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Matakuliah
Tahun
: J0712 - Pengantar Bisnis
: 2009
Business Ethics and Social Responsibility
Pertemuan 03
Business Ethics and Social Responsibility
•Outline:
–Doing business ethically and responsibly
–Ethics in the workplace
–Areas of social responsibility
–Implementing social responsibility programs
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What Is Ethic?
• Beliefs about what is right and wrong or
good and bad in actions that affect others.
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Ethics in the Workplace
• Ethical behavior is behavior
conforming to generally accepted social
norms concerning beneficial and
harmful actions
• Unethical behavior is behavior that
does not conform to generally accepted
social norms concerning beneficial and
harmful actions
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What Is Business Ethics?
• Ethical or unethical behaviors by a
manager or employer of an organization.
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Business and Managerial Ethics
Managerial ethics are standards of behavior that guide
individual managers in their work. Three broad categories:
– Behavior toward Employees
– Behavior toward the Organization
– Behavior toward Other Economic Agents
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Steps in Making Ethical Judgments
Smooth?
1)Clear-Cut
Facts?
2)AgreedUpon Moral
Values?
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Expanded Model of Ethical Judgment Making
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What Is Social Responsibility?
• The attempt of a business to balance its
commitments to groups and individuals in
its environment, including customers,
other businesses, employees, investors
and local communities
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What Are Organizational Stakeholders?
• Those groups,
individuals and
organizations that
are directly affected
by the practices of
an organization and
who therefore have
a stake in its
performance.
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Areas of Social Responsibility
• Responsibility Toward
the Environment
• Responsibility Toward Customers
• Responsibility Toward Employees
• Responsibility Toward Investors
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Responsibility Toward the Environment
Controlling pollution—the injection
of harmful substances into the
environment—is a significant
challenge to contemporary
business.
– Air Pollution
– Water Pollution
– Land Pollution
• Toxic Waste Disposal
• Recycling
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Air Pollution - Then, Now, & Future
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Responsibility Toward Customers
• Consumer rights:
– Safe Products
– Informed About
Product
– To Be Heard
– Choose What To Buy
– To Be Educated
– Courteous Service
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Advertising Ethics
• Food product labeling
• Misleading product
claims
• Deceptive advertising
• Morally objectionable
advertising
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Employer Commitments To Employee
• Job Skills
• Respect & Compassion
– Nondiscrimination
– Equal Opportunities for
Rewards and
Advancement
– Physically & Socially Safe
Workplace
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Responsibility to Investors
• Improper Financial Management
• Check Kiting- Check 21
• Insider Trading
• Financial MisrepresentationGAAP
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Implementing Social Responsibility Programs
• Critics of socially responsible
business oppose any business
activity that threatens profits.
• Proponents of socially
responsible business believe
that corporations are citizens
and should help to improve the
lives of fellow citizens.
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Social Responsibility Approaches/Stances
•
•
•
•
Obstructionist
Defensive
Accommodative
Proactive
Obstructionist
Low Level
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Defensive
Accommodative
Proactive
High Level
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Explanation……….
• Obstructionist stance involves the firm doing as little as
possible and may involve attempts to deny or cover up violations.
• 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 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.
Bina Nusantara University
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