Business Ethics and Social Responsibility PDF

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Business Ethics and Social Responsibility...

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Chapt er2 Busi nessEt hi csandSoci alResponsi bi l i t y Anyor gani z at i on,i nc l udi ngnonpr ofi t s ,hast omanaget heet hi c albehavi orofempl oy ees anpar t i c i pant si nt heov er al loper at i onsoft heor gani z at i on.Theet hi c alc onductof empl oy eesc r eat esac ul t ur eoft r us tandr es pectt hatmak esabus i nes spr oduc t i v e.

Busi nessEt hi csandSoci al Responsi bi l i t y Wedefi nebusi nesset hi csast hepr i nc i pl esands t andar dst hatdet er mi neaccept abl e c onducti nbus i nes sor gani z at i ons .Per s onalet hi c s ,ont heot herhand,r el at est oan i ndi v i dual ’ sv al ues ,pr i nc i pl es ,andst andar dsofconduct .Theaccept abi l i t yofbehav i ori n bus i nes si sdet er mi nedbynotonl yt heor gani z at i onbutal s ost ak ehol der ss uc has c ust omer s ,c ompet i t or s,gov er nmentr egul at or s ,i nt er es tgr oups ,andt hepubl i caswel l aseachi ndi v i dual ’ sper s onal pr i nc i pl esandv al ues . Manyexper t sagr eet hatet hi c all eader s hi p,et hi calv al ues ,andcompl i anc ear e i mpor t anti nc r eat i nggoodbus i nesset hi c s . Manyc ons umer sands oc i aladv oc at esbel i ev et hatbus i nes sess houl dnotonl ymak ea pr ofi tbutal s oconsi dert hesoc i ali mpl i cat i onsoft hei rac t i vi t i es .Wedefi nesoci al r esponsi bi l i t yasabusi ness ’ sobl i gat i ont omaxi mi z ei t sposi t i v ei mpactandmi ni mi z e i t snegat i v ei mpac tons oci et y .Busi nes set hi c sr el at est oani ndi v i dual ’ sorawor k gr oup’ sdec i s i onst hats oc i et yev al uat esasr i ghtorwr ong,wher eass oc i alr es pons i bi l i t y i sabr oaderconceptt hatconcer nst hei mpactoft heent i r ebusi ness ’ sac t i v i t i eson s oci et y .

Recogni zi ngEt hi calI ssuesi nBusi ness Recogni z i nget hi c al i s s uesi st hemosti mpor t ants t epi nunder s t andi ngbusi nesset hi c s . Anet hi cali ssuei sani dent i fi abl epr obl em,s i t uat i on,oroppor t uni t yt hatr equi r esa per sont oc hos epr om amongs ev er alac t i onst hatmaybeev al uat edasr i ghtorwr ong, et hi calorunet hi cal .I nbus i nes s ,s uchaac hoi ceof t eni nv ol v eswei ghi ngmonet ar y pr ofi tagai ns twhataper s oncons i der sappr opr i at econduct . Manybusi nessi s suess eem s t r ai ght f or war dandeas yt or esol v eont hesur f acebutar e i nr eal i t yv er ycompl ex .Aper sonof t enneedss ev er al y ear sofex per i enc ei nbus i nesst o under s t andwhati sacc ept abl eoret hi c al .Forex ampl e,i ti sconsi der edi mpr opert ogi v e orac ceptbr i bes,whi c har epay ment s ,gi f t s ,orspec i alf av or si nt endedt oi nfluencet he out comeofadec i s i on. Oneoft hepr i nc i palc aus esofunet hi c albehav i ori nor gani z at i onsi sov er l yaggr es si v e fi nanc i al orbus i nessobj ec t i v es .Manyoft hes ei s s uesr el at et odeci s i onsandconcer ns t hatmanager shav et odealwi t hdai l y . Manyet hi cali s s uesi nbus i nes scanbecat egor i z edbyt hecont extoft hei rr el at i onwi t h abus i v eandi nt i mi dat i ngbehav i or ,confli ct sofi nt er es t ,f ai r nes sandhones t y, c ommuni cat i ons ,mi s useofcompanyr esour c es ,andbusi nessass oc i at i ons .

Mi suseofCompanyTi me Thef toft i mei st henumberonear eaofmi sc onductobser v edi nt hewor kpl ac e.One ex ampl eofmi sus i ngt i mei nt hewor kpl acei sbyengagi ngi nact i v i t i est hatar enot neces sar yf ort hej ob.I ti sbel i ev edt hatt heav er ageempl oy ees t eal s4. 5hour saweek wi t hl at ear r i v al s,l eav i ngear l y ,l ongl unc hbr eak s ,i nappr opr i at es i c kday s .Al loft hese act i v i t i esaddupt ol ostpr oduct i v i t yandpr ofit sf ort heempl oy er sandr el at et oet hi c al i s suesi nt hear eaoft i met hef t .

