Chapter 2 Business Ethics

Hot Debate, p. 18 Achmed emigrated to the US from Iraq. He claimed Iraq’s government would persecute him if he stayed there. The U.S. Immigration and Naturalization Service (INS) granted Achmed a temporary visa and began investigating his claim. The INS then denied his claim and revoked his visa. Achmed obtained a false ID to stay in the country. He told his employer, Julian, the whole story. Julian’s lawyer told Julian he was legally obligated to inform the INS about Achmed. Julian believed that Achmed would be tortured if he returned to Iraq. Should Julian inform the INS of Achmed’s whereabouts? What are the reasons in favor of Julian not informing the INS?

Ethics ► Is deciding what is right or wrong in a reasoned, impartial manner. ► 3 important elements:  Decision about a right or wrong action ► To involve ethics, it must affect you or others significantly  Decision is reasoned ► Usually a response to our emotions  Decision is impartial ► The same ethical standards are applied to everyone

Example ► You backed out of your driveway and accidentally hit your wealthy neighbor’s car. No one saw you do it and it will cost over $250 to fix. You quickly think to yourself that you don’t have the money, but your neighbor does, so you put the car in drive and leave without telling your neighbor. ► Is this an impartial decision?

Business Ethics ► The ethical principles used in making business decisions. ► What do you think is the number 1 reason why ethics are compromised in business?

Example You are the manager of a large chocolate company (ie: Hershey’s). Your financial guru for the company just figured out that you could save over a million dollars each year if you build factories overseas and cut jobs locally. You have a lot of friends who would be affected by this move. What do you do?

Concept Check! ► Please complete #1-11 on page 21.

TWO Basic Forms of Ethical Reasoning ► Ethical reasoning based on consequences ► Fundamental ethical rules

Based on Consequences ► Reasoning based on the outcome of a decision ► Describe Alternative Actions ► Forecast Consequences ► Evaluate Consequences  Selecting the standard for judging consequences as right or wrong, called “The Good”  Counting the persons affected

Fundamental Ethical Rules ► The acts themselves are judged as right or wrong ► Decisions Based on Authority  Religion, parent, etc. ► Decisions Based on Reasoning  Universalizing – picturing everyone in the world doing the action

Concepts Check! ► Please complete 1-12 on p. 24