Scribd
Upload
3 views17 pages

Part 1 Business in a Changing World_20250207_120534_0000

Uploaded by

Omowumi

Chapter 2 discusses the significance of business ethics and corporate social responsibility (CSR), emphasizing that ethical behavior is crucial for business success. It outlines common ethical issues such as bribery, false advertising, and employee exploitation, and highlights the factors influencing ethical behavior, including individual values and company culture. Additionally, it explains CSR as a commitment to ethical practices and societal well-being, noting that ethical behavior and CSR can enhance reputation, customer loyalty, and legal compliance.

Copyright:

© All Rights Reserved
Download as PDF, TXT or read online from Scribd
Download as pdf or txt

Part 1 Business in a Changing World_20250207_120534_0000

Uploaded by

Omowumi
3 views17 pages
Chapter 2 discusses the significance of business ethics and corporate social responsibility (CSR), emphasizing that ethical behavior is crucial for business success. It outlines common ethical issues such as bribery, false advertising, and employee exploitation, and highlights the factors influencing ethical behavior, including individual values and company culture. Additionally, it explains CSR as a commitment to ethical practices and societal well-being, noting that ethical behavior and CSR can enhance reputation, customer loyalty, and legal compliance.

Copyright

© © All Rights Reserved

Available Formats

PDF, TXT or read online from Scribd

Did you find this document useful?

Is this content inappropriate?

Chapter 2 discusses the significance of business ethics and corporate social responsibility (CSR), emphasizing that ethical behavior is crucial for business success. It outlines common ethical issues such as bribery, false advertising, and employee exploitation, and highlights the factors influencing ethical behavior, including individual values and company culture. Additionally, it explains CSR as a commitment to ethical practices and societal well-being, noting that ethical behavior and CSR can enhance reputation, customer loyalty, and legal compliance.

Copyright:

© All Rights Reserved
Download as PDF, TXT or read online from Scribd
Download as pdf or txt
3 views17 pages

Part 1 Business in a Changing World_20250207_120534_0000

Uploaded by

Omowumi
Chapter 2 discusses the significance of business ethics and corporate social responsibility (CSR), emphasizing that ethical behavior is crucial for business success. It outlines common ethical issues such as bribery, false advertising, and employee exploitation, and highlights the factors influencing ethical behavior, including individual values and company culture. Additionally, it explains CSR as a commitment to ethical practices and societal well-being, noting that ethical behavior and CSR can enhance reputation, customer loyalty, and legal compliance.

Copyright:

© All Rights Reserved
Download as PDF, TXT or read online from Scribd
Download as pdf or txt
You are on page 1/ 17

Chapter 2: Business Ethics and

Social Responsibility

This chapter explains the


importance of ethics in business,
corporate social responsibility
(CSR), and how ethical behavior
affects business success. Ethics
refers to moral principles guiding
business decisions, while CSR
involves a company’s
commitment to the well-being of
society and the environment.

---
2.1 What is Business Ethics?

Definition: Ethics refers to moral


values and principles that
determine right and wrong
behavior in business.

Ethical businesses follow laws,


treat employees fairly, and act
honestly with customers and
suppliers.

Unethical behavior includes fraud,


corruption, false advertising, and
exploitation of workers.

---

2.2 Ethical Issues in Business

Common ethical issues businesses


face include:

1. Bribery and Corruption:


Example: A company paying
government officials to win
contracts.

Impact: Damages reputation and


leads to legal penalties.

2. False Advertising and


Misleading Consumers:

Example: A food company


claiming its product is "100%
organic" when it is not.
Impact: Loss of customer trust
and lawsuits.

3. Unfair Wages and Employee


Exploitation:

Example: Paying workers less than


the legal minimum wage.

Impact: High employee turnover


and strikes.
4. Environmental Harm:

Example: Companies dumping


toxic waste into rivers.

Impact: Pollution, legal action,


and damage to community health.
5. Discrimination and Workplace
Harassment:

Example: Not hiring or promoting


women or people from minority
groups.

Impact: Employee dissatisfaction


and legal consequences.
---

2.3 Factors Influencing Ethical


Behavior in Business

Several factors determine


whether a company follows
ethical practices:

1. Individual Values and Morality:


Employees' personal beliefs
influence their decisions.
2. Company Culture:
Organizations with strong ethical
policies encourage good behavior.

3. Laws and Regulations:


Governments set legal guidelines
businesses must follow.

4. Stakeholders’ Expectations:
Customers, employees, and
investors expect companies to act
ethically.
---

2.4 Corporate Social


Responsibility (CSR)

CSR refers to a company’s


commitment to ethical business
practices, environmental
sustainability, and social well-
being.

2.4.1 Levels of CSR


1. Economic Responsibility:
Businesses must be profitable to
survive.

2. Legal Responsibility: Companies


must obey laws (e.g., labor laws,
tax regulations).

3. Ethical Responsibility:
Companies should do what is
morally right, even beyond legal
requirements.
4. Philanthropic Responsibility:
Businesses should give back to
society (e.g., donations,
scholarships).

2.4.2 Examples of CSR Activities

Environmental Protection:
Reducing carbon emissions,
recycling programs.
Community Support: Building
schools, offering scholarships,
supporting local businesses.

Employee Welfare: Providing


health insurance, fair wages, and
safe working conditions.

---

2.5 The Impact of Ethics and CSR


on Business Success
1. Improved Reputation: Ethical
businesses attract loyal
customers.

2. Legal Protection: Following laws


prevents fines and lawsuits.

3. Better Employee Retention:


Workers prefer companies with
good treatment.
4. Increased Investor Confidence:
Investors prefer ethical
businesses for long-term success.

5. Competitive Advantage:
Companies that care about social
issues stand out from
competitors.

---
Summary of Chapter 2

✔ Business ethics involves making


fair, honest, and responsible
decisions.
✔ Common ethical issues include
corruption, unfair wages, and
environmental harm.
✔ CSR means businesses should
contribute positively to society
beyond making profits.
✔ Ethical beh
avior and CSR improve business
reputation, attract customers, and
ensure legal compliance.
Would you like a deeper
explanation of any section?

You might also like