Introduction to Business Name _________________

Ch. 4 Business Ethics & Social Responsibility Date __________________

What is Ethics?

n Is it right for companies to sell names and addresses of individuals to others?

n Is it ethical for a person to send personal emails from work?

Ethics

Business Ethics

Legal Responsibility

n Triangle Shirtwaist Factory Company in New York City

n Sweatshops –

OSHA - Occupational Safety & Health Administration

n Businesses that break laws are subject to :

Code of Ethics

Ethics as Good Business

Why do unethical practices matter?

Important Ethical Questions to Ask Yourself

n Is it against the law?

n Does it violate company or professional policies?

n What if everyone did this?

n How would I feel if someone did this to me?

n Am I sacrificing long-term benefits for short-term gains?

Ethical decision making leads to more business activity & more efficient production of goods & services.

What you should do if you find yourself in an ethical dilemma:

n Identify

n Discover

n Decide who

n List the probable effects of

n Select

Fast Review, pg. 53

n How do companies benefit by enforcing their own codes of ethics?

n Why does it pay to treat customers ethically?

n What are some important ethic al questions to ask?

n Social Responsibility

n Businesses have an ethical obligation to:

n Conflict of Interests –

n What are the effects of unethical behavior?

Responsibility to Customers

n FDA – Food & Drug Administration

n Figure 4.2, pg. 54

n Labeling for over-the-counter medications

1982 – Johnson & Johnson were faced with a health care crisis

Fair Competition between companies is good for the marketplace.

1940 – Entertainment Studios enrolled in the Film Industry

Responsibility to Employees

Governmental Laws to Protect Workers

n Equal Pay Act (1964)–

n American with Disabilities Act

n Child Labor Laws, Rights of Workers to Organize, etc.

Codes of Ethics have been developed in many workplaces.

Responsibility to Society

Environmental Protection Agency

n EPA (created in 1970)

Many companies today plan for their special responsibility just like they plan for production and sales of their products.

n The Body Shop

n Los Angeles Times

n Honda & Toyota

Fast Review, pg. 57

n Define social responsibility.

n What is a conflict of interest?

n What do companies adopt in the workplace to treat their employees fairly?