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1、Business and Society,Unit 1,Lead-in,Business is a key activity of the culture of any society, enabling people to serve the needs of each other freely. Making profit is a good sign that business is running well, at the same time, business ethic is necessary both for the corporate success and a positi
2、ve corporate image. Ethical business behavior also covers supporting peoples rights as consumers.,After studying this unit, you will be able to:, Understand the relationship between business and society. Discuss issues concerning business ethics. Know how to protect yourself as a consumer.,Text A So
3、cial Responsibility,1. Social Responsibility,2. Developments in Social Responsibility,3. Social Responsibility Today,4. Other opinions towards social Responsibility,What is social responsibility ?,Social responsibility is the idea that firms have obligations to society beyond their economic obligati
4、ons to owners or stockholders and also those prescribed by law or contract.,Social Responsibility,In general, a business has two main responsibilities. 1. to obey the law. 2. to earn profits to continue operations, pay employees, and provide a return to owners and stockholders.,Social Responsibility
5、,To behave in a socially responsible way, managers must be ware of how their actions influence the environment.,Social Responsibility,Social Responsibility,Developments in Social Responsibility, Government regulation in the early 1900s was minimal. Most consumers believed that competition and genera
6、l market activity would correct the abuses of the marketplace.,Developments in Social Responsibility, From 1920 to 1950, businesses used aggressive sales methods to expand their profits. They believed that the best ways to inform consumers about products were personal selling and advertising. As the
7、 marketplace became increasingly competitive, the Congress passed laws to reduce the monopolistic tendencies of big business and forced companies to provide social services to individuals.,Social Responsibility,Social Responsibility,Social Responsibility Today,By the early 1950s, finding that the ke
8、y to increasing sales is to produce things that people want and need, businesses planned products to meet customers needs.,Social Responsibility,Social Responsibility Today,Society expresses what it does not want in several ways. 1. Lawmakers and regulatory groups attempt to prohibit and control und
9、esired business practices . 2. A wide variety of laws and guidelines relate to product safety, warranties, packaging, labeling, advertising, personal selling, and pricing, not to mention competitive and environmental issues. 3. special-interest groups pressure business to achieve desired performance
10、 standards or to change certain ongoing activities.,Social Responsibility,Social Responsibility Today,To be successful, a business must determine what customers, employees, government regulators, and competitors, as well as society in general, want or expect in terms of social responsibility.,Social
11、 Responsibility, An expanded view of social responsibility regards organizations as having a corporate social consciousness. As part of being responsible, the interests of the corporation are balanced against its accountability for the effect of its actions upon society, the environment, and other i
12、nterested parties.,A company with a strong corporate social consciousness would be : profitable pay high wages attract high-quality job candidates be admired by the general public and the government,Social Responsibility,Other opinions towards social Responsibility,Social Responsibility, Most compan
13、ies today consider the implementation of social responsible actions a cost of doing business. A Wal-Mart senior executive says, “The watchword for all our people is Do what is right. Thats what we really preach and teach, and we want” . Two of Wal-Marts merchandising decisions were to sell: 1. hunti
14、ng rifles, but not handguns 2. tabloid newspapers like the National Enquirer, but not adult magazines like Penthouse,Other opinions towards social Responsibility,1. Business Ethics,2. Responsibility of Business in Society,3. The Concept of the Pyramid of Social Responsibility,4. Ethical Decision-Mak
15、ing,5. Ethical Leadership,Text B Four Broad Themes of Business Ethics,6. Corporate Governance,Business Ethics,Ethics is the study of morals and moral choices. It focuses on standards, rules, and codes of conduct that govern the behavior of individuals and groups.,Four Broad Themes of Business Ethics
16、,Four Broad Themes of Business Ethics,Responsibility of Business in Society,Business and society are interdependent. Society depends on business for wealth creation while business depends on society for an environment wherein it can meet its duty to create wealth.,The Concept of the Pyramid of Socia
17、l Responsibility, At the bottom of the pyramid is the expectation that businesses create employment and wealth. At the next level, businesses are also expected to obey the law and minimize any social problems that appeared in running their business. Finally, if business is successful, society expect
18、s business to give back.,Four Broad Themes of Business Ethics,Making ethical decisions can be difficult. We make most of them in a world of economic, professional and social pressures.,Four Broad Themes of Business Ethics,Ethical Decision-Making,Ethical decision-making requires more than a belief in
19、 the importance of ethics . It also requires ethical sensitivity to implications of choices, the ability to evaluate complex, ambiguous and incomplete facts , and the skill to make ethical decisions effectively.,Four Broad Themes of Business Ethics,Ethical Decision-Making,Ethical Leadership,Without
20、ethical leadership, rewards and promotions for ethical behavior, and a lack of training and attention to developing a strong ethical culture can lead to corruption and the type of news stories we have seen so much of lately.,Four Broad Themes of Business Ethics,Ethical Leadership,Leaders and manager
21、s in the organization must establish values and train employees to understand those values as they relate to operating within the organization and as a representative of that organization.,Four Broad Themes of Business Ethics,Ethical Leadership,Particular features of formal ethics programs, such as
22、appointment of a responsible senior executive and implementation of codes of conduct, training programs, reporting systems, and disciplinary systems, should be considered in business ethics education programs.,Four Broad Themes of Business Ethics,Corporate Governance, Corporate governance refers to
23、formal systems of accountability, oversight and control. Knowing the principles and practices of sound, responsible corporate governance can be an important deterrent to unethical behavior .,Four Broad Themes of Business Ethics,Business programs should address topics such as the following: sharehold
24、er rights and stakeholder participation level executive compensation, CEO selection and termination processes board of director composition, structure & CEO role in board decisions auditing, control systems and risk management integrity of financial reporting compliance with corporate governance
25、 reform,Four Broad Themes of Business Ethics,Corporate Governance,1. What is Consumerism?,2. Consumerism,4. The Right to Be Informed,5. The Right to Choose,3. The Right to Safety,Text C Consumerism,6. The Right to Be Heard,What is Consumerism?,Listening Skill,The activities undertaken by independent
26、 individuals, groups, and organizations to protect their rights as consumers are known asconsumerism.,Consumerism,These four rights are the basis of the consumer legislation over the last three decades. 1. The right to safety 2. The right to be informed 3. The right to choose 4. The right to be hear
27、d,Listening Skill,Consumerism,Consumerism,The Right to Safety, The right to safety means that a product must be safe for its intended use, must include thorough and explicit directions for use and must have been properly tested to ensure reliability and quality. To ensure product safety, business mu
28、st not sell anything that could result in personal injury or harm to consumers. Defective or dangerous products erode public confidence in the ability of business to serve society.,Listening Skill,Consumerism,Listening Skill,Consumerism,The Right to Be Informed, The right to be informed gives consum
29、ers the freedom to review complete information about a product before they buy. This means that detailed information about ingredients and instructions for use are to be printed on labels and packages. The right to be informed also applies to services. The true cost of borrowing money and repayment
30、terms, for example, must be clearly stated in a contract.,The Right to Choose,Listening Skill,Consumerism, The right to choose ensures that consumers have access to a variety of products and services at competitive prices. The assurance of both satisfactory quality and service at a fair price is als
31、o a part of the consumers right to choose. The right to choose means that competition is free to flourish. No company becomes so dominant that it limits consumers opportunities to find new, improved products.,Listening Skill,Consumerism,The Right to Be Heard,The right to be heard assures consumers that their interests will receive full consideration when the government formulates policy. It also assures the fair treatment of consumers who voice their complaints about a purchased product.,