Scribd
Upload
17 views10 pages

Business Ethics and Social Responsibility

Chapter 2 discusses the relationship between business ethics and social responsibility, highlighting the distinction between law and ethics, and various ethical theories. It addresses the moral responsibilities of corporations as well as the necessity of governmental regulation for achieving societal objectives. The chapter also explores corporate governance and the stakeholder model, emphasizing the balance between profitability and social responsibility.

Uploaded by

inieong1201
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
17 views10 pages

Business Ethics and Social Responsibility

Chapter 2 discusses the relationship between business ethics and social responsibility, highlighting the distinction between law and ethics, and various ethical theories. It addresses the moral responsibilities of corporations as well as the necessity of governmental regulation for achieving societal objectives. The chapter also explores corporate governance and the stakeholder model, emphasizing the balance between profitability and social responsibility.

Uploaded by

inieong1201
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

CHAPTER 2

Business ethics and the social responsibility


of business
Business ethics and the social
responsibility of business

A. Law versus Ethics


B. Ethical Theories
C. Ethical Standards in Business
D. Ethical Responsibilities of Business
E Corporate Governance

2
A. Law versus Ethics

 The law is strongly affected by moral


concepts, but law and morality are not the
same.
 Just as it is possible for legal acts to be
immoral, it is equally possible for illegal acts
to seem morally preferable to following the
law.

3
A. Law versus Ethics

❖Ethics– study of what is right or good


for human beings.

❖BusinessEthics – study of what is right


and good in a business setting.

4
B. Ethical Theories
1) Ethical Fundamentalism – individuals look to a central authority or
set of rules to guide them in ethical decision making.
2) Ethical Relativism – actions must be judged by what individuals
subjectively feel is right or wrong for themselves.
3) Situational Ethics – one must judge a person’s actions by first
putting oneself in the actor’s situation
4) Utilitarianism – moral actions are those that produce the greatest
net pleasure compared with net pain.
5) Deontology – actions must be judged by their motives and means as
well as their results.

5
C. Ethical Standards in Business

Corporations as Moral Agents – because a


corporation is a statutorily created entity, it is not
clear whether it should be held morally
responsible.

6
D. Ethical Responsibilities of Business

Regulation of Business – governmental


regulation has been necessary because all
the conditions for perfect competition have
not been satisfied and free competition
cannot by itself achieve other societal
objectives.

7
E. Corporate Governance

Definition of Corporate Governance – vast


amounts of wealth and power have become
concentrated in a small number of
corporations, which in turn are controlled by
a small group of corporate officers.

8
E. Corporate Governance

Profitability
Unfairness Against social responsibility
Expertise
Accountability

Social contract
Less government regulation In favour of social responsibility
Long-run profits

9
The Stakeholder Model
Managers

Suppliers Employees

Corporation

Community
Customers

Stockholders

10

You might also like