Download Social and Ethical Responsibility

24
Social and Ethical
Responsibility
Section
24.1
Social Responsibility
Section
24.2
Ethical Responsibility
Glencoe Entrepreneurship: Building a Business
SECTION
24.1
Social
Responsibility
Section Objectives
•
•
Explain the relationship between entrepreneurs and social
responsibility.
Discuss how entrepreneurs can contribute to their communities.
Chapter 24 Social and Ethical Responsibility
Glencoe Entrepreneurship: Building a Business
SECTION
24.1
Social
Responsibility
The Main Idea
Businesses must do more than provide jobs and make a profit.
They also are expected to run their business responsibly.
Chapter 24 Social and Ethical Responsibility
Glencoe Entrepreneurship: Building a Business
SECTION
24.1
Social
Responsibility
Content Vocabulary
philanthropy
social responsibility
Environmental Protection Agency
(EPA)
Chapter 24 Social and Ethical Responsibility
Glencoe Entrepreneurship: Building a Business
SECTION
24.1
Social
Responsibility
Entrepreneurs and Social Responsibility
Being a responsible
entrepreneur involves more
than philanthropy.
Chapter 24 Social and Ethical Responsibility
Glencoe Entrepreneurship: Building a Business
philanthropy
the act of making charitable
donations to improve the welfare
of society
SECTION
24.1
Social
Responsibility
Entrepreneurs and Social Responsibility
For a business to survive, it
must exhibit social
responsibility.
Chapter 24 Social and Ethical Responsibility
Glencoe Entrepreneurship: Building a Business
Social Responsibility
the principle that companies
should contribute to the welfare of
society and not be solely devoted
to maximizing profits
Entrepreneurs and Social Responsibility
7
SECTION
24.1
Social
Responsibility
Your Responsibility to Customers
Guidelines for your responsibility to customers include:
• Do not mislead customers.
• Give complete information regarding proper use.
• Label unsafe products as such.
• Offer the best quality products at the lowest prices.
Chapter 24 Social and Ethical Responsibility
Glencoe Entrepreneurship: Building a Business
SECTION
24.1
Social
Responsibility
Your Responsibility to the Environment
The Environmental
Protection Agency (EPA)
enforces environmental
laws and regulations.
Chapter 24 Social and Ethical Responsibility
Glencoe Entrepreneurship: Building a Business
Environmental Protection Agency
an independent federal agency
established to coordinate programs
and enforce regulations aimed at
reducing pollution and protecting the
environment
SECTION
24.1
Social
Responsibility
Your Responsibility to the Environment
To protect the environment:
•
•
•
Employ environmental affairs personnel.
Eliminate wasteful practices and emissions of pollutants from
manufacturing processes.
Improve products to increase efficiency.
Chapter 24 Social and Ethical Responsibility
Glencoe Entrepreneurship: Building a Business
SECTION
24.1
Social
Responsibility
Contributing to the Community
Many small businesses have found ways to be generous to the
community, including:
•
•
•
donating their products and services
involving employees in philanthropy
joining with other companies to promote social responsibility
Chapter 24 Social and Ethical Responsibility
Glencoe Entrepreneurship: Building a Business
SECTION
24.1
Social
Responsibility
Being a Socially Responsible Employer
As a small business owner, you have a responsibility to treat your
employees fairly.
You can offer flextime, health care, telecommuting, on-site child care,
and assistance to employees with impairments.
Chapter 24 Social and Ethical Responsibility
Glencoe Entrepreneurship: Building a Business
SECTION
24.1
Social
Responsibility
Being a Socially Responsible Employer
Personal responsibility is the basis of social responsibility.
Responsible employees maintain high ethical standards when
dealing with coworkers, management, and customers.
Chapter 24 Social and Ethical Responsibility
Glencoe Entrepreneurship: Building a Business
SECTION
24.1
Social
Responsibility
After You Read
1.
Explain the relationship between entrepreneurs and social
responsibility.
Beyond the philanthropic side of social responsibility,
entrepreneurs have a duty to create safe products, treat customers
and employees fairly, and run honest businesses.
Chapter 24 Social and Ethical Responsibility
Glencoe Entrepreneurship: Building a Business
SECTION
24.1
Social
Responsibility
After You Read
2.
Discuss how entrepreneurs can contribute to their
communities.
Entrepreneurs can contribute by donating products and services,
getting employees involved in philanthropy, and joining with other
companies to promote social responsibility.
Chapter 24 Social and Ethical Responsibility
Glencoe Entrepreneurship: Building a Business
SECTION
24.2
Ethical
Responsibility
Section Objectives
•
•
•
Define ethics and ethical behavior.
Explain how to develop a code of ethics.
List special ethical problems that entrepreneurs face.
Chapter 24 Social and Ethical Responsibility
Glencoe Entrepreneurship: Building a Business
SECTION
24.2
Ethical
Responsibility
The Main Idea
Ethics are guidelines for human behavior and form the basis for a
person’s character.
They are the moral code by which people live and conduct business.
Ethics help people decide how to act in situations where moral issues
are involved by setting standards for moral behavior.
