Business Ethics What you really need to know!

What is Ethics?  A practice of deciding what is right or wrong.  Ethical decisions must affect you or others in a significant way. An ethical decision is one that is reasoned out by referring to a written authority.  To make ethical decisions we usually must base our decision on reason, not emotion.  Ethical decisions should be impartial

The Ethical Point of View  Virtually everybody shares “core values” Life, Happiness, Ability to accomplish goals  Two ways to view world Selfish point of view: consider only own core values Ethical point of view: respect other people and their core values

Defining Terms  Society: Association of people organized under a system of rules Rules: advance the good of members over time  Morality A society’s rules of conduct What people ought / ought not to do in various situations  Ethics Rational examination of morality Evaluation of people’s behavior

Why Study Ethics?  Not everyone can do what they want  Ethics: A way to decide the best thing to do  New problems accompany new technologies  “Common wisdom” not always adequate

Business Ethics  Ethical principals used in making business decisions.  Many times ethics are not considered when making business decisions.  Because of potential for profit maximization.

Subjective Relativism  Relativism No universal norms of right and wrong One person can say “X is right,” another can say “X is wrong,” and both can be right  Subjective relativism Each person decides right and wrong for himself or herself “What’s right for you may not be right for me”

Cultural Relativism  What is “right” and “wrong” depends upon a society’s actual moral guidelines  These guidelines vary from place to place and from time to time  A particular action may be right in one society at one time and wrong in other society or at another time

3 Step Checklist – Step 1 1.Is the action illegal? Does the action violate any laws? Obeying the law is in your best interest and the best interest of a business.

Step 2 2. Does the action violate company or professional standards? Public laws set up minimum standards. Many companies set even higher standards of behavior. Action may be legal but violate Company standards.  Could affect your job security/certification.

Step 3 3. Who is affected, and how, by the action? All goes back to “Right” or “Wrong” You must check how this is going to affect individuals and groups before deciding if the action is ethical.

Situation 1  Is the action illegal? Does the action violate any laws?  Does the action violate any company standards?  Who is affected, and how, by the action?  Other things – If you were the employer, would you fire him? Why or why not?

Situation 2  Is the action illegal? Does the action violate any laws?  Does the action violate any company standards?  Who is affected, and how, by the action?

Situation 3  Is the action illegal? Does the action violate any laws?  Does the action violate any company standards?  Who is affected, and how, by the action?