PDF - Week 04 Business Ethics

Universitas Multimedia Nusantara (UMN) Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.
v.1 Jakarta Universitas Multimedia Nusantara (UMN) Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta
Week 4
Content : Intro .....
thics
Ethics in
the Workplace Business E
Social
Responsibility
Implementing
SR program
Jakarta, Septem
ber 2007
Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi e-mail: anna@unimedia.ac.id Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi e-mail: anna@unimedia.ac.id
Universitas Multimedia Nusantara (UMN) Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta Universitas Multimedia Nusantara (UMN) Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta
What is Ethics ? If…
“Beliefs about what is right and wrong or good and bad

in actions that affect others”
Content : (Griffin, 2007) Content :
Ethics in “The rules and principles that define right and wrong conduct”. Ethics in
the Workplace the Workplace
(Robbin, 2007)
Then ... By process…
Content : Content :
Ethics in Ethics in
1
Is there any gray area in ethics ? No…!!
Content : Content :
Ethics in Ethics in
What is Business Ethics ?
• Ethical behavior is behavior conforming to

generally accepted social norms concerning
Ethical or unethical behaviors by a manager or employer
beneficial and harmful actions
of an organization
Content : Content :
• Unethical behavior is behavior that does not
conform to generally accepted social norms
Ethics in
concerning beneficial and harmful actions Ethics in
Business and Managerial Ethics Steps in Making Ethical Judgments
Managerial ethics are standards of behavior that guide individual

managers in their work. Three broad categories:
– Behavior toward Employees
Content : – Behavior toward the Organization Content :
– Behavior toward Other Economic Agents
Ethics in Ethics in
2
Company Practices and Business Ethics Core Principles and Organizational Values
• Adopting Written Codes

– Many companies have written codes that formally announce
their intent to do business in an ethical manner.
Content : Content :
• Instituting Ethics Programs

Ethics in
the Workplace
– Ethical responses can be learned Ethics in
the Workplace
through experience.
Same blue taxi ? Coincidence or ... ?
Content : Content :
Ethics in Ethics in
Expanded Model of Ethical Judgment Making

Stages of Moral and Ethical Development
Content : Content :
Ethics in Ethics in
3
Business Ethical Challenges What is a Whistle-Blower ?
Employee who detects and tries to put an end to

a company’s unethical, illegal or socially
Content : Content : irresponsible actions by publicizing them
Ethics in
the Workplace
Social
Responsibility
How Organizations Shape Ethical Conduct
Content : Content :
Ethics in Ethics in
Johnson & Johnson’s Credo Johnson & Johnson’s Credo
Content : Content :
Ethics in Ethics in
4
What Are Organizational Stakeholders ? Major Corporate Stakeholders
Those groups, individuals and organizations

that are directly affected by the practices of an organization
Content : and who therefore have a stake in its performance Content :
Social Social
Responsibility Responsibility
Responsibilities of Business Responsibilities to the General Public
Content : Content :
Social Social
Areas of Social Responsibility
• Responsibility Toward the Environment
Content : Content : • Responsibility Toward Customers
• Responsibility Toward Employees
• Responsibility Toward Investors

Social Social
5
Responsibility Toward the Environment Responsibilities to Customer
What is Consumerism ?
Controlling pollution—the injection of harmful substances into
the environment—is a significant challenge to contemporary Form of social activism dedicated to protecting the rights of
business. consumers in their dealings with businesses
Content : Content :
• Air Pollution
• Water Pollution
Basic Consumer Rights Source: Griffin, 2007
• Land Pollution
Toxic Waste Disposal 1. Consumers have a right to safe products.
Social Recycling Social
Responsibility Responsibility 2. Consumers have a right to be informed about all relevant
aspects of a product.
3. Consumers have a right to be heard.
4. Consumers have a right to choose what they buy.
5. Consumers have a right to be educated about purchases.
6. Consumers have a right to courteous service.
Consumer Rights Source: Kurtz & Boone, 2007
Content : Content :
Social Social
Source: Marketing Magazine, 2006
Unfair Pricing Ethics in Advertising23
• Food product labeling

