TAILIEUCHUNG - Lecture Business: A changing world - Chapter 3: Business ethics and social responsibility

In this chapter, we take a look at the role of ethics and social responsibility in business decision making. After reading this chapter, you will be able to: Define business ethics and examine its importance; detect some of the ethical issues that may arise in business, specify how businesses can promote ethical behaviour; define social responsibility and explain its relevance to business; debate an organization's social responsibilities to owners, employees, consumers, the environment, and the community. | Chapter Three Business Ethics and Social Responsibility Comparison of Business Ethics and Social Responsibility Business Ethics Refers to the principles and standards that define acceptable conduct in the world of business. Social Refers to a business’s obligation Responsibility to maximize its positive impact and minimize its negative impact on society. 3-1 Ethical Issue An identifiable problem, situation, or opportunity that requires a person to choose from among several actions that may be evaluated as right or wrong, ethical or unethical. 3-2 Reactions to Unethical Employers What happened when surveyed employees found out their employers were doing something that was against the employee’s ethical standards tried to resolve the situation without losing job 40% talked to boss 38% did nothing 9% quit 5% other 1% not sure 7% 3-3 Source: Yankelovich Partners Survey, PRNewswire, October 6, 1998. Reasons for Not Reporting Observed Misconduct 1. Fear of not being considered a team .

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