College English学术英语学术英语Academic English 1College EnglishUnit2BusinessEthicsTextAStrikingtheRightBalance2College EnglishFree enterprise Freeenterprisereferstothesystemofbusinessinwhichindividualsarefreetodecidewhattoproduce,howtoproduceit,andatwhatpricetosellit.自由企业制度，就是确保企业能够拥有在产权受法律保护的基础上所享有的自由创业权、自由经营权、自由交易权以及自由支配或处置财产权等一系列的制度安排。它包括产权制度、进入退出制度、公平竞争制度、平等合约制度、平等交易制度以及平等获取信息服务制度等。Unit 2Business EthicsText A Background information3College EnglishDo you agree or not?Profitmaximizationistherightgoalforabusiness-AdamSmith4College English2016年年315晚会：共筑消费新生态晚会：共筑消费新生态【曝光曝光】“饿了么饿了么”惊现黑心作坊惊现黑心作坊 看完你还会饿看完你还会饿么？么？【曝光曝光】制造用废钢料制造用废钢料 这样的假牙你敢戴吗？这样的假牙你敢戴吗？【权威发布权威发布】跨境电商进口儿童用品超三成不合跨境电商进口儿童用品超三成不合格格【消费预警消费预警】你买的人参可能一半是白糖！你买的人参可能一半是白糖！Balanceprofitandbusinessethics5College EnglishBusiness EthicsBusinessethicsmeanswrittenandunwrittencodesofmoralstandardsthatarecriticaltothecurrentactivitiesandfutureaspirationsofabusinessorganization.Theycandifferfromonecompanytoanotherbecauseofdifferencesinculturalperspectives,operationalstructuresandstrategicorientations.Theguidingframeworkofbusinessethicsexistsalllevelsoftheorganization.Itisabouthavingthewisdomtodeterminethedifferencebetweenrightactionsandwrongdecisions.Insimplerterms,businessethicsprovidesthemoralitystandardsandbehavioralpatternsexpectedofindividualsandthebusinessasawhole.Thesemoralstandardscanbeperceivedintermsofthemicroenvironmentandmacroenvironmentofthebusiness.6College EnglishStakeholderVSShareholderTherearetwoschoolsofthoughtregardinghowcompaniesshouldapproachadefinitionforbusinessethics:theshareholderperspectiveandthestakeholderperspective.7College EnglishStakeholderVSShareholderShareholderPerspectiveThosewhoapproachethicaldecisionmakingfromashareholderperspectivefocusonmakingdecisionsthatareintheownersbestinterest.Decisionsareguidedbyaneedtomaximizereturnoninvestmentfortheorganizationsshareholders.Individualswhoapproachethicsfromthisperspectivefeelthatethicalbusinesspracticesareonesthatmakethemostmoney.8College EnglishStakeholderVSShareholderStakeholder PerspectiveThephrasecorporate social responsibilityisoftenusedindiscussionsofbusinessethics.Theideabehindthisconceptisthebeliefthatcompaniesshouldconsidertheneedsandinterestsofmultiplestakeholdergroups,notjustthosewithadirectfinancialstakeintheorganizationsprofitsandlosses.Organizationsthatapproachbusinessethicsfromastakeholderperspectiveconsiderhowdecisionsimpactthoseinsideandoutsidetheorganization.Stakeholdersmayinclude:employees,suppliers,customers,competitors,governmentagencies,thenewsmedia,communityresidentsandothers.Theideabehindstakeholderbasedethicaldecisionmakingistomakesoundbusinessdecisionsthatworkforthegoodofallaffectedparties.9College EnglishImportanceofEthicalBusinessDecisionsCompaniesandpeoplewhobehaveinasociallyresponsiblemanneraremuchmorelikelytoenjoyultimatesuccessthanthosewhoseactionsaremotivatedsolelybyprofits.Knowingthedifferencebetweenrightandwrongandchoosingwhatisrightisthefoundationforethicaldecisionmaking.Inmanycases,doingtherightthingoftenleadstothegreatestfinancial,social,andpersonalrewardsinthelongrun.10College EnglishCorporate Social ResponsibilityDefinitionsCorporatesocialresponsibility(CSR)isabouthowcompaniesmanagethebusinessprocessestoproduceanoverallpositiveimpactonsocietyCorporatesocialresponsibility(CSR)referstoabusinesspracticethatinvolvesparticipatinginactivitiesthatbenefitsociety.11College EnglishPyramid of Social Responsibility(Carroll1991)12College EnglishText A Striking the Right BalancePara1In1776,AdamSmithdescribedhowan“invisiblehand”guidescompaniesastheystriveforprofits,andthathandleadsthemtodecisionsthatbenefitsociety.Smithsinsightsledhimtoconcludethatprofitmaximizationistherightgoalforabusinessandthatthefreeenterprisesystemisbestforsociety.13College EnglishText A Striking the Right