Chapter 24 Social and Ethical Responsibility
Glencoe Entrepreneurship: Building a Business
SECTION
24.2
Ethical
Responsibility
Content Vocabulary
ethics
ethical behavior
business ethics
Chapter 24 Social and Ethical Responsibility
Glencoe Entrepreneurship: Building a Business
code of ethics
conflict of interest
bribes
SECTION
24.2
Ethical
Responsibility
What Does It Mean to Be Ethical?
It is important for an
entrepreneur to have clear
ethics policies governing
ethical behavior, because
not everyone has the same
standards.
Chapter 24 Social and Ethical Responsibility
Glencoe Entrepreneurship: Building a Business
ethics behavior
ethical
conduct that
guidelines
foradheres
human behavior;
to the moral
the moral
code
by which
codepeople
by which
livepeople
and
live and conduct
conduct
businessbusiness
SECTION
24.2
Ethical
Responsibility
Understanding Your Values
The benefits of understanding your value system are:
•
•
•
You make better decisions because you base them on your values.
You are able to persuade others to agree with you when you are
confident about your values.
You usually do not regret decisions you make based on your
values.
Chapter 24 Social and Ethical Responsibility
Glencoe Entrepreneurship: Building a Business
SECTION
24.2
Ethical
Responsibility
What Are Business Ethics?
A business owner without
good business ethics can
not expect his or her
employees to act ethically.
Chapter 24 Social and Ethical Responsibility
Glencoe Entrepreneurship: Building a Business
business ethics
the study of behavior and morals
in business situations
SECTION
24.2
Ethical
Responsibility
Are Everyone’s Ethics the Same?
People do not share the same ethical values.
Because not everyone has high ethical standards, entrepreneurs
need to create clear policies that communicate what is and what is
not acceptable conduct in the workplace.
Chapter 24 Social and Ethical Responsibility
Glencoe Entrepreneurship: Building a Business
SECTION
24.2
Ethical
Responsibility
Developing a Code of Ethics
Many entrepreneurs
develop an explicit code of
ethics that spells out
appropriate business
conduct.
Chapter 24 Social and Ethical Responsibility
Glencoe Entrepreneurship: Building a Business
code of ethics
ethical behavior guidelines that
govern the day-to-day activities of
a profession or organization
SECTION
24.2
Ethical
Responsibility
Written Versus Unwritten Codes
Codes of ethics can be written or unwritten.
Follow these steps to create guidelines:
1.
2.
3.
4.
Brainstorm ethical dilemmas.
Discuss potential solutions.
Write a set of general guidelines.
Improve your code.
Chapter 24 Social and Ethical Responsibility
Glencoe Entrepreneurship: Building a Business
SECTION
24.2
Ethical
Responsibility
Special Problems for Entrepreneurs
Entrepreneurs may face some of the following typical ethical
problems:
•
•
•
•
•
Conflicts of interest
Desperate measures
Cultural differences
Bribes
Patent or copyright infringement
Chapter 24 Social and Ethical Responsibility
Glencoe Entrepreneurship: Building a Business
SECTION
24.2
Ethical
Responsibility
Conflict of Interest
If an entrepreneur faces a
conflict of interest, he or
she should not put aside
ethics to meet a short-term
goal.
Chapter 24 Social and Ethical Responsibility
Glencoe Entrepreneurship: Building a Business
conflict of interest
a clash between a person’s
private interests and his or her
responsibilities in a position of
trust.
SECTION
24.2
Ethical
Responsibility
Bribes
In some parts of the world,
bribes are an accepted part
of doing business.
Bribes are illegal in the
United States.
Chapter 24 Social and Ethical Responsibility
Glencoe Entrepreneurship: Building a Business
bribe
a payment made to secure
special services for a business or
special consideration for its
products
SECTION
24.2
Ethical
Responsibility
After You Read
1.
Define ethics and ethical behavior.
Ethics are guidelines for human behavior. They are the moral code
by which people live and conduct business. Ethical behavior is
conduct that adheres to a moral code.
Chapter 24 Social and Ethical Responsibility
Glencoe Entrepreneurship: Building a Business
SECTION
24.2
Ethical
Responsibility
After You Read
2.
Explain how to develop a code of ethics.
(1) Brainstorm ethical dilemmas. (2) Discuss potential solutions.
(3) Write a set of general guidelines that offer a range of acceptable
ways to deal with different situations. (4) Improve the code. When a
new situation or solution occurs, add it to the guidelines.
Chapter 24 Social and Ethical Responsibility
Glencoe Entrepreneurship: Building a Business
SECTION
24.2
Ethical
Responsibility
After You Read
3.
List special ethical problems that entrepreneurs face.
Entrepreneurs face conflicts of interest, conflicts between an
individual’s private interests and his or her responsibilities in a
position of trust; desperate measures, doing what has to be done to
survive; cultural differences when dealing with an international
market; bribes; and patent or copyright infringement.
Chapter 24 Social and Ethical Responsibility
Glencoe Entrepreneurship: Building a Business
24
Social and Ethical
Responsibility
End of
Chapter 24
Section
24.1
Social and Ethical
Social Responsibility
Responsibility
Section
24.2
Ethical Responsibility
Glencoe Entrepreneurship: Building a Business