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Chapter 4a demanding ethical and socially responsible behavior

Demanding Ethical and
Socially Responsible
Behavior

McGraw-Hill/Irwin

Copyright © 2010 by the McGraw-Hill Companies, Inc. All rights reserved.


Ethics
&
Social Responsibility

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Ethics

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WHAT are ETHICS?

• Ethics ­­ The standards of moral behavior. 

Behaviors that are accepted by society as right 
versus wrong.

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Ethics
Doing What Is Right…

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Ethics

As You Know It To Be Right.


BASIC MORAL VALUES
Right:
• Integrity 
• Respect for human life 
• Self control 

Wrong:
•Cheating
•Cowardice
•Cruelty

• Honesty 
• Courage
• Self­sacrifice
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Ethics
Ethics Begins With Each


of Us

Stem From Individual
More Than Legality

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Ethical Dilemma
a situation requiring a choice between
equally undesirable alternatives.

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Ethics Begins 
with Each of Us

FACING ETHICAL DILEMMAS

LG2

• Ask yourself these 
questions:
- Is it legal?
- Is it balanced?
- How will it make 
me feel about 
myself?

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Texas Instruments
The TI Ethics Quick Test
- Is the action legal?
- Does it comply with our values?
- If you do it, will you feel bad?
- How will it look in the newspaper?
- If you know it's wrong, don't do it!
- If you're not sure, ask.
- Keep asking until you get an
answer.
For copies of the card or further
information, contact the TI Ethics
Office at 1-800-33-ETHIC.
(This information is provided to TI
employees on a business-card size
mini-pamphlet to carry with them.)


ETHICS CODES

• An increasing number of companies have 
adopted written codes of ethics.

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ETHICS CODES
• Compliance­Based Ethics Code ­­ Emphasize 
preventing unlawful behavior by increasing control 
and by penalizing wrongdoers.

• Integrity­Based Ethics Code ­­ Define the 

organization’s guiding values, create an environment 
that supports ethically sound behavior and stress a 
shared accountability among employees.

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R
T
 
a
t
• Trust between workers and 
 managers must be based on 
tfairness, honesty, openness 
hand moral integrity.
e
• Leadership can help instill 
 
corporate values in 
Temployees.
O
P
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HOW to IMPROVE AMERICA’S 
BUSINESS ETHICS
1. Top management must adopt and 
unconditionally support an explicit corporate 
code of conduct.
2. Employees must understand that senior 
management expects all employees to act 
ethically.
3. Managers and others must be trained to consider 
the ethical implications of all business decisions.
(continued)

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HOW to IMPROVE AMERICA’S 
BUSINESS ETHICS, cont.
4. An ethics office must be set up with which 
employees can communicate anonymously. 
Whistleblowers ­­ People who report illegal or 
unethical behavior. 
5. Involve outsiders such as
suppliers, subcontractors,
distributors and customers.
6. The ethics code must be
enforced.
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Social Responsibility

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Social Responsibility
Social responsibility is
management’s obligation to
make choices and take actions
that contribute to the welfare
and interests of society as well
as to those of the
organization.


CORPORATE SOCIAL 
RESPONSIBILITY

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CORPORATE RESPONSIBILITY 
and POLICY
• Corporate Responsibility ­­ Includes everything 

from hiring minority workers to making safe products, 
minimizing pollution, using energy wisely, and 
providing a safe work environment.

• Corporate Policy ­­ The position a firm takes on 
social and political issues.

• Corporate Philanthropy ­­ Includes charitable 
donations.

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HELPING HANDS
Most Generous Celebrities

Who?

For?

George Clooney

United Way; 
UN Messenger of Peace

Angelina Jolie & Brad Pitt

Make it Right Foundation; UN

Ben Affleck

UN

Madonna

Raising Malawi

Michael J. Fox

Michael J. Fox Foundation for 
Parkinson’s Research

Alicia Keys

Keep a Child Alive; 
Frum Tha Ground Up

Sir Elton John

Elton John AIDS Foundation

Matt Damon

GreenDimes; H2O Africa;
Running the Sahara

Oprah Winfrey

Angel Network

Source: Parade Magazine, www.parade.com, July 8, 2010.
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GENEROUS GUYS
World’s Biggest Givers

Who?

How Much?

What For?

 Bill Gates

$28B

Malaria, public health, education

Warren Buffett

$8.3B

Gates Foundation

George Soros

$8B

Human rights, democracy

Gordon Moore

$6.8B

Environment

Carlos Slim

$4B

Education, healthcare

Eli Broad

$2.6B

Education, arts

Azim Premji

$2.1B

Education

James Stowers

$2B

Genetic research

Michael Bloomberg

$1.8B

Antismoking, transportation

Li Ka­Shing

$1.6B

Education, healthcare

Source: Forbes, June 6, 2011.
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RESPONSIBILITY to CONSUMERS

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PRESIDENT KENNEDY’S BASIC 
RIGHTS of CONSUMERS
• The Right to Safety
• The Right to be Informed
• The Right to Choose
• The Right to be Heard

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Responsibilities to Customers



The Right to Be Safe. Safe operation of products, avoiding product liability.
The Right to Be Informed. Avoiding false or misleading advertising and providing
effective customer service.



The Right to Choose. Ability of consumers to choose the products and services they
want.



The Right to Be Heard. Ability of consumers to
express legitimate complaints to the appropriate parties.



Consumer Product Safety Commission



www.cpsc.gov


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