BBI 2O Name:

With a partner discuss each of the following terms and what they mean to you. Then write IN YOUR OWN WORDS the definitions in the following space. DO NOT use a dictionary. ValuesMoralsEthics Values tell us what we think is important and help us make decisions about what is right or wrong Morals the rules we use to decide what is good or bad Ethics individual beliefs and social standards about what is right or wrong Remove this box when directed by the teacher

Problem Solving Model for Ethical Dilemmas State the Ethical Dilemma: Your friend, a fellow employee, steals money from the store cash register, and you see it happen Course of Action #1 Report the theft to the employer Course of Action #2 Do not report the theft to the employer Positive and Negative Consequences: Report TheftPositive and Negative Consequences: Do not Report Theft Positive + respect by employer Gain the trust of your employer Maintain honesty and integrity Help the business financially Negative – Loss of friendship Friend loses job Personal emotional trauma Considered a whistle-blower by other employees Positive + Keep the friendship You are not seen as a whistle- blower Negative – Dishonest Unethical behaviour Employee may do it again Company is harmed financially You may be implicated in the theft if the employer finds out later that you knew about and said nothing Recommended Course of Action?:

Class discussion on quote: Our morals may be dictated by our community’s sense of what is good or bad; however, an individual’s belief about what is right, his or her ethical sense, may dictate another course of action related to justice or fairness. Author Isaac Asimov once stated, “Never let your sense of morals get in the way of doing what’s right.” State in your own words what you think Asimov meant.

For example, a woman steals a loaf of bread and some milk. Our societal morals would condemn this theft as wrong and demand punishment, whereas, our sense of what is fair, in terms of a punishment, may have us question why the person stole the item. If we discovered that the woman was a single mother, had lost her job, had no other source of income, and was afraid her baby would starve—we may not be so quick to request a harsh sentence. Author Isaac Asimov once stated, “Never let your sense of morals get in the way of doing what’s right.” State in your own words what you think Asimov meant.

 Read pages 75 to 81 in The World of Business.  Keep in mind the following questions when you are reading: What is ethical behaviour? What role should ethics play in business? How can businesses resolve ethical dilemmas? What happens when people don’t behave ethically?

Note: A dilemma is a circumstance in which a person must choose between one of two or more actions. An ethical dilemma is a situation where the outcome of an action has moral consequences.

With a partner discuss and respond to the following questions; be prepared to share your thoughts with the class. How can businesses end up with a bad reputation? Are bad reputations always the business’s fault? What can a company do to change a negative public image?

Let us explore the concept of whistle-blowing in a school context. If a student sees another student do something against the school code of conduct, what are the consequences of reporting it to a teacher or the administration? Break down the consequences into positive and negatives like in the problem solving model explored at the beginning of this section. Positives (+)Negatives (-)

Fraud: is the crime of lying or pretending for personal gain. What words come to your mind when you think about the concept of fraud? Pretending something is true Bank fraud Consumer fraud – bait and switch Identity Welfare Insurance Theft Lying on a resumeStock market Conman

 Read pages 82 to 84 in The World of Business. Of the many different types of fraud choose 4 of the 9 provided in the textbook on page 83 and find an real life example in the media (newspapers, magazines, and online journals).

We will explore fraud in the film “Catch Me if You Can” soon. For now we will move on Accounting Scandals and Insider Trading. Read pages 86 to 89 in The World of Business.

Use this space to write definitions (in your own words!) of the following words. Accounting scandal Forensic accountant Embezzlement Assets Liabilities Auditors Insider Trading

Review Questions 1. In your own words, what does the term “ethics” mean? Give an example of good ethical behaviour and bad ethical behaviour. 2. Do most people practice good ethical behaviour? Should they? 3. How can a business convey its ethics and values to its employees, customers, and owners?

Review Questions 4. Define “Whistle-blowing” and describe a hypothetical job situation in which you might be a whistle-blower. 5. What is an accounting scandal? Provide an example not given in the textbook. 6. Is insider trading always illegal? Explain.