1. CH 4 Business Ethics and Social Responsibility
Why is understanding business ethics and social responsibility important to you as a business person, consumer, and citizen?

2. Ch 4 Targets Define social responsibility issues.
Explain business ethics.
Explain the legal responsibility of business ethics.
Give reasons why ethical behavior is good for business.
List some important ethical questions.
Explain how ethics is related to the consumer, employee, and society.

3. What is Ethics? Ethics Business ethics
Set of moral principles by which people conduct themselves personally, socially, or professionally.
Business ethics
Set of laws about how a business should conduct itself.
Legal Responsibility
Social Responsibility
Responsibility to Customers
Responsibility to Employees

4. Graphic Organizer Important Ethical Questions ETHICAL DECISION
Does it violate the law or policies?
YES
UNETHICAL NO
What if everyone did this, but it’s bad?
YES
UNETHICAL NO
Would this sacrifice long-term benefits for short-term gain?
MAY BE UNETHICAL
YES NO
ETHICAL DECISION

5. Ethics as Good Business
Affect your business indirectly
Repeat customers
High employee turnover
Affect your business directly
Fines

6. Legal Responsibility
How do business make sure that their employees follow the laws?
Code of Ethics
Set of strict guidelines for maintaining ethics in the workplace.

7. Social Responsibility
Duty to do what is best for the good of society.
The ethical obligations of a business are to:
Provide safe products
Create jobs
Protect the environment
Contribute to the standard of living in society
Conflict of Interest
Business is tempted to put profits before social welfare

8. Responsibility to the Employees
Businesses have a social responsibility to create jobs.
Safe Working Conditions
Equal Treatment
Fair Pay

9. Responsibility to the Employees (Legal)
Sweatshops
Factories that pay workers poorly, are unhealthy, and treat workers badly
Occupational Safety and Health Administration
(OSHA) Division of the Department of Labor that sets and enforces work-related health and safety rules
Equal Pay Act
Requires that men and women be paid the same wages for doing equal work.
Americans with Disabilities Act
Bans discrimination against persons with physical or mental disability.

10. Social Responsibility: To Customers
Food and Drug Administration (FDA)
Government agency
Protects consumers from dangerous or falsely advertised products
The FDA governs advertising and labeling of over-the-counter medicines
Consumer Product Safety Commission (CPSC)
Protects consumer from dangerous consumer goods
Oversees recalls involving
Recalls.gov

11. Social Responsibility: To Society
Environmental Protection Agency (EPA), 1970
Federal agency that enforces rules that protect the environment and control pollution.

12. Ch 4 Target Review Explain business ethics.
Set of laws about how a business should conduct itself
Explain the legal responsibility of business ethics.
Business are responsible for the safety of employees
Give reasons why ethical behavior is good for business.
Most business rely on repeat customers
Employees are loyal
New customers

13. Ch 4 Target Review List some important ethical questions.
Is this against the law?
What if everyone did this?
Am I sacrificing long term benefits for short term gains?
Define social responsibility.
Duty to do what is best for the society
Explain how ethics is related to the consumer, employee, and society.
Consumer – protection from dangerous or falsely advertised products
Employee – create jobs with equal treatment
Society – environmental protection

14. Activity Create a code of ethics to include in your business plan.
Page 79 Guidelines for writing a code of ethics
Be sure to include all 7 parts in your code (note it does not mean make a list)
Look at other codes of ethics for ideas
Student handbook is a ‘code of ethics’
Reviewed every year
Includes how it will be enforced