Business Ethics and Corporation Social Responsibility (BESOR)

Business
 defined as an organization or enterprising entity engaged in commercial, industrial, or professional
activities
 can be for -profit entities or non-profit organizations
 business types range from limited liability companies to sole proprietorships, corporations and
partnerships

Sole Proprietorship Partnership Corporation

Ownership A single owner Two or more owners Usually owned by many
shareholders
Profit/Loss All profits go to sole Profits split equally, or by Dividends declared and given
owner pre-determined terms to shareholders
amongst the owners
Liability The owner has unlimited Usually split amongst the Limited liability – individuals
liability owners based on terms are not usually directly liable
for activities within the
corporation
Decision- All decisions for the firm Owners in the partnership Board of director and
Making are made by one owner are responsible for the shareholders
decisions
Tax Owner is taxed on his Owners are taxed on their A corporation is taxed as
personal income/profit respective incomes “person”
from the company

Business Plan
 a formal document that outlines the company’s goals and objectives and lists the strategies and plans
to achieve these goals and objectives.

WHAT IS ETHICS?
 Integrity/Honesty
 Value
 Honor
 Choice
 Conscience
 Moral
 Principles
 Right
 Fairness
 Responsibility
ETHICS
 Came from Greek word “ETHOS” which means CHARACTER or MANNERS
 Also called MORAL PHILOSOPHY
 Discipline concerned with what is morally good and bad and morally right and wrong
3 Standards in Ethics
Values
 Tell us what is good
 Things we strive for, desire and seek to protect

Principles
 Tell us what is right
 Outlining how we may or may not achieve our values

Purpose
 Reason for being
 It gives life to your values and principles

BUSINESS ETHICS
 The values of what should be done and what should not be done from the business point of view
 This involves adhering to:
 Legal
 Regulatory
 Professional and company standards
 Keeping promises and commitments; and
 Abiding by general principles like fairness, truth, honesty, and respect
 Applies not only to how the business interact with the world at large but also to their ONE-ON-ONE
dealing with customers

Situational Examples of Business Ethics

 Obeying the company’s rules and regulations
 Theft/embezzlement
 Corrupt practices

12 BUSINESS ETHICS PRINCIPLES

1. Honesty Principle
 Foundation of trust
 Without an emphasis on truthfulness, a company can mislead its employees and consumers
and ultimately lose business
 Many major corporate scandals around the world, began with lack of honesty, from covering
up facts to misleading customers and investors

2. Integrity Principle
  Refers to a totality of a person’s character, demonstrated by consistency in thoughts, words
and actions
 They do exactly what they said they’ll do, and what is the right thing to do

3. Trustworthiness Principle
 Refers to how a business conducts itself both internally and externally over a period of time
 A trait that grows and develops, just like the company’s reputation

4. Loyalty Principle
 Represent a company’s dedication to its employees, investors, and associates
 A disloyal business, for example, chases profits without any regard to how this affects their
corporate partners, suppliers, or employees
 The company will lay of staff, or reduce wages without looking into other viable cost-saving
options. It is impossible for a company to operate ethically without loyalty

5. Fairness Principle
 Committed to justice and impartial treatment for everyone
 Have a tremendous tolerance for diversity and remain open-minded, are ready to admit when
they are wrong, and change their actions when needed

6. Concern for Others Principle

 Demonstrating a genuine concern for the well-being of others in the definition of caring. An
ethical business is compassionate and kind
 Seek to make corporate decisions that cause the least amount of harm to and the highest good
for everyone involved
 When there is corporate support of the concept, the emphasis is on the well being of
individuals, instead of the company’s profit

7. Respect for Others Principle

 Demonstrates respect for other’s autonomy, privacy and human dignity
 Compassionate towards others and treats people fairly regardless of race, gender, sex, or
religion

8. Compliant Principle
 Abiding by and following the laws and ethical standards
 Means more than merely following the law
 Implies the business follows its own code of ethics and standards
9. Pursuit of Excellence Principle
 To be the best in everything they do
 Well-informed and always prepared
 Continuously looking for ways to improve their performance to increase their proficiency in
all areas of responsibility

10. Leadership Principle

 adopt, integrate, and emulate all principles
 guide decisions and behavior in all aspects of professional and personal life

11. Reputation and Morale Principle

 Avoiding actions and refusing to use language that might damage a businesses’ reputation
 Realize the significance of speaking and acting positively and take the steps needed in the
event there is appropriate conduct of others
12. Responsibility Principle
 Promote ownership within an organization
 Allow employees to be responsible for their work, and be accountable