Abusi veandI nt i mi dat i ngBehavi or Abusi v eandi nt i mi dat i ngbehavi ori st hes econdmos tcommonet hi calpr obl em f or empl oy ees .Thes econcept sc anmeanany t hi ngf r om phy si calt hr eat s ,f al s e acc usat i ons ,pr of ani t y ,i ns ul t s ,y el l i ng.Abus i v ebehav i orcanbepl ac edonacont i nuum f r om ami nordi st r act i ont oadi s r upt i onoft hewor kpl ace.

Mi suseofCompanyResour ces Mi sus eofc ompanyr es our c eshasbeeni dent i fi edasal eadi ngi ss uei nobs er v ed mi sc onducti nor gani z at i ons .I ss uesmi ghti nc l udes pendi nganex c ess i v eamountof t i meonper s onalemai l s ,s ubmi t t i ngper s onalex pens esoncompanyex pensesr epor t s, orus i ngt hecompanycopi erf orper s onalus e.

Confli ctofI nt er est Aconfli ctofi nt er es t ,onoft hemos tc ommonet hi cali ss uesi dent i fi edbyempl oy ees , ex i s t swhenaper sonmustc hoos ewhet hert oadv ancehi sorherownper s onal i nt er es t s ort hos eofot her s .Toav oi dc onfl i c tofi nt er es t ,empl oy eesmustbeabl et os epar at et hei r per sonalfinanc i ali nt er es t sf r om t hei rbus i nessdeal i ngs .

Fai r nessandHonest y Fai r nes sandhones t yar eatt hehear tofbusi nesset hi c sandr el at et ot hegener al v al uesofdeci s i onmak er s .Bey ondobey i ngt hel aw,bus i nes sper sonsar eexpect ednot t ohar m cus t omer s ,empl oy ees ,c l i ent s ,orcompet i t or s .Hones t l yandf ai r nessc anr el at e t ohowt heempl oy eesus et her es our cesoft heor gani z at i on.Fai r nes scanbedefinedas bei ngi mpar t i al andj us t ,wher eashones t yi sdefinedasbei ngt r ut hf ulandt r us t wor t hy .I n c ont r as t ,di shonest yi susual l yas soc i at edwi t hal ac kofi nt egr i t y ,andl yi ng.

Communi cat i ons Communi cat i onsi sanot herar eai nwhi chet hi calconcer nsmayar i s e.Fal s eand mi sl eadi ngadv er t i s i ng,asquel lasdec ept i v eper sonal sel l i ngt act i c s ,angercons umer s andc anl eadt ot hef ai l ur eofabus i ness .Tr ut hf ul nes saboutpr oducts af et yandqual i t y ar eal s oi mpor t antt oc ons umer s .

Busi nessRel at i onshi ps Thebehav i orofbus i nes sper sonst owar dc us t omer s ,suppl i er s ,andot her si nt hei r wor kpl ac emayal s ogener at eet hi c alconcer ns.Et hi c albehav i orwi t hi nabus i nes s

i nv ol v esk eepi ngcompanysec r et s ,meet i ngobl i gat i onsandr es pons i bi l i t i es ,and av oi di ngunduepr es s ur et hatmayf or ceot her st oactunet hi cal l y . Manager si npar t i c ul arhav et heoppor t uni t yt oi nfl uenceempl oy ees ’ac t i ons .I ti s r esponsi bi l i t yofmanager st oc r eat eawor kenv i r onmentt hathel pst heor gani z at i on ac hi ev ei t sobj ec t i v esanf ul fi l li t sr es pons i bi l i t i es .Howev er ,t hemet hodst hatmanager s us et oenf or c et hes er es pons i bi l i t i ess houl dnotcompr omi s eempl oy eer i ght s . Pl agi ar i sm,pr es ent i ngs omeoneel se’ swor kasy ourownwi t houtment i oni ngt he s our ce,i sanot heret hi cali ss ue.I nbus i ness ,anet hi cali s suear i seswhenanempl oy ee c opi esr epor t sorpr es entt hewor kori deasofot her sashi sorherown.