BalanceButtheworldhaschangedsince1776.Firmstodayaremuchlarger,theyoperatedglobally,theyhavethousandsofemployees,andtheyareownedbymillionsofstockholders.Thismakeuswonderifthe“invisiblehand”stillprovidesreliableguidance.Shouldcompaniesstilltrytomaximizeprofits,orshouldtheytakebroaderviewandtakemorebalancedactionsdesignedtobenefitcustomers,employees,suppliers,andsocietyasawhole?14College EnglishPara 2MostacademicstodaysubscribetothefollowingmodifiedversionofAdamSmithstheory:Afirmsprincipalgoalshouldbetomaximizethewealthofitsstockholders,whichmeansmaximizingthevalueofitsstocks.15College EnglishPara 2Freeenterpriseisstillthebesteconomicsystemforthecountryasawhole.Underthefreeenterpriseframework,companiesdevelopproductsandservicesthatpeoplewantandthatbenefitsociety.However,someconstraintsareneeded-firmsshouldnotbeallowedtopollutetheairandwater,toengageinunfairemploymentpractices,ortocreatemonopoliesthatexploitconsumers.16College EnglishPara 3Theseconstraintstakeanumberofdifferentforms.Throughthepoliticalprocess,societyimposesawiderangeofregulationsthataredesignedtokeepcompaniesfromengaginginpracticesthathurtsociety.Anothersetofconstraintsarethecoststhatareassessedoncompaniesiftheytakeactionsthatharmsociety.Properlyimposed,thesecostsfairlytransfervaluetosufferingpartiesandhelpcreateincentivesthathelppreventsimilareventsfromoccurringinthefuture.17College EnglishPara 3Tworecentexamplesdramaticallyillustratethesepoints.First,manyWallStreetfirmsengagedinextremelyriskyactivitiesthatpushedthefinancialsystemtothebrinkofcollapsein2007and2008.Savingthefinancialsystemrequiredabailoutofbanksandotherfinancialcompanies,andthatbailoutimposedhugecostsonthetaxpayers,andalsohelpedpushtheeconomyintoadeeprecession.18College EnglishPara 3Apartfromthehugecostsimposedonsociety,thefinancialfirmsalsopaidaheavyprice-anumberofleadingfinancialinstitutionssawahugedropintheirstockprice,somefailedandwentoutofbusiness,andmanyWallStreetexecutiveslosttheirjobs.Morerecently,in2010,themassiveBPoilspillintheGulfofMexicohadaterribleenvironmentalandeconomicimpactoftheGulfregion.19College EnglishPara 3Inthethreemonthsfollowingtheinitialexplosion,BPsstocklosthalfofitsvalue,andnooneknewhowhighitstotalcostwouldbeandwhetherthecompanywouldsurvive.ThespillhasalsoledtheUnitedStatesandothernationstore-examinetheirpoliciesregardingdeep-waterdrilling,andthatmighthaveaseriousadverseeffectonlong-runoilsupplies.20College EnglishCREDIT CRISIS21College EnglishbackgroundUSFederalReservelowertheinterestratestoonly%after911.Investor:lowreturnfor1%,Bank:borrowmoneyfromFedfor1%,cheapcredit(低息贷款),gocrazywithleverage,earnlotsofmoney,TheninvestorsofWallStreetalsowantstoearnmoremoney.22College EnglishLeverage is borrow money to amplify the outcome of a deal$10,00023College EnglishHow did that happen?HousebuyersInvestorsWallstreet24College EnglishHow did it work?mortgage25College EnglishBad result sub-prime mortgage crisis 26College EnglishEnd27College EnglishPara 4Still,somearguethatthecostsimposedonBPareinsufficienttocoverthedamagesthatwereincurred,andthatthetheoryofconstrainedprofitmaximizationisinadequate.Forexample,GEChiefExecutiveOfficer(CEO)JeffreyImmeltbelievesthatjustobeyingthelawisnotenough,andthatcompaniesshouldstrivetobehaveethicallyandcontinuallyoperatewithsocietysinterestsinmind.28College EnglishPara 4Immeltfurtherarguesthatvalueandreputationgohandinhand,andthathavingagoodreputationwithcustomers,suppliers,employeesandregulatorsisessentialifvalueistobemaximized.Inhiswords,“ThereasonpeoplecometoworkforGEisthattheywanttobepartofsomethingbiggerthanthemselves.29College EnglishPara 4Theywanttoworkhard,winpromotions,andbewell-compensated,buttheyalsowanttoworkforacompanythatmakesadifference,acompanythatsdoinggreatthingsintheworlditsuptoGEbetoagoodcitizen.Notonlyisthatanicethingtodo,butitsgoodforbusinessandthusthepriceofourstock.”30College