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Business ethics chapter one

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1Business ethics chapter one. The 13that companies need to reconsider its
Importance of Business Ethics 1-Define relationship with all the surrounding
2-Why study 3-History 4-Benefits. parties and constituencies in the society.
2The Importance of Business Ethics Main 14Identifying your stakeholders. 1-
Elements. Business ethics defined Why primary stakeholders 2- secondary
study business ethics? The development of stakeholders Explain figure 2-2- what do
business ethics Developing an the arrows represent in the figure. -
organizational and global ethical culture …….are those whose continued association
The benefits of business ethics Summary. is absolutely necessary for a firm’s
3Ethics defined. Ethics is the study survival Primary stakeholders Secondary
and philosophy of human conduct, with an stakeholders The media Trade associations
emphasis on determining right from wrong. Special interest groups.
Values and principles are very important 15Social responsibility and the
of reference. Society is the source of importance of stakeholder orientation.
such values. That is why what is ethical What is meant by stakeholder’s
for one society might not be ethical for orientation? Conclusion: ethics and social
another one. responsibility cannot be just a reactive
4The Importance of Business Ethics. approach to issues as they arise. Firms
Introduction Next class you need to read and corporations need to view ethical
and discuss “an ethical dilemma in chapter concerns as a part of their foundation and
one. And Monsanto attempts to balance incorporate ethics in their business
stakeholder’s interests case study. strategy Which of the following is true
5Business ethics defined. business regarding socially responsible
ethics comprises the principles, values, organizations Social responsibility is an
and standards that guide behavior in the integral part of the organization ‘s
world of business. Principles: values are business strategy Social responsibility
specific boundaries for behavior that are and strategy are two different issues and
universal and absolute. Values: are used separated from each other. Organizations
to develop norms that are socially must be socially responsible in order to
enforced like integrity, trust and improve their reputation in their target
credibility. market None of the above.
6Why Study Business Ethics? Customers’ 16Social responsibility and ethics. SR
declining trust is a big issue. See Check and Ethics are interchangeable. Socially
figure 1-1 Examples and specific issues: responsible orgs are more ethical entities
Abusive behavior Harassment Bully than others. ISO 26000 for CSR ISO 1400
Accounting fraud Conflict of interest for the environment ISO 1800 for health
Defective products Bribery And theft Are and safety! Going green- many companies
all examples of declining ethical are going green Renewable energy
standards. Check the story of Johnson investments. Example the wind and the
& Johnson. solar energy.
7Why Study Business Ethics? Insider 17Social responsibility and ethics. What
trading is a serious issue in business and is corporate Citizenship? The extent to
ethics. Getting inside information and which businesses strategically meet the
using it to ones’ own interest. We call it economic, legal, ethical, and
corruption is the process of using inside philanthropic responsibilities placed on
information. Code of ethics Gifts , them by their various stakeholders. What
discrimination acts, injustice. is reputation and why is it important in
Falsification, deception and forgery, this context? ……….. Is the extent to which
(Plagiarism Universities, schools, businesses strategically meet economic,
research, publications) And many, many legal, ethical, and philanthropic
other aspects. responsibilities placed on them by their
8The reason for studying business various stakeholders Business ethics
ethics. Business ethics is very important Corporate governance Corporate citizenship
course for business leaders because they Stakeholder orientation All of the above.
can identify ethical issues when they 18Corporate governance. How Corporate
arise and use the approaches available for Governance provides formalized
resolving them True False Studying responsibility to stakeholders? Two views
business ethics is an awareness program. of corporate governance: A- shareholder
It gives you the awareness to recognize model of Corporate Governance B-
right from wrong. You may identify ethical stakeholder model of Corporate Governance
issues when they arise and use the The role of boards of directors Greater
approaches available for resolving them. demand for accountability and transparency
You will also learn more about the ethical Executive compensation - After taking this
decision making process and about ways to business ethics’ course, which of the
promote ethical behavior within your org. followings do you suggest for business
you will be able to cope with conflicts leaders? To adopt the share holder
between your own personal values and those approach To adopt the stakeholder approach
of the org in which you work. To adopt the economic approach To adopt
9The development of business ethics. the customer approach.
Check table 1-2 and see for yourself 19Implementing a stakeholder
According to the development and perspective. 1- assessing the corporate
evolvement of business ethics (from the culture To implement the stakeholder’s
60s up to the 21st century), the 21st perspective, you need to have it in your
century is characterized by Financial mission, norms, values and system. You
misconduct Sustainability Intellectual need to have a visionary leadership. Your
property theft Cybercrime All of the culture must support it. 2- identifying
above. stakeholder groups Some stakeholders exert
10Developing an organizational and more influence and power than others. The
global ethical culture. Its hard to company must identify these groups,
develop a global ethical culture. But its prioritize, and evaluate.
very important to create certain 20Implementing a stakeholder
regulations, I mean governmental rules and perspective. 3- identifying stakeholder
regulations beside organizational ones in issues Overweight in the US is an issue.
order to have an ethical culture. Climate change for some companies is an
11The Benefits of Business Ethics. 1- issue, GM food and biotechnology for
employee commitment and trust 2- ethics Monsanto is an issue. Carbon dioxide
contribute to investor loyalty 3-ethics emission for Toyota is an issue 4-
contribute to customer satisfaction These assessing org commitment to social
three within an ethical culture will lead responsibility The previous steps lead to
to: 4- ethics contribute to profit. See step four where companies could act
figure 1-3. socially responsible with accordance to
12Stakeholder relationships, social their stakeholders’ issue.
responsibility, and corporate governance 21Implementing a stakeholder
chapter two. Chapter’s main elements: perspective. 5- identifying resources and
Stakeholders define ethical issues in determining urgency Resources must be
business Social responsibility and the specified and urgency must be considered.
importance of a stakeholder orientation Resources must be quickly allocated based
Social responsibility and ethics on that urgency. Use porter strategy. 6-
(Corporate Social Responsibility). gaining stakeholder feedback. This is an
Corporate governance provides formalized information and data collection exercise
responsibility to stakeholders here. Via public and private data mining
Implementing a stakeholder perspective. to find out what our stakeholders think of
13Stakeholders define ethical issues in us. Next with chapter 3 Emerging Business
business. The relationship between Ethics Issues. Read the chapter dilemma.
companies and their stakeholders is Chapter 3 is a presentation chapter- an
two-way communication. What this statement individual task.
means? The conclusion of this point is
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