I mpr ovi ngEt hi calBehavi ori nBusi ness Et hi c aldec i si onsi nanor gani zat i onar ei nfluencedbyt hr eek eyf act or s :i ndi v i dualmor al s t andar ds,t hei nfl uenc eofmanager sandcowor k er s ,andt heoppor t uni t yt oengagei n mi sc onduct . Becaus eet hi cali ss uesof t enemer gef r om confli ct ,i ti sus ef ult oex ami net hec aus esof et hi calconfli ct .Bus i nes smanager sandempl oy eesof t enex per i encesomet ens i on bet weent hei rownet hi calbel i ef sandt hei robl i gat i onst ot heor gani zat i onsi nwhi cht hey wor k . I ti sdi ffic ul tf orempl oy eest odet er mi newhatc onducti sac cept abl ewi t hi nacompanyi f t hefir m doesnothav ees t abl i s hedet hi cspol i c i esands t andar ds .Pr of ess i onalcodesof et hi csar ef or mal i z edr ul esands t andar dst hatdes cr i bewhatt hecompanyex pect sofi t s empl oy ees ;t heys houl dpr ov i degui del i nesandpr i nc i pl est hatc anhel pempl oy ees ac hi ev eor gani z at i onobj ec t i v esandaddr essr i s ksi nanaccept abl eandet hi calway . Whi s t l ebl owi ngocc ur swhenanempl oy eeexposesanempl oy er ’ swr ongdoi ngt o out s i der s ,suc hast hemedi aorgov er nmentr egul at or yagenc i es .

TheNat ur eofSoci al Responsi bi l i t y Thef ourdi mensi onsofs oci alr es pons i bi l i t yar eeconomi c( bei ngpr ofit abl e) ,l egal ( obey i ngt hel aw) ,et hi c al( doi ngwhati sr i ght ,j ust ,andf ai r ) ,andv ol unt ar y( bei ngagood c or por at ec i t i z en) . Cor por at eci t i z enshi pi st heex t entt owhi chbus i nes s esmeett hel egal ,et hi cal , economi c ,andv ol unt ar yr espons i bi l i t i espl acedont hem byt hei rv ar i ouss t ak ehol der s .I t i nv ol v est heact i v i t i esandor gani z at i onal pr oc ess esadopt edbybus i nes sest omeett hei r s oci alr es pons i bi l i t i es .Cor por at ec i t i z ens hi pi nv ol v esac t i onandmeas ur ementoft he ex t entt owhi chafi r m embr acest hecor por at ec i t i z ens hi pphi l os ophyandt henf ol l ow t hr oughbyi mpl ement i ngc i t i z ens hi pands oc i alr es pons i bi l i t yi ni t i at i v es . Oneoft hemaj orc or por at ec i t i z ens hi pi s s uesi st hef oc usonpr es er vi ngt he env i r onment .Consumer s ,gov er nment s ,ands pec i ali nt er es tgr oupsar ec onc er ned aboutgr eenhous egas esandCO2c ar bonemi s si onst hatar econt r i but i ngt ogl obal war mi ng.Anot herex ampl eofacor por at eci t i z ens hi pi s suemi ghtbeani malr i ght s .

Soci alResponsi bi l i t yI ssues Aswi t het hi c s ,manager scons i ders oc i alr es pons i bi l i t yonadai l ybas i s .Amongt he

manys oci ali ss uest hatmanager smus tcons i derar et hei rfir m’ sr el at i onswi t howner s ands t ockhol der s ,empl oy ees ,cons umer s ,t heenv i r onment ,andt hecommuni t y . Soc i al r es pons i bi l i t yi sady nami car eawi t hi s s ueschangi ngconst ant l yi nr es pons et o s oci et y ’ sdemands .Ther ei smuc hev i denc et hats oci alr es pons i bi l i t yi sass oc i at edwi t h i mpr ov edbus i nes sper f or manc e.

Rel at i onswi t hOwner sandSt ockhol der s Bus i nes sesmustfir s tber esponsi bl et ot hei rowner s ,whoar epr i ml yconcer nedwi t h ear ni ngapr ofitorar et ur nont hei ri nv es t menti nacompany .I nasmal lbus i nes s ,t hei r r esponsi bi l i t yi sf ai r l yeas yt of ul fi l lbecaus et heowner ( s)per s onal l ymanagest he bus i nes sorknowst hemanageraswel l .I nl ar gerbus i ness es ,ens ur i ngr es pons i bi l i t y becomesamor edi ffic ul tt as k. Abus i nes s ’ sobl i gat i onst oi t sowner sandi nv est or s ,aswel last ot hefi nanc i al c ommuni t yatl ar ge,i nc l udemai nt ai ni ngpr operaccount i ngpr ocedur es ,pr ov i di ngal r el ev anti nf or mat i ont oi nv es t or saboutt hecur r entandpr ot ec t edper f or mi ngoft hefi r m, andpr ot ect i ngt heowner s ’r i ght sandi nv es t ment s .I ns hor t ,t hebus i nessmus tmax i mi z e t heowner ’ si nv es t ment si nt hefi r m.

