Ethics of Business The Theoretical Basis Chapter 5

What are Your Morals?

Morals Rules that govern which actions are right and which are wrong Morals Rules that govern which actions are right and which are wrong. Morals can be for all of society or an individual’s beliefs. At times a moral can be learned from a story or experience.

Do not gossip Tell the truth Do not vandalize property Have courage Do not have sex before marriage Keep your promises Do not cheat Treat others as you want to be treated Be trustworthy Do not judge Be dependable Respect others Be forgiving Keep your self control Have integrity Be accountable and take responsibility Have patience Be loyal Have respect for yourself Be tolerant of differences Seek justice Have humility Serve mankind Be generous

Rules or standards governing the conduct by which you live life and make decisions. One of the best ways of thinking about ethics is to take a quick look at what you believe and then think about how you would react when those beliefs are challenged. Guided by our ethical beliefs, which are primarily the result of cultural factors beyond our a learning process righ or wrong

Business Ethics Ethical Implications in Business Influences on Ethical Behaviour Moral Reasoning Process Challenges of Ethics in Business

Morality is defined as having and living according to a moral code, or principles of right and wrong. Basic morality condemns murder, adultery, lying and stealing. However, morality evolves with the evolution of society, differing noticeably in different cultures. For instance, whereas one culture finds a man with several wives to be perfectly moral, another culture sees this as immoral and wrong. Time also noticeably affects the idea of morality. Once, women were considered the property of men, which is now considered outdated and immoral.

Business Ethics Business Ethics: rules, standards, codes, or principles that provide guidelines for morally right behaviour and truthfulness in specific situations. Where do you get your ethics? Also Reflected in Corporate & Social Responsibility The Cultural & Human Side …. The Environment

Copyright © 2010 McGraw-Hill Ryerson Ltd.

Ethical Implications in Business Value judgments: If you make a value judgment about something, you form an opinion about it based on your principles and beliefs and not on facts Moral standards: the means by which individuals judge their actions and the actions of others. based upon accepted behaviour in society

What Determines Ethical Behavior

Influences on Ethical Behaviour Influences become the bases for an individual’s value judgments and moral standards that determine behaviour. Influences on Individuals Corporate or Organizational Influences Economic Efficiency Influences Government and Legal System Influences Societal Influences

Ethical Implications in Business Owners fair and accurate disclosure Employees hiring; firing; wages; privacy; discrimination; honesty; conflicts of interest; insider information Consumers dishonest advertising; product safety Competitors non-competitive behaviour; industrial espionage Suppliers kickbacks; gifts; bribes Government legal compliance; lobbying Society respect for environment; corporate giving LO 5.2 Copyright © 2014 McGraw-Hill Ryerson Ltd.

Ethics covers a wide range of subjects, such as: • Personal ethics: e.g. questions about one’s basic values and plan of life • Professional ethics: principles and practices of major professions • Social and political ethics: e.g., issues of social justice, political rights • Ethics of sexual and gender relations • Research ethics in academia and the private sector • Environmental ethics, including the ethical treatment of animals • Global ethics: ethics of international affairs, human rights • Communication ethics, including media, public relations and journalism

http://cowboyethics.org/cowboy-ethics/#prettyPhoto

Code of the West 1) Live each day with courage. 2) Take pride in your work. 3) Always finish what you start. 4) Do what has to be done. 5) Be tough, but fair. 6) When you make a promise, keep it. 7) Ride for the brand. 8) Talk less and say more. 9) Remember that some things aren't for sale. 10) Know where to draw the line.

Copyright © 2010 McGraw-Hill Ryerson Ltd. Cowboy Ethics in the Classroom -- The Great Experiment: Ann Moore at TEDxDenverTeachers Copyright © 2010 McGraw-Hill Ryerson Ltd.

Self-Interest (Ethical Egoism) Egoism is the habit of valuing everything only in reference to one's personal interest; selfishness Individuals or corporations set their own standards for judging the ethical implications of their actions; only the individual’s values and standards are the basis for actions. Self-interest Getting what you want or need and no worry about what happens to other people.

Personal Virtues Ethic An individual’s or corporation’s behaviour is based upon being a good person or corporate citizen with traits such as courage, honesty, wisdom, temperance, and generosity.( CSR ) Ask, how would I feel if my actions were explained on television? Copyright © 2014 McGraw-Hill Ryerson Ltd.

Ethics of Caring Gives attention to specific individuals or stakeholders harmed or disadvantaged and their particular circumstances. Golden rule: Do unto others as you would want done to you.

Utilitarian Ethic Focuses on the distribution of benefits and harms to all stakeholders with the view to maximizing benefits. “The greatest good for the greatest number.” A moral principle that asserts that morally correct actions are those that provide the greatest volume of benefits over harms for the majority of people. The morally just route is one that provides the most benefits to groups of people, even if the benefits derive from socially unacceptable actions such as lies, coercion and use of excess force.

Universal Rules Ethic Ensures that managers or corporations have the same moral obligations in morally similar situations. Treat people as means in themselves (i.e., with respect) and never as a means to one’s own ends. Ethical standards that are self-evident, that apply to all people regardless of cultural, political, social, or economic context. The non-aggression principle, which prohibits aggression, or the initiation of force or violence against another person, is a universal ethical principle.

Ethics of Justice Considers that moral decisions are based on the primacy of a single value: justice. Different types of justice: Procedural justice Corrective justice Retributive justice Distributive justice

Moral Reasoning Process Moral Reasoning: a systematic approach to thinking or reasoning through the implications of a moral problem or issue. A process of objective thinking whether an idea is right or wrong. To know whether something is "right" or "wrong" one must first know what that something is intended to accomplish.

Moral Reasoning Process Steps to moral reasoning: Define moral issue or decision Gather all relevant information Identify the stakeholders involved Develop possible alternative solutions Consider applicable value judgments, moral standards, ethical principles Identify harms/benefits to stakeholders Determine practical constraints Decide on action Don’t Go Strait to Angry!!!!

Challenges of Ethics in Business Indicating ‘just do the right thing’ is insufficient (i.e., too open ended) It’s not easy to be ethical Unethical behaviour not just due to a few bad apples People always have been (and always will be) unethical Most believe (due to implicit bias) that they behave ethically towards others

Chapter Summary

White Collar Crime Ethical Issues

Challenges To Ethics

Summary