Achieving Business Success by
Demonstrating Ethical Behavior
and Social Responsibility
• 1-The Concepts of business ethics and social
• 2-The factors that influence individual ethics and
common ethical dilemmas in the workplace.
• 3-How organizations shape ethical behavior.
• 4-The ways in which government regulation affects
business ethics and social responsibility
• 5-The responsibilities of business to the general
• 6-Why investors and financial community are
concerned with business ethics.
• 7-The ethical and social responsibility issues facing
businesses in the global marketplace. 2
• The standards of conduct and moral values governing
actions and decisions in the work environment.
• Business also must take a wide range of social issues
into account,including how a decision will affects the
• Social responsibility is a related term refers to the
philosophies,policies,procedure,and actions directed
toward the enhancement of society’s welfare as a
• Businesses must find the delicate balance between doing
what is right and doing what is profitable.
• When that balance is skewed,they can experience serious
• In business,as in life,deciding what is right or wrong in a
given situation is not always a clear-cut choice.
• Businesses have many responsibilities to customers,to
employees,to investors,and to a society as a whole.
• Sometimes conflicts arise in trying to serve the divergent
needs of separate constituencies.
Forces Shaping Business Ethics and
• Four main forces shape business ethics and social
• Societal forces.
• Each of the forces interacts with the other
three,and the interactions powerfully impact both
the strength and direction of each influence.
FORCES SHAPING BUSINESS ETHICS
AND SOCIAL RESPONSIBILITY
• The discussion of business ethics begins by
focusing on individual ethics.
• Business ethics are shaped by the ethical climate
within an organization.
• Codes of conduct and ethical standards play
increasingly significant roles in businesses where
doing the right thing is both supported and
INDIVIDUAL BUSINESS ETHICS
• In today’s business environment,individuals can
make the difference in ethical expectations
• As we,executives,managers,and employees
demonstrate our personal ethical principles-or
lack of ethical principles-the expectations and
actions of those who work for us,as well as
those who work with us,can change.
• Individuals typically develop ethical standards
in the three stages .
• Stage 1:Preconventional
• Individuals is mainly looking out for his or her
own interests.Rules are followed only out of
fear of punishment or hope of reward.
• Stage 2:Conventional:
• Individual considers the interests and
expectations of others in making
decisions.Rules are followed because it is a part
of belonging to the group.
• Stage 3:
• Individual follows personal principles for
resolving ethical dilemmas.He or she considers
personal,group,and societal interests.A person’s
backgrounds can play a role.
• We have different styles of deciding ethical
dilemmas,no matter what our stage of moral
• One study suggests that men and women tend to
use different techniques for resolving ethical
ETHICAL GENDER GAP
Typical Ways Men Resolve Ethical Dilemmas:
• 1-Primarily respects Rights.
• 2-Ask”Who is Right”
• 3-Value Decisiveness
• 4-Make Unambiguous Decisions
• 5-Seek solutions that are objectively fair
• 6-Rely on rules
• 7-Are guided by logic
• 8-Accept Authority
ETHICAL GENDER GAP
Typical Ways Women Resolve Ethical Dilemmas:
1-Primarily Respect Feelings
2-Ask”Who will be Hurt”?
3-Avoid being Judgmental
4-Seek solutions that minimize hurt
5-Rely on communication
6-Are guided by emotion
Common Business Ethical Dilemmas
• Conflict Whistle-Blowing
Common Business Ethical
• 1-Conflict of Interest:A conflict of interest exists
when a businessperson is faced with a situation where
his or her decision may be influenced by the potential
for personal gain.
Bribes are one type of conflict of interest.
2-Honesty and Integrity: Honesty and integrity
are traits highly valued by employers.Honesty is an
ethical principle that permeates work
situations.Integrity means doing what you say you will
do and accepting responsibility for mistakes.
• 3-Loyalty versus Truth:Business people expect their
employees to be loyal and to act in the best interests of
the company.An ethical conflict can arise,however,when
individuals must decide between loyalty to the company
and truthfulness in business relationships.
• 4-Whistle-Blowing:When an individual does encounter
unethical or illegal actions at work,he or she must
decide what action to take.Whistle-blowing is the term
for an employee’s disclosure to the media or
government authorities of illegal,immoral,or unethical
practices of the organization.
• Whistle-blowing and other ethical issues arise relatively
infrequently in firms with strong organizational climates
of ethical behavior.
Doing what you say you will do and
accepting responsibility for mistakes
Structure of an Ethical Environment
Regulation of Competition
• Competition is the cornerstone of a private
• In a regulated industry,competition is either
limited or eliminated,and close government
control is substituted for free competition.
• The second form of government regulation
is,enactment of statutes,has led to both state and
federal laws that affect competition and various
• Regulated Industry:An Industry in which
competition is either limited or eliminated,and
government monitoring substitutes for market
• Deregulation:the movement toward eliminating
legal restraints on competition in various
industries,has significantly reshaped the legal
environment for many industries in the last two
• Government Regulation of Cyberspace:The
internet is a borderless market;for it to function
as a global marketplace,governments must work
together to develop a stable economic and legal
environment in which firms can operate
freely,regardless of jurisdiction.
• Policies such as encryption (coding)of sensitive
information,regulation,and electronic payments
can’t be decided separately by each country.
• Acting Responsibility to satisfy society:
• An important issue affecting business is the
question of social responsibility.In a general
sense,social responsibility is management's
acceptance of the obligation to consider
profit,consumer satisfaction,and societal well-
being of equal value in evaluating the firm’s
• Social responsibility is the recognition that
business must be concerned with the qualitative
dimensions of customer,employee,and societal
benefits as well as the quantities measures of
sales,revenue,and profit,by which business
performance is traditionally measured.
• Scientists say that social responsibility is a
concept easier to measure than business ethics.
Responsibility to the General Public
• The responsibility of business to the general
public include dealing with
• public-health issues,
• Protecting the environment
• And …developing the quality of the work force
• And also…many would argue that businesses
have responsibilities to support charitable and
social causes and organizations that work toward
the greater public good.
To the general Public
To the Investor and the To the
Financial Community Customer
To the Employee
RESPONSIBILITY OF BUSINESS
BUSINESS RESPONSIBILITIES TO THE
• 1-Consideration of Public Health:
• AIDS-Smoking-Alcohol Abuse
• 2-Developing the quality of the Work Force
• On-the Job-Training-Education Benefits
• 3-Protecting the Environment
• Avoiding Pollution Recycling
• 4-Corporate Philanthropy
• Monetary Donations to Charitable and Social
• Supporting Employee-Volunteer Efforts-Donating
Goods to Charitable and Social Organizations.
• Contemporary Business:Chapter 2
• Title :
• Business Responsibilities to the General Public.
Please read this Title.And Write Summary Paper
• Please bring your paper next Course.
Responsibilities to the Customers
• Business people share a social and ethical
responsibility to treat their customers fairly and
act in a manner that is not harmful to them.
• In the late 1960s Ralph Nader first pioneered
• Consumerism is the public demand that a
business consider the wants and needs of its
customers in making decisions
• Consumerism is based on the belief that
customers have Certain rights.
• The right to be Safe
• The right to be Informed
• The right to choose
• The right to be heard
The Right to be Safe
• Companies must recognize obligation ,both moral and
legal,to ensure the safe operation of their products.
Product Liability refers to the responsibilities of
manufacturers for injuries and damages caused by their
Companies must consider all possibilities and provide
adequate warning of potential dangers.And also they
should put their products through testing to avoid safety
The Right To Be Informed
• Consumers should have access to enough
education and product information to make
responsible buying decisions.
• Businesses should avoid misleading consumers.
• The responsibility of business to preserve
consumers’ right to be informed extends beyond
avoiding misleading advertising.
The Right To Choose
• Consumers have right to choose which
goods and services they need and want to
• Socially responsible le firms attempt to
preserve this right, even if they reduce their
own sales and profits in the process.
The Right To Be Heard
• Companies exert considerable effort to ensure
full hearing for consumer complaints.
• Costumers should be able to express legitimate
complaints to appropriate parties.
Responsibility To Employees
• One of the most important business
resources is an organization’s work force.
• Companies that are able to attract skilled
and knowledgeable employees are better
able to meet the challenges of competing on
a global basis.
Responsibilities To Employees
• Workplace Safety:
• Quality of Life Issues
• Ensuring Equal Opportunity on the Job
• Sexual Harassment and sexism
Responsibilities To Investors and
The Financial Community
• Investors and the financial community
demand that businesses behave ethically as
well as legally in handling their financial
• When they fail in this responsibility,
thousands of investors and consumers can
Ethics and Social Responsibility
In the Global Marketplace
• Global companies need to to carefully evaluate the
cultures of the countries where they do business.
• Some Standards:
• Avoid using child or forced labor
• Provide safe working environment
• Respect workers’ rights to unionize
• Require no more than 48-hour work weeks
• Play wages sufficient to meet workers' basic