Empl oyeeRel at i ons Anot heri ss ueofi mpor t anc et oabus i nessi si t sr es pons i bi l i t i est oempl oy ees .Wi t hout empl oy ees ,abus i nes scannotc ar r youti t sgoal s .Empl oy eesexpectbus i nes s est o pr ov i deas af ewor kpl ac e,payt hem adequat el yf ort hei rwor k,andk eept hem i nf or med ofwhati shappeni ngi nt hei rc ompany .Theywantempl oy er st ol i s t ent ot hei rgr i ev anc es andt r eatt hem f ai r l y . Amaj ors oci alr es pons i bi l i t yf orbus i nes si spr ov i di ngequaloppor t uni t i esf oral l empl oy eesr egar dl es soft heys ex ,age,r ac e,r el i gi on,ornat i onal i t y .

ConsumerRel at i ons Acr i t i c ali ss uei nbus i nesst odayi sbus i ness ’ sr es pons i bi l i t yt ocus t omer s,whol ookt o bus i nes st opr ov i det hem wi t hs at i s f y i ng,s af epr oduct sandt or es pec tt hei rr i ght sas c ons umer s .Theac t i v i t i est hati ndependenti ndi vi dual s ,gr oups ,andor gani z at i ons under t ak et opr ot ectt hei rr i ght sasconsumer sar eknownasconsumer i sm.Toac hi ev e t hei robj ect i v es ,consumer sandt hei radv ocat ewr i t el et t er st oc ompani es ,l obby gov er nmentagenc i es ,mak epubl i cser v i ceannouncement s ,andboy cot tcompani es whos eact i v i t i est heydeem i r r es pons i bl e.

Sust ai nabi l i t yI ssues Wedefi nesust ai nabi l i t yasconduc t i ngact i v i t i esi nsuc hawayast opr ov i def ort he l ongt er m wel l bei ngoft henat ur al env i r onment ,i nc l udi ngal lbi ol ogi c al ent i t i es . Sus t ai nabi l i t yi nv ol v est hei nt er act i onamongnat ur eandi ndi v i dual s ,or gani z at i ons ,and bus i nes sst r at egi esandi ncl udest heass es smentandi mpr ov ementofbusi ness s t r at egi es ,economi csect or s ,wor kpr act i c es ,t ec hnol ogi es ,andl i f es t yl es ot hatt hey mai nt ai nt heheal t hoft henat ur alenv i r onment . Amaj ori ss uei nt hear eaofenv i r onment alr esponsi bi l i t yi spol l ut i on.

Wat erpol l ut i onr es ul t sf r om dumpi ngt ox i cc hemi cal sandr aws ewagei nt or i v er sand oceans ,oi l spi l l s ,andt hebur i alofi ndus t r i alwas t ei nt hegr oundwher ei tmayfil t eri nt o under gr oundwat er suppl i es . Ai rpol l ut i oni sus ual l yt her es ul tofsmok eandot herpol l ut ant semi t t edbymanuf act ur i ng f ac i l i t i es ,aswel lascar bonmonox i deandhy dr ocar bonsemi t t edbymot orv ehi c l es . Whens omec hemi c alcompoundsemi t t edbymanuf act ur i ngf aci l i t i esr eactwi t hai rand r ai n,ac i dr ai nr es ul t s .Ac i dr ai nhascont r i but edt ot hedeat hsofmanyf or estandl ak esi n Nor t hAmer i caaswel lasi nEur ope.Ai rpol l ut i onmayal s ocont r i but et ogl obalwar mi ng. Landpol l ut i oni st i eddi r ect l yt owat erpol l ut i onbec aus emanyoft hechemi c al sandt ox i c was t est hatar edumpedont hel andev ent ual l ywor kt hei rwayi nt ot hewat ers uppl y . Effect soft hesepol l ut ant sonhumansandwi l dl i f ear eunc er t ai n,butt her ei ssome ev i denc et os ugges tt hatfis handot herwat er dwel l er sar est ar t i ngt os uffers er i ous effec t s .

Communi t yRel at i ons Afinal ,y etv er ysi gni fi c ant ,i ss uef orbus i ness esconcer nst hei rr es pons i bi l i t i est ot he gener alwel f ar eoft hec ommuni t i esands oc i et i esi nwhi cht heyoper at e.Manybus i ness s i mpl ywantt omak et hei rc ommuni t i esbet t erpl acesf orev er y onet ol i v eandwor k .The mostcommonwayt hatbus i ness esex er c i set hei rcommuni t yr es pons i bi l i t yi st hr ough donat i onst ol ocalandnat i onalc har i t abl eor gani z at i ons ....