility is the basis of social responsibility.
Responsible employees maintain high ethical standards when dealing with coworkers, management, and customers.
Section 24.1 Social Responsibility

15. 24.1
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.
Section 24.1 Social Responsibility

16. Discuss how entrepreneurs can contribute to their communities.
24.1
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.
Section 24.1 Social Responsibility

17. Define ethics and ethical behavior.
24.2
Define ethics and ethical behavior.
Explain how to develop a code of ethics.
List special ethical problems that entrepreneurs face.
Section 24.2 Ethical Responsibility

18. Ethics are guidelines for human behavior.
24.2
Ethics are guidelines for human behavior.
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.
Section 24.2 Ethical Responsibility

19. ethics ethical behavior business ethics code of ethics
24.2
ethics
ethical behavior
business ethics
code of ethics
conflict of interest
bribes
Section 24.2 Ethical Responsibility

20. What Does It Mean to Be Ethical?
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
ethical behavior conduct that adheres to the moral code by which people live and conduct business
Section 24.2 Ethical Responsibility

21. Understanding Your Values
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.
Section 24.2 Ethical Responsibility

22. What Are Business Ethics?
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 a business situation
Section 24.2 Ethical Responsibility

23. 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 ethics policies.
Section 24.2 Ethical Responsibility

24. Developing a Code of Ethics
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
Section 24.2 Ethical Responsibility

25. Written Versus Unwritten Codes
Codes of ethics can be written or unwritten.
Follow these steps to create guidelines:
Brainstorm ethical dilemmas.
Discuss potential solutions.
Write a set of general guidelines.
Improve your code.
Section 24.2 Ethical Responsibility

26. Special Problems for Entrepreneurs
Entrepreneurs have some typical ethical problems.
Conflicts of interest
Bribes
Desperate measures
Cultural differences
Patent of copyright infringement
Section 24.2 Ethical Responsibility

27. Conflict of Interest
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
Section 24.2 Ethical Responsibility

28. Bribes
In some parts of the world, bribes are an accepted part of doing business.
bribe a payment made to secure special services for a business or special consideration for its products
Bribes are illegal in the United States.
Section 24.2 Ethical Responsibility

29. Define ethics and ethical behavior.
24.2
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.
Section 24.2 Ethical Responsibility

30. Explain how to develop a code of ethics.
24.2
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.
Section 24.2 Ethical Responsibility

31. List special ethical problems that entrepreneurs face.
24.2
List special ethical problems that entrepreneurs face.
Entrepreneurs face conflict of interest, a conflict 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.
Section 24.2 Ethical Responsibility

32. Accessibility for All
Web sites often include elements that can limit their usability for many people.
Make sure that the site you create is accessible to all.
Section 24.2 Ethical Responsibility 32

33. Tech Terms
accessible
the capability of a Web site that allows all types of people to access and use the site’s content
cascading style sheets (CSS)
a feature of HTML that gives users more control over how Web pages are displayed
Section 24.2 Ethical Responsibility 33

34. Tech Terms screen readers
devices that read a Web site’s content aloud, especially important for persons with visual impairments
World Wide Web Consortium (W3C)
an organization that produces standards for the World Wide Web
Section 24.2 Ethical Responsibility 34

35. End of