UNIT 2

BUSINESS AND ITS ENVIRONMENT

-3 TYPES OF BUSINESSES = COMERS, INDUSTRY, SERVICES
DIRECT AND INDIRECT
2 TYPES OF BUSINESS ENVIRONMENT = STATIC AND DYNAMIC

UNIT 3
BUSINESS ETHICS AND SOCIAL RESPONSIBILITY

ETHICS
*EXTERNAL SOURCE
*RELIGION, SOCIETY, BUSINESS
*GOAL IS GOODNESS

MORALITY
*INTERNAL SOURCE
*PERSONAL DECISIONS, INTEREST
*GOAL IS GOODNESS

-BUSINESS ETHIC
'MORAL PRINCIPLES, POLICIES, AND VALUES THAT GOVERN THE WAY BUSINESSES AND
INIVIDUALS ENGAGE IN BUSINESS ACTIVITIES.
'IMPLEMENTATION OF POLICIE AND PROCEDURES REGARDING TOPICS SUCH AS FRAUD, BRIBERY,
DISCRIMINATION AND CORPORATE GOVERNANCE

AREA OF BUSINESS ETHICAL PRACTICE

-PLANT LOCATION -ENVIRONMENTAL IMPACT
-PRODUCT -POLLUTION
-PURCHASE AND STORAGE -HOARDING
-TRANSPORTATION -SAFETY REGULATIONS
-FINANCE -APPRECIATION OF CAPITAL
-PERSONNEL -EQUITABLE TREATMENT

"PRACTICAL LESSONS FROM

PRESSURE FROM ABOVE
-THE PROBLEM OF SUPERIORS PRESSURING SBORDINATES TO ACHIEVE RESULTS IS WIDESPREAD

"RESPONDING TO PRESSURE
-CONSCIOUSLY AVOID PUTTING UDNUE PRESSURE ON SUBORDINATES
-PREPARE TO DEAL WITH EXCESSIVE ORGANIZATION PRESSURE

"AMBIGUOUS SITUATION
-SITUATIONS WHERE THERE ARE NO CLEAR- CUT ETHICAL GUIDELINES OR ETHICAL CODES

"A CALL TO ACTION

-THE DELIBERATE AND CONSCIOUSNESS ACTION OF A MANAGER TO DO THE RIGHT THING IS AN
ETHICAL AND PERSONAL MATTER

*GENERAL ETHICAL PRINCIPLES

-SELF-INTEREST
-PERSONAL VIRTUES
-RELIGIOUS INJUNCTIONS
-GPVERNMENT REQUIREMENTS
-ITILITARIAN BENEFITS
-UNIVERSAL RILES
-INDIVIDUAL RIGHTS
-ECONOMIC EFFICIENCY
-DISTRIBUTIVE JUSTICE
-CONTRIBUTIVE JUSTICE

*BENEFIT OF FOLLOWING BUSINESS ETHICS

-EASIER CHANGE MANAGEMENT
-STRONG TEAM WORK AND PRODUCTIVITY
-ENHANCED EMPLOYEE GROWTH
-GUARANTEE THAT PERSONNEL POLICIES ARE LEGAL
-HELPS TO DETECT VIOLATIONS EASILY

ETHICAL DILEMMA
-ALSO KNOWN AS ETHICAL PARADOX OR MORAL DILEMMA IS A PROBLEM IN THE DECISION-MAKING
PROCESS BETWEEN TWO POSSIBLE OPTIONS,
NEITHER OF WHICH IS ABSOLUTELY ACCEPTANCE FROM AN ETHICAL PERSPECTIVE

=APPROACHES IN SOLVING ETHICAL DILEMMAS

*REFUTE THE ETHICAL PARADOX
-THIS IS WHERE THE SITUATION MUST BE CAREFULLY ANALYZED. IN SOME CASES, THE
EXISTENCE OF THE DILEMMA CAN BE LOGICALLY REFUTED

*VALUE THEORY APPROACH

-CHOOSE THE ALTERNATIVE THAT OFFERS THE GREATER GOOD OR THE LESSER EVIL.

