INTRODUCTION TO BUSINESS
CHAPTER 4
Ethics
Ethics is standards of attitude and morals accepted by society
Questions when faced with ethical dilemmas
1. Legitimate or not? (according to law or company rules)
2. Balanced or not? (fair and proper)
3. How do I feel after making that decision? (shame, proud, etc.)
Establish company ethical standards
1. Compliance-based code of ethics: there are controls and penalties
2. Integrity-based code of ethics: there is awareness of the environment
• How to improve ethics in business
1. Top managers are role models
2. All employees have ethical behavior
3. Consider every impact of the decision
4. There is communication (whistleblowers-people who report illegal activities,
protected)
5. Related external parties are informed
6. Must be implemented
•Corporate Social Responsibility
It is the company's concern for the welfare of the community (there is a commitment to
integrity, fairness, and respect). There is an awareness that its existence exists because
of the community
• Dimensions of corporate social performance:
1. Corporarte philanthropy : Giving and donating
2. Corporate Social Initiatives: There are programs that build (eg training)
3. Corporate responsibility : Covers all aspects (making safe products, minimizing
pollution, using energy wisely, etc.)
4. Corporate policy: The position taken by the company in social and political issues
• Business is responsible for:
1. Customers
According to John F. Kennedy, there are 4 fundamental rights of consumers:
