Presentation on theme: "CH 4 Business Ethics and Social Responsibility"— Presentation transcript:
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 ethicsSet of laws about how a business should conduct itself.Legal ResponsibilitySocial ResponsibilityResponsibility to CustomersResponsibility to Employees
4 Graphic Organizer Important Ethical Questions ETHICAL DECISION Does it violate the law or policies?YESUNETHICALNOWhat if everyone did this, but it’s bad?YESUNETHICALNOWould this sacrifice long-term benefits for short-term gain?MAY BE UNETHICALYESNOETHICAL DECISION
5 Ethics as Good Business Affect your business indirectlyRepeat customersHigh employee turnoverAffect your business directlyFines
6 Legal ResponsibilityHow do business make sure that their employees follow the laws?Code of EthicsSet 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 productsCreate jobsProtect the environmentContribute to the standard of living in societyConflict of InterestBusiness is tempted to put profits before social welfare
8 Responsibility to the Employees Businesses have a social responsibility to create jobs.Safe Working ConditionsEqual TreatmentFair Pay
9 Responsibility to the Employees (Legal) SweatshopsFactories that pay workers poorly, are unhealthy, and treat workers badlyOccupational Safety and Health Administration(OSHA) Division of the Department of Labor that sets and enforces work-related health and safety rulesEqual Pay ActRequires that men and women be paid the same wages for doing equal work.Americans with Disabilities ActBans discrimination against persons with physical or mental disability.
10 Social Responsibility: To Customers Food and Drug Administration (FDA)Government agencyProtects consumers from dangerous or falsely advertised productsThe FDA governs advertising and labeling of over-the-counter medicinesConsumer Product Safety Commission (CPSC)Protects consumer from dangerous consumer goodsOversees recalls involvingRecalls.gov
11 Social Responsibility: To Society Environmental Protection Agency (EPA), 1970Federal 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 itselfExplain the legal responsibility of business ethics.Business are responsible for the safety of employeesGive reasons why ethical behavior is good for business.Most business rely on repeat customersEmployees are loyalNew 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 societyExplain how ethics is related to the consumer, employee, and society.Consumer – protection from dangerous or falsely advertised productsEmployee – create jobs with equal treatmentSociety – environmental protection
14 Activity Create a code of ethics to include in your business plan. Page 79 Guidelines for writing a code of ethicsBe sure to include all 7 parts in your code (note it does not mean make a list)Look at other codes of ethics for ideasStudent handbook is a ‘code of ethics’Reviewed every yearIncludes how it will be enforced