Bus 201 Week 3 – Full Notes
Conducting Business Ethically and Responsibly
- Distinguish social responsibility from ethics.
- Identify organizational stakeholders.
- Explain how individuals develop personal ethics & why ethics are important in the workplace.
- Discuss how the concept of social responsibility applies to environmental and economic issues.
- Identify four general approaches to social responsibility and describe the four steps a firm must
take to implement a social responsibility program.
- Individual Values and Codes
We start to form ethical standards as children in response to our opinions of
our parents, other adults, and society. We develop morals and values that
contribute to ethical standards.
- Managerial Ethics(standard of behavior that guide managers in their work)
Behavior towards employees covers hiring, firing, wages, working
conditions, privacy, respect
Behavior towards the organization employee behavior towards their
employer (conflict of interest, confidentiality, and honesty)
Behavior towards other economic agents relationships with customers,
competitors, stockholders, suppliers, dealers, and unions
- Assessing Ethical Behavior
1. Gather the relevant factual information.
2. Determine the most appropriate moral values.
3. Make an ethical judgment based on the rightness or wrongness of the
proposed activity or policy.
- Managing Ethics in Organizations
Adopting Written Codes written code of ethics
• Increase public confidence in a firm or its industry
• May help stem the tide of government regulation
• Improve internal operations by providing consistent standards
o Both ethical and legal conduct
• Help managers respond to problems from unethical/illegal behavior
Instituting Ethics Programs general belief that companies must take chief
responsibility for educating employees on ethics and morals Social Responsibility
- Corporate Social Responsibility (CSR): way that businesses try to balance its commitments
to organizational stakeholders (groups, individuals, and organizations directly affected by a
- Managerial Capitalism developed by Milton Friedman
o “A company’s only social is to make as much money as possible for its shareholders,
as long as it doesn’t break any laws in doing so.”
- Contemporary Social Consciousness
o Social responsibility views change over time, usually in higher expectations for firms.
Areas of Social Responsibility