Chapter 4

Chapter
Business Ethics and

Social Responsibility
pp. 48-61
Chapter
Learning Objectives
After completing this chapter, youll be
able to:
1. Explain business ethics.
2. Give reasons why ethical behavior is
good for business.
continued
Introduction to Business, Business Ethics and Social Responsibility
Slide 2 of 44
Chapter
Learning Objectives
After completing this chapter, youll be
able to:
3. Define social responsibility.
4. Describe the social responsibilities
businesses have to society.
Slide 3 of 44
Chapter
Why Its Important

Understanding business ethics
and social responsibility makes
you informed of your rights as a
consumer, an employee, and a
citizen.
Slide 4 of 44
Chapter
Key Words
ethics
business ethics
sweatshops
Occupational Safety and Health
Administration (OSHA)
code of ethics
social responsibility
continued
Slide 5 of 44
Chapter
Key Words
conflict of interest
Food and Drug Administration (FDA)
Equal Pay Act
Environmental Protection Agency (EPA)
Slide 6 of 44
Chapter
What Is Ethics?
Ethics is the set of moral principles by
which people conduct themselves
personally, socially, or professionally.
Slide 7 of 44
Chapter
What Is Ethics?
Business ethics is a set of laws about
how a business should conduct itself.
In general, for any business to be
successful, it must operate legally and
humanely.
Slide 8 of 44
Chapter
Figure
4.1
ENVIRONMENTALLY FRIENDLY
Ethics is the set of

principles by which
you conduct yourself in
society.
How often do you help
the environment?
What do you do?
Source: The NPD Group
Slide 9 of 44
Chapter
Legal Responsibility
Sweatshops are factories that pay
workers poorly, are unhealthy, and
treat workers badly.
Slide 10 of 44
Chapter
The Occupational Safety and Health
Administration (OSHA) is a division
of the Department of Labor that sets
and enforces work-related health and
safety rules.
Slide 11 of 44
Chapter
Other independent agencies protect
consumers, monitor broadcast
communications, and address
discrimination in the workplace.
Slide 12 of 44
Chapter
Most businesses police themselves by
distributing codes of ethics.
A code of ethics is a set of strict
guidelines for maintaining ethics in the
workplace.
Slide 13 of 44
Chapter
Businesses that regulate themselves
are able to operate more freely.
Slide 14 of 44
Chapter
Ethics as Good Business

Unethical business practices can affect
your business indirectly.
The amount you make in profits from
one unhappy customer can translate
into a lot more lost because of missed
repeat business.
Slide 15 of 44
Chapter
Ethics as Good Business

Treating employees unethically can
also backfire.
Mistreating employees leads to a high
turnover rate. This increases the cost
of hiring and training new employees.
Slide 16 of 44
Chapter
Important Ethical Questions

When considering a questionable
course of action, you have to ask
yourself these important questions:
Is it against the law? Does it violate

company or professional policies?
continued
Slide 17 of 44
Chapter
Important Ethical Questions
What if everyone did this? How
would I feel if someone did this to

me?
Am I sacrificing long-term benefits for
short-term gains?
Slide 18 of 44
Chapter
Making Decisions on
Ethical Issues
Here are some steps if you find
yourself in an ethical dilemma:
1. Identify the ethical dilemma.
2. Discover alternative actions.
continued
Slide 19 of 44
Chapter
Making Decisions on
Ethical Issues
3. Decide who might be affected.
4. List the probable effects of the
alternatives.
5. Select the best alternative.
Slide 20 of 44
Graphic
Organizer
Chapter
Graphic
Organizer
Important
Ethical
Questions
Does it violate the law or policies?
YES
UNETHICAL
NO
What if everyone did this, but its bad?
YES
UNETHICAL
NO
Would this sacrifice long-term benefits for
short-term gain?
YES
MAY BE
UNETHICAL
NO
ETHICAL DECISION
Slide 21 of 44
Chapter
Fast Review
1. How do companies benefit by

enforcing their own codes of ethics?
2. Why does it pay to treat customers
ethically?
continued
Slide 22 of 44
Chapter
Fast Review
3. What are some important ethical

questions to ask?
Slide 23 of 44
Chapter
Social responsibility is the duty to do
what is best for the good of society.
Slide 24 of 44
Chapter
The ethical obligations of a business
are to:
Provide safe products
Create jobs
Protect the environment
Contribute to the standard of living in
society
Slide 25 of 44
Chapter
A conflict of interest is when a
business is tempted to put profits
before social welfare.
Slide 26 of 44
Chapter
Responsibility to Customers
The Food and Drug Administration
(FDA), a government agency, protects
consumers from dangerous or falsely
advertised products.
Slide 27 of 44
Chapter
Figure
4.2
OVER-THE-COUNTER MEDICINE LABEL
The FDA governs

