COMP427 Business Ethics

Objectives 1.To understand ethics and why its important in ways that are consistent with a code of principles. 2.Understand why business ethics are becoming increasingly important. 3.Identify what actions corporations are taking to reduce business ethics risks. 4.Understand why corporations are interested in fostering good business ethics. 5.Identify different approaches to ethical decision making. 6.Discuss the risk of negative impact due to the unethical use of information technology.

Ethics Defined Moral codes are the rules that establish the boundaries of generally accepted behavior. Morality refers to social conventions about right and wrong human conduct. Ethics are beliefs regarding right and wrong behavior.

The Importance of Integrity Integrity is used to refer to people who act in ways that are consistent with their own code of principles. You often reflect on your principles when you consider what you “ought” to do in different situations.

Ethics in the Business World Globalization of organizations have created a complex business world. Risk is the likelihood of a negative event times the impact of the event.

Why Business Ethics are Important Protect the organization and its employees from legal action. Create an organization that operates consistently. Produce good business. Avoid unfavorable publicity. Gain the goodwill of the community.

Legal Overview Bribes involve providing money, property, favors, or anything else of value to someone in business or government in order to obtain a business advantage. Gifts are made openly and publicly as a gesture of friendship or goodwill with no expectation of a future favor for the donor.

Improving Corporate Ethics Appoint a corporate ethics officer. Ethical standards should be set by a board of directors. Establish a corporate code of conduct. Conduct social audits. Require employees to take ethics training. Include ethical criteria in employee appraisal/reward systems.

Code of Conduct A guide that highlights an organization’s key ethical issues and identifies the overarching values and principles that are important to the organization and that can help in decision making. The code of conduct helps ensure that employees: –Abide by the law. –Follow necessary regulations. –Behave in an ethical manner.

Ethical Decision Making 1.Get the facts. 2.Identify the stakeholders and their positions. 3.Consider the consequences of your decision. 4.Weigh various guidelines and principles (Virtue, Utilitarian, Fairness, Common Good). 5.Develop and evaluate options. 6.Review your decision. 7.Evaluate the results of your decision.

Ethics in Information Technology The increased use of information technology has raised many ethical issues for today’s IT professional. –Licensing of IT professionals –Internet communication –Intellectual property –Employee/employer issues

Summary Ethics are beliefs regarding right and wrong behavior. Business ethics are becoming increasingly important because the risks associated with inappropriate behavior have grown. Corporations are interested in fostering good business ethics: –Protect the company and employees from legal action. –Create an organization that operates consistently. –To produce good business. –To avoid negative publicity. –To gain the good will of the community.

Summary Ethical decision making process: –Get the facts –Identify shareholders and their positions –Consider the consequences –Weigh guidelines and principles –Develop and evaluate options –Review your decision –Evaluate the results of your decision The growth of use in IT has also increased the risk of unethical uses of IT.