Social Responsibility

1
Chapter 4

• Social Responsibility

2
Business Ethics is a Component of Social
Responsibility

• business ethics comprises principles standards
  that guide behavior in business
• social responsibility refers to an organizations
  obligation to maximize its positive impact on
  stakeholders and to minimize its negative impact
• dimensions of social responsibility legal,
  economic, ethical, and philanthropic

3
The Legal Dimension...

• refers to obeying laws and regulations
  established by government to set minimum
  standards of acceptable behavior
• laws are passed because society does not always
  trust business to act in their best interests

4
Types of Laws...

• civil law-defines the rights and duties of
  individuals and organizations
• criminal law-prohibits specific actions and
  imposes punishment for breaking the law
• difference between the two enforcement
• criminal laws are enforced by the state or nation
• civil laws are enforced by individuals
  (generally in court)

5
How are business ethics disputes generally
resolved?
6
Business ethics disputes are generally
resolved through lawsuits.

• Most laws affecting business fall into one of 5
  categories
• laws regulating competition (prevent restraint of
  trade)
• laws protecting consumers (safety, disclosure)
• laws protecting the environment (air, water,
  noise)
• laws protecting equity safety (discrimination,
  workplace safety, equal employment practice)
• incentives for compliance (Federal Sentencing
  Guidelines for Organizations)

7
The Ethical Dimension...

• behaviors activities that are expected or
  prohibited by organizational members, the
  community, and society, even though these
  activities are not codified into law.
• goes beyond compliance with laws regulations
• such behavior has been associated with profits
• goes beyond the firms wants needs
• should evolve from the culture of the organization

8
Keys to Managing Ethics Programs

• must consider the values principles of all key
  stakeholders of the organization
• the role and support of top management is
  critical
• top management key stakeholders must
  address ethical issues affecting the
  organization on an ongoing basis

9
The Economic Dimension...

• relates to how resources for the production of
  goods services are to be distributed within a
  system
• issues of concern
• the economy-inflation, unemployment rates,
  pollution control environmental constraints
• competition

10
The Philanthropic Dimension

• refers to businesses contribution to society
• quality of life issues
• responsible production of goods services
• technology improvementsyet not damaging to the
  environment or jeopardizing personal privacy
• philanthropic issues
• making their communities better places to live
• strategic philanthropy