BUSI1800 – LECTURE 4 NOTES Business Ethics & Social Responsibility

What are business ethics?

Standards of conduct and moral values that guide business actions, decisions, and behavior in the workplace.

Why do business ethics matter?

They are important for fairness, transparency, and accountability; unethical behavior can lead to loss of trust, financial collapse, legal penalties, and reputational damage.

What common theme is observed in major corporate ethical scandals?

Short-term gains often lead to long-term damage.

What is the Sarbanes-Oxley Act (SOX)?

A U.S. law enacted in 2002 that tightened rules for accounting and financial reporting and increased executive accountability.

What is Bill 198 in Canada?

The Canadian equivalent of the Sarbanes-Oxley Act, which strengthens corporate governance and disclosure.

What are the impacts of unethical corporate behavior?

Reputational damage, financial losses, legal consequences, employee morale issues, and loss of business opportunities.

What influences ethical behavior in the workplace?

Individual choices and actions of employees.

What are some common workplace ethical dilemmas?

Conflict of interest, honesty vs integrity, loyalty vs truth, and whistle-blowing decisions.

What are the four key elements that promote ethical conduct in organizations?

Code of conduct, education and training, action, and ethical leadership.

What is social responsibility?

Management's acceptance that profit must be considered equally important to employee satisfaction, customer satisfaction, and societal well-being.

How do socially responsible firms contribute to society?

Through job creation, economic growth, charitable donations, and community service.

What are some examples of corporate social responsibility (CSR) initiatives?

Employee empowerment, diversity and inclusion programs, environmental sustainability, community engagement, and ethical sourcing.

What areas can businesses focus on for social responsibility?

Public health, environmental protection, workforce development, corporate philanthropy, workplace safety, and consumer rights.