BUSINESS ETHICS AND SOCIAL RESPONSIBILITY

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CHAPTER 2

• BUSINESS ETHICS AND SOCIAL RESPONSIBILITY

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ETHICS

• IS THE STUDY OF HOW PEOPLE OUGHT TO ACT

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• NOT HOW THEY
• ACT

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WORLDCOM
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• HEALTHSOUTH

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• ImClone

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WORLDCOM
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• HEALTHSOUTH

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• ImClone

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• LAW AND ETHICS
• MAY
• NOT ALWAYS AGREE

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• SOMETIMES IT IS ETHICAL TO COMMIT AN ILLEGAL ACT
• AND
• SOME LEGAL ACTS ARE UNETHICAL

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THERE ARE TWO TYPES OF LAWS

• JUST AND UNJUST
• AN UNJUST LAW IS NOT LAW AT ALL

(Dr. Martin Luther King, Jr., quoting St.
Augustine)
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WHY BOTHER WITH ETHICS?

• Society as a whole benefits
• People feel better when they behave ethically
• Unethical behavior can be costly

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ETHICAL CHECK LIST

• What are the facts?
• What are the critical issues?
• Who are the stakeholders?
• What are the alternatives?
• Is it legal?
• How would it look in the light of the day?

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ETHICAL CHECK LIST, CONTD.

• What are the consequences?
• Does it violate important values?
• Does it violate the Golden Rule?
• Is it just?
• Has the process been fair?

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ETHICAL RESPONSIBILITIES

1. To other
2. To customers
3. employees
4. To stakeholders
5. To the company
6. To society

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THE BEST BEHAVIOR

• The best way to infuse ethics throughout an
  organization is for top management to behave
  ethically themselves.

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• Ethical behavior offers significant advantages
  society as a whole benefits executives who
  behave ethically have happier, more fulfilled
  lives and unethical behavior can destroy a
  company!

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• CHESTERS
• RULES
• FOR
• ETHICAL
• BEHAVIOR

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• WHEN IN DOUBT,
• DONT

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• IF IT SMELLS BAD,
• IT PROBABLY IS

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• IF IT SOUNDS TO GOOD TO BE TRUE,
• IT PROBABLY IS

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• NEVER DO ANYTHING YOU WOULD BE EMBARRASSED TO
  TELL YOUR MOTHER ABOUT