Chapter 4 1 Ethics Is More Than Legality a Ethics reflects people s proper relationships with one another How should we treat others What responsibility should we feel for others b Ethics Society s accepted standards of moral behavior i Is my proposed action legal Am I violating any law or company policy ii Is it balanced Am I acting fairly Would I want to be treated this way Will I win everything at the expense of another iii How will it make me feel about myself Would I feel proud if my family learned of my decision My friends Could I discuss my decision with my supervisor c Trust and cooperation between workers and managers must be based on fairness honesty d Compliance Based Ethics Codes Emphasize preventing unlawful behavior by increasing openness and moral integrity control and penalizing wrongdoers e Integrity Based Ethics Codes Define the organization s guiding values create an environment that supports ethically sound behavior and stress shared accountability f Whistleblowers Insiders who report illegal or unethical behavior 2 Corporate Social Responsibility not just for their owners a Corporate Social Responsibility The concern businesses have for the welfare of society i Commitment to integrity fairness and respect ii Corporate philanthropy Includes charitable donations to nonprofit groups of all kinds iii Corporate Social Initiatives Enhanced form of corporate philanthropy more directly related to company s competencies iv Corporate Responsibility Hiring minority workers making safe products minimizing pollution and anything that has to do with acting responsibly within society v Corporate Policy Refers to the position a firm takes on social and political issues b Insider Trading Using private company information to further insiders own fortunes or those of their family and friends c Social Auditing A systematic evaluation of an organization s progress toward implementing socially responsible and responsive programs i Socially Conscious Investors Insist that a company extend its own high standards ii Environmentalists Apply pressure by naming companies that don t abide by iii Union Officials Hunt down violations and force companies to comply to avoid to its suppliers environmentalist s standards negative publicity iv Customers Make buying decisions based on their social conscience
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