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The Ethical Environment of The Firm: Lesson 7

This document discusses business ethics and corporate social responsibility. It begins by defining an ethical issue and explaining that managers should be guided by a set of business ethics. It then outlines five principles for deciding ethical issues: universalism, egoism, utilitarianism, relativism, and virtue ethics. It also discusses the concept of corporate integrity, which has cultural, interpersonal, organizational, social, and natural dimensions. Finally, it defines corporate social responsibility and explains that companies have economic, legal, ethical, and philanthropic responsibilities to society.

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141 views

The Ethical Environment of The Firm: Lesson 7

This document discusses business ethics and corporate social responsibility. It begins by defining an ethical issue and explaining that managers should be guided by a set of business ethics. It then outlines five principles for deciding ethical issues: universalism, egoism, utilitarianism, relativism, and virtue ethics. It also discusses the concept of corporate integrity, which has cultural, interpersonal, organizational, social, and natural dimensions. Finally, it defines corporate social responsibility and explains that companies have economic, legal, ethical, and philanthropic responsibilities to society.

Uploaded by

귀여워gwiyowo
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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LESSON 7

THE ETHICAL
ENVIRONMENT OF
THE FIRM
BUSINESS ETHICS AND MANAGEMENT

`An ethical issue refers to a concern on


which an individual must decide based on
several alternatives of what is morally right
or wrong. Any manager should be guided
by a set of business ethics which are
moral principles and standards that guide
businesspeople in their transactions.
BUSINESS ETHICS AND MANAGEMENT

`Generally, business ethics sets the moral


standards for any kind of business
function. However, the line separating
these standards sometimes overlap
which makes decision making difficult,
with certain decision or actions often
having both positiveand negative effects.
PERSPECTIVE ON ETHICS

In deciding on ethical issues, five


guiding principles may be used.
1. Universalism this is the principle
which states that all people should
have certain values like honesty,
respect, and cooperation.
PERSPECTIVE ON ETHICS

2. Egoism this is the principle


which promotes the greatest good
to oneself. It is focused on the
perspective that people ultimately
act for self-advancement, no
matter how good their intentions
are.
PERSPECTIVE ON ETHICS

3. Utilitarianism this is the principle


which focuses on the greatest good
for the greatest number of people.
4. Relativism this is the principle which
states that ethical behavior is based
on person’s own and other relevant
people’s opinions and viewpoints
PERSPECTIVE ON ETHICS

5. Virtue ethics this is the principle


which states that morality depends
on the maturity of a person with
good moral characters.
CORPORATE INTEGRITY

Corporate integrity refers to that


sense of “wholeness” created by
the right relationships among the
members of the corporation. It has
five dimensions; cultural,
interpersonal, organizational, social
and natural.
CORPORATE INTEGRITY

Cultural Dimension
has the most impact on the internal
relationships in the company. Culture is what
unites employees, and cultural aspects such as
language, rituals, behavioural patterns, and
beliefs form the frameworks that determines the
manner by which people relate with one another
and engage with experiences and situations.
CORPORATE INTEGRITY

Interpersonal Dimension
focuses on the relationships among
people. Important relationships that
impact the organization include
family relations, civic life, and work
relations..
CORPORATE INTEGRITY

Organizational Dimension
considers the main purposes of
the business, particularly the
economic and financial purposes,
managerial purpose and civic
purpose.
CORPORATE INTEGRITY

Social Dimension
views the organization as actively
engaging with society. The business
must be seen not only as a business
leader, but also as a significant
social element in its community.
CORPORATE INTEGRITY

Natural Dimension
looks into how the organization
relates to nature. Managers should
consider how their business
operations and activities impact the
environment.
CORPORATE SOCIAL RESPONSIBILITY

Corporate social responsibility


refers to business operations and
activities that have the welfare of
society in mind. A firm should aim
to pursue long-term goals which will
benefit society.
CORPORATE SOCIAL RESPONSIBILITY

Corporate social responsibility is


closely related to the concepts of
social obligations and social
responsiveness. These define the
extent to which a company is liable
to exercise social responsibility in its
operations and activities.
CORPORATE SOCIAL RESPONSIBILITY

Social obligations refers to complying


with legal and ethical standards to
uphold social welfare.
Social responsiveness on the other hand,
goes beyond prescribed standards and
implements actions that aim to make an
impact on the society in mind.
CORPORATE SOCIAL RESPONSIBILITY

Economic responsibility the company


should produce goods and services
with reasonable prices.
Legal responsibility the organization
should comply with local and
international laws that apply to its
business operations.
CORPORATE SOCIAL RESPONSIBILITY

Ethical responsibility include


establishing norms, standards,
mores, and practices that reflect
fairness to the consumers,
employees, shareholders, and
community.
CORPORATE SOCIAL RESPONSIBILITY

Philanthropic responsibilities include


the initiation of voluntary activities
such as establishing corporate
programs, donating to charitable
institutions, and other similar
charitable causes.
-END-

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