ethics & s-r 1 copyright 1999 prentice hall publishing company ethics, social responsibility,...
TRANSCRIPT
Ethics & S-REthics & S-R 11Copyright 1999 Prentice Hall Publishing CompanyCopyright 1999 Prentice Hall Publishing Company
Ethics, Social Ethics, Social Responsibility, Responsibility,
and the and the EntrepreneurEntrepreneur
Ethics, Social Ethics, Social Responsibility, Responsibility,
and the and the EntrepreneurEntrepreneur
Ethics & S-REthics & S-R 22Copyright 1999 Prentice Hall Publishing CompanyCopyright 1999 Prentice Hall Publishing Company
EthicsEthics
Ethics - the moral values and behavioral Ethics - the moral values and behavioral standards business people draw on as standards business people draw on as they make decisions and solve problems. they make decisions and solve problems.
Complicating ethical issues is that, in Complicating ethical issues is that, in some cases, there is no conflict between some cases, there is no conflict between right and wrong; instead, there are only right and wrong; instead, there are only the conficting interests among a the conficting interests among a company’s stakeholders. company’s stakeholders.
Key Stakeholders
EmployeesEmployees
CustomersCustomers
InvestorsInvestors
CreditorsCreditors
GovernmentGovernment General PublicGeneral Public
SuppliersSuppliers
Board of Directors
Board of Directors ManagementManagement
Special InterestGroups
Special InterestGroupsUnionsUnions
Internal StakeholdersInternal Stakeholders
External StakeholdersExternal Stakeholders
Ethics & S-REthics & S-R 44Copyright 1999 Prentice Hall Publishing CompanyCopyright 1999 Prentice Hall Publishing Company
Business Ethics and Social Business Ethics and Social ResponsibilityResponsibility
Business ethics - the fundamental moral Business ethics - the fundamental moral values that form the foundation for the values that form the foundation for the people in an organization as they make people in an organization as they make decisions and interact with stakeholders.decisions and interact with stakeholders.
Social responsility - the awareness by a Social responsility - the awareness by a company’s managers of the social company’s managers of the social environmental, political, human, and environmental, political, human, and financial consequences its actions produce. financial consequences its actions produce.
Ethics & S-REthics & S-R 55Copyright 1999 Prentice Hall Publishing CompanyCopyright 1999 Prentice Hall Publishing Company
Three Levels of Ethical Three Levels of Ethical StandardsStandards
The law.The law. The policies and procedures of the The policies and procedures of the
organization.organization. The moral stance individuals take when The moral stance individuals take when
faced with decisions not governed by faced with decisions not governed by formal rules.formal rules.
Ethics & S-REthics & S-R 66Copyright 1999 Prentice Hall Publishing CompanyCopyright 1999 Prentice Hall Publishing Company
An Ethical FrameworkAn Ethical Framework
Step 1.Step 1. Recognize the ethical dimensions Recognize the ethical dimensions involved in the delimma or decision.involved in the delimma or decision.
Step 2Step 2. Identify the key stakeholders involved . Identify the key stakeholders involved and determine how the decision will affect and determine how the decision will affect them. them.
Step 3.Step 3. Generate alternative choices and Generate alternative choices and distinguish between ethical and unethical distinguish between ethical and unethical responses.responses.
Step 4.Step 4. Choose the “best” ethical response and Choose the “best” ethical response and implement it. implement it.
Ethics & S-REthics & S-R 77Copyright 1999 Prentice Hall Publishing CompanyCopyright 1999 Prentice Hall Publishing Company
Three Styles of Three Styles of ManagementManagement
Immoral managementImmoral management - driving force is - driving force is greedgreed..
Amoral managementAmoral management - does not consider - does not consider ethical impact on others.ethical impact on others.
Moral managementMoral management - sees the law as a - sees the law as a minimumminimum standard of behavior. standard of behavior.
Ethics & S-REthics & S-R 88Copyright 1999 Prentice Hall Publishing CompanyCopyright 1999 Prentice Hall Publishing Company
Why Ethical Lapses Why Ethical Lapses OccurOccur
The "bad apple"The "bad apple" The "bad barrel"The "bad barrel" Moral blindnessMoral blindness Competitive pressuresCompetitive pressures Opportunity pressuresOpportunity pressures Globalization of businessGlobalization of business
Ethics & S-REthics & S-R 99Copyright 1999 Prentice Hall Publishing CompanyCopyright 1999 Prentice Hall Publishing Company
Establishing Ethical Establishing Ethical StandardsStandards
The Utilitarian principle.The Utilitarian principle. Kant's categorical imperative.Kant's categorical imperative. The professional ethic.The professional ethic. The Golden Rule.The Golden Rule. The television test.The television test. The family test.The family test.
Ethics & S-REthics & S-R 1010Copyright 1999 Prentice Hall Publishing CompanyCopyright 1999 Prentice Hall Publishing Company
Maintaining Ethical Maintaining Ethical StandardsStandards
Create a company credo.Create a company credo. Develop a code of ethics.Develop a code of ethics. Enforce the code fairly and Enforce the code fairly and
consistently.consistently. Conduct ethical training.Conduct ethical training. Hire the right people.Hire the right people. Perform periodic ethical audits.Perform periodic ethical audits.
Ethics & S-REthics & S-R 1111Copyright 1999 Prentice Hall Publishing CompanyCopyright 1999 Prentice Hall Publishing Company
Maintaining Ethical Maintaining Ethical StandardsStandards
Establish high standards of behavior...not Establish high standards of behavior...not just rules.just rules.
