17-1
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Chapter
17
Business Ethics and
Social Responsibility
17-3
What is Ethics?
 Ethics deals with the standards of
conduct and morals in particular
society.
 Morality deals with how behavior
should generally conform to cultural
ideals of right and wrong.
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17-4
Ethics and the Internet
 Perhaps the stickiest ethical issue
today is how to behave ethically on
the Internet.
 Possible problems include sexual
harassment, invasion of privacy,
exchange of proprietary information,
and copyright infringement.
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17-5
Codes of Ethics
 If ethical issues aren’t the same as
moral or legal issues, how can you
judge them?
 Some companies have developed
specific ethical codes that are
accepted and abided by in all levels
of the firm.
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17-6
Most Common Ethical Philosophies
1. Justice
2. Individual rights
3. Utilitarianism
4. Individualism
5. Categorical imperative
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Rationalizing Unethical Behavior
 Even people with a good knowledge
of ethical principles can fall prey to
the temptation to rationalize
unethical behavior.
continued
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Rationalizing Unethical Behavior
continued
Unethical behavior in the workplace
often starts with one or more of four
basic rationalizations:
1. A belief that the unethical behavior is
within ethical and legal limits—because
it is easier to believe it is.
continued
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17-9
Rationalizing Unethical Behavior
continued
2. A belief that because the chosen
behavior will work for the best interest of
either the individual or the company, the
company would expect that it be carried
out.
3. A belief that nobody will notice. Theft of
a few cents from each depositor at a
savings bank, for example, would most
likely go unnoticed—or would it?
continued
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17-10
Rationalizing Unethical Behavior
continued
4. A belief that because the chosen
behavior helps the company, the
company will go along with it and
protect the person if he or she is caught.
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17-11
Ethics in Context
 In the U.S., there is a widespread
belief that if you are agreeable and
easy to get along with, your job will
remain secure.
continued
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Ethics in Context continued
 The idea seems to be that, although
unpleasant and dishonest, the
practice of “sucking up,” “kissing
up,” or boss massaging is a
necessary price one must pay for
success.
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17-13
The Influence of Group Goals
 Many people change their ethical
standards between home and work.
 Research shows that two-thirds of the
respondents in a survey of 200
marketing managers used different sets
of moral decision-making standards at
home and work.
continued
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17-14
Global Ethics Issues
 The values and customs of other
countries are not inferior, primitive,
or degraded.
 Practices that may seem unethical
to Americans often have cultural
histories that go back thousands of
years.
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Ethical Propositions for
the Global Business Climate
17-15
 There are diverse standards of
ethical behavior around the world.
 Enforcement of law, not existence of
law, often determines behavior.
 You cannot be too ethical.
continued
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Ethical Propositions for
the Global Business Climate continued
17-16
 Multinational corporations have
high ethical responsibility and
accountability.
 The likelihood of ethical
misjudgment is relatively high.
 A country’s concern with ethics
increases with its economic wellbeing.
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17-17
Global Ethics Issues
The Inner
Circle
Future
Favors
Gift
Exchanges
A clique of trusted
family members,
tribal members, or
friends who are at
the center of
power of influence
A practice based
on mutual
obligation resulting
in the exchange of
favors over years
and even
generations
Gift giving creates
a future obligation
to the receiver; it
can also be a rite
of passage into an
inner circle
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17-18
Social Responsibility
 Social responsibility means putting
ethical standards to work in all
areas of the global community in
which you live.
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Three Views of Social Responsibility
1. Traditional: a company or organization
is responsible only to itself.
2. Stakeholder: companies are responsible
to stakeholders—any group they interact
with as a business.
3. Affirmative (public): companies are held
responsible to their profit margin and
stakeholders, as well as to the general
public and society at large.
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17-20
Blowing the Whistle
What do you do when you have
found unethical conduct taking
place in your company?
 Most strategies involve
whistleblowing—turning in the
offending person or people and
exposing the truth.
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Protection for Whistleblowers
 The Government Accountability
Project was established in 1977 to
help employees who blow the
whistle on unethical corporate
practices.
 The Whistleblower Protection Act
was passed in 1989 and
strengthened in 1994.
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Human Relations, 3/e
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Strategy for Success 17.1:
17-22
Making Ethical Decisions:
A Quick Ethics Test from Texas Instruments
1. Is it legal?
2. Is it consistent with the company’s
3.
4.
5.
6.
7.
stated values?
If you do it, will you feel bad?
How would it look in the newspapers?
Do you think it’s wrong?
If you’re not sure, ask.
If you don’t get a clear answer, keep
asking until you do.
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Strategy for Success 17.2:
17-23
Becoming Culturally Aware of Ethical Conflict
1. Look closely at the situation.
2. Evaluate the intentions.
3. Explore your options.
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Human Relations, 3/e
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Chapter
17
End of Chapter 17