EnglishPara 5GEisnotalone.Anincreasingnumberofcompaniesseetheirmissionasmorethanjustmakingmoneyfortheirshareholders.Googleswell-knowcorporatemottois“DontBeEvil.”Consistentwiththismission,thecompanyhasitsownin-housefoundationthathasmadelargeinvestmentsinawiderangeofphilanthropicventuresworldwide.Thereareotherinstanceswherecorporateleadershavedonatedpersonalfunds.31College EnglishPara 6In2008,MicrosoftCorporationsBillGatesgaveaspeechtotheworldEconomicForuminwhichhemadethecasefora“creativecapitalism”.Gatesstatedthat,“suchasystemwouldhaveatwinmission:makingprofitsandalsoimprovinglivesforthosewhodontfullybenefitfrommarketforces.”32College EnglishPara 7Gateshascertainlybeentruetohisword.In2000,heandhiswifeestablishedtheBill&MelindaGatesFoundation.Todaythefundhasassetstotaling$33.5billion.Itreceivedanotableboostin2006whenfamedinvestorWarrenBuffettannouncedthathewoulddonateahugeshareofhisfortunetotheFoundation.33College EnglishPara 7Todate,Buffetthascontributedmorethan$6billion,andovertimeheisscheduledtocontributeadditionalstockthatisnowworthinexcessof$40billion.Theseeffortsshowthatthereismoretolifethanmoney,butitoftentakesmoneytodogoodthings.34College EnglishBill Gates was born on Oct, 28 in 1955 and grew up in Seattle with his two sisters. His father was a lawyer and his mother was a teacher. Bill Gates had his elementary school and high school education is Seattle. BillGates35College EnglishAnditwasduringthattimeBillfoundedthathisinterestslyinginwritingprogramsandbegantowriteprogramsat13.36College EnglishIn 1973, Bill Gates was admitted by Harvard but he quitted from Harvard three years later. He put all his time and energy into designing programs for Microsoft Cooperation which established in 1975 by Bill and his friend Paul Allen. 37College EnglishBillGatesmarriedMelindaFrenchGatesonJanuary,1stin1994.Theyhavethreechildren.Inthesparetime,Billhaspassioninreadingbooksandplayinggolf.38College EnglishWarren Buffett LifeuHisfinancialcareerbeganattheageof14.uAt26,hesetuphisfirstinvestmentpartnershipforfamilyandfriendswith$174,000.uAttheendof2008,hispersonalfortunewas$60billionandBerkshireHathaway,hisholdingcompany,wasvaluedat$200million.uBuffettlovescharity,preparingtocontribute$37billion,accountingfor85%ofhisproperty.39College Englishwords for his sonHissondoesntfollowinhisfootsteps,butkeepsthefaithofWarrenBuffett,thatis:Enjoyingwhatyouaredoingeverydayisatruesuccess.Earningalotofmoneymaymakeyourich,butthatmeansseekingameaninglesslifebysacrificingyourhappiness.Thatmaybestupid.40College EnglishText A OverviewCritical reading and thinking1. Scan Text A and completing the following table.The original version The modified versionThe invisible hands guides companies to strive for profits.Profit maximization is the right goal for a business.Free enterprise system is best for society.A firms principal goal should be to maximize the wealth of its stockholders.Free enterprise is still the best economic system for the country as a whole.Some constraints are needed for firms.Unit 2Business Ethics41College EnglishExercise 2Argument11)awiderangeofregulationsareimposed2)assessingcostsoncompanies;BPoilspillArgument21)behaveethically;valueandreputation2)DontbeEvil3)creativecapitalism4)contributedmorethan$6billion42College EnglishLanguage building upTask1-11.无形的手2.自由企业制度3.股东4.经济体制5.开发产品和服务6.市场力量7.金融机构8.严重衰退9.