1、1,學(xué)術(shù)英語 Academic English,2,Unit 2 Business Ethics,Text A Striking the Right Balance,3,Free enterprise Free enterprise refers to the system of business in which individuals are free to decide what to produce, how to produce it, and at what price to sell it. 自由企業(yè)制度，就是確保企業(yè)能夠擁有在產(chǎn)權(quán)受法律保護(hù)的基礎(chǔ)上所享有的自由創(chuàng)業(yè)權(quán)、自由經(jīng)營權(quán)

2、、自由交易權(quán)以及自由支配或處置財產(chǎn)權(quán)等一系列的制度安排。它包括產(chǎn)權(quán)制度、進(jìn)入退出制度、公平競爭制度、平等合約制度、平等交易制度以及平等獲取信息服務(wù)制度等。,Unit 2Business Ethics,Text A Background information,4,Do you agree or not?,Profit maximization is the right goal for a business- Adam Smith,5,2016年315晚會：共筑消費新生態(tài),【曝光】“餓了么”驚現(xiàn)黑心作坊 看完你還會餓么？ 【曝光】制造用廢鋼料 這樣的假牙你敢戴嗎？ 【權(quán)威發(fā)布】跨境電商進(jìn)口兒童

3、用品超三成不合格 【消費預(yù)警】你買的人參可能一半是白糖！,Balance profit and business ethics,6,Business Ethics,Business ethics means written and unwritten codes of moral standards that are critical to the current activities and future aspirations of a business organization. They can differ from one company to another because of

4、 differences in cultural perspectives, operational structures and strategic orientations. The guiding framework of business ethics exists all levels of the organization. It is about having the wisdom to determine the difference between right actions and wrong decisions. In simpler terms, business et

5、hics provides the morality standards and behavioral patterns expected of individuals and the business as a whole. These moral standards can be perceived in terms of the microenvironment and macro environment of the business.,7,Stakeholder VS Shareholder,There are two schools of thought regarding how

6、 companies should approach a definition for business ethics: the shareholder perspective and the stakeholder perspective.,8,Stakeholder VS Shareholder,Shareholder Perspective Those who approach ethical decision making from a shareholder perspective focus on making decisions that are in the owners be

7、st interest. Decisions are guided by a need to maximize return on investment for the organizations shareholders. Individuals who approach ethics from this perspective feel that ethical business practices are ones that make the most money.,9,Stakeholder VS Shareholder,Stakeholder Perspective The phra

8、secorporate social responsibilityis often used in discussions of business ethics. The idea behind this concept is the belief that companies should consider the needs and interests of multiple stakeholder groups, not just those with a direct financial stake in the organizations profits and losses. Or

9、ganizations that approach business ethics from a stakeholder perspective consider how decisions impact those inside and outside the organization. Stakeholders may include: employees, suppliers, customers, competitors, government agencies, the news media, community residents and others. The idea behi

10、nd stakeholder based ethical decision making is to make sound business decisions that work for the good of all affected parties.,10,Importance of Ethical Business Decisions,Companies and people who behave in a socially responsible manner are much more likely to enjoy ultimate success than those whos

11、e actions are motivated solely by profits. Knowing the difference between right and wrong and choosing what is right is the foundation for ethical decision making. In many cases, doing the right thing often leads to the greatest financial, social, and personal rewards in the long run.,11,Corporate S

12、ocial Responsibility,Definitions Corporate social responsibility (CSR) is about how companies manage the business processes to produce an overall positive impact on society Corporate social responsibility (CSR) refers to a business practice that involves participating in activities that benefit soci

13、ety.,12,Pyramid of Social Responsibility,(Carroll 1991),13,Text A Striking the Right Balance,Para 1 In 1776, Adam Smith described how an “invisible hand” guides companies as they strive for profits, and that hand leads them to decisions that benefit society. Smiths insights led him to conclude that

14、profit maximization is the right goal for a business and that the free enterprise system is best for society.,14,Text A Striking the Right Balance,But the world has changed since 1776. Firms today are much larger, they operated globally, they have thousands of employees, and they are owned by millio

15、ns of stockholders. This make us wonder if the “invisible hand” still provides reliable guidance. Should companies still try to maximize profits, or should they take broader view and take more balanced actions designed to benefit customers, employees, suppliers, and society as a whole?,15,Para 2,Mos

16、t academics today subscribe to the following modified version of Adam Smiths theory: A firms principal goal should be to maximize the wealth of its stockholders, which means maximizing the value of its stocks.,16,Para 2,Free enterprise is still the best economic system for the country as a whole. Un

17、der the free enterprise framework, companies develop products and services that people want and that benefit society. However, some constraints are needed- firms should not be allowed to pollute the air and water, to engage in unfair employment practices, or to create monopolies that exploit consume

18、rs.,17,Para 3,These constraints take a number of different forms. Through the political process, society imposes a wide range of regulations that are designed to keep companies from engaging in practices that hurt society. Another set of constraints are the costs that are assessed on companies if th

19、ey take actions that harm society. Properly imposed, these costs fairly transfer value to suffering parties and help create incentives that help prevent similar events from occurring in the future.,18,Para 3,Two recent examples dramatically illustrate these points. First, many Wall Street firms enga

20、ged in extremely risky activities that pushed the financial system to the brink of collapse in 2007 and 2008. Saving the financial system required a bailout of banks and other financial companies, and that bailout imposed huge costs on the taxpayers, and also helped push the economy into a deep rece

21、ssion.,19,Para 3,Apart from the huge costs imposed on society, the financial firms also paid a heavy price - a number of leading financial institutions saw a huge drop in their stock price, some failed and went out of business, and many Wall Street executives lost their jobs. More recently, in 2010,

22、 the massive BP oil spill in the Gulf of Mexico had a terrible environmental and economic impact of the Gulf region.,20,Para 3,In the three months following the initial explosion, BPs stock lost half of its value, and no one knew how high its total cost would be and whether the company would survive

23、. The spill has also led the United States and other nations to re-examine their policies regarding deep-water drilling, and that might have a serious adverse effect on long-run oil supplies.,21,CREDIT CRISIS,22,background,US Federal Reserve lower the interest rates to only % after 911. Investor: lo

24、w return for 1%, Bank: borrow money from Fed for 1%, cheap credit (低息貸款), go crazy with leverage, earn lots of money, Then investors of Wall Street also wants to earn more money.,23,Leverage is borrow money to amplify the outcome of a deal,Leverage,$10,000,24,How did that happen?,House buyers,Invest

25、ors,Wall street,25,How did it work?,mortgage,26,Bad result,sub-prime mortgage crisis,27,End,28,Para 4,Still, some argue that the costs imposed on BP are insufficient to cover the damages that were incurred, and that the theory of constrained profit maximization is inadequate. For example, GE Chief E

26、xecutive Officer (CEO) Jeffrey Immelt believes that just obeying the law is not enough, and that companies should strive to behave ethically and continually operate with societys interests in mind.,29,Para 4,Immelt further argues that value and reputation go hand in hand, and that having a good repu

27、tation with customers, suppliers, employees and regulators is essential if value is to be maximized. In his words, “The reason people come to work for GE is that they want to be part of something bigger than themselves.,30,Para 4,They want to work hard, win promotions, and be well-compensated, but t

28、hey also want to work for a company that makes a difference, a company thats doing great things in the world its up to GE be to a good citizen. Not only is that a nice thing to do, but its good for business and thus the price of our stock.”,31,Para 5,GE is not alone. An increasing number of companie

29、s see their mission as more than just making money for their shareholders. Googles well-know corporate motto is “Dont Be Evil.” Consistent with this mission, the company has its own in-house foundation that has made large investments in a wide range of philanthropic ventures worldwide. There are oth

30、er instances where corporate leaders have donated personal funds.,32,Para 6,In 2008, Microsoft Corporations Bill Gates gave a speech to the world Economic Forum in which he made the case for a “creative capitalism”. Gates stated that, “such a system would have a twin mission: making profits and also

31、 improving lives for those who dont fully benefit from market forces.”,33,Para 7,Gates has certainly been true to his word. In 2000, he and his wife established the Bill BP oil spill Argument 2 1) behave ethically; value and reputation 2) Dont be Evil 3) creative capitalism 4) contributed more than

32、$6 billion,43,Language building up,Task 1-1 1. 無形的手 2. 自由企業(yè)制度 3. 股東 4. 經(jīng)濟(jì)體制 5. 開發(fā)產(chǎn)品和服務(wù) 6. 市場力量 7. 金融機(jī)構(gòu) 8. 嚴(yán)重衰退 9. 破產(chǎn),44,Language building up,10. stock price 11. mission 12. corporate motto 13. assets 14. maximize profits 15. financial system,45,Language building up,Task 1-2 1. When politicians and e

33、conomists talk about【market force】, they mean the economic factors that affect the availability of goods and the demands for them, without any help from or control by the government. 2. The dramatic change in business environment makes all industries face drastic completion. This is also happened in

34、 the 【financial institutions】.,46,Language building up,Task 1-2 3. A【free enterprise system】can be contrasted with a socialist economic system, which depends heavily on government planning and public ownership of the means of production. 4. The oil price increases pushed the European economy into【de

35、ep recession】.,47,Language building up,Task 1-2 5. Adam Smiths famous【invisible hand】theory has been modified to cater to the current economic situation. 6. An individual or organization that owns stocks in a corporation can be called【stockholder】.,48,Language building up,Task 1-2 7. In economics,【p

36、rofit maximization】is the short-run or long-run process by which a firm determines the price and output level that returns the greatest profit. 8. A socialist market【economic system】has now taken shape, and the basic role played by the market has been improved in the sphere of resource allocation.,4

37、9,Language building up,Task 2 -Signpost language 1. and 2. Another 3. also 4. Not only, but 5. other,50,Language building up,Task 3- formal English 1. Smiths insights led him to conclude that profit maximization is the right goal for a business and that the free enterprise system is best for society

38、. (understanding) 2. Most academics today subscribe to the following modified version of Adam Smiths theory. (agree with),51,Language building up,Task 3- formal English 3. Through the political process, society imposes a wide range of regulations that are designed to keep companies from engaging in

39、practices that hurt society. (forces to be accepted) 4. and that might have a serious adverse effect on long-run oil supplies. ( bad),52,Language building up,Task 3- formal English 5. An increasing number of companies see their mission as more than just making money for their shareholders. (purpose)

40、 6. Consistent with this mission, the company has its own in-house foundation that has made large investments in a wide range of philanthropic ventures worldwide. (charitable),53,Language building up,Task 3- formal English 7. There are other instances where corporate leaders have donated personal fu

41、nds. (given) 8. It received a notable boost in 2006 when famed investor Warren Buffett announced that he would donate a huge share of his fortune to the Foundation. (famous),54,Text B Two views of social responsibility,Para 1: Government regulation and public awareness are external forces that have

42、increased the social responsibility of business. But business decisions are made within the firm and there, social responsibility begins with the attitude of management. Two contrasting philosophies, or models, define the range of management attitudes toward social responsibility,55,Para 2,The econo

43、mic model According to the traditional concept of business, a firm exists to produce quality goods and services, earn a reasonable profit and provide jobs. In line with this concept, the economic model of social responsibility holds that society will benefit more when business is left alone to produ

44、ce and market profitable products that society needs. The economic model has its origins in the 18th century, when businesses were owned primarily by entrepreneurs or owner-managers. Competition was vigorous among small firms, and short-run profits and survival were the primary concerns.,56,Para 3,T

45、o the manager who adopts this traditional attitude, social responsibility is someone elses job. After all, stockholders invest in a corporation to earn a return on their investment, not because the firm is socially responsible and the firm is legally obligated to act in the economic interest of its

46、stockholders. Moreover, profitable firms pay federal, state, and local taxes that are used to meet the needs of society. Thus, managers who concentrate on profit believe that they fulfill their social responsibility indirectly through taxes paid by their firms. As a result, social responsibility bec

47、omes the problem of government, various environmental groups, charitable foundations, and similar organizations.,57,Para 4,The socioeconomic model In contrast, some managers believe they have the responsibility not only to stockholders, but also to customers, employees, suppliers, and the general pu

48、blic. This broader view is referred to as the socioeconomic model of social responsibility, which places emphasis not only on profits but also on the impact of business decisions on society.,58,Para 5,Recently, increasing numbers of managers and firms have adopted the socioeconomic model and they ha

49、ve done so for at least three reasons. First, business is dominated by the corporate form of ownership and the corporation is a creation of society. If a corporation does not perform as a good citizen, society can and will demand changes. Second, many firms are beginning to take pride in their socia

50、l responsibility records, among them Starbucks Coffee, Hewlett-Packard, Colgate-Palmolive, and Coca-Cola.,59,Para 5,Each of these companies is a winner of a Corporate Conscience Award in the areas of environmental concern, responsiveness to employees, equal opportunity, and community involvement. An

51、d of course, many other corporations are much more socially responsible today than they were 10 years ago. Third, many business people believe it is in their best interest to take the initiative in this area. The alternative may be legal action brought against the firm by some special interest group

52、; in such a situation, the firm may lose control of its activities.,60,Para 6,The pros and cons of social responsibility Business owners, managers, customers, and government officials have debated the pros and cons of the economic and socioeconomic models for years. Each side seems to have four majo

53、r arguments to reinforce its viewpoint.,61,Para 7,Arguments for increased social responsibility Proponents of the socioeconomic model maintain that a business must be more than simply seek profits. To support their position, they offer the following arguments: 1.Because business is a part of our society, it cannot ignore social issues. 2.Business has the technical, financial, and managerial resources needed to tackle todays complex social issues. 3.By helping resolve social issues, business can create a more stable environment f