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6-4                    Ethics & Social Responsibility                            [CH 6







                    Unocal conducts fire training
                    for its operating personnel in
                    its refineries. The company
                    values the safety of its
                    operations in order to protect
                    its employees, visitors,
                    customers, and neighbors in
                    the community. Unocal set up
                    a new department of safety
                    and risk management to
                    implement a company-wide
                    safety program, including
                    safety audits to ensure the
                    program works effectively in
                    every facility.

                                              Photo Source: Courtesy of Unocal/Larry Lee.


                                             Business cannot afford to act unethically towards its customers, its employees, nor its

                                          community; it will not stay in business as customers and employees leave. Management
                                          may require production supervisors to make assembly-line jobs more meaningful; revise
                                          production procedures; or engage in job sharing to retain employees.
                                             Environmental considerations have  become important as a means  of  controlling
                                          business and people; considerations include the work environment; the resources industry
                   business ethics        draws on to provide goods and services and what it emits into the environment. While
                   The businessman's      high-quality products are still in demand, many consumers now  judge a  company by
                   standards of conduct   what it does, how its employees act, as well as the quality of its product. This chapter
                   reflecting his moral   discusses ethics and social  responsibility in  a  variety of scenarios for the  reader to
                   values.                consider.

                                          ETHICS AND SOCIAL RESPONSIBILITY
                                              When we discuss ethical principles from the standpoint that you need to be an ethical
                   Do not lie, cheat, or steal,   person, it can be stated simply: Do not lie, cheat, or steal, and do not tolerate those among
                   and do not tolerate those   you who do. This is actually a code; a rule for personal conduct. There is also the biblical
                   among you who do;      principle: ‘Abstain from all  appearance of  evil’ (1 Thessalonians 5:22, KJV). The
                   abstain from all
                   appearances of evil.    fundamental underpinnings  of  Western civilization’s  morality, which is expressed as
                                          ethics, is founded on Judeo-Christian principles. This is exceptionally valid for the United
                   "A cadet will not lie,   States. These principles are inculcated by our parents and family members, and from the
                   cheat, steal, or tolerate   churches and synagogues we attend regularly. Morality is inherent in each person and as a
                   those who do."         law, a Natural Law that informs our decisions as we deal with people.
                     —U.S. Military Academy at   When we discuss ethics for business, the same principles apply to the individual: Do
                                West Point
                                          not lie, cheat, or steal, and do not tolerate those among you who do; abstain from all
                                          appearances of evil. These ethics are for business and for the individual alike. Remember
                   Three rules of thumb   that a business is amoral, but the business reflects the owners and the employees who are
                   1.  Does this action attempt
                      to deceive anyone or   not amoral. It is through people who run a business that ethics are lived and exercised
                      allow anyone to be   regardless if it is the owner, the CEO, or an employee working on the shipping dock.
                      deceived?           When you are employed, your acts also reflect on your  employer and your fellow
                   2.  Does this action gain or   employees. Have you ever frequented a business as a customer and had an employee treat
                      allow the gain of   you badly? The grievance is  immaterial.  The customer will  leave dissatisfied with the
                      privilege or advantage   treatment received and will tell their friends about how bad ALL the employees are, even
                      to which I or someone   though they only dealt with one employee. In the retelling of the incident, which will
                      else would not
                      otherwise be entitled?   enlarge with the retelling, the aggrieved will insinuate that no one should do business with
                   3.  Would I be satisfied by   the firm ever again. Fair or unfair, that is what happens. How we act, reflects our morality
                      the outcome if I were on   which is the foundation to our ethics, expressed in our daily actions.
                      the receiving end of this   C.S. Lewis, in his book Mere Christianity, opens his comments on ethics with the
                      action?             following: “Consider those times when you have heard people quarreling over rights
                                          that have been infringed. Many times, quarreling words are unpleasant and sometimes


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