Set an impeccable ethical example at all Set an impeccable ethical example at all times.times.
Create a culture that emphasizes two-way Create a culture that emphasizes two-way communication.communication.
Involve employees in establishing ethical Involve employees in establishing ethical standards.standards.
Ethics & S-REthics & S-R 1212Copyright 1999 Prentice Hall Publishing CompanyCopyright 1999 Prentice Hall Publishing Company
Business has a SocialBusiness has a Social Responsibility to... Responsibility to...
the environment.the environment. employees.employees. customers.customers. investors.investors. the community.the community.
Ethics & S-REthics & S-R 1313Copyright 1999 Prentice Hall Publishing CompanyCopyright 1999 Prentice Hall Publishing Company
Responsibility to the Responsibility to the EnvironmentEnvironment
Socially responsible businesses focus on Socially responsible businesses focus on the “three R’s”:the “three R’s”:
ReduceReduce the amount of materials used in the amount of materials used in your company.your company.
ReuseReuse whatever you can. whatever you can. RecycleRecycle the materials that you must the materials that you must
dispose of. dispose of.
Ethics & S-REthics & S-R 1414Copyright 1999 Prentice Hall Publishing CompanyCopyright 1999 Prentice Hall Publishing Company
Responsibility to Responsibility to EmployeesEmployees
DiversityDiversity
Ethics & S-REthics & S-R 1515Copyright 1999 Prentice Hall Publishing CompanyCopyright 1999 Prentice Hall Publishing Company
Managing DiversityManaging Diversity
Assess your company’s diversity needs.Assess your company’s diversity needs. Learn to recognize your own biases and Learn to recognize your own biases and
stereotypes.stereotypes. Avoid making invalid assumptions.Avoid making invalid assumptions. Push for diversity in your management team.Push for diversity in your management team. Concentrate on communication.Concentrate on communication. Make diversity a core value in the organization.Make diversity a core value in the organization. Continue to adjust your company to your Continue to adjust your company to your
workers. workers.
Ethics & S-REthics & S-R 1616Copyright 1999 Prentice Hall Publishing CompanyCopyright 1999 Prentice Hall Publishing Company
Responsibility to Responsibility to EmployeesEmployees
DiversityDiversity Drug testingDrug testing
Ethics & S-REthics & S-R 1717Copyright 1999 Prentice Hall Publishing CompanyCopyright 1999 Prentice Hall Publishing Company
A Drug Prevention Program A Drug Prevention Program Should Include . . .Should Include . . .
A written substance abuse policy.A written substance abuse policy. Training supervisors to detect drug-using Training supervisors to detect drug-using
workers.workers. A drug testing program, when necessary.A drug testing program, when necessary. An employee assistance program (EAP).An employee assistance program (EAP).
Ethics & S-REthics & S-R 1818Copyright 1999 Prentice Hall Publishing CompanyCopyright 1999 Prentice Hall Publishing Company
Responsibility to Responsibility to EmployeesEmployees
DiversityDiversity Drug testingDrug testing AIDSAIDS
Ethics & S-REthics & S-R 1919Copyright 1999 Prentice Hall Publishing CompanyCopyright 1999 Prentice Hall Publishing Company
An AIDS Policy Should An AIDS Policy Should Address . . .Address . . .
EmploymentEmployment DiscriminationDiscrimination Employee benefitsEmployee benefits ConfidentialityConfidentiality EducationEducation ““Reasonable accommodations”Reasonable accommodations”
Ethics & S-REthics & S-R 2020Copyright 1999 Prentice Hall Publishing CompanyCopyright 1999 Prentice Hall Publishing Company
Responsibility to Responsibility to EmployeesEmployees
DiversityDiversity Drug testingDrug testing AIDSAIDS Sexual harassmentSexual harassment
Ethics & S-REthics & S-R 2121Copyright 1999 Prentice Hall Publishing CompanyCopyright 1999 Prentice Hall Publishing Company
Behavior Leading to Sexual Behavior Leading to Sexual Harassment ChargesHarassment Charges
Quid Pro Quo (“something for Quid Pro Quo (“something for something”) harassmentsomething”) harassment
Hostile environmentHostile environment Harassment by nonemployeesHarassment by nonemployees
Ethics & S-REthics & S-R 2222Copyright 1999 Prentice Hall Publishing CompanyCopyright 1999 Prentice Hall Publishing Company
Preventing Sexual Preventing Sexual HarassmentHarassment
EducationEducation PolicyPolicy ProcedureProcedure
Investigate complaints Investigate complaints promptlypromptly.. Interview parties involved and witnesses.Interview parties involved and witnesses. Maintain confidentiality.Maintain confidentiality. Follow company policy.Follow company policy. Document the investigation.Document the investigation.
Ethics & S-REthics & S-R 2323Copyright 1999 Prentice Hall Publishing CompanyCopyright 1999 Prentice Hall Publishing Company
Responsibility to Responsibility to EmployeesEmployees
DiversityDiversity Drug testingDrug testing AIDSAIDS Sexual harassmentSexual harassment PrivacyPrivacy
Ethics & S-REthics & S-R 2424Copyright 1999 Prentice Hall Publishing CompanyCopyright 1999 Prentice Hall Publishing Company
Responsibility to CustomersResponsibility to Customers
Right to safetyRight to safety Right to knowRight to know Right to be heardRight to be heard Right to educationRight to education Right to choiceRight to choice