Business ethics
refers to the principles and standards that determine acceptable conduct in business organizations. Business ethics also refers to an individual’s or work group’s decisions that society evaluates as right or wrong
Social responsibility
refers to a business’s obligation to maximize its positive impact and minimize its negative impact on society. Social responsibility is a broader concept that concerns the impact of the entire business’s activities on society
Ethical Issue
is an identifiable problem, situation, or opportunity that requires a person or organization to choose from several actions that may be evaluated as right or wrong, ethical or unethical
How to judge the ethics of a situation
In business of ethically right or wrong often involves weighting monetory profit against what a person considers appropriate conduct
Ethical Issues in Business
- Misuse of Company Resources
- Abusive and Intimidating Behavior
- Conflict of Interest
- Fairness and Honesty
- Communications
- Business relationships
Codes of ethics
are formalized rules and standards that describe what a company expects of its employees. Codes of ethics should provide guidelines and principles that can help employees achieve objectives and address risks in an acceptable and legal way
Whistleblowing
occurs when an employee exposes an employer’s wrongdoing to outsiders, such as the media or government regulatory agencies
4 dimensions of social responsibility
economic, legal, ethical, and voluntary
Corporate citizenship
is the extent to which businesses meet the legal, ethical, economic, and voluntary responsibilities placed on them by their stakeholders
Consumerism
involves the activities that independent individuals, groups, and organizations undertake to protect their rights as consumers
The right to be informed
gives consumers the freedom to review complete information about a product before they buy it. This means detailed information about ingredients, risks, and instructions for use are to be printed on labels and packages
The right to choose
ensures that consumers have access to a variety of products and services at competitive prices
The right to be heard
assures consumers that their interests will receive full and sympathetic consideration when the government formulates policy, It also ensures the fair treatment of consumers who voice complaints about a purchaseed product
Sustainability
means conducting personal and organizational activities in a way that allows for the long-term well-being of the natural environment, including all biological entities
Environmental Issues
Environmental consciousness can save money through reducing waste, Greenwashing, or creating a positive association with environmental issues for an unsuitable product, service or practice.
