Business Business EthicsEthics

ETHICSETHICS

The set of principles by The set of principles by

which people in a which people in a

society conduct society conduct

themselves in regard to themselves in regard to

good and right behavior good and right behavior

VALUESVALUES

Our personal, Our personal,

fundamental beliefs that we fundamental beliefs that we

use to define what is most use to define what is most

important to us in life, which important to us in life, which

determines our view of right determines our view of right

and wrong and wrong

Learning goalLearning goal

To be able to To be able to

identify a identify a

Business’ Social Business’ Social

Responsibility.Responsibility.

Business ethicsBusiness ethics

The set of principles by The set of principles by

which a business should which a business should

conduct itself in relation conduct itself in relation

to its social to its social

responsibility.responsibility.

Social ResponsibilitySocial Responsibility

The duty to do what is best The duty to do what is best for the good of society.for the good of society.

1.1. CustomersCustomers

2.2. EmployeesEmployees

3.3. EnvironmentEnvironment

customerscustomers Businesses should offer a good, Businesses should offer a good,

safe product or service at a safe product or service at a reasonable price.reasonable price.

Food and Drug Administration Food and Drug Administration (FDA)(FDA) – – Government agency that Government agency that protects consumers from protects consumers from dangerous or falsely advertised dangerous or falsely advertised products.products.

employeesemployees

A.A. Safe Working ConditionsSafe Working Conditions Occupational Safety and Occupational Safety and

Health Administration Health Administration

(OSHA)(OSHA) – A division of the – A division of the

Department of Labor that sets Department of Labor that sets

and enforces work-related and enforces work-related

health and safety rules.health and safety rules.

. . . employees. . . employeesB.B. Equal Treatment and Fair PayEqual Treatment and Fair Pay

Equal Pay Act (1964)Equal Pay Act (1964) – Requires – Requires men and women to be paid the same men and women to be paid the same wages for doing equal work. wages for doing equal work.

since then = ½ a penny of improvement per yearsince then = ½ a penny of improvement per year Women still only earn 75% of what men do in the Women still only earn 75% of what men do in the

same job. (March 2011)same job. (March 2011)

Americans with Disabilities ActAmericans with Disabilities Act – – Bans discrimination against persons Bans discrimination against persons with physical or mental disabilities.with physical or mental disabilities.

environmentenvironment Businesses have an obligation Businesses have an obligation

to conserve resources, and to conserve resources, and

protect the environment around protect the environment around

them.them. Environmental Protection Agency Environmental Protection Agency

(1970)(1970) – Federal agency that enforces – Federal agency that enforces

rules that protect the environment and rules that protect the environment and

control pollution.control pollution.

Learning goalLearning goal

To be able to To be able to

identify a identify a

Business’ Social Business’ Social

Responsibility.Responsibility.

Business Business EthicsEthics

Learning goalLearning goal

To be able to consider To be able to consider

and evaluate an and evaluate an

Employee’s Social Employee’s Social

Responsibility.Responsibility.

Employee rightsEmployee rights

Those things that workers are Those things that workers are owed by their employers.owed by their employers.

Examples:Examples: Safe working conditionsSafe working conditions Equal pay and treatmentEqual pay and treatment Insurance?Insurance? Paid Time Off?Paid Time Off? Retirement Benefits?Retirement Benefits?

Employee dutiesEmployee duties

Ethical obligations that Ethical obligations that

employees have to their employees have to their

employers.employers.

Examples:Examples:

HonestyHonestyLoyalty to the companyLoyalty to the companyGiving a fair day’s workGiving a fair day’s work

Code of ethicsCode of ethicsA written set of ethical A written set of ethical

guidelines that workers are guidelines that workers are expected to followexpected to follow

More than 85% of corporations in More than 85% of corporations in America have one America have one

ExEx: abuse of sick time, theft, drug & : abuse of sick time, theft, drug & alcohol abuse, and confidentiality alcohol abuse, and confidentiality

Businesses can be held legally Businesses can be held legally responsible for their employees’ responsible for their employees’ actions!actions!

Conflict of interestConflict of interestWhen people who have agreed When people who have agreed

to act in the best interest of to act in the best interest of others are tempted to act in others are tempted to act in their own interest instead.their own interest instead.

““Others” = their employer!Others” = their employer!

Whistle-blowingWhistle-blowingReporting unethical or illegal Reporting unethical or illegal

actions by a superior or co-actions by a superior or co-worker to authorities or the worker to authorities or the

media.media. Could save lives, save taxpayers Could save lives, save taxpayers

money, or bring criminals to justicemoney, or bring criminals to justice Could be false, or even a Could be false, or even a

misunderstanding!misunderstanding!

Learning goalLearning goal

To be able to consider To be able to consider

and evaluate an and evaluate an

Employee’s Social Employee’s Social

Responsibility.Responsibility.

Business Business EthicsEthics

Learning goalLearning goal

To be able to discuss the To be able to discuss the

need for Affirmative need for Affirmative

Action, and the Action, and the

consequences of consequences of

Preferential Selection. Preferential Selection.

Civil Rights Act (1964)Civil Rights Act (1964)

Prohibits all discrimination on Prohibits all discrimination on the grounds of race, color, the grounds of race, color, gender, religion or national gender, religion or national origin.origin.

What is Discrimination?What is Discrimination?

Any exclusionary practice not Any exclusionary practice not necessary to an institution’s activities.necessary to an institution’s activities.

Affirmative actionAffirmative action

Positive steps taken to Positive steps taken to

increase the representation of increase the representation of

women and minorities in women and minorities in

areas of employment, areas of employment,

education, and business from education, and business from

which they have been which they have been

historically excluded. historically excluded.

Preferential Preferential selectionselection

Businesses must research the Businesses must research the numbers of those minorities (and numbers of those minorities (and women) who would be hired if women) who would be hired if they were NOT discriminating.they were NOT discriminating.

These numbers determine the These numbers determine the quotas that businesses must quotas that businesses must meet!meet!

Learning goalLearning goal

To be able to discuss the To be able to discuss the

need for Affirmative need for Affirmative

Action, and the Action, and the

consequences of consequences of

Preferential Selection. Preferential Selection.