RSM100Y1 Study Guide - Midterm Guide: Departmentalization, Production Planning, Telemarketing

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RSM TEST 2 NOTES
CHAPTER 2,7,9,10,11,12,13,16,17
Chapter 2 Business Ethic and Social Responsibility
Business ethic issues are at the heart of corporate social
responsibility (CSR), it’s primary objective is to enhance
society’s well-being through philosophies, policies,
procedures and actions. This benefits everyone include
consumers, the environment and the companies themselves.
Firms have many responsibilities to Customers, Employees,
Investors, and to the general public.
Responsibility to the general public: include dealing with
public health issues, protecting the environment, and
developing the quality of the workforce.
Public health issues: one of the most complex issues.
Central to the public health debate are dangerous
products such as tobacco and alcohol.
Protecting the environment: Businesses consume huge
amounts of energy which produce pollution.
Companies find they can be environmentally friendly
and profitable, too. (Recycling, Green marketing)
Quality of the workforce: An educated, skilled
workforce provides the know-how needed to develop
new technology, improve productivity and compete in
the global marketplace. Canadian businesses musk take
more responsibility for enhancing the quality of its
workforce, including encouraging diversity of all kinds.
Responsibility to Customers: Consumerism is the public
demand that a business consider the wants and needs of its
customers when making decisions. In 1962, Kennedy
developed four basic consumer rights, later called The
Consumer Bill of Rights: Right to be Heard, Right to be Safe,
Right to Choose, Right to be Informed.
Right to be Safe: Businesspeople have moral and legal
obligations to ensure their products are safe to use.
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Product liability refers to the responsibility of
manufacturers for injuries and damages caused by
their products.
Right to be Informed: Consumers should be able to get
enough education and product information to make
responsible buying decisions. The Competition Act has
rules and regulations that lead to advertising
truthfulness.
Right to Choose: Consumers should have the right to
choose the goods and services they need and the goods
they want to purchase.
Right to be Heard: Consumers should be able to
express their valid complaints to the appropriate
people.
Responsibilities to Employees: Companies have
responsibilities to employees which include workplace
safety, quality-of-life issues, ensuring equal opportunity on
the job, avoiding age discrimination, and preventing sexual
harassment and sexism.
Workplace Safety: The safety and health of workers on
the job is an important business responsibility. The
Canadian Center for Occupational Health and
Safety(CCOHS) promotes workplace health and safety.
Quality-of-life issues: Balancing work and family is
becoming harder for many employees. Taking care of
these employees become an issue for many companies.
Ensuring equal opportunity on the job: Technological
advances are expanding the ways people with physical
disabilities can contribute in the workplace.
Businesses also need to find ways to responsibly
recruit and manage older workers and workers with
varying lifestyles.
Age Discrimination: The average age of Canadian
workers is steadily rising. The Canadian Human Rights
Act prohibits age discrimination.
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Sexual Harassment and Sexism: Every employer has
responsibility to ensure that all workers are treated
fairly and are safe from sexual harassment.
Responsibilities to Investors and the financial community:
A fundamental goal of any business is to make a profit for its
shareholders. But investors and the financial community
also demand that businesses behave ethically and legally.
Walmart’s social responsibility priorities: Envrionment,
People, Responsible Sourcing and the Community
Sarbanes-Oxley Act of 2002 in US required companies to
publish their code of ethics.
Four most common ethical challenges that businesspeople
face: Conflict of Interest, Honesty and Integrity, Whistle
Blowing and Loyalty versus Truth.
Conflict of interest: occurs when a businessperson is faced
with a situation where an action the benefits one person or
group has the potential to harm another
Honesty and integrity: An employee who is honest can be
relied on to tell the truth. An employee with integrity goes
beyond truthfulness, behaving according to one’s deeply felt
ethical principles in business situations.
Loyalty versus Truth: Businesspeople expect their
employees to be loyal and to act in the best interests of the
company. Individual sometime has to decide between
loyalty to the company and truthfulness in business
relationships.
Whistle Blowing: an employee’s disclosure to company
officials, government authorities or the media of illegal,
immoral or unethical practices.
In 2004, The Public Servants Disclosure Protection Act was
introduced to protect people who expose problems.
A corporate culture that supports business ethics develops
on four levels: Ethical Awareness, Ethical Reasoning, Ethical
action and Ethical Leadership.
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