*FIND ALTERNATICE SOLUTIONS

-IN SOME CASES, THE PROBLEM CAN BE RECONSIDERED, AND NEW ALTERNATIVE SOLUTIONS MAY
ARISE.

CODE OF ETHICS
*IT SETS THE ORGANIZATION'S ETHICAL OR MORAL GUIDELINES AND BEST PRACTICES TO FOLOW
FOR HONESTY, INTEGRITY AND PROFESSIONALISM.

COMPLIANCE OFFICER
*ENSURES THAT A COMPANY COMPLIES WITH ITS OUTSIDE REGULATORY AND LEGAL REQUIREMENTS
AS WELL AS INTERNAL POLICIES AND BYLAWS

*COMPLIANCE OFFICERS HAVE A DUTY TO THEIR EMPLOYER TO WORK WITH MANAGEMENT AND
STAFF TO IDENTIFY AND MANAGEMENT REGUATORY RISK
-IN THE EVENT OF A REGULATORY BREACH, IT IS IMPORTANT FOR THE COMPLIANCE OFFICER TO
HAVE APPROPRIATE DISCIPLINARY MEASURES IN PLACE
TO AVOID A FUTURE RECURRENCE

ETHICS COMITTEE
*OVERSEES THE RESULTS OF CUSTOMER SERVICE EFFORTS TO ENSURE EMPLOYEES FOLLOW THE
PARAMETERS OF THE PROCESS IN HOW THEY TREAT PATIENTS

*MANUFACTURERS MAY RELY ON AN ETHICS COMMITTEE TO OVERSEE GOVERNMENT OR TRADE

COMPLIANCE ISSUES TO ENSURE THE COMPANY'S PROFITABILITY.

=WHISTLE-BLOWING
-THE REPORTING OF PERCEIVED UNETHICAL MATTERS COMPANIES MUST REDUCE THE FEAR OF
RETALIATION AGAINST WHISTLEBLOWERS VIA ANONYMOUS
HOTLINES, WEB SITES PERSONAL, CONFIDENTIAL GUIDANCE.

SOCIAL RESPONSIBILITY
*WORKING FOR THE COMMUNITY BY VOLUNTEERING, DONATING BLOOR, OR STAFFING AN ANIMAL
SHELTER OR FOOD BANK.

CORPORATE SOCIAL RESPONSIBILITY

-THE IDEA THAT BUSINESS HAS SOCIAL OBLIGATIONS ABOCE AND BEYOND MAKING A PROFIT.

-BUSINESS HAS AN OBLIGATION TO CONSTITUENT GROUPS IN SOCIETY OTHER THAN

STOCKHOLDERS AND BEYOND THAT PRESCRIBED BY LAW.

WHAT DOES SOCIAL RESPONSIBILITY INVOLVE

*VOLUNTARY ACTION
*ACTION BEFORE LAWSUITS OR OTHER ACTIONS THAT ARE TAKEN TO FORCE A FIRM TO TAKE
ACTIONS ON A MATTER
*AN EMPHASIS ON MEANS, NOT ENDS
*HOW THE DECISION TO ACT WAS REACHED, NOT THE DECISION ITSELF

SOCIAL RESPONSIBILITY STRATEGIES

*REACTIVE STRATEGY- FOCUSED ON CONTROL OVER EXISTING POLICIES AND DETERMINES THE
CHANGE OF A COURSE IN CASE OF A CRISIS EVENT ONLY.
*STRATEGY- CONSISTS OF A COMPANY'S ACTIONS DIRECTED FOR PROTECTING ITS COMPETITIVE
ADVANTAGE
*ACCOMMODATION STRATEGY- TO DESCRIBE THE ROLE THAT ACCOMMODATION PERRFORMS IN
DELIVERING CARE AND SUPPORT.
*PROACTIVE STRATEGY- TOOLS USED TO PREVENT OR AVOID PROBLEM BEHAVIOUR AMD
REGULATIONS FROM OCCURING

=WHO BENEFITS FROM CORPORATE SOCIAL RESPONSIBILITY

*ALTRUISM
*RESEARCH FINDINGS
*ENLIGHTENED SELF-INTEREST
*AN ARRAY OF BENEFITS FOR THE ORGANIZATION