Business Management Unit 2, Area of Study 1 Business Ethics and Communication.

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Presentation transcript:

Business Management Unit 2, Area of Study 1 Business Ethics and Communication

What is “ethics”? Ethics is the way we do things around here. — Aristotle Ethics is treating others as you would be treated. — Confucius, StPaul, Kant Ethics is doing whatever brings the best results. — Bentham, Mill, Singer Ethics is becoming the right kind of person: acquiring the virtues. —Aristotle, Confucius, MacIntyre

Objections But isn’t ethics is subjective/relative? If it’s legal, it’s ethical — at least for corporations. No? Ethics is about following rules: if you know the rules, that’s all you need to know. No? I don’t give a damn about ethics. Agreed?

Is ethics subjective and relative? Everyone disagrees about ethics. Who is to say what is right? Ethics is relative to one’s culture, so it’s offensive to impose one’s values on others. Clearly, we do differ, but don’t we also share values?

A thought experiment Think of someone who’s an ethical example to you, and of the core ethical values they embody. Write them down. One word only.

What about? Honesty Integrity Fairness Trustworthiness Caring

Law and ethics — a model Law is the fl oor; ethics is the ceiling. Although ethics is a higher standard, without law ethics is unlikely to be effective. Ethics and the law are complementary: they cannot substitute for each other.

The Melbourne drug dealer He claimed he never ripped off his customers, especially the under age druggies. Even the worst of us want to be seen as having some ethics. We vigorously deny “ethical defeat”.

Why accept a bribe? Well, I’d just be doing my job, only faster. Well, I wouldn’t be hurting anyone, just helping someone. My family and I would be better off. If I don’t do it, someone else will. I deserve better pay anyway.

A Simple Hierarchy of Behaviour 1. Do no evil. 2. Prevent evil. 3. Remove evil. 4. Do good.

Why do businesses need ethics For the same reasons as individuals Businesses use national resources so have a responsibility to everyone, not just to making profits for the owners Businesses with unethical reputations will lose customers and find it difficult to attract and retain good staff It will alienate other businesses

Communicating ethics to stakeholders Businesses need to communicate the standards of ethical behaviour expected of employees Ethics and socially responsible activities that it participates in How do businesses communicate their ethical behaviour?

Ethical Dilemmas — Truth v Loyalty Consider: Stan learns from his boss that a team member of his, Jim, will be fired, but this is confidential. Jim asks Stan to confirm the rumour he’s heard: he’ll be fired. What should Stan say? A dilemma: Truth vs loyalty : right vs right.

Ethical Dilemmas — Short-term v Long-term Or : Andy with a young family (twins!), and with a new job. With only one income, money is tight. Should he spend more time with his wife and kids, or study part-time for an MBA, which will result in a better career and more money in the future? A dilemma: Short-term vs long-term: right vs right.

Ethical Dilemmas — Justice v Mercy Or : The teacher has warned all students not to copy assignments, although they may talk about them. She finds two assignments with almost identical answers. The University warns all new students that plagiarism is a serious offence. She knows that one of the two students has had family problems. What should she do? A dilemma: Justice vs mercy : right vs right.