1. Social and Ethical Responsibility Back to Table of Contents

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

3. Social and Ethical Responsibility 3 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 24.1

4. Social and Ethical Responsibility 4 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 24.1

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

6. Social and Ethical 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. Social and Ethical 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. Social and Ethical Responsibility 9 Your Responsibility to Customers Guidelines for your responsibility to customers include: Section 24.1 Social Responsibility Do not mislead customers. Give complete information regarding proper use. Label unsafe products as such. Offer the best quality products at the lowest prices.

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

12. Social and Ethical Responsibility 12 Contributing to the Community Many small businesses have found ways to be generous to the community, including: Section 24.1 Social Responsibility donating their products and services involving employees in philanthropy joining with other companies to promote social responsibility

13. Social and Ethical 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. Social and Ethical 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. Social and Ethical Responsibility 15 1. Explain the relationship between entrepreneurs and social responsibility. Section 24.1 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. 24.1

16. Social and Ethical Responsibility 16 2. Discuss how entrepreneurs can contribute to their communities. Section 24.1 Social Responsibility Entrepreneurs can contribute by donating products and services, getting employees involved in philanthropy, and joining with other companies to promote social responsibility. 24.1

17. Social and Ethical Responsibility 17 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 24.2

18. Social and Ethical Responsibility 18 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 24.2

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

20. Social and 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 Section 24.2 Ethical Responsibility ethical behavior conduct that adheres to the moral code by which people live and conduct business

21. Social and Ethical Responsibility 21 Understanding Your Values The benefits of understanding your value system are: Section 24.2 Ethical Responsibility 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.

22. Social and 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. Social and 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. Social and 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. Social and Ethical Responsibility 25 Written Versus Unwritten Codes Codes of ethics can be written or unwritten. Section 24.2 Ethical Responsibility 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.

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

27. Social and 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. Social and 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 Section 24.2 Ethical Responsibility Bribes are illegal in the United States.

29. Social and Ethical Responsibility 29 1. Define ethics and ethical behavior. Section 24.2 Ethical Responsibility 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. 24.2

30. Social and Ethical Responsibility 30 2. Explain how to develop a code of ethics. Section 24.2 Ethical Responsibility (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. 24.2

31. Social and Ethical Responsibility 31 3. List special ethical problems that entrepreneurs face. Section 24.2 Ethical Responsibility 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. 24.2

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

33. Social and Ethical Responsibility 33 Section 24.2 Ethical Responsibility 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

34. Social and Ethical Responsibility 34 Section 24.2 Ethical Responsibility 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

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