Page 58 - Business Principles and Management

Chapter 2 • Social and Ethical Environment of Business

dramatically altering how people communicate
and businesses operate. Computer-related jobs are
multiplying as entrepreneurs establish Internet
companies to find new applications for this new
technology.
Businesses are apt to become more and more
involved in providing social services to the commu-
nity that, in the past, have been provided by families,
funded by the government, or purchased by individu-
als. The general public has become more conscious
of environmental and human rights issues, and there
is growing concern over balancing family and work
life. Businesses have to ensure that their activities PHOTO: © GETTY IMAGES/PHOTODISC.
do not harm the natural environment and that they
respect the individual rights of a rapidly diversifying
workforce. As societal values change, each business
will continue to shape and be shaped by the society
in which it functions.

Wind power is considered a
CHECKPOINT clean source of energy that
does not add to environ-
List the reasons that a business needs to be concerned about
social responsibility issues. mental pollution. What are
some other ways businesses
can demonstrate social
responsibility?
2.3 Assessment

UNDERSTAND MANAGEMENT CONCEPTS
Circle the best answer for each of the following questions.
1. Which of the following is not related to the concept of ethics?
a. Ethics refers to standards of moral conduct.
b. Ethical behavior is closely linked to personal values.
c. Ethics always shows what is right and what is wrong.
d. Ethics helps define what behavior is seen as right or wrong.
2. The duty of a business to contribute to the well-being of society
is called
a. business ethics
b. social responsibility
c. constituency analysis
d. business responsibility
THINK CRITICALLY
Answer the following questions as completely as possible.
3. Because businesses are established for making profits, the only way to
ensure that they behave ethically is to have strong laws that require
them to do so. Do you agree with this statement? Justify your answer.
4. Explain how a business can ensure that its code of
ethics will be effective.

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