Intro to business week 2
Intro to business week 2 BUSN 3304
Ivy Tech Community College
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This 8 page Class Notes was uploaded by Carmyn L Watkins on Friday September 2, 2016. The Class Notes belongs to BUSN 3304 at Ivy Tech Community College taught by Brandon Houston in Fall 2016. Since its upload, it has received 16 views. For similar materials see global business in Business Administration at Ivy Tech Community College.
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Date Created: 09/02/16
Business 101 Week 2 NOTICE: These notes are my interpretation of our lectures. However, my notes will cover some parts of the readings that I found interesting and important; they will not cover everything you need to do the assigned readings on your own. These notes are for if you miss a class or show up late, or even if you forgot to take notes. Everything that is in the quiz is in the book, and most of what is on the exam will be covered in the PowerPoint. Utility- Does a particular act optimize the benefits to those who are affected by it? “Fair” benefits. Rights- Does it respect the rights of all individuals involved? Justice- Is it consistent with what’s fair? Caring- is it consistent with people’s responsibilities to each other? Ethics- beliefs about what is right and wrong or good and bad in actions that affect others Business ethics- refers to ethical and unethical behaviors by employees in the context of their jobs. Ex. Having to turn people away because people don’t have the credentials. Ethical behavior- conforms to social norms and individual beliefs unethical behavior- a behavior that conforms to individual beliefs and social norms about what is defined as right and wrong. Managerial ethics- standards of behavior that guide individual managers in their work -respect -how you treat an employee -leading by example -laws that impact the behavior of an employee, Managerial ethics also include respect towards three things. 1) Toward the organization- representation, respecting your peers, correct bookkeeping, basically doing your job, honesty 2) Other economic agents- customers, consumers, government agencies, vendors/suppliers, 3) Towards employees hiring and firing, wages, and work conditions Assessing Ethical Behavior- 1. Gather the relevant factual information 2. Analyze the facts to determine the most appropriate moral values 3. Make an ethical decision based on how right or wrong the activity or policy is. Ethical Judgement Making -Look at figure 2.1 Two of the most common approaches to formalizing top management commitment to ethical business pratices: Adopting written codes instituting ethics programs the best way to demonstrate ethical behavior is for top management to support the ethical standards Whose job is it to teach a child ethics? Teachers? Peers? Parents? ITT TECH accreditation being pulled- They knew that most of their credits would not transfer but did not tell their students. Has a code of ethics, but cooperation has no ethics. Strategies and practices are going to change and will change the most -what obstacles are in place that prevent you from getting a degree or doing your job at Ivy tech Organizational objectives -started as a technical school, change less frequently and are harder to change. Trying to become a career school. Core principals- Never change, regardless of objectives and how we get there it is students and faculty focused Social Responsibility- refers to the overall way in which a business attempts to balance its commitments to relevant and individuals in a social environments. Watched a video about why businesses exist, Included about social responsibility, land of profit, can’t reduce a ethical decision to mathematics Simons thinking about giving nutritious meals to his workers, known as cooperate responsibility. Knows that profit is good, not the end goal. Employing workers, giving a product that enriches peoples’ lives, and helping the environment First American treated with penicillin, Murk wanted to do research to help people. And shared the secret of penicillin and saved tons of lives in WWII. Will socially responsible firms perform better? Future stock returns Hirbased on employee well-being. Correlation does not correlate with causation. Companies that treat their workers better do better in the market. Treating your workers well is costly. EX. Costco, go Costco This video is on blackboard under the class sessions tab if you want to rewatch it. Look beyond the short term and quantitative, and to the long term with qualitative. Do companies exist to maximize profit or to give purpose? If a company sells something that is no longer relevant say VCR’s is the company going to continue to make those even though they aren’t relevant? Something that rules the market such as tissues to Kleenex. If you feel better about what you do at an organization it will make you want to work harder for the company, because of higher self-esteem Looking at what companies do for society you enjoy companies more if they contribute to society and what to work there more. And if you go to certain jobs that do good things for you, tuition reimbursement, you are willing to stay at that company longer. Identification in like groups, social identity theory. Organizational stakeholders- groups and individuals affected directly by the practices of an organization and have a stake in its’ performance. Figure 2.3 Do we sell our customers crappy products and do nothing to support them. Most companies that strive to be responsible to their stakeholders. Consumer rights- Consumerism, social activism dedicated to protecting the rights of consumers in their dealings with businesses. Elizabeth Wang Unfair pricing- collusion, two or more firms collaborate on such wrongful acts as price fixing, price gouging. Getting the cheapest price, locking prices, killing the competition (not literally) Cell phones only lasting a year and a half, so you have to buy more of them. Price gouging- lowering your price so low that other competitors cannot compete just to get market value. Provide opportunities to balance work and life pressures and preferences Help employees maintain job skills Treat terminated or laid-off employees with respect and compassion. A company that provides its employees with equal opportunities without regard to race or sex Suppliers- Create mutually beneficial partnership arrangements with suppliers Local and international communities- involvement in programs and charities. Ex. Carriers profits, companies outsourcing to another company. But violating civil rights within that international communities or dumping chemicals into a river. Reasons for leaving go back to profits or purpose, Union wages. The concept of accountability- the expectation of an expanded role for the business in protecting and enhancing the general welfare of society. Consumer holds more power with technology consumerism- a form of social activism. Consumerism protects the consumer from bad business practices. Includes the right to safe products, the right to be informed about all relevant aspects of a product, right to be heard, right to choose what they buy, right to be educated about purchases, and a right to courteous service. Collusion- two or more firms collaborate on things such as price fixings. Read through the elements of Green Marketing, *Ralph Nader, seat belts, national traffic and motor vehicle safety act, whistleblower protection act, Insider trading- using confidential information to gain from the purchase or sale of stocks Misrepresentation of finances-fixing the books, money in reserve needed, Obstructionist Stance- involves doing as little as possible Defensive stance- will do everything that is legally required, including admitting to mistakes and taking corrective actions, and nothing more. Accommodative Stance- if specifically asked to do so exceeds legal minimum Proactive Stance- favor in social responsibility, proactively seeking opportunities to contribute For small businesses ethics are an issue Regulation- the establishment of laws and rules that dictate what organizations can and cannot do, direct or indirect Ex. Tax breaks for being greener or socially responsible. Political action committees- special organizations created to solicit money and then distribute it to political candidates. Lobbying- the use of persons or groups to formally represent an organization or group of organizations before political bodies. Ex. worked in DC to make a political body for funding or organizations Legal Compliance- the extent to which the organiztions confronts th local, state, federal and international laws Ethical Compliance- the extent which the members of the Philanthropic giving- awarding funds to charities and other worthy causes. *Corporate social audit- systematic analysis of firm’s success in using funds earmarked for meeting its social responsibility goals.