BUSINESS ETHICS THEORY Business Law I Chapter 1 – Part B Angela Creech, Instructor

Compare: Family ethics: The one thing a family has to do is nurture and educate the next generation. Family relationships are based upon unconditional love.

Babies are cared for when they have done nothing to earn their keep. Teenagers are often allowed to live at home even when they are terribly disruptive to the family.

Business ethics: The one thing a business has to do is earn a profit. Business relationships are conditional. An employee who does not earn more money or good will than he or she takes has to be removed from the payroll.

Business Ethics Theory Utilitarian Approach: –Do what provides the greatest good for the most people. –Assembling products off-shore where workers earn less keeps prices low so a business does not go bankrupt. Only assembly-line workers are impacted.

Individualistic Approach: –Do what’s in your long-term best interest. –It is every employee’s best interest for an organization to remain operational. Return customers are necessary to stay in business.

Moral Rights Approach: –Only sell legal products and/or services. –Selling illegal products and/or services is expensive in terms of legal fees and lost opportunity.

Justice Approach: –Treat all employees and customers the same. –Discriminating by sex, race, religion or ethnicity is expensive in terms of legal fees and lost opportunity.