Class6: Ethics and Social Responsibility Flashcards
What is Business ethics
This means distinguishing right from wrong in business to ensure the morality of a business
What are some of the imprtances of business ethics
Customers
Investors
Suppliers
Employees
List some examples of unethical business ethics
Sexual harassments
Copyrighting piracy
Refusal to pay taxes
Accepting/Offering kickbacks to secure business deals
Deceptive advertisement
Corporate espionage
List the approaches to business ethics
Utilitarian approach
Justice approach
Rights approach
What is utilitarian approach
This approach entails the overall positive and negative outcomes are weighed in order to efficiently make decisions
What are the steps to improve ethical behavior in business
Use of code of ethics
Use of whistleblowing
Education and training
Using of Ombudsman
Compliance of laws set by government
What is Corporate social responsibility?
This means that aside from making profits a business also has a social responsibility towards its environment
What are the responsibilities of a business
Employee
Worker
Society
Government
What are a businessman’s responsibility towards its workers
Payment of wages
Fair treatment
Cordial relation between superiors and subordinates
Favorable and safe working environments
What are a businessman’s responsibility towards consumers
Production and rendering of goods/services to people
Avoidance of unethical trade practices
Offering high quality products at reasonable prices
What are a businessman’s responsibility towards government
Be law abiding
Pay taxes diligently
Obtain licenses and permits for activities
Avoid corruption
What are a businessman’s responsibility towards society
Employing of socially handicapped and underprivileged people
Environment protection
Rural development
Provision of immediate relief to victims of disaster
Explain Milton Friedman’s view on CSR
He argues that it is unnecessary and borderline idiotic for a business owner to participate in philanthropic activities deeming it a waste of shareholders money
Explain Archie Carroll’s view on CSR
He believed that a business’ purpose goes beyond financial achievements i.e. Legal, Discretionary, Ethical, Economic responsibilities
What are the benefits of being ethically and socially responsible?
