Lecture 5

Chapter 3 Conducting Business Ethically and Responsibly

Chapter Outline Ethics In The Workplace Social Responsibility Areas of Social Responsibility Implementing Social Responsibility Programs

Ethics In The Workplace Beliefs in Right/Wrong & Good/Bad Actions Individual behavior + society context determines ethical behavior Ethical- Conforms To Social Norms

Ethics In The Workplace Unethical Behavior –Behavior that conforms to beliefs and norms about what is defined as wrong Business Ethics –Ethical or unethical behavior by employees

Individual Ethics Vary from person to person, situation to situation and culture to culture Determined party by culture and partly by individual

Individual Ethics Ambiguity/Law/Real World –Laws are adopted regarding acceptable ethical behavior –Unambiguous laws Ethical ambiguities

Individual Ethics Sources of Individual Values & Codes –Parents –Peers –Experience Personal Priorities –Financial Gain –Family/Friends

Business Ethics Managerial –Standards that guide managers in work Behavior Toward –Employees Hiring, firing, wage, respect –Organization –Others

Business Ethics Behavior Toward –Employees Hiring, firing, wage, respect –Organization (employer) Conflict of interest Stealing supplies, padding expenses account –Others (customers, competitors, stock holder, suppliers, unions) Financial reporting

Assessing Ethical Behavior Subjective and subjected to opinion

Assessing Ethical Behavior Smooth? 1)Clear-Cut Facts? 2)Agreed- Upon Moral Values?

Ethical Norms  Utility  Act optimize benefits for those who are affected  Rights  Does it respect the rights of those involved?

Ethical Norms  Justice  Is it consistent with what is fair?  Caring  Consistent with people responsibilities to each other

Ethical Norms (figure 3.2)  No on all criteria  No on one or two criteria  Reason for overriding  One more important than the other  Forced  Yes on all criteria

Company Practices & Business Ethics Written Codes- Code of ethics Implement Codes Top downwards

Core Principles/Values

Company Practices & Business Ethics Can business ethics be taught Train to remind them of ethical decision making Update on laws