Slide 1. Slide 2 Ethics & Social Responsibility. Slide 3. Business Ethics & Social Responsibility. Relationship between Ethics and the Law.
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1 1 Business Ethics & Social Responsibility Chapter 2 Chapter 2 - Ethics & Social Responsibility 1 2 Ethics & Social Responsibility Ethics The study of how people ought to act Ethical Decision Making Making a choice when there is more than one right Chapter 2 - Ethics & Social Responsibility 2 3 Relationship between Ethics and the Law Law and ethics may not always agree... Sometimes it is ethical to commit an illegal act... And some legal acts are unethical! Chapter 2 - Ethics & Social Responsibility 3
2 4 Ethical Decision Making 1. Gather the facts 2. Define the ethical issues 3. Identify the affected parties 4. Identify the consequences 5. Identify the obligations 6. Consider your character and integrity 7. Think creatively about potential actions 8. Check your gut Trevino and Nelson (2007) Managing Business Ethics Straight Talk About How To Do It Right Chapter 2 - Ethics & Social Responsibility 4 5 Ethics Checklist 1. What are the facts? 2. What are the critical issues? 3. Who are the stakeholders? 4. What are the alternatives 5. What are the ethical implications of each alternative? 6. Is more than one alternative right? Beatty /Samuelson (2012) Essentials of Business Law Chapter 2 - Ethics & Social Responsibility 5 6 Ethics in Business What CEO said in 2001? We have no perks, not even parking spaces? Former CEO of Tyco who later purchased a $6,000 shower curtain from corporate funds. Chapter 2 - Ethics & Social Responsibility 6
3 7 Ethics in Business What CEO said? We are the good guys. We are on the side of angels. We are doing God s work here. Jeffrey Skilling / Enron Chapter 2 - Ethics & Social Responsibility 7 8 Moral Judgment and Moral Conduct What do you think? Is there a link between moral judgment and moral conduct? Do people always behave in a way that embodies their moral judgment? Chapter 2 - Ethics & Social Responsibility 8 9 What Makes Ethical People Behave Unethically? Research findings: The desire to conform with one s peers Environmental pressures Rigid hierarchy Fear-Insecurity Ambition Chapter 2 - Ethics & Social Responsibility 9
4 10 What about unethical behavior at work? Because moral action takes place in a social context, situational variables heavily influence moral actions. Work characteristics Organizational culture Immediate job context Chapter 2 - Ethics & Social Responsibility What about Social Responsibility? The one and only social responsibility of business is to increase its profits. Milton Friedman (b. 1912), Nobel laureate in economics The business of business is serving society, not just making money. Dayton Hudson corporate constitution
5 13 Dispute Resolution Litigation vs. Alternative Dispute Resolution Litigation - lawsuits; the process of filing claims in court and going to trial. Alternative Dispute Resolution - any other formal or informal process for settling disputes without going to trial. Chapter 3 Dispute Resolution Litigation Jurisdiction the authority of a court to hear and decide a case Trial Courts courts of original jurisdiction Appellate Courts review the record of a trial to determine if there are errors of law Chapter 3 / Dispute Resolution Three judges; never a jury State Court System State Supreme Court (Highest Appeals Court) Lower Appeals Courts General Civil General Criminal Trial Courts of General Jurisdiction One judge; may have jury Small Juvenile Land Claims Domestic Municipal Probate Relations Trial Courts of Limited (or Specific) Jurisdiction One judge; may have jury
6 16 Federal Court Jurisdiction Federal Question Cases A claim based on the US Constitution, a federal statute, or a federal treaty Diversity Cases When the plaintiff and defendant are citizens of two different states, AND the amount in dispute is greater than $75, After the Trial - Appeals Precedent Earlier decisions by appellate courts on similar issues Appellate Court Options Affirm the decision stands Modify the decision Reverse and remand a new trial Reverse overturn verdict Chapter 3 / Dispute Resolution ADR Alternative Dispute Resolution Negotiation Mediation Arbitration Mandatory Arbitration Common in contracts and employment relationships Chapter 3 Dispute Resolution 18
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