Businees ethic chapter 2
LECTURE NOTES
I. This may be the best, or the worst, time to discuss social responsibility and ethics. These issues are all around us with in the last several years. Too many top-level mangers have made decisions that apparently were only in their own interests and not in the interests of stockholders, employees or the society at large. They did things that were, at best unethical, and at worst, clearly illegal. In doing so, they certainly did not act responsibly from any perspective.
Note: Depending on your interests and whether or not you thought it could get too unwieldy, you could start this discussion by referring to Enron, Tyco, Adelphia, etc. For years to come, issues raised by the managers in these companies, and others, will be playing out in public opinion and in the courts.
II. Organizational Stakeholders in a Global Environment.
A. Stakeholders: All those who are affected by or can affect the activities of an organization.
1. Primary Stakeholders: The primary stakeholders of a firm are those who have a formal, official, or contractual relationship with the organization. They include owners (stockholders), employees, customers, and suppliers.
2. Secondary Stakeholders: The secondary stakeholders of a firm are other societal groups that are affected by the activities of the firm. They include consumer groups, special interest groups, environmental groups, and society at large.
B. As organizations become more global, their stakeholder base becomes wider and more diverse.
III. Social Responsibility.
A. Corporate Social Responsibility: The interaction between business and the social environment in which it exists.
1. Social Responsibility Debate: The debate over corporate social responsibility focuses on the nature of socially responsible behavior.
2. Does being socially responsible mean that the corporation’s actions must not harm society, or does it mean that the corporation’s actions should benefit
I. This may be the best, or the worst, time to discuss social responsibility and ethics. These issues are all around us with in the last several years. Too many top-level mangers have made decisions that apparently were only in their own interests and not in the interests of stockholders, employees or the society at large. They did things that were, at best unethical, and at worst, clearly illegal. In doing so, they certainly did not act responsibly from any perspective.
Note: Depending on your interests and whether or not you thought it could get too unwieldy, you could start this discussion by referring to Enron, Tyco, Adelphia, etc. For years to come, issues raised by the managers in these companies, and others, will be playing out in public opinion and in the courts.
II. Organizational Stakeholders in a Global Environment.
A. Stakeholders: All those who are affected by or can affect the activities of an organization.
1. Primary Stakeholders: The primary stakeholders of a firm are those who have a formal, official, or contractual relationship with the organization. They include owners (stockholders), employees, customers, and suppliers.
2. Secondary Stakeholders: The secondary stakeholders of a firm are other societal groups that are affected by the activities of the firm. They include consumer groups, special interest groups, environmental groups, and society at large.
B. As organizations become more global, their stakeholder base becomes wider and more diverse.
III. Social Responsibility.
A. Corporate Social Responsibility: The interaction between business and the social environment in which it exists.
1. Social Responsibility Debate: The debate over corporate social responsibility focuses on the nature of socially responsible behavior.
2. Does being socially responsible mean that the corporation’s actions must not harm society, or does it mean that the corporation’s actions should benefit