• Collusion occurs when two or more firms agree to
collaborate on such wrongful acts as price fixing • Misleading product claims
Content : • Price gouging is a response to increased demand with Content : • Deceptive advertising
overly steep price increases • Morally objectionable advertising
Social Social
6
Warning Labels
Content : Content :

Social Social
Legal and Social Commitments
• Businesses cannot practice illegal discrimination against

people in any facet of the employment relationship.
Content : Content :
• Businesses should provide employees with equal
opportunities for reward and advancement without regard
to race, sex or other irrelevant factors.
Social Social • Businesses should strive to ensure that the workplace is

physically and socially safe.
Responsibility Toward Investors Implementing Social Responsibility Programs
• Improper Financial Management

• Critics of socially responsible business oppose any
– Check Kiting
business activity that threatens profits.
Content : – Insider Trading Content :
• Proponents of socially responsible business believe that
– Misrepresentation of Finances corporations are citizens and should help to improve the
lives of fellow citizens.
Social
Responsibility
Implementing
SR program
7
Spectrum of Approaches to Social Responsibility Approaches to Social Responsibility
• Obstructionist stance involves the firm doing as little as

possible and may involve attempts to deny or cover up
violations
Content : Content :
• Defensive stance involves the firm meeting only minimum
legal requirements in its commitments to groups and
individuals in its social environment
• Accommodative stance involves the firm, if specifically

asked to do so, exceeding legal minimums in its
commitments to groups and individuals in its social
Implementing
SR program
Implementing
SR program
environment
• Proactive stance involves the firm actively seeking

opportunities to contribute to the well being of groups and
individuals in the firm’s social environment
Top 15 Corporate Foundations Establishing a Social Responsibility Program
Content : Content :
Implementing Implementing
SR program SR program
Universitas Multimedia Nusantara (UMN) Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.1 Jakarta
thank you
Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi e-mail: anna@unimedia.ac.id

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Universitas Multimedia Nusantara (UMN) Wisma BNI 46, 2nd Floor, Jl. Jend. Sudirman Kav.

Content : Intro .....

What is Ethics ? If…

“Beliefs about what is right and wrong or good and bad

Then ... By process…

Is there any gray area in ethics ? No…!!

What is Business Ethics ?

• Ethical behavior is behavior conforming to

Business and Managerial Ethics Steps in Making Ethical Judgments

Managerial ethics are standards of behavior that guide individual

• Adopting Written Codes

• Instituting Ethics Programs

Same blue taxi ? Coincidence or ... ?

Expanded Model of Ethical Judgment Making

Business Ethical Challenges What is a Whistle-Blower ?

Employee who detects and tries to put an end to

How Organizations Shape Ethical Conduct

Johnson & Johnson’s Credo Johnson & Johnson’s Credo

What Are Organizational Stakeholders ? Major Corporate Stakeholders

Those groups, individuals and organizations

Responsibilities of Business Responsibilities to the General Public

Areas of Social Responsibility

• Responsibility Toward the Environment

Content : Content : • Responsibility Toward Customers

• Responsibility Toward Employees

• Responsibility Toward Investors

Responsibility Toward the Environment Responsibilities to Customer

Consumer Rights Source: Kurtz & Boone, 2007

Source: Marketing Magazine, 2006

Unfair Pricing Ethics in Advertising23

• Food product labeling

Source: Marketing Magazine, 2006

Legal and Social Commitments

• Businesses cannot practice illegal discrimination against

Social Social • Businesses should strive to ensure that the workplace is

Source: Marketing Magazine, 2006

Responsibility Toward Investors Implementing Social Responsibility Programs

• Improper Financial Management

Spectrum of Approaches to Social Responsibility Approaches to Social Responsibility

• Obstructionist stance involves the firm doing as little as

• Accommodative stance involves the firm, if specifically

• Proactive stance involves the firm actively seeking

Top 15 Corporate Foundations Establishing a Social Responsibility Program

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