Emba Paper with Details

chapter 2

business ethics and social responsibility

Learning Goal 1: Explain the concept of business ethics and social responsibility.

Key Term:

Business ethics

Class Discussion Notes:

1. Business ethics

a. The standards of conduct and moral values governing actions and decisions in the work environment.

b. Businesses must also take into account a wide range of social issues.

i. How will a decision affect the environment, customers, and employees.

ii. Social responsibility consists of the philosophies, policies, procedures, and actions directed toward the enhancement of society’s welfare.

c. Businesses must find the balance between doing what is right and doing what is profitable.

2. Business ethics in practice

a. As in life, deciding what is right or wrong in business is not always clear cut.

b. Conflicts can arise in trying to serve the different needs of different constituencies.

c. Business ethics are shaped:

i. By individuals weighing what’s right and wrong before making a decision or taking an action.

ii. The ethical climate within an organization, including codes of conduct.

Learning Goal 2: Describe the factors that influence business ethics.

Class Discussion Notes:

1. The current ethical environment

a. Recent surveys reveal that large majorities of Americans believe that business and business leaders have generally low ethical standards.

b. Most business owners and managers have built and maintained enduring companies without breaking the rules, however.

c. It takes many years to build a company’s reputation yet only a short amount of time to tear it down.

d. Review Johnson & Johnson’s credo (Figure 2.2). Point out that managers actually use these standards to evaluate how well their firm is performing and have the responsibility to address...