advertising and
labeling of overthe-counter
medicines.
Analyze why the
FDA officials might
feel that regulation
of advertising and
packaging labels is
necessary.
Slide 28 of 44
Chapter
Fair competition between businesses
is healthy for the marketplace, but
some companies dont always play
reasonably.
Slide 29 of 44
Chapter
Some companies use unethical means
to eliminate competition.
One of the most common means is to
conspire with other companies to
control the market for a product.
Slide 30 of 44
Chapter
Responsibility to Employees
Businesses have a social
responsibility to create jobs.
They are expected to provide
employees with safe working
conditions, equal treatment, and fair
pay.
Slide 31 of 44
Chapter
The Equal Pay Act (passed in 1964)
requires that men and women be paid
the same wages for doing equal work.
Slide 32 of 44
Chapter
The Americans with Disabilities Act
bans discrimination against persons
with physical or mental disability.
Slide 33 of 44
Chapter
Its in a companys best interest to
treat its workers fairly otherwise low
morale, poor productivity, and a high
turnover rate are its troubles.
Slide 34 of 44
Chapter
Responsibility to Society
Businesses have responsibilities not
only to customers and to employees
but also to society as a whole.
Slide 35 of 44
Chapter
In 1970, the U.S. government created
the Environmental Protection
Agency (EPA), a federal agency that
enforces rules that protect the
environment and control pollution.
Slide 36 of 44
Chapter
Many businesses plan for their social
responsibilities just like planning for
production and sale of their products.
Slide 37 of 44
Chapter
Fast Review
1. Define social responsibility.

2. What is a conflict of interest?
continued
Slide 38 of 44
Chapter
Fast Review
3. What do companies adopt in the

workplace to treat their workers
fairly?
Slide 39 of 44
Chapter
Why should a company make a

vested interest in nature over its
products?
continued
Slide 40 of 44
Chapter
How does the consumer pay for a

companys environmentally
responsible inventions?
continued
Slide 41 of 44
Chapter
What are social issues youre

interested in pursuing?
How are businesses involved?
continued
Slide 42 of 44
Chapter
What government agency has a

responsibility to protect society
from genetically modified
organisms?
Slide 43 of 44
End of Chapter
Business Ethics and Social Responsibility

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Chapter

Business Ethics and

Introduction to Business, Business Ethics and Social Responsibility

Why Its Important

Introduction to Business, Business Ethics and Social Responsibility

Introduction to Business, Business Ethics and Social Responsibility

Introduction to Business, Business Ethics and Social Responsibility

Introduction to Business, Business Ethics and Social Responsibility

Ethics is the set of

Source: The NPD Group

Introduction to Business, Business Ethics and Social Responsibility

Introduction to Business, Business Ethics and Social Responsibility

Introduction to Business, Business Ethics and Social Responsibility

Introduction to Business, Business Ethics and Social Responsibility

Introduction to Business, Business Ethics and Social Responsibility

Ethics as Good Business

Ethics as Good Business

Important Ethical Questions

Is it against the law? Does it violate

Important Ethical Questions

What if everyone did this? How

would I feel if someone did this to

Introduction to Business, Business Ethics and Social Responsibility

Introduction to Business, Business Ethics and Social Responsibility

1. How do companies benefit by

3. What are some important ethical

Introduction to Business, Business Ethics and Social Responsibility

Introduction to Business, Business Ethics and Social Responsibility

Introduction to Business, Business Ethics and Social Responsibility

Introduction to Business, Business Ethics and Social Responsibility

OVER-THE-COUNTER MEDICINE LABEL

The FDA governs

Introduction to Business, Business Ethics and Social Responsibility

Introduction to Business, Business Ethics and Social Responsibility

Introduction to Business, Business Ethics and Social Responsibility

Introduction to Business, Business Ethics and Social Responsibility

Introduction to Business, Business Ethics and Social Responsibility

Introduction to Business, Business Ethics and Social Responsibility

Introduction to Business, Business Ethics and Social Responsibility

1. Define social responsibility.

3. What do companies adopt in the

Introduction to Business, Business Ethics and Social Responsibility

Why should a company make a

How does the consumer pay for a

What are social issues youre

What government agency has a

Business Ethics and Social Responsibility

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