Business Ethics The conflict between the ethical code of health professionals and that of “good business” practices.

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Presentation transcript:

Business Ethics The conflict between the ethical code of health professionals and that of “good business” practices

Traditional View A business is behaving ethically so long as it is turning a profit. A business is behaving ethically so long as it is turning a profit. A business’ ethical responsibility is to make money for its stock holders, etc. A business’ ethical responsibility is to make money for its stock holders, etc.

The Times, They are a Changin’ During the 1960’s, the traditional view was challenged. During the 1960’s, the traditional view was challenged. Does economic performance today outweigh the harmful actions and their long-term consequences? Does economic performance today outweigh the harmful actions and their long-term consequences? Societal expectations of “responsibility” changed. Societal expectations of “responsibility” changed. Hard sell: hard to prove any benefits to the companies for behaving differently. Hard sell: hard to prove any benefits to the companies for behaving differently.

The “New” View Profitability requires some degree of morality, especially long-term profitability. Profitability requires some degree of morality, especially long-term profitability. Organizations are a society in and of themselves, and in order to have an effective workplace, a code of appropriate behavior is necessary. Organizations are a society in and of themselves, and in order to have an effective workplace, a code of appropriate behavior is necessary.

“Excellent” Companies Have created a normative set of values everyone is expected to follow. Have created a normative set of values everyone is expected to follow. Profitability is one part of the normative values, but not the driving force. Profitability is one part of the normative values, but not the driving force. Profitability has a defined place. Profitability has a defined place. Bottom Line: Companies that pursue only profit do not attain the level of success that “excellent” companies do. Bottom Line: Companies that pursue only profit do not attain the level of success that “excellent” companies do.