Businesses Ethically And Responsibly O People example essay topic

Ethics is more than legality Ethics Standards of moral behavior; behavior that is accepted by society as right versus wrong. Ethics begins wit each of uso It is helpful to ask yourself the following questions when facing an ethical dilemma. o It is legal? o It is balanced? Am I acting fairly? Would I want to be treated this way? o How will it make me feel about myself? Would I feel proud if my family learned of my decision? My friends?

Managing Businesses Ethically and Responsibly o People learn their standards and values from observing what others do, not from hearing what they say. o A business should be managed ethically for many reasons: o to maintain a good reputation to keep existing customer so to attract new customer so to avoid lawsuit so to reduce employee turnover o to avoid government intervention o to please customers, employees, and society simply to do the right thing Ethic of justice is based on principles like justice, fairness, equality, or authority. o Ethic of care is based on a sense of responsibility to reduce actual harm or suffering. Setting Corporate Ethical Standards Compliance-based ethic code so Ethical standards that emphasize preventing unlawful behavior by increasing control and by penalizing wrongdoers. Integrity-based ethic code so Ethical standards that define the organization's guiding values, create an environment that supports ethically sound behavior, and stress a shared accountability among employees. Whistleblower so People who report illegal or unethical behavior. o The following six-step process can help to improve business ethics: o Top management must adopt and support an explicit corporate code of conduct Employees must understand that ethical behavior begins at the top, and that they are expected to act accordingly o Managers and others must be trained to consider ethical implications of all business decision so Ethics office must be set up (also telephone lines), so that whistle blower can stay anonymous. o Outsiders of the company must be told about the ethic programs and values of the company.

Clear statement of ethical standards. o The ethic code must be enforced best way to communicate with employees who take the code serious. Strategies for Ethics Management Integrity-based ethics codes move beyond legal compliance to create a "do-it-right" climate that emphasizes core values such as honesty, fair play, good service to customers, a commitment to diversity, and involvement in the community. These values are ethically desirable, but not necessarily legally mandatory. Corporate Social Responsibility Corporate Social Responsibilityo A business's concern for the welfare of society The social performance of a company has several dimensions Corporate Philanthropy Dimension of social responsibility that includes charitable donations. o Strategic philanthropy involves companies making long-term commitments to the society. Corporate Responsibilityo Dimension of social responsibility that includes everything from hiring minority workers to making safe products. Corporate Policy Dimension of social responsibility that refers to the position a firm takes on social and political issues.

Responsibility to Customers three out of five businesses fail - perhaps because their owners failed to please their customers Responsibility to Investors Some people believe that before you can do good you must do well; others believe that by doing good, you can also do well Some people have chosen the unethical way to improve their financial health: Insider Trading Insider Trading An unethical activity in which insiders use private company information to further their own fortunes or those of their family and friends. Responsibility to employees Responsibility to Society and Environment Social Auditing Social Audi to A systematic evaluation of an organization's progress toward implementing programs that are socially responsible and responsive. o Socially Responsible Business Activities: o Community-related activities o Employee related activities o Political Activities Support for higher education, the arts, and other NPO so Consumer activities o In addition to the social audits conducted by the companies themselves, there are four types of groups that serve as watchdogs regarding how well companies enforce their ethical and social responsibility policies: o Socially conscious investor so Environmentalist so Union official so Customers International Ethics and Social Responsibilityo Requiring international suppliers to fit the ethic values of a country or company is not so easy. (Child labor, etc.) o OECD (Organization for Economic Cooperation and Development members try to fir American ethic standards to be able to work as suppliersAppendixThe need for laws Judiciary The branch of government chosen to oversee the legal system through the court system. Business Lawo Rules, statutes, codes, and regulations that are established to provide a legal framework within which business may be conducted and that are enforceable by court actions. Statutory and Common Law Statutory Lawo State and federal constitutions, legislative enactments, treaties of the federal government, and ordinances - in short, "written law " Common Lawo The body of law that comes form decisions handed down by judges; also referred to as "unwritten law" Precedent Decisions judges have made in earlier cases that guide the handling if new cases. Administrative Agencies Federal or State institutions and other government organizations created by Congress or State legislatures with delegated power to pass rules and regulations within their mandated area of authority.

Tort Law Tort A wrongful act that causes injury to another person's body, property, or reputation. o Although torts often are noncriminal acts, victims can be awarded compensation. This is especially true if the conduct that causes harm is considered international. Negligence In tort law, behavior that causes unintentional harm or injury. o e.g. failure to provide information or adequate warning Product Liability Product Liabilityo Part of tort law that holds businesses liable for harm that results from the production, design, sale, or use of products they market. Strict Product Liabilityo Legal responsibility for harm or injury caused by a product regardless of fault. Laws Protecting Ideas: Patents, Copyrights, and Trademarks USPTO: United States Patent and Trademark OfficePatento A document that gives inventors exclusive rights to their invention for 20 years. Copyright A document that protects a creator's right to materials such as books, articles, photos, and cartoons.

Trademarks A legally protected name, symbol, or design (or combination of these) that identifies the goods and services of one seller and distinguishes them from those of competitors. Sales Law: The Uniform Commercial Code Uniform Commercial Code o UCC: A comprehensive commercial law, adapted by every state of the U.S., that covers sales laws and other commercial laws. Warranties Express Warrantieso Specific representation by the seller that buyers rely on regarding the goods they purchase Usually included in the box as a small paper book Implied Warrantieso Guarantees legally imposed on the seller o It is implied, for example, that the product will conform to the customary standards. Negotiable Instruments o Forms of commercial paper (such as checks) that are transferable among businesses and individuals and represent a promise to pay a specified amount. Contract Law Contracto A legally enforceable agreement between two or more parties. Contract Lawo Set of laws that specify what constitutes a legally enforceable agreement. o Basically, a contract is legally binding if the following conditions are met: o An offer is made There is a voluntary acceptance of the offer Both parties give consideration o Both parties are competent o The contract must be legal The contract is in proper formConsiderationo Something of value; ~ is one of the requirements of a legal contract.

Breach of Contract Breach of Contracto When one party fails to follow the term of a contract Both parties may voluntarily agree to end the contract; but if one person violates the contract, the following may occur. o Specific Performance Payment of damage so Discharge of obligationDamageso The monetary settlement awarded to a person who is injured by a breach of contract. Law to promote Fair and Competitive Practices See table page 135 in "Understanding Business" 7th editionConsumerismo A social movement that seeks to increase and strengthen the rights and powers of buyers in relation to sellers Tax LawsTaxeso How the government (federal, state, and local) raises money. o Helps the State to have an influence on the consummation of special goods. Bankruptcy Laws Bankruptcyo The legal process by which a person, business, or government entity unable to meet financial obligations is relieved of those obligations by a court that divides any assets among creditors to get at least part of their money and freeing the debtor to begin anew. Voluntary Bankruptcyo Legal procedure initiated by a debtor. Involuntary Bankruptcyo Bankruptcy procedures filed by a debtor's creditors. o The procedure is clear: o First, creditors with secured claims receive the collateral for their claims or repossess the claimed asset. Then unsecured claims are paid in this order: Costs involved in the bankruptcy case Any business costs incurred after bankruptcy was filed Wages, salaries, or commission (In U. S: limit of 2000$/p) Contribution to employee benefit plans Refund to consumers who paid for products that were not delivered Federal and State Taxes See page 138 "Understanding Business" 7th editionDeregulationDeregulationo Government withdrawal of certain laws and regulations that seem to hinder competition.