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Ethics & S-R Ethics & S-R 1 Copyright 1999 Prentice Hall Publishing Company Copyright 1999 Prentice Hall Publishing Company Ethics, Social Ethics, Social Responsibility Responsibility , and the , and the Entrepreneur Entrepreneur

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Page 1: Ethics & S-R 1 Copyright 1999 Prentice Hall Publishing Company Ethics, Social Responsibility, and the Entrepreneur

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

Page 2: Ethics & S-R 1 Copyright 1999 Prentice Hall Publishing Company Ethics, Social Responsibility, and the Entrepreneur

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.

Page 3: Ethics & S-R 1 Copyright 1999 Prentice Hall Publishing Company Ethics, Social Responsibility, and the Entrepreneur

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

Page 4: Ethics & S-R 1 Copyright 1999 Prentice Hall Publishing Company Ethics, Social Responsibility, and the Entrepreneur

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.

Page 5: Ethics & S-R 1 Copyright 1999 Prentice Hall Publishing Company Ethics, Social Responsibility, and the Entrepreneur

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.

Page 6: Ethics & S-R 1 Copyright 1999 Prentice Hall Publishing Company Ethics, Social Responsibility, and the Entrepreneur

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.

Page 7: Ethics & S-R 1 Copyright 1999 Prentice Hall Publishing Company Ethics, Social Responsibility, and the Entrepreneur

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.

Page 8: Ethics & S-R 1 Copyright 1999 Prentice Hall Publishing Company Ethics, Social Responsibility, and the Entrepreneur

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

Page 9: Ethics & S-R 1 Copyright 1999 Prentice Hall Publishing Company Ethics, Social Responsibility, and the Entrepreneur

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.

Page 10: Ethics & S-R 1 Copyright 1999 Prentice Hall Publishing Company Ethics, Social Responsibility, and the Entrepreneur

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.

Page 11: Ethics & S-R 1 Copyright 1999 Prentice Hall Publishing Company Ethics, Social Responsibility, and the Entrepreneur

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.

Page 12: Ethics & S-R 1 Copyright 1999 Prentice Hall Publishing Company Ethics, Social Responsibility, and the Entrepreneur

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.

Page 13: Ethics & S-R 1 Copyright 1999 Prentice Hall Publishing Company Ethics, Social Responsibility, and the Entrepreneur

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.

Page 14: Ethics & S-R 1 Copyright 1999 Prentice Hall Publishing Company Ethics, Social Responsibility, and the Entrepreneur

Ethics & S-REthics & S-R 1414Copyright 1999 Prentice Hall Publishing CompanyCopyright 1999 Prentice Hall Publishing Company

Responsibility to Responsibility to EmployeesEmployees

DiversityDiversity

Page 15: Ethics & S-R 1 Copyright 1999 Prentice Hall Publishing Company Ethics, Social Responsibility, and the Entrepreneur

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.

Page 16: Ethics & S-R 1 Copyright 1999 Prentice Hall Publishing Company Ethics, Social Responsibility, and the Entrepreneur

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

Page 17: Ethics & S-R 1 Copyright 1999 Prentice Hall Publishing Company Ethics, Social Responsibility, and the Entrepreneur

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).

Page 18: Ethics & S-R 1 Copyright 1999 Prentice Hall Publishing Company Ethics, Social Responsibility, and the Entrepreneur

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

Page 19: Ethics & S-R 1 Copyright 1999 Prentice Hall Publishing Company Ethics, Social Responsibility, and the Entrepreneur

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”

Page 20: Ethics & S-R 1 Copyright 1999 Prentice Hall Publishing Company Ethics, Social Responsibility, and the Entrepreneur

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

Page 21: Ethics & S-R 1 Copyright 1999 Prentice Hall Publishing Company Ethics, Social Responsibility, and the Entrepreneur

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

Page 22: Ethics & S-R 1 Copyright 1999 Prentice Hall Publishing Company Ethics, Social Responsibility, and the Entrepreneur

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.

Page 23: Ethics & S-R 1 Copyright 1999 Prentice Hall Publishing Company Ethics, Social Responsibility, and the Entrepreneur

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

Page 24: Ethics & S-R 1 Copyright 1999 Prentice Hall Publishing Company Ethics, Social Responsibility, and the Entrepreneur

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