Ethics Section 1

What is ethics? Maybe this guy knows? Fancy Definition Written and unwritten codes of principles and values that govern decisions and actions within a company. In the business world, the organization's culture sets standards for determining the difference between good and bad decision making and behavior. Simple Definition Knowing between what is right and wrong This may differ between individuals

Ethical Dilemmas “Situations in which individuals are required to define right and wrong conduct” Who thinks this is easy? For some it is and others it isn’t

Case Study Sticky Fingers

What are the relevant facts? A watch has been stolen Todd, a jewelry salesman, was the only person observed handling the watch Todd has failed a lie-detector test Susan notes that Todd’s application and sworn bonding form are not consistent Susan would not have noticed the irregularities on Todd's application has it not been for Mike’s suggestion

What are the ethical issues? What are typical grounds for terminating an employee who is suspected of theft? Is it ethical to terminate employee on circumstantial evidence? Is it ethical to terminate employee on the basis of factors that were not actual the reason for termination? What are the moral rights of employees suspected of theft?

What are the alternatives? Fire Todd Do nothing Anything else?

Conclusion It’s up to you!

Section 2 Business Ethics

Three Ethical Decision Criteria Utilitarianism Decisions are made to provide the greatest good for the greatest number Decisions are made solely on the basis of their outcomes or consequences Tends to dominate business decision making Why? Consistent with goals like efficiency, productivity, and high profits

Three Ethical Decision Criteria Rights Calls of individuals to make decisions consistent with fundamental liberties and privileges as set forth in documents like the Bill of Rights. An emphasis on rights in decision making means respecting and protecting the basic rights of individuals, such as the right to privacy, to free speech, and to due process. Use of this criterion would protect whistle-blowers (individuals who report unethical or illegal practices by their employer to outsiders

Three Ethical Decision Criteria Justice Requires individuals to impose and enforce rules fairly and impartially so that there is an equitable distribution of benefits and costs Union members tend to typically favor this view It can justify paying people the same wage for a given job, regardless of performance differences, and using seniority as the primary determination in making layoff decisions.

Advantages and Liabilities Focus on utilitarianism promotes efficiency and productivity, but it can result in ignoring the rights of some individuals. The use of rights as a criterion protects individuals from injury and is consistent with freedom and privacy, but it can create overly legalistic work environment that hinders productivity and efficiency. A focus on justice protects the interests of the underrepresented and less powerful, but it can encourage a sense of entitlement that reduces risk taking, innovation, and productivity.

Ethics and National Culture What is seen as an ethical decision in China may not be seen as such in United States. There are no global ethical standards. Because bribery is commonplace in countries such as China, an American would face an ethical decision working in China… “Should I pay a bribe to secure business if it is an accepted part of the country’s culture?”

Group Case Study Questions As a group discuss and write down: The facts of the case (At lest 4-6 facts) The ethical issues present (At least 1-3 issues) The possible alternatives (1-4 alternatives)

The Pizza Puzzle ???????????????

What are the relevant facts? The Inn is losing room service business to independent pizza delivery firms. Consumers perceive hotel-prepared pizza to be of lower quality than that prepared by pizza places. The Inn’s pizza is judged to be equal in quality with those of competitors in blind taste tests. Sharon’s proposed marketing approach does not make the claim that “Napoli Pizza” is an independent pizza place. No effort is made to inform the Inn’s guests that “Napoli Pizza” is a portion of the Inn’s operations.

What are the Ethical Issues? Is the proposed marketing program for “Napoli Pizza” deceptive? Does the proposed marketing program respect guests’ right of free consent?

What are some alternatives? Accept Susan's proposal. Add an unobtrusive sentence to the bottom of the promotional brochure indicating that “Napoli Pizza” is a registered trademark of Hospitality Enterprises. Include the Inn’s name in the brochure, i.e., “Marigold Inn's Napoli Pizza.” Establish a “Napoli Pizza” as a separate, visible part of restaurant operations, offering pizza delivery to guest rooms, meeting rooms and the pool as well as seating facilities

Ethics of Alternatives Which possible alternative would provide the greatest benefit to the greatest number? (Utilitarian) What would be the “rights” consideration? Right of customers to know relationship of Hotel to pizza place Is there a “justice” consideration?