破产43College EnglishLanguage building up10.stockprice11.mission12.corporatemotto13.assets14.maximizeprofits15.financialsystem44College EnglishLanguage building upTask 1-2 1.Whenpoliticiansandeconomiststalkabout【market force】,theymeantheeconomicfactorsthataffecttheavailabilityofgoodsandthedemandsforthem,withoutanyhelpfromorcontrolbythegovernment.2.Thedramaticchangeinbusinessenvironmentmakesallindustriesfacedrasticcompletion.Thisisalsohappenedinthe【financial institutions】.45College EnglishLanguage building upTask 1-2 3.A【free enterprise system】canbecontrastedwithasocialisteconomicsystem,whichdependsheavilyongovernmentplanningandpublicownershipofthemeansofproduction.4.TheoilpriceincreasespushedtheEuropeaneconomyinto【deep recession】.46College EnglishLanguage building upTask 1-2 5.AdamSmithsfamous【invisible hand】theoryhasbeenmodifiedtocatertothecurrenteconomicsituation.6.Anindividualororganizationthatownsstocksinacorporationcanbecalled【stockholder】.47College EnglishLanguage building upTask 1-2 7.Ineconomics,【profit maximization】istheshort-runorlong-runprocessbywhichafirmdeterminesthepriceandoutputlevelthatreturnsthegreatestprofit.8.Asocialistmarket【economic system】hasnowtakenshape,andthebasicroleplayedbythemarkethasbeenimprovedinthesphereofresourceallocation.48College EnglishLanguage building upTask2-Signpostlanguage1.and2.Another3.also4.Notonly,but5.other49College EnglishLanguage building upTask 3- formal English 1.Smiths insightsledhimtoconcludethatprofitmaximizationistherightgoalforabusinessandthatthefreeenterprisesystemisbestforsociety.(understanding)2.Mostacademicstodaysubscribe tothefollowingmodifiedversionofAdamSmithstheory.(agree with)50College EnglishLanguage building upTask 3- formal English 3.Throughthepoliticalprocess,societyimposes awiderangeofregulationsthataredesignedtokeepcompaniesfromengaginginpracticesthathurtsociety.(forces to be accepted)4.andthatmighthaveaseriousadverseeffectonlong-runoilsupplies.( bad)51College EnglishLanguage building upTask 3- formal English 5.Anincreasingnumberofcompaniesseetheirmissionasmorethanjustmakingmoneyfortheirshareholders.(purpose)6.Consistentwiththismission,thecompanyhasitsownin-housefoundationthathasmadelargeinvestmentsinawiderangeofphilanthropic venturesworldwide.(charitable)52College EnglishLanguage building upTask 3- formal English 7.Thereareotherinstanceswherecorporateleadershavedonatedpersonalfunds.(given) 8.Itreceivedanotableboostin2006whenfamedinvestorWarrenBuffettannouncedthathewoulddonateahugeshareofhisfortunetotheFoundation.(famous) 53College EnglishText B Two views of social responsibility Para1:Governmentregulationandpublicawarenessareexternalforcesthathaveincreasedthesocialresponsibilityofbusiness.Butbusinessdecisionsaremadewithinthefirmandthere,socialresponsibilitybeginswiththeattitudeofmanagement.Twocontrastingphilosophies,ormodels,definetherangeofmanagementattitudestowardsocialresponsibility54College EnglishPara 2The economic modelAccordingtothetraditionalconceptofbusiness,afirmexiststoproducequalitygoodsandservices,earnareasonableprofitandprovidejobs.Inlinewiththisconcept,theeconomicmodelofsocialresponsibilityholdsthatsocietywillbenefitmorewhenbusinessisleftalonetoproduceandmarketprofitableproductsthatsocietyneeds.Theeconomicmodelhasitsoriginsinthe18thcentury,whenbusinesseswereownedprimarilybyentrepreneursorowner-managers.Competitionwasvigorousamongsmallfirms,andshort-runprofitsandsurvivalweretheprimaryconcerns.55College EnglishPara 3Tothemanagerwhoadoptsthistraditionalattitude,socialresponsibilityissomeoneelsesjob.Afterall,stockholdersinvestinacorporationtoearnareturnontheirinvestment,notbecausethefirmissociallyresponsibleandthefirmislegallyobligatedtoactintheeconomicinterestofitsstockholders.Moreover,profitablefirmspayfederal,state,andlocaltaxesthatareusedtomeettheneedsofsociety.Thus,managerswhoconcentrateonprofitbelievethattheyfulfilltheirsocialresponsibilityindirectlythroughtaxespaidbytheirfirms.Asaresult,socialresponsibilitybecomestheproblemofgovernment,variousenvironmentalgroups,charitablefoundations,andsimilarorganizations.56College EnglishPara 4The socioeconomic modelIncontrast,somemanagersbelievetheyhavetheresponsibilitynotonlytostockholders,butalsotocustomers,employees,suppliers,andthegeneralpublic.Thisbroaderviewisreferredtoasthesocioeconomicmodelofsocialresponsibility,whichplacesemphasisnotonlyonprofitsbutalsoontheimpactofbusinessdecisionsonsociety.57College