Describe Ethics in Business Lesson E11-1

Learning Objectives Define and explain ethics in business. Explain areas where ethics are important in business. Examine the role of values in ethics.

Terms conflict conflict resolution ethical issues ethics fraud honesty insider abuse price fixing values whistle blowing work ethic

What would happen… If an employee of a business take a resource (e.g. CDs, pens, papers) out of the office for personal use?

Ethics an area of philosophy that attempts to help people understand which actions are right and which are wrong. It shapes our system of moral standards or values that applies in all human activities. Ethics uses reasoning as the basis for questioning actions.

Ethical Issues Areas of choice in which people are trying to make the best decisions. Issues have at least two sides or possible solutions. Deciding which solution is ethical is a continuing process in which new information may result in a change in position on an issue.

What do you think of when you hear the names… Enron WorldCom Martha Stewart lawyersusadcdicta.files.wordpress.com cache.viewimages.com adambrown.info

Boundaries of Employer Resources Making personal phone calls on company phones during company work hours Clocking out or leaving early from work and/or arriving late to work Using the company’s copier for personal documents Checking personal during work time Taking supplies Playing games on the computer during work time Using sick days for personal days

Ethical Codes or Standards of Conduct Organizations establish ethical codes or standards of conduct which reflect the group they represent. Once standards are established in an organization, all members or employees are expected to practice them

Fraud The misrepresentation of a product or service.

Insider Abuse using knowledge obtained as a result of your position for personal gain. This can occur when a financial administrator poorly invests a company’s retirement plan or uses retirement funding for other purposes.

Whistle Blowing when an employee reports dishonest or wasteful company activities to a government authority. blogs.kansas.com

Price Fixing occurs when two or more competitors agree to establish a specific price for their products or services.

Values the personal standards that influence decisions and way of living. Values have a major role in ethics.

Ethics Based on a system of values Individuals who are responsible for leading businesses need to have certain ethical traits. ethics.wharton.upenn.edu

Ethical Traits Honesty—An honest person does not cheat, steal, or lie. Truthfulness—Truthfulness means that what a person says conforms to reality. Respect—Showing respect means being courteous and tolerant toward other people. Self-respect—Having self-respect involves holding oneself in high regard. Fairness—Fairness involves being unbiased and honest in dealing with other people. Respecting differences—People vary widely in many ways. Ethics involves respecting the differences that exist among people.

Conflict a difference of opinion between two or more people smm-parish.org

Conflict Resolution using techniques that allow people to solve problems quietly. How people go about handling differences and conflicts depends on their values and is reflected in the approaches used. Unfortunately, violence is often used to settle differences.  Violence is not an appropriate response to differences.

Work Ethic a belief in the benefit and importance of work. Being productive, being at work on time, having good relationships with co-workers, and putting in top effort are essential to the value of work in the United States.