BUS 104 Business Ethics And Social Responsibility

Borough of Manhattan Community College

Introduction To Business (BUS 104)

conflicts of interest exist when employees must choose whether to

Chapter 2
Business Ethics and Social Responsibility
Any organization, including nonprofits, has to manage the ethical behavior of employees
an participants in the overall operations of the organization. The ethical conduct of
employees creates a culture of trust and respect that makes a business productive.
Business Ethics and Social Responsibility
We define business ethics as the principles and standards that determine acceptable
conduct in business organizations. Personal ethics, on the other hand, relates to an
individual’s values, principles, and standards of conduct. The acceptability of behavior in
business is determined by not only the organization but also stakeholders such as
customers, competitors, government regulators, interest groups, and the public as well
as each individual’s personal principles and values.
Many experts agree that ethical leadership, ethical values, and compliance are
important in creating good business ethics.
Many consumers and social advocates believe that businesses should not only make a
profit but also consider the social implications of their activities. We define social
responsibility as a business’s obligation to maximize its positive impact and minimize
its negative impact on society. Business ethics relates to an individual’s or a work
group’s decisions that society evaluates as right or wrong, whereas social responsibility
is a broader concept that concerns the impact of the entire business’s activities on
society.

PREVIEW