Key Points of Ch 4

Your learning so far --VALUES --Self-Knowledge ------------------ --Self-control --Understanding/emotional intelligence Good Management Practice Autonomy + Mastery + Purpose = Context for Social & Business Ethics

The Nature of Ethics Ethics The inner-guiding moral principles, values, and beliefs that people use to analyze or interpret a situation and then decide what is the right or appropriate way to behave

Dealing with Ethical Issues There are no absolute or indisputable rules or principles that can be developed to decide if an action is ethical or unethical Neither laws nor ethics are fixed principles Managers must confront the need to decide what is appropriate and inappropriate as they use a company’s resources to produce goods and services Ethical beliefs lead to the development of laws and regulations to prevent certain behaviors or encourage others 4

The Relationship Between Ethics and Law Grasp the difference between ethics, and the political and legal process. Can ethics and laws change through time? Society as a whole, using the political and legal process, can pass laws that specify what people can and cannot do. Examples: The personhood and rights of transgender individuals Legality of cannabis

Well known ethical/moral rule Difference between stakeholders and shareholders?

Types of Company Stakeholders Figure 4.1

Executive Pay – Discussed in Text Executives sit on one another’s Boards of directors and basically set their own pay Can and should laws pass in order to change this? Laws have passed in an attempt to change dishonest and fraudeulent acts within businesses – AI and Internet Security controversies may also lead to regulatory change 2002 Sarbannes-Oxley Act

4 Rules for Ethical Decision Making

Organizational Ethics: Guiding Practices and Beliefs of a Firm or Organization - COE’s are Common

Then Why The Deviation from Ethical Behavior? Conflict Theory

Approaches to Corporate Social Resposibility