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2-2 Chapter 2 Ethical Dilemma Chapter 2 of the textbook cites “The Golden Rule” as a guideline for ethical decision-making, noting the following ways to interpret this principle: 1. Do unto others as you want them to gratify you; 2. Be considerate of others’ feelings as you want them to be considerate of yours; 3. Treat others as persons of rational dignity like you; 4. Extend brotherly or sisterly love to others, as you would want them to do to you; 5. Treat others according to moral insight, as you would have others treat you; 6. Do to others as God wants you to do to them. Is it truly possible to follow The Golden Rule and operate a business successfully? For example, would this principle require you to “extend brotherly or sisterly love” to a business competitor or a government regulator? Can a business owner be “considerate of others’ feelings” and simultaneously seek to maximize profits? Chapter 2 Ethical Dilemma Chapter 2 of the textbook cites “The Golden Rule” as a guideline for ethical decision-making, noting the following ways to interpret this principle: 1. Do unto others as you want them to gratify you; 2. Be considerate of others’ feelings as you want them to be considerate of yours; 3. Treat others as persons of rational dignity like you; 4. Extend brotherly or sisterly love to others, as you would want them to do to you; 5. Treat others according to moral insight, as you would have others treat you; 6. Do to others as God wants you to do to them. Is it truly possible to follow The Golden Rule and operate a business successfully? For example, would this principle require you to “extend brotherly or sisterly love” to a business competitor or a government regulator? Can a business owner be “considerate of others’ feelings” and simultaneously seek to maximize profits?

2-3 Chapter 2 Case Hypothetical and Ethical Dilemma As hiring coordinator for Hennessey Networking Solutions, Inc. (Hennessey), Andrea Templeton knew that her position was of utmost importance to her company in terms of hiring candidates who were well-qualified, and who would best contribute to the company’s overall success. On her desk was the employment application and resume of Timothy Carraway. Andrea had just finished her interview of Timothy, who was the last in a long line of interviewees who had applied for an entry-level information technology (IT) position at Hennessey. Hennessey only had one (1) opening available. During Timothy’s interview, the candidate revealed that seven (7) years ago, he had been tried and convicted in federal court for selling a significant amount of cocaine. Timothy had also revealed the conviction on his employment application. Timothy went to great lengths to explain to Andrea that he sincerely regretted the indiscretions of his youth, and that he had spent the last seven (7) years of his life “paying penance,” and reforming his life. After serving three (3) years in federal penitentiary, Timothy had earned his bachelor’s degree in Information Technology, graduating with honors. Timothy’s interview had gone very well. In fact, Andrea felt that in terms of his personality and education, he was the best “fit” for the position. Andrea was obviously concerned about Timothy’s criminal background, but she was also concerned about the young man should he not find an employment opportunity after graduating from college. Without a legitimate employment option, would Timothy revert back to his “criminal ways? Does Andrea Templeton and Hennessey Networking Solutions, Inc. have an ethical obligation to hire Timothy Carraway? Should Andrea’s “hire” decision be based exclusively on Timothy’s qualifications for the job? Why or why not?

2-4 Chapter 2 Ethical Dilemma What is the best source for ethical business practices: The individual employee, or the business organization itself? To what extent should individual employees be allowed to lend input in the creation of a code of ethics for a business organization? In the event that an individual employee’s ethical standards differ from his/her employer’s code of ethics, what can/should be done to resolve those differences?

2-5 Business Ethics and Social Responsibility Ethics: The study and practice of decisions about what is good or right Ethics: The study and practice of decisions about what is good or right Business Ethics: The application of ethics to the problems and opportunities experienced by businesspeople Business Ethics: The application of ethics to the problems and opportunities experienced by businesspeople Ethical Dilemma: A problem about what a firm should do for which no clear, right decision is available Ethical Dilemma: A problem about what a firm should do for which no clear, right decision is available Social Responsibility of Business: Expectations that the community imposes on firms doing business inside its borders Social Responsibility of Business: Expectations that the community imposes on firms doing business inside its borders

2-6 The “WPH” Process of Ethical Decision Making: W—WHO (Stakeholders) Consumers Consumers Owners or Investors Owners or Investors Management Management Employees Employees Community Community Future Generations Future Generations

2-7 The “WPH” Process of Ethical Decision Making: P—PURPOSE (Values) Freedom Freedom Security Security Justice Justice Efficiency Efficiency

2-8 Primary Values and Business Ethics: Freedom To act without restriction from rules imposed by others To act without restriction from rules imposed by others To possess the capacity or resources to act as one wishes To possess the capacity or resources to act as one wishes To escape the cares and demands of this world entirely To escape the cares and demands of this world entirely

2-9 Primary Values and Business Ethics: Security To possess a large enough supply of goods and services to meet basic needs To possess a large enough supply of goods and services to meet basic needs To be safe from those wishing to interfere with your property rights To be safe from those wishing to interfere with your property rights To achieve the psychological condition of self- confidence to such an extent that risks are welcome To achieve the psychological condition of self- confidence to such an extent that risks are welcome

2-10 Primary Values and Business Ethics: Justice To receive the products of your labor To receive the products of your labor To treat all humans identically, regardless of race, class, gender, age, and sexual preferences To treat all humans identically, regardless of race, class, gender, age, and sexual preferences To provide resources in proportion to need To provide resources in proportion to need To possess anything that someone else is willing to grant you To possess anything that someone else is willing to grant you

2-11 Primary Values and Business Ethics: Efficiency To maximize the amount of wealth in society To maximize the amount of wealth in society To get the most from a particular output To get the most from a particular output To minimize costs To minimize costs

2-12 The “WPH” Process of Ethical Decision Making: H—HOW (Guidelines) Public Disclosure Public Disclosure Universalization Universalization Golden Rule Golden Rule