Ethics and Social Responsibility in Business

Factors Affecting Ethical Behavior

• Individual Factors: Knowledge, moral values, personal goals.

• Social Factors: Cultural norms, peer influence, values of significant others.

• Opportunity: Organizational freedom to behave unethically or adherence to policies.

Encouraging Ethical Behavior

• Government Role: Implementing regulations (e.g., Sarbanes-Oxley Act).

• Trade Associations: Providing ethical guidelines.

• Companies: Establishing codes of ethics, hiring compliance officers.

• Whistle-blowing: Reporting unethical practices; protected by law.

Social Responsibility

• Social Responsibility: Recognition of business impact on society.

• Corporate Citizenship: Strategic approach to fulfilling responsibilities.

• Two Views of Social Responsibility:

  • Economic: Focus on profitability.

  • Socioeconomic: Emphasize social impact alongside profits.

Consumer Protection and Rights

• Consumerism: Protecting consumer rights in areas like safety and information disclosure.

• Basic Rights of Consumers include:

  • Right to safety, right to be informed, right to choose, right to be heard, right to consumer education, and right to service.

Responsibilities to Employees

• Addressing workplace discrimination and promoting equity.

• Need for affirmative action programs and training for underrepresented groups.

• Policies to combat sexual harassment and abusive behavior in the workplace.