Ethics and Ethical Reasoning pg. 16 in textbook

Ethics - terms Ethics: deciding what is a right or wrong action in a reasoned, impartial manner Note: not everything that is unethical is illegal Morality: involves the values that govern society’s attitude toward right and wrong

Ethics - terms Impartiality: the idea that the same ethical standards are applied to everyone Business Ethics: principals in business decisions

Why are ethics sometimes not used in business decisions? Profit maximization gives a justification for actions that would hurt the general welfare of people Offshore factories Overseas employees – Americans lose jobs Buying companies and selling the assets

Basic Forms of Ethical Reasoning Consequences-based ethical reasoning Right or wrong is based ONLY on the results of the action An act that produces good consequences is good, an act that produces bad consequences is bad 1st look for alternative ways to alter the current situation 2nd predict consequences that will arise from each alternative 3rd evaluate all alternatives to see will creates the greatest good (How do you evaluate good - $$$$, pleasure, love, justice? Who receives the good?

Basic Forms of Ethical Reasoning Rule-based ethical reasoning Acts are either right or wrong based on ethical rules Ex. Telling the truth is always right, lying is always wrong Good Consequences do not justify wrong or bad acts Ex. Lying cannot be justified by showing it produces good consequences Standard for judging usually comes from two sources Recognized authority, often a religious source (Ten Commandments) Human reasoning – test called universalizing where you picture yourself doing the action and ask yourself, “would the result be irrational, illogical, or demeaning?” if so, unethical

Examples Majority rule usually advances rule-based (no gray area, right is right/wrong is wrong) Rule Based & Consequences Based usually reach the same type of decision Ex. To lie or tell the truth….both ways usually result in deciding to tell the truth

Summary Majority rule usually advances rule-based (no gray area, right is right/wrong is wrong) Rule Based & Consequences Based usually reach the same type of decision Ex. To lie or tell the truth….both ways usually result in deciding to tell the truth

Review True/False (Consequences-Based Reasoning) _____ Right or wrong is not based ONLY on the results of the action _____ An act that produces good consequences is good, an act that produces bad consequences is bad.

Review – True/False (Rules-Based Reasoning) _____ Good consequences can justify wrong or bad acts _____ Standard for judging usually comes from only one source _____ Human reasoning , a test called universalizing, is not used in this type of reasoning

Culture to Laws Culture refers to the values and beliefs of a society. Values reflect what people think is good or right. These values can shape your ethics and these ethics dictate the laws. Laws are created based on the ethical values at that time.

Terms to Research on the Internet (choose at least 5) Lemon Laws Limited Warranty Express Warranty Puffing Full Warranty Disclaimer Unfair trade practices Bait & Switch False Advertising Implied Warranty

Professional Code of Conduct Attorney’s have a professional code of conduct. Depending on the state they are from it is called the Rules of Professional Conduct or Rules of Ethical Conduct. -Other professional also have rules or codes of conduct. -Research and find other professions that have established rules of ethical behavior and compare those rules between 2 states or among 2 countries -Put your findings in the form of a powerpoint