Chapter 2 Business Ethics and social responsibility

Business Ethics

Business ethics versus personal ethics

Acceptable business behaviour determined by:

The organization

Skateholders: customers, suppliers, competitors, government regulators, interest groups, and the public

An individuals personal principles and values

Social responsibility

Business obligations to maximize its positive impact and minimize its negative impact on society

Business law

Refers to the law and regulations that govern the conduct of business

The role of Ethics in business

Society’s judgement directly affects an organization’s ability to achieve its goals

Conflict of interest

When a person must choose whether to advance personal interests or those of others

Corporate citizenship

Is the extent which business meet the legal, ethical, economic, and voluntary responsibilities placed on them by their various stakeholders

How do terms business ethics and social responsibility differ from each other?

Business ethics concerns the impact of the entire businesses activities on society, whereas social responsibility relates to a work group’s decision that society evaluates as right or wrong

Ethical violations destroy

Confidence/trust

The most common ethical problem for employee is

Abusive or intimidating behaviour