Introcution to Business 商学导论PPT IB02

Introcution to Business 商学导论PPT IB02

Part I: Organization of a Business

2Business Ethics & Social Responsibility

Introcution to Business 商学导论PPT IB02

Learning Goals1.

Describe responsibilities of firms to:– – – – – – Customers Employees Stockholders Creditors Environment Communities

2.

Explain the cost of fulfilling social responsibilities

Introcution to Business 商学导论PPT IB02

Key Terms

business ethics code of ethics social resposibility corporate resposibility customer loyalty consumerism monopoly antitrust law deregulate deposits interest rates morale

persity sexual harassment affirmative action (Br:positive dicrimination) grievance policy layoffs dilemma employee turnover shareholer activism institutional investors tradeoff

Introcution to Business 商学导论PPT IB02

Responsibility to Customers

Responsible production practices– safety – warning labels

Responsible sales practices

Introcution to Business 商学导论PPT IB02

Ways to Ensure Responsibility to Customers

Role of firms:1. Establish a code of responsibilities 2. Monitor complaints 3. Obtain & utilize customer feedback

Role of consumerism Role of government: laws on- product safety - advertising - industry competition

Introcution to Business 商学导论PPT IB02

Responsibility to Employees

Employee Safety– workplace

Proper Treatment of Employees– Diversity – Prevention of sexual harassmentQuid pro quo (交换物) Hostile environment

– Equal opportunityCivil Rights Act of 1964 EEOC: Affirmative action

Introcution to Business 商学导论PPT IB02

Types of DiversityReligion

Gender

Age

Beliefs

Race

Introcution to Business 商学导论PPT IB02

Ways to Ensure Responsibility to Employees

Code of responsibility Grievance policy Good example: Marriott1. sets up a mediation process 2. offers a toll-free number for employees to call 3. to voice complaints in front of a panel of employees

Introcution to Business 商学导论PPT IB02

Job Satisfaction

Introcution to Business 商学导论PPT IB02

Responsibility to Stockholders

Decisions should reflect 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

Introcution to Business 商学导论PPT IB02

Violations of ResponsibilityCases of misleading stockholders: provide misleading financial information that exaggerates financial condition– Oracle Corp. – Enron (Ken Lay and Jeff Skillings) – WorldCom (63 year old CEO Ebber’s sentenced to 25 years – Global Crossing (Inflated earnings, bankruptcy) – ImClone (Sam and Martha) – Tyco (Dennis)

Introcution to Business 商学导论PPT IB02

Stockholder ActionsShareholder activism Institutional investors

Introcution to Business 商学导论PPT IB02

Executive CompensationC.E.O.

X times the average compensation of employees 85 42Employee 1980

500 5001990 2000

Introcution to Business 商学导论PPT IB02

Responsibility to CreditorsProvide accurate information Make payment Inform creditors if having difficulty in meeting obligations If firm does not pay creditors what it owes them, it may have to file for bankruptcy. Cases of misleading stockholders

Introcution to Business 商学导论PPT IB02

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 guidelines

Introcution to Business 商学导论PPT IB02

Responsibili

ty Conflicts

Environment

Profitability

Environmental expenses vs company profit