Chapter 2 Overview
Many firms are concerned about the environment and their societies. Sometimes that means growing more slowly or reducing short-term profits for longer, sustained benefits. Although most organizations combine ethical behavior with profitable operation, some have faced ethical lapses. Ethical failures led to lawsuits and judgments against firms. The image of the CEO suffered amid reports of
executives pocketing millions of dollars.
Now, both the government and companies have renewed their efforts to conduct themselves in an ethical manner. Firms began to formulate standards and procedures for ethical behavior and recognize the impact of setting a good example.
While the aim of business is to serve customers at a profit, companies today try to give back to customers, society, and the environment. Sometimes they face difficult questions. When does self-interest conflict with society’s and customers’ well-being? And must profit-seeking conflict with right and wrong?
Learning Objectives
- Explain the concepts of business ethics and social responsibility.
- Describe the factors that influence business ethics.
- List the stages in the development of ethical standards, and discuss how organizations shape ethical behavior.
- Describe how businesses’ social responsibility is measured, and summarize the responsibilities of business to the general public, customers, and employees.
- Explain why investors and the financial community are concerned with business ethics and social responsibility.
Many firms are concerned about the environment and their societies. Sometimes that means growing more slowly or reducing short-term profits for longer, sustained benefits. Although most organizations combine ethical behavior with profitable operation, some have faced ethical lapses. Ethical failures led to lawsuits and judgments against firms. The image of the CEO suffered amid reports of
executives pocketing millions of dollars.
Now, both the government and companies have renewed their efforts to conduct themselves in an ethical manner. Firms began to formulate standards and procedures for ethical behavior and recognize the impact of setting a good example.
While the aim of business is to serve customers at a profit, companies today try to give back to customers, society, and the environment. Sometimes they face difficult questions. When does self-interest conflict with society’s and customers’ well-being? And must profit-seeking conflict with right and wrong?
Learning Objectives
- Explain the concepts of business ethics and social responsibility.
- Describe the factors that influence business ethics.
- List the stages in the development of ethical standards, and discuss how organizations shape ethical behavior.
- Describe how businesses’ social responsibility is measured, and summarize the responsibilities of business to the general public, customers, and employees.
- Explain why investors and the financial community are concerned with business ethics and social responsibility.
LECTURE SLIDES OF CHAPTER 2
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