This document discusses self-management skills and business ethics. It defines ethics as beliefs about what is right and wrong. It also discusses ethical vs unethical behavior, sources of individual ethics, and managerial ethics. The document outlines a three-step model for assessing ethical behavior and four ethical norms: utility, rights, justice, and caring. It then discusses business ethics, factors affecting ethical business conduct, and methods companies use to encourage ethics like codes of conduct and whistleblower policies. Finally, it covers social responsibility and stakeholder models of responsibility.

1. SELF MANAGEMENT SKILLS
UZMA QAZI
IBTIHAJ HUSSAIN
19.OCTOBER.2012

2. BUSINESS ETHICS &
SOCIAL RESPONSIBILITY

3. Ethics
 Ethics
 Beliefs about what’s right and wrong
 Ethical Behavior
Ethical behavior is characterized by:
Honesty.
Fairness.
Equality.
Rights of individual and groups of people.
 Unethical Behavior
 Vise versa.

4. Ethics, Contd.
 Sources of individual ethics:
Childhood responses to adult behavior
Influence of peers
Experiences in adulthood
 Managerial ethics
Behavior toward employees
Behavior toward the organization
Behavior toward other economic agents—customers,
competitors, stockholders, and environment

5. Assessing Ethical Behavior
 Three-step model for applying ethical
judgments to situations:
 gather relevant factual information
 determine the most appropriate moral
values
 make an ethical judgment based on the
rightness or wrongness of the proposed
activity or policy

6. Four Ethical Norms
 Utility—does a particular act optimize what is best
for those who are affected by it?
 Rights—does it respect the rights of the individual
involved?
 Justice—is it consistent with what we regard as fair?
 Caring—is it consistent with people’s responsibilities
to each other?

7. Business Ethics
 Business Ethics refer to the application of moral
standards of right and wrong to business
situations.

8. Factors Affecting Ethical Business
Behavior
 Employees
 Personal values & ethics
 Social Factors
 Cultural norms
 Coworkers – peer pressure
 Opportunity
 Whether a business rejects or condones unethical
behavior (look the other way).

9. Methods Companies Use to
Encourage Ethical Conduct
 Top level management involvement
 Establish a written code of ethics
 Conduct ethics training programs
 Hire ethical people
 Whistle-blower hotline

10. Code of Ethics
 A Code of Ethics is a written guide to acceptable
and ethical behavior. Outlining uniform policies,
standards, and punishments for violations.

11. Social Responsibility
 Social responsibility is an obligation for
businesses to consider society in its decision
making and actions.

12. Stakeholder Model of Social
Responsibility
 Business is responsible to ALL stakeholders
(employees, communities, environment, etc.)– not
just stockholders.
 Business is part of society and can’t ignore social
issues
 Business can create a more stable environment for
long-term profitability by resolving social issues.
 Prevents government intervention, which could force
businesses to do what they fail to do voluntarily
 Can be profitable and have public relations benefits.
―Green is good business‖

13. Spending for Social
Responsibility
AGAINST
 Companies are only responsible to stockholders,
who want return on investment
 Corporate time, money, and talent should be used to
maximize profits, not solve society’s problems
 Business should not be expected to solve social
problems
 Social issues are responsibility of elected officials
and the government

14. Methods companies use to develop a
program of social responsibility includes:
 Commitment of top executives, policy
 Part of strategic planning
 Appointment of a director
 Social Audit

15. Areas of Social Responsibility
 Environment green -- house gases, water,
packaging, sustainability, product modification
 EX: disposal of toxic waster, recycling; control of air,
land & water pollution, Green Marketing
 Customers -- advertising, labeling, pricing
 EX: for consumers -- quality products at fair prices
 Employees – fair recruiting, hiring, training,
promoting, compensation, termination, whistle
blowers
 Investors – no abuse of resources, misrepresenting
finances, excessive salaries, insider trading

16. Implementing Social Responsibility
Programs
 Approaches to Social Responsibility

17. Social Responsibility and the Small
Business
 Large Business versus Small Business
 Differences are primarily differences of scale
 More issues are questions of individual ethics
 Ethics and social responsibility are decisions
faced by all managers in all organizations,
regardless of rank or size