Summary
Summary Chapter 2 - Business Management 114
- Course
- Institution
Summary of 5 pages for the course Business Management 114 at SUN
[Show more]
Seller
Follow
BMX
Content preview
Chapter 2 - Ethics and socialresponsibility
Ethics – study of the right and wrong moral choices that
individuals make.
Business ethics – application of moral standards in
business situations
Ethical issues that arise in the business world
Fairness and honesty
Are two very important ethical concerns in the
workplace. They must obey the law and business
people are expected to not deceive, misrepresent or
intimidate others knowingly.
Organizational relationships
Businesspersons might be tempted to put their own
welfare above the welfare of the business. Relationships
between customers and co-workers are unethical as
well as taking credit for the work of others.
Conflict of interest
When an employee takes advantage of a situation for
his her own personal interest rather than the
employer’s interest. All bribes are unethical
Communication
Advertising from business can present ethical
questions.
FACTORS AFFECTING ETHICAL BEHAVIOR
Individual factors
1. Individual knowledge of issue
2. Personal values
3. Personal goals
Social factors
1. Cultural norms
2. Co-workers
3. Significant others
4. Use of internet
“Opportunity” affecting ethical behavior
1
, 1. Presence of opportunity (freedom employee
given)
2. Ethical code
3. Enforcement
Encouraging ethics
Governments role
1. Enforcing strict regulations
2. Law should deal with
I. Corporate responsibilities
II. Interests of workers
III. Conflicts of interest
IV. Corporate accountability
4. Sarbanes-Oxley act – provides sweeping new
legal protection for employees who report
corporate misconduct.
Trade associations role
1. Provide ethical guidelines
2. Put pressure on businesses to keep standards
high.
Individual companies role
1. Code of ethics – guide to acceptable behavior
defined by organization.
2. Whistle blowing- Informing the press or
government about unethical practices in other
organizations. Sarbanes- Oxley act of 2002
protects whistle blowers.
Social responsibility
Recognizing that business activities have an impact on
society. Helping in times of need gives businesses good
advertising and helps society.
2 views of social responsibility
Economic Model
Traditional businesses sell goods or services to make
a profit. Economic model of social responsibility
states that society will benefit the most if businesses
2
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller BMX. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $2.77. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
50843 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now