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Ethics and Social Responsibility

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97 views22 pages

Ethics and Social Responsibility

Uploaded by

Andrea Dawn
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Chapter 3

Ethics and Social


Responsibility

Adopted From:
Lamb, Hair, and McDaniel

1 © 2016 Cengage Learning. All Rights Reserved.


LEARNING OUTCOMES
3-1 Explain the determinants of a civil
society
3-2 Explain the concept of ethical
behavior
3-3 Describe ethical behavior in business

3-4 Discuss corporate social


responsibility

© 2016 Cengage Learning. All Rights Reserved. 2


LEARNING OUTCOMES
3-5 Describe the arguments for and
against society responsibility
3-6 Explain cause-related marketing

© 2016 Cengage Learning. All Rights Reserved. 3


Determinants of
3-1
a Civil Society

Explain the determinants


of a civil society

© 2016 Cengage Learning. All Rights Reserved.


The Modes of Social Control
The following factors maintain order
and keep people and organizations
from running amuck:
•Ethics
•Laws
•Formal and informal groups
•Self-regulation
•The media
•An active civil society
© 2016 Cengage Learning. All Rights Reserved. 5
The Concept of
3-2
Ethical Behavior

Explain the concept


of ethical behavior

© 2016 Cengage Learning. All Rights Reserved.


Ethical Behavior
The moral principles or values that
generally govern the conduct of an
individual or a group.
Example:
• There is no law for “cutting in
line.”
• Cutting in line would anger
most other people.

© 2016 Cengage Learning. All Rights Reserved. 7


Ethical Theories
People usually base their individual
choice of ethical theory on their life
experiences.
•Deontology
•Utilitarianism
•Casuist
•Moral Relativists
•Virtue ethics

© 2016 Cengage Learning. All Rights Reserved. 8


Ethical Behavior
3-3
in Business

Describe
ethical behavior
in business

© 2016 Cengage Learning. All Rights Reserved.


Ethical Behavior
in Business

The moral principles or


Ethics
Ethics values that generally govern
the conduct of an individual.

The rules people develop as


Morals
Morals a result of cultural values
and norms.

Morals involve “good” and “bad” as


well as “deviant” behaviors
© 2016 Cengage Learning. All Rights Reserved. 10
Ethical Development Levels
More • Based on what will be
Childlike Preconventional punished or rewarded
Morality
• Self-centered, calculating,
selfish

• Moves toward the


Conventional expectations of society
Morality • Concerned over legality
and the opinion of
others

More Postconventional • Concern about how


Morality they judge themselves
Mature • Concern if it is right in
the long run

© 2016 Cengage Learning. All Rights Reserved. 11


Ethical Decision Making

Influential Factors

Extent of Problems Probability of Harm

Top Management Time Until


Actions Consequences

Potential Consequences Number Affected

Social Consensus

© 2016 Cengage Learning. All Rights Reserved. 12


Creating Ethical Guidelines
A Code of Ethics:

• Helps identify acceptable


business practices
• Helps control behavior internally
• Avoids confusion in decision
making
• Facilitates discussion about right
and wrong

© 2016 Cengage Learning. All Rights Reserved. 13


Ethics in Other Countries
Foreign Corrupt Practices Act (FCPA)
• Prohibits U.S. corporations from
making illegal payments to foreign
officials.

• Has been criticized for putting U.S.


businesses at a disadvantage.

• Has encouraged some countries to


implement their own anti-bribery laws.

© 2016 Cengage Learning. All Rights Reserved. 14


Corporate Social
3-4
Responsibility

Discuss corporate
social responsibility

© 2016 Cengage Learning. All Rights Reserved.


Corporate Social Responsibility

Corporate social responsibility is a


business’s concern for society’s
welfare.

Stakeholder theory says that social


responsibility is paying attention to the
interest of every affected stakeholder in
every aspect of a firm’s operation.

© 2016 Cengage Learning. All Rights Reserved. 16


Arguments For and Against
3-5
Corporate Social Responsibility

Describe the arguments


for and against
social responsibility

© 2016 Cengage Learning. All Rights Reserved.


Corporate Social Responsibility
For Against
• It is the right thing to do • Takes focus away from
• Businesses have the making profits
resources to devote to • Business executives
fixing social problems spend shareholder
• Prevents government money on environmental
regulation and potential initiatives
fines
• It can be profitable

18 © 2016 Cengage Learning. All Rights Reserved.


Sustainability
• Socially responsible companies
will outperform their peers.
• It is in business’s best interest
to find ways to attack society’s
ills.

© 2016 Cengage Learning. All Rights Reserved. 19


Green Marketing
The development and marketing of
products designed to minimize
negative effects on the environment
or improve the environment.
– Environmentally aware customers pay
more for products
– Companies must try to educate
customers of environmental benefits

© 2016 Cengage Learning. All Rights Reserved. 20


Cause-Related
3-6
Marketing

Explain cause-related
marketing

© 2016 Cengage Learning. All Rights Reserved.


Cause-Related Marketing

For-profit and non-profit organizations


cooperate to generate funds.
Generates about $7 billion annually
Too many causes lead to customer
cause fatigue

© 2016 Cengage Learning. All Rights Reserved. 22

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