EnglishPara 5Recently,increasingnumbersofmanagersandfirmshaveadoptedthesocioeconomicmodelandtheyhavedonesoforatleastthreereasons.First,businessisdominatedbythecorporateformofownershipandthecorporationisacreationofsociety.Ifacorporationdoesnotperformasagoodcitizen,societycanandwilldemandchanges.Second,manyfirmsarebeginningtotakeprideintheirsocialresponsibilityrecords,amongthemStarbucksCoffee,Hewlett-Packard,Colgate-Palmolive,andCoca-Cola.58College EnglishPara 5EachofthesecompaniesisawinnerofaCorporateConscienceAwardintheareasofenvironmentalconcern,responsivenesstoemployees,equalopportunity,andcommunityinvolvement.Andofcourse,manyothercorporationsaremuchmoresociallyresponsibletodaythantheywere10yearsago.Third,manybusinesspeoplebelieveitisintheirbestinteresttotaketheinitiativeinthisarea.Thealternativemaybelegalactionbroughtagainstthefirmbysomespecialinterestgroup;insuchasituation,thefirmmaylosecontrolofitsactivities.59College EnglishPara 6The pros and cons of social responsibility Businessowners,managers,customers,andgovernmentofficialshavedebatedtheprosandconsoftheeconomicandsocioeconomicmodelsforyears.Eachsideseemstohavefourmajorargumentstoreinforceitsviewpoint.60College EnglishPara 7Arguments for increased social responsibility Proponentsofthesocioeconomicmodelmaintainthatabusinessmustbemorethansimplyseekprofits.Tosupporttheirposition,theyofferthefollowingarguments:1.Becausebusinessisapartofoursociety,itcannotignoresocialissues.2.Businesshasthetechnical,financial,andmanagerialresourcesneededtotackletodayscomplexsocialissues.3.Byhelpingresolvesocialissues,businesscancreateamorestableenvironmentforlong-termprofitability.4.Sociallyresponsibledecision-makingbyfirmscanpreventincreasedgovernmentintervention,whichwouldforcebusinessestodowhattheyfailtodovoluntarily.61College EnglishPara 8Theseargumentsarebasedontheassumptionthatabusinesshasaresponsibilitynotonlytostockholdersbutalsotocustomers,employees,suppliersandthegeneralpublic.Arguments against increased social responsibility62College EnglishPara 9Opponentsofthesocioeconomicmodelarguethatbusinessshoulddowhatitdoesbest:Earnaprofitbymanufacturingandmarketingproductsthatpeoplewant.Thosewhosupporttheirpositionargueasfollows:1.Businessmanagersareresponsibleprimarilytostockholders,somanagementmustbeconcernedwithprovidingareturnonownersinvestment.2.Corporatetime,moneyandtalentshouldbeusedtomaximizeprofits,nottosolvesocietysproblems.3.Socialproblemsaffectsocietyingeneral,soindividualbusinessesshouldnotbeexpectedtosolvetheseproblems.4.Socialissuesaretheresponsibilityofgovernmentofficialswhoareelectedforthatpurposeandwhoareaccountabletothevotersfortheirdecisions.63College EnglishPara 10Theseargumentsobviouslyarebasedontheassumptionthattheprimaryobjectiveofbusinessistoearnprofitsandthatthegovernmentandsocialinstitutionsshoulddealwithsocialproblems.64College EnglishPara 11Today,fewfirmsareeitherpurelyeconomicorpurelysocioeconomicinoutlook;mosthavechosensomemiddlegroundbetweenthetwoextremes.However,oursocietygenerallyseemstowant-andeventoexpect-somedegreeofsocialresponsibilityfrombusiness.Thus,withinthismiddleground,businessesareleaningtowardthesocioeconomicview.65College EnglishEconomicmodelThesocioeconomicmodelPurposeTo produce quality goods andservices, earn a reasonableprofit,andprovidejobsTo place emphasis notonly on profits but alsoontheimpactofbusiness decisions onsocietySocial responsibilitySocialresponsibilityissomeoneelsesjob.Companies fulfill their socialresponsibilityindirectlythroughthetaxespaidbythem.To have a responsibilitynot only to stockholdersbut also to customers,employees,suppliers,andthegeneralpublicCritical reading and thinkingUnit 2Business EthicsTask 1 66College English67