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Oct 22 2013.docx

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Matthew Archibald

nd ADM 1300 B Oct. 22 , 2013 YUJIE YI #7038840 Chapter 2 Ethics and Social Responsibility Videos  Dennis Kozlowski (Formal CEO of Tyco) –American Greed - The reason he was caught is that he tried to avoid paying sales tax for over $1 million. - He earned $170 million.  Enron – Smartest Guys in the Room  The Corporation Think about other ethical issues  Martha Stewart – billionaire - 5 months prison, insider trading - Insider training: you are prevailing information which the government doesn’t allow to prevail. You know something that the general public doesn’t know, and you take that as advantage. - $300,000 of share  Raj Rajaratnam - millionaire  1 /8 - 11 years in prison, insider trading - Family left behind  Bernie Madoff - 150 years in prison, Ponzi scheme - Ponzi scheme: similar to the period scheme. The way I was able to give you 10% back because I borrow money from other investors.Afraudulent investment operation that pays quick returns to initial contributors using money from subsequent contributors rather than profit. Video: 60 minutes: US Congress and Senate funding – Washington’s Open Secret Which is not illegal - Campaign funds - Use the campaign funds as leadership packs – loophole (2 largest political scheme). You can use the leadership packs for every expense. - Members will keep the leadership packs for use after they retire. - Family business: have families on the campaign payroll. Ethics and Social Responsibility - Ethics – moral beliefs about what is right and wrong nd ADM 1300 B Oct. 22 , 2013 YUJIE YI #7038840 - Social Responsibility – manager’s duty to make decisions that promote well- being of stakeholders and society - Ethics deals with an individual’s decision that society evaluates as right or wrong - Social responsibility is a broader concept that concerns the impact of an entire organization’s activities on society Ethical Issues - Conflict of Interest – person must choose to advance own interest or those of others (advancing personal incomes versus the whole organization) - Honesty and Integrity – general values of decision makers; obey law… what else? - Loyalty versus truth - to the company versus the business relationship (maintaining company loyalty to who actually do wrong things) - Whistle blowing – disclosure to the company or authorities of illegal or unethical practices. Shaping Ethical Conduct - EthicalAwareness – creating a code of conduct - Ethical Education – provide the tools to evaluate options and arrive at solutions 3  8  - EthicalAction – turning decisions into actions. Provide a “hotline” or have an ethics officer - Ethical Leadership – those at the top of an organization must show ethics in their actions. Ethics and Responsibility  Many orgs. Now incorporate ethics into the decision making process  Who is the organization responsible to? - The owners? The Public? Both? Business’Social Responsibility - To General Public – public health, recycling, corporate philanthropy (donating to the community) - To Customers – right to be safe (children toys), be informed (the harm of drugs), to choose, and be heard - To Employees – workplace safety, quality of life (pay employees enough/ good working conditions/ health benefits/ allowing them to go home periodically), equal opportunity - To Investors – to make profits in a responsible way (Bill 198 and Sarbanes- Oxley) Sarbanes-OxleyAct - Canadian version is Bill 198 nd ADM 1300 B Oct. 22 , 2013
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