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1、Business Ethics & Social Responsibility,Learning Goals,Describe responsibilities of firms to: Customers Employees Stockholders Creditors Environment Communities Explain the cost of fulfilling social responsibilities,Key Terms,business ethics code of ethics social resposibility corporate resposibilit
2、y customer loyalty consumerism monopoly antitrust law deregulate deposits interest rates morale,diversity sexual harassment affirmative action (Br:positive dicrimination) grievance policy layoffs dilemma employee turnover shareholer activism institutional investors tradeoff,Responsibility to Custome
3、rs,Responsible production practices safety warning labels Responsible sales practices,Ways to Ensure Responsibility to Customers,Role of firms: Establish a code of responsibilities Monitor complaints Obtain & utilize customer feedback Role of consumerism Role of government: laws on - product safety
4、- advertising - industry competition,Responsibility to Employees,Employee Safety workplace Proper Treatment of Employees Diversity Prevention of sexual harassment Quid pro quo (交换物） Hostile environment Equal opportunity Civil Rights Act of 1964 EEOC: Affirmative action,Types of Diversity,Ways to Ens
5、ure Responsibility to Employees,Code of responsibility Grievance policy Good example: Marriott sets up a mediation process offers a toll-free number for employees to call 3. to voice complaints in front of a panel of employees,Job Satisfaction,Responsibility to Stockholders,Decisions should reflect
6、the best interest of the owners Tie employee compensation to firm performance Disclosure of accurate information about financials Sarbanes-Oxley Act: the Public Accounting Reform and Investor Protection Act, 2002,Violations of Responsibility, Cases of misleading stockholders: provide misleading fina
7、ncial information that exaggerates financial condition Oracle Corp. Enron (Ken Lay and Jeff Skillings) WorldCom (63 year old CEO Ebbers sentenced to 25 years Global Crossing (Inflated earnings, bankruptcy) ImClone (Sam and Martha) Tyco (Dennis),Stockholder Actions,Shareholder activism Institutional
8、investors,Executive Compensation,42,1980,85,500,1990,2000,Employee,C.E.O.,X times the average compensation of employees,Responsibility to Creditors,Provide accurate information Make payment Inform creditors if having difficulty in meeting obligations If firm does not pay creditors what it owes them,
9、 it may have to file for bankruptcy. Cases of misleading stockholders,Responsibility to the Environment,Production processes, as well as products, can harm the environment Air Pollution Land Pollution Ways to prevent firms: change production/packaging processes, recycle government: specific guidelin
10、es,Responsibility Conflicts,Profitability,Environment,Environmental expenses vs company profit,Responsibility to the Community,Contributions: sponsor local events Foundations: make charitable contributions Charity: Improve firms image Maximizing social responsibility may conflict with maximizing fir
11、m value may reduce firms ability to provide products at reasonable prices,中国慈善排行榜,2004中国慈善排行榜发布一张榜单上榜慈善家50位，合计捐赠款物折合10.29亿元。 2005中国慈善排行榜上榜慈善家136位，合计捐赠9.85亿元（含实物捐赠）。 2006中国慈善排行榜上榜慈善家162位，合计捐赠15.89亿元（含实物捐赠）；上榜跨国公司42家，合计捐赠款物折合4.27亿元；上榜上市公司44家，合计捐赠款物折合1.2亿元。 2007中国慈善排行榜上榜慈善家174位，合计捐赠19.1亿元（不含实物捐赠）；上榜慈善企
12、业222家，合计捐赠20.7亿元。 2008中国慈善排行榜上榜慈善家149位，合计捐赠16.5亿元（不含物品捐赠），平均捐赠1107万元；入榜慈善企业325家，合计捐赠54.9亿元（不含物品捐赠），平均捐赠1689万元。 “2009中国慈善排行榜”入榜慈善家121位，共计捐赠18.84亿元；入榜慈善企业899家，共计捐赠117.95亿元（含物品捐赠）。 - 江苏黄埔再生资源利用有限公司董事长陈光标继2008年获得“中国首善“称号后，今年获得中国慈善排行榜最高奖项“最具号召力的中国慈善家”称号，世纪金源集团黄如论、黄涛父子因现金捐赠第一名而获得“中国首善”称号，四川宏达集团董事长刘沧龙获得“20
13、09慈善特别贡献奖”。 - 此外，陈逢干、杨受成、匡俊英、王秋杨、李兆会、李清友、杨卓舒、杨勋、李爱君、孙荫环等10人被评选为“2009十大慈善家”；恒源祥、浏阳河、顶新集团、前进钢铁、加多宝、TCL、中国人寿、强生、晶龙、月朗国际等10家企业荣获“2009十大慈善企业”。,Responsibilities in International Environment,Awareness of cultural differences Avoid unethical payoffs Establish ethical global reputation,Social Responsibility:
14、 Examples,Apple and IBM Invest in education programs 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,Summary,Business ethics influence decision
15、s Firms have basic responsibilities to customers employees stockholders environment Community Social responsibility decisions & impact: p.59,Conflict Among Responsibilities,Communities,Employees,Environment,Stockholders,Creditors,Customers,Conflict Among Responsibilities,Learning Goals (revisited),Describe responsibilities of firms to: Customers Employees Stockholders Creditors Environment Communities Explain the costs,
