商务英语课件ch02

1、Business Ethics and Social Responsibility,Copyright 2004 South-Western. All rights reserved.,32,Learning Goals,Describe responsibilities of firms to: Customers Employees Stockholders and creditors The environment Their communities Explain the costs that firms incur in fulfilling their social respons

2、ibilities.,33,Impact of Ethical Values and Acceptance of Social Responsibilities on a Firm,Copyright 2004 South-Western. All rights reserved.,34,Business Decisions,Recognize how business decisions affect society. Follow a set of ethical principles when making business decisions.,Copyright 2004 South

3、-Western. All rights reserved.,35,Rationale for Business Decisions,Unethical business decisions usually result in a benefit to one or more employees but have an adverse impact on other stakeholders or on the environment.,Copyright 2004 South-Western. All rights reserved.,36,Common Unethical Decision

4、s,Car dealer tries to sell car at sticker pricereceives high commission. Computer salesperson sells more expensive computer than customer needs. Manager hires friend who is not the most qualified. Manager tries to avoid paying employees.,Impact of Unethical Decisions,Customers may avoid buying firms

5、 products in the future. Firm may have difficulty hiring new employees. Firm may be unable to obtain funding in the future. Firm possibly subject to severe penalties imposed by the government.,37,Copyright 2004 South-Western. All rights reserved.,Copyright 2004 South-Western. All rights reserved.,38

6、,Impact on Firm Value,Columbia Hospital Overbilled for services Numerous employee resignations Value of stock declined substantially Sunbeam Overstated earnings to enhance compensation of top managers Many stockholders sold their sharesdrove the stock price down,Copyright 2004 South-Western. All rig

7、hts reserved.,39,Responsibility to Customers,Responsible production practices Ensure customer safety Proper warning labels Responsible sales practices Discourage overly aggressive sales tactics Discourage deceptive advertising Use customer satisfaction surveys,Copyright 2004 South-Western. All right

8、s reserved.,310,Ensure Responsibility,Establish a code of responsibilities Guidelines for product quality Guidelines about how to treat employees, customers, owners Monitor complaints Obtain and utilize customer feedback,Copyright 2004 South-Western. All rights reserved.,311,Factors Impacting Respon

9、sibility,Role of Consumerism Collective demand by consumers that businesses satisfy their needs Role of Government Regulation of product safety Regulation of advertising Regulation of industry competition Monopolies and anti-trust,Copyright 2004 South-Western. All rights reserved.,312,Key Antitrust

10、Laws,Sherman Antitrust Act (1890) Clayton Act (1914) Federal Trade Commission Act (1914) Robinson-Patman Act (1936) Celler-Kefauver Act (1950),Exhibit 3.5,Copyright 2004 South-Western. All rights reserved.,313,Responsibility to Employees,Employee Safety Check machinery and equipment Require safety g

11、lasses or other equipment to prevent injury Emphasize safety precautions in training Reduce accidents Improve quality of life,Copyright 2004 South-Western. All rights reserved.,314,Responsibility to Employees,Proper Treatment of Employees Diversity training Prevention of sexual harassment Unwelcome

12、comments or actions of a sexual nature Equal opportunity Prohibit discrimination based on national origin, race, gender, or religion Applies to hiring, promotion, raises,Copyright 2004 South-Western. All rights reserved.,315,Proportion of Women and Minorities in Various Occupations,Exhibit 3.6,Copyr

13、ight 2004 South-Western. All rights reserved.,316,Ensure Responsibility to Employees,Code of Responsibility Hiring decisions made without bias Hire most qualified person Grievance Policy Mediation process Conflict With Employee Layoffs,Copyright 2004 South-Western. All rights reserved.,317,Responsib

14、ility to Stockholders,Make decisions that are in the best interest of the owners Tie employee compensation to firm performance Release accurate information about financial condition,Copyright 2004 South-Western. All rights reserved.,318,Ensure Responsibility to Stockholders,Shareholder Activism Acti

15、ve efforts by shareholders to influence a firms management policies Institutional Investors Financial institutions that purchase large amounts of stock Managers may be more willing to listen to these large investors.,Copyright 2004 South-Western. All rights reserved.,319,Impact of Executive Salaries

16、 on a Firms Performance,Exhibit 3.7,Copyright 2004 South-Western. All rights reserved.,320,Conflict With Excessive Executive Compensation,Compensation of executives has increased dramatically 1980: 42 times the average compensation of employees 1990: 85 times the average compensation of employees 20

17、00: 500 times the average compensation of employees,Copyright 2004 South-Western. All rights reserved.,321,Responsibility to Creditors,Meeting financial obligations to creditors Inform creditors if firm is having difficulty meeting obligations If firm does not pay creditors what it owes themmay have

18、 to file for bankruptcy,Copyright 2004 South-Western. All rights reserved.,322,Violations of Responsibility,Providing misleading financial information that exaggerates financial condition Enron Oracle Global Crossing ImClone,Copyright 2004 South-Western. All rights reserved.,323,Responsibility to th

19、e Environment,Production processes, as well as products, can harm the environment Air Pollution Change production processes Land Pollution Revise production and packaging processes to reduce waste Recycle,Copyright 2004 South-Western. All rights reserved.,324,Monsantos Stock Price after Receiving Ba

20、d Publicity about Its Effects on the Environment,Exhibit 3.8,Copyright 2004 South-Western. All rights reserved.,325,Responsibility to the Community,Maximizing social responsibility may conflict with maximizing firm value May reduce firms ability to provide products at reasonable prices Support for c

21、haritable organizations can improve company image,Copyright 2004 South-Western. All rights reserved.,326,Effect of Environmental Expenses on Business Performance,Exhibit 3.9,Copyright 2004 South-Western. All rights reserved.,327,Social Responsibility: Examples,Apple and IBM Invest in education progr

22、ams Home Depot Donates to community programs for housing projects Provided supplies and equipment to 9/11 rescue efforts Checkers Provides jobs for inner-city residents Coca-Cola Sponsors Boys and Girls Clubs,Copyright 2004 South-Western. All rights reserved.,328,Social Responsibility: Examples,Ace

23、Hardware Foundation has donated more than $20 million to communities it serves 9/11 donated three tractor-trailer loads of equipment Dow Chemical Corporation Created Community Advisory Panel Funds education programs in South America Habitat for Humanity project in Korea New art center in West Virgin

24、ia,Copyright 2004 South-Western. All rights reserved.,329,Responsibilities in International Environment,Be aware of cultural differences Avoid unethical payoffs to suppliers or customers Establish global reputation for running an ethical business,Copyright 2004 South-Western. All rights reserved.,33

25、0,Cost of Social Responsibility,Complaint resolution process Customer and employee satisfaction surveys Product liability lawsuits Change production techniques to comply with government regulations about environmental impact Periodic disclosure of financial information Sponsoring community activitie

26、s,Copyright 2004 South-Western. All rights reserved.,331,Lawsuits,Common Lawsuits Product defects Deceptive advertising Employee discrimination Cost of Lawsuits Court imposed fines Out-of-court settlements Hiring attorney to defend firm Decline in demand for product because of bad publicity,Copyrigh

27、t 2004 South-Western. All rights reserved.,332,Possible Expenses Incurred as a Result of Social Responsibilities,Exhibit 3.10,Copyright 2004 South-Western. All rights reserved.,333,Summary,Business ethics influence decisions Firms have basic responsibilities Provide safe working conditions Treat wor

28、k workers properly Provide equal opportunity for employees Make decisions in best interest of stockholders Maintain a clean environment,34,34,Rating Stakeholder Emphasis-Responsibilities to stakeholders,Source: McDonald, Christopher, Payne & Knox,Customers,Local Communities,shareholders,Creditors,Em

29、ployees,Suppliers,New,Existing,35,British Airways Relationship Markets,Source: McDonald, Christopher, Payne & Knox,Customer Markets,Intermediaries,Referral Markets,Influence Markets,Internal Markets,Supplier Markets,New,Existing,Mid 70s,1980s,1990s,36,36,Regional “push-to-talk” wireless service provide