Business Ethics and Social Responsibility

BUSINESS ETHICS AND
SOCIAL RESPONSIBILITY
GENESIS OF “ETHICS”
 ETHICS is a Greek work meaning “Ethos”, it means character or manners.
 BUSINESS ETHICS are that functions which leads to choosing right decision at the
right time which leads for the welfare of not only business owners but also society,
consumers, stakeholders and its employees.
BUSINESS ETHICS
 The value of what should be done and should not

be done from the business point of view.
 Business ethics involves adhering to legal,
regulatory, professional and company standards,
keeping promises and commitments and abiding
by general principles like fairness truth, honesty
and respect.
Ethical Issues for Business
1. Fraud
2. Insider Trading
3. Accounting scandals
4. Embezzlement
FRAUD
 Fraud involves deceit with the intention to

illegally or unethically gain at the expense
of another. In finance, fraud can take on
many forms including making false
insurance claims, cooking the books, pump
& dump schemes, and identity theft leading
to unauthorized purchases.
INSIDER TRADING
 Insider trading is the trading of a company's securities
by individuals with access to confidential or material
non-public information about the company. Taking
advantage of this privileged access is considered a breach
of the individual's fiduciary duty.
 Ex. Suppose a CEO of a famous company discloses their

company’s quarterly earnings while getting a haircut. If
the hairdresser takes this information and trades on it, that
is considered illegal trading.
Embezzlement
 Embezzlement is the fraudulent taking of personal

property by someone to whom it was entrusted. It
is most often associated with the misappropriation of
money. Embezzlement can occur regardless of
whether the defendant keeps the personal property or
transfers it to a third party.
ACCOUNTING SCANDAL
 Accounting scandals are business scandals which arise from

intentional manipulation of financial statements with the disclosure
of financial misdeeds by trusted executives of corporations or
governments. Such misdeeds typically involve complex methods for
misusing or misdirecting funds, overstating revenues, understating
expenses, overstating the value of corporate assets, or
underreporting the existence of liabilities (these can be detected
either manually, or by the means of deep learning). It involves an
employee, account, or corporation itself and is misleading to
investors and shareholders.
How Organizations Shape Ethical
Conduct ?
E
t
h
ic
al
le
a
d
e
rs
h
i
p
E
t
h
i
c
a
l
A
c
ti
o
n
E
t
h
i
c
a
l
E
d
u
c
a
ti
o
n
E
t
h
i
c
a
l
A
w
a
r
e
n
e
s
s
Ethical Awareness
Code of Conduct
Formal statement that defines how the organization expects and requires employees
to resolve ethical questions.
****Some examples include: transparency, trustworthiness, integrity, fairness,

respect, compassion , accountability, quality control, employee well being, safety
and customer service.
Ethical Education
 Codes of conduct cannot

detail a solution for every
ethical situation, so
corporations provide
training in ethical
reasoning.
Ethical Action
 Helping employees recognize and

reason problems and turning them
into ethical actions.
Ethical Leadership
 Ethical leadership means that individuals behave according to a

set of principles and values that are recognized by the majority
as a sound basis for the common good. These include integrity,
respect, trust, fairness, transparency, and honesty.
 Holding respect for others and equally around the team and
company is another example of ethical leadership. Egalitarian
treatment of their peers is key, there is no favoritism being played
out and no ill treatment of any member of staff through any form of
discrimination.
Social Responsibility
 Social responsibility is the obligation of organization’s management to make decisions

and take actions that will enhance the welfare and interests of society as well as the
organization.
 Social responsibility is therefore quite important to the society, organization and human.
 Management’s consideration of profit, consumer satisfaction, and societal well-being of
equal value in evaluating the firm’s performance.
 Contributions to the overall economy, job opportunities, and charitable contributions and
service.
Areas of Responsibilities
Responsibilities to the General Public
 Public Health Issues. What to do about inherently dangerous products such as

alcohol, tobacco, vaccines, and steroids.
 Protecting the Environment. Using resources efficiently, minimizing pollution.
 Recycling. Reprocessing used materials for reuse.
 Developing the Quality of the Workforce. Enhancing quality of the overall workforce
through education and diversity initiatives.
 Corporate Philanthropy. Cash contributions, donations of equipment and products,
and supporting the volunteer efforts of company employees.
Responsibilities to Customers
 The Right to Be Safe. Safe operation of products, avoiding

product liability.
 The Right to Be Informed. Avoiding false or misleading
advertising and providing effective customer service.
 The Right to Choose. Ability of consumers to choose the
products and services they want.
 The Right to Be Heard. Ability of consumers to express
legitimate complaints to the appropriate parties.
Responsibilities to Employees
 Workplace Safety. Monitored by Occupational Safety and Health Administration.

 Quality-of-Life Issues. Balancing work and family through flexible work schedules,
subsidized child care, and regulation such as the Family and Medical Leave Act of 1993.
 Ensuring Equal Opportunity on the Job. Providing equal opportunities to all employees
without discrimination; many aspects regulated by law. • Age Discrimination. Age
Discrimination in Employment Act of 1968 protects workers age 40 or older. • Sexual
Harassment and Sexism. equal pay for equal work without regard to gender.
Responsibilities to Society
 Businesses have responsibilities not only to

customers and to employees but also to society
as a whole.
 Many businesses plan for their social
responsibilities just like planning for production
and sale of their products.

Business Ethics and Social Responsibility

Uploaded by

Copyright:

Available Formats

Business Ethics and Social Responsibility

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Business Ethics and Social Responsibility

Uploaded by

Copyright:

Available Formats

BUSINESS ETHICS AND

 The value of what should be done and should not

 Fraud involves deceit with the intention to

 Ex. Suppose a CEO of a famous company discloses their

 Embezzlement is the fraudulent taking of personal

 Accounting scandals are business scandals which arise from

****Some examples include: transparency, trustworthiness, integrity, fairness,

 Codes of conduct cannot

 Helping employees recognize and

 Ethical leadership means that individuals behave according to a

 Social responsibility is the obligation of organization’s management to make decisions

 Public Health Issues. What to do about inherently dangerous products such as

 The Right to Be Safe. Safe operation of products, avoiding

 Workplace Safety. Monitored by Occupational Safety and Health Administration.

 Businesses have responsibilities not only to

You might also like

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.