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ลำดับตอนที่ #7 : [[R.S.]]Business Management::Chapter.4::4.10.11

Review Sheet of Business Management for

Chapter 4 Test* 4.Oct.2011

Chapter.4 :: Ethics and Social Responsibility [[Page.82]]

4-1 Ethics in Business [[Page.84]]

-          Individuals make personal decisions about what they believe is right and wrong. These decisions are based on their ethics.

·         Ethics are a set of moral principles or values that govern behavior.

-          Like individuals, businesses develop ethics to help them determine how to behave.

-          The role of ethics in management decisions is difficult. Management issues often are emotionally charged, and many types of ethical problems may arise in business situations.

-          A code of ethics is a document that outlines the principles of conduct to be used in making decisions within the organization. Most corporations in U.S. have it.

·         Some areas in code of ethics include: honesty, conflicts of interest, financial reporting, pricing billing contracting, security, protection of environment, etc.

·         Ethical codes that are not enforced probably do more harm than good. That’s why it is very important that companies discipline employees who violate their codes of ethics.

-          Behaving unethically can hurt, or even end, the businessperson’s career.

-          Behaving ethically helps employees gain the trust of the people with whom they work with.

-          Ethical employees never steal from their employers, lie about the hours they work, or falsify documents.

·         Dishonest employees steal from their employees in a variety of ways.

ð  Some embezzle money or steal supplies or inventory from their employers.

ð  Some accept bribe from people who want to do business with their company.

ð  Others submit false expense accounts.

·         Employees who work at home must accurately report how long they work. Ethical employees also show up at work unless they are ill or need to be away for their jobs for a legitimate reason.

·         Falsifying records is one of the worst ethical lapses an employee can commit. Years of excellent corporate performance can be wiped out by these kinds of unethical actions.

-          Ethical dilemmas are situations in which the ethical course of action is not clear.

·         Talking to people you trust can help you develop solutions to ethical problems.

-          Laws enacted for competitive behavior

·         The Sherman Antitrust Act = makes it illegal for companies to monopolize trade. The purpose of this is to ensure that companies remain able to compete fairly.

·         The Clayton Act = makes it illegal to charge different prices to different wholesale customers. It also bans the practice of requiring a customer to purchase a second good.

·         The Wheeler-Lea Act = bans unfair or deceptive acts or practices, including false advertisement. Businesses must inform consumers of possible negative consequences of using their product.

-          Laws enacted for consumer protection

·         The Federal Food, Drug, and Cosmetic Act = bans the sale of impure, improperly labeled, falsely guaranteed, and unhealthful foods, drugs, and cosmetics.

·         The Consumer Product Safety Commission = establishes minimum product safety standards on consumer products. It has authority to force the manufacturer to recall defective products.

·         Truth in Lending Act = creditors are required to let consumers know how much they are paying in finance charges and interest.

·         The Equal Credit Opportunity Act = prohibits creditors from making credit decisions on the basis of discriminatory practices.

-          Laws enacted for environmental protection

·         The National Environmental Policy Act = created the Environmental Protection Agency (EPA), whose mission is to protect human health and safeguard the air, water, and land.

·         The Clean Air Act = regulates air emissions; deals with problems of acid rains, ground-level ozone, stratospheric ozone depletion, and toxic substances in the air

·         The Toxic Substances Control Act = gives EPA the ability to tract the 75,000 industrial chemicals currently produced in or imported into U.S.

·         The Clean Water Act = gives EPA the authority to set standards on the type and quantity of pollutants that industries can put into bodies of water; make it illegal to discharge any pollutant into navigable waters unless a permit is obtained.

-          Standards of business ethics differ around the world.

·         Gift-giving customs :: In some cultures, gifts are expected, failure to present them is an insult. In other cultures, government officials are not allowed to accept gifts

·         Intellectual property refers to ownership of ideas, such as inventions, books, movies, and computer programs.

ð  In many countries, including U.S., creators of intellectual property have the exclusive right to market and sell their work. These types of protection ensure that only the creators profit from their work.

ð  However, in China and India, the government does not enforce such rights. Many companies can copy and sell things as well as plagiarize others’ work.

4-2 Social Responsibility [[Page.96]]

-          Social responsibility refers to the obligation that individuals or businesses have to help solve social problems.

-          Views toward social responsibility evolved through 3 distinct schools of thought:

·         Profit maximization = in 19^th – 20^th centuries, business owners in U.S. believed their role was simply to maximize the profits their companies earned.

·         Trusteeship management = in 1920s – 1930s, this philosophy recognized that owners of businesses had obligations to do more than just earn profits. They also had obligations to their employees, customers, and creditors.

·         Social Involvement = during 1960s, people believe that corporations should not just be maximizers of profit but help to address social problems as well.

ð  Businesses have obligations to all of the people affected by their actions, known as stakeholders. Stakeholders include a company’s employees, customers, suppliers, and the community.

-          A social audit is a review of a business’s social responsiveness. Some mangers perform social audits to measure how socially responsible a company is.

-          One way a company demonstrates its sense of social responsibility is by contributing time and money to charitable, cultural, and civic organizations.

·         Corporate philanthropy, or efforts to improve human welfare, can take many forms.

ð  Eg. plant seedlings, support people with disabilities, refurbish school, grant employees paid off to participate in charitable activities, allow employees time off to donate blood, donate money, etc.

-          Another way companies demonstrate their sense of social responsibility is by limiting the damage their operations cause to environment.

·         Companies create production processes that are as environmentally friendly as possible, establish policies that reduce pollution, use biodegradable products, etc

-          One of the most important ways a company can demonstrate its sense of social responsibility is through its workforce.

·         Socially responsible businesses maintain ethnically diverse workforces that reflect the societies in which they operate.

·         Companies also can demonstrate their social responsibility by adopting policies that contribute to the quality of life of their workers.

ð  Eg. flexible work hours, on-site day care centers for employees with young children, etc.

 
Ps. Goodluck na ka everyone ^^



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