BUSINESS ETHICS AND THE LEGAL ENVIRONMENT OF BUSINESS

ETHICAL DILEMMA ETHICAL DILEMMA MAY ARISE WHEN A PERSON HAS TO DECIDE BETWEEN TWO DIFFERENT COURSES OF ACTION, KNOWING THAT WHICHEVER COURSE HE OR SHE CHOOSES WILL RESULT IN HARM TO ONE PERSON OR GROUP EVEN THOUGHT IT MAY BE BENEFIT ANOTHER. ETHICAL DILEMMA MAY ARISE WHEN A PERSON HAS TO DECIDE BETWEEN TWO DIFFERENT COURSES OF ACTION, KNOWING THAT WHICHEVER COURSE HE OR SHE CHOOSES WILL RESULT IN HARM TO ONE PERSON OR GROUP EVEN THOUGHT IT MAY BE BENEFIT ANOTHER.

ETHICS THE INNER-GUIDING MORAL PRINCIPLES AND VALUES PEOPLE USE TO ANALYSE A SITUATION AND DECIDE WHAT IS RIGHT. THE INNER-GUIDING MORAL PRINCIPLES AND VALUES PEOPLE USE TO ANALYSE A SITUATION AND DECIDE WHAT IS RIGHT.

STAKEHOLDERS AND BUSINESS ETHICS STAKEHOLDERS AND BUSINESS ETHICS STAKEHOLDERS STAKEHOLDERS PEOPLE OR GROUPS OF PEOPLE WHO SUPPLY A COMPANY WITH ITS PRODUCTIVE RESOURCES AND THEREBY HAVE AN INTEREST IN HOW THE COMPANY BEHAVES.

MAIN STAKEHOLDERS STOCKHOLDERSSTOCKHOLDERS MANAGERSMANAGERS EMPLOYEESEMPLOYEES SUPPLIERS AND DISTRIBUTORSSUPPLIERS AND DISTRIBUTORS CUSTOMERSCUSTOMERS COMMUNITY, SOCIETY, AND NATIONCOMMUNITY, SOCIETY, AND NATION

RULES FOR ETHICAL DECISION MAKING WHEN MAKING BUSINESS DECISIONS, MANAGERS MUST CONSIDER ALL OF THE FIRM’S STAKEHOLDERS. BUSINESS DECISION THAT FAVOR ONE GROUP OF STAKEHOLDERS ARE LIKELY TO HARM THE INTEREST OF OTHERS. WHEN IT IS THE CASE THE COMPANY WILL FINALