Week 03 Business Ethics

Universitas Multimedia Nusantara (UMN) www.unimedia.ac.id

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Ethics in the Ethics in the

Business Ethics

Week 3

Exclusively prepared by: Anna Riana Putriya, SE, MSi e-mail: [email protected]

Ethics in the Workplace

Social Responsibility

Implementing SR program


Social Responsibility

Jakarta, September 2008


Intro .....



What is Ethics ?

“Beliefs about what is right and wrong or good and bad

in actions that affect others”

(Griffin, 2007)

“The rules and principles that define right and wrong conduct”.

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“The rules and principles that define right and wrong conduct”.

(Robbin, 2007)




If…

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Then ...

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By process…

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Is there any gray area in ethics ?

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No…!!

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What is Business Ethics ?

Ethical or unethical behaviors by a manager or employer

of an organization

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Steps in Making Ethical Judgments

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Same blue taxi ?

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Coincidence or ... ?

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Universitas Multimedia Nusantara (UMN) www.unimedia.ac.idExpanded Model of Ethical Judgment Making



Business Ethical Challenges

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How Organizations Shape Ethical Conduct

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Johnson & Johnson’s Credo

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Johnson & Johnson’s Credo

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Major Corporate Stakeholders

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Social ResponsibilitySocial Responsibility


Responsibilities of Business

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Responsibilities to the General Public

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What is Consumerism ?

Form of social activism dedicated to protecting the rights of

consumers in their dealings with businesses

Basic Consumer Rights Source: Griffin, 2007

Responsibilities to Customer

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Basic Consumer Rights Source: Griffin, 2007

1. Consumers have a right to safe products.

2. Consumers have a right to be informed about all relevant

aspects of a product.

3. Consumers have a right to be heard.

4. Consumers have a right to choose what they buy.

5. Consumers have a right to be educated about purchases.

6. Consumers have a right to courteous service.



Consumer Rights Source: Kurtz & Boone, 2007

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Source: Marketing Magazine, 2006



Ethics in Advertising23

• Food product labeling

• Misleading product claims

• Deceptive advertising

• Morally objectionable advertisingContent :




Warning Labels

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Sourc

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2006



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Source: Marketing Magazine, 2006



Legal and Social Commitments

• Businesses cannot practice illegal discrimination against

people in any facet of the employment relationship.

• Businesses should provide employees with equal

opportunities for reward and advancement without regard

to race, sex or other irrelevant factors.

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to race, sex or other irrelevant factors.

• Businesses should strive to ensure that the workplace is

physically and socially safe.Social ResponsibilitySocial Responsibility


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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lives of fellow citizens.



Spectrum of Approaches to Social Responsibility

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Top 15 Corporate Foundations

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Establishing a Social Responsibility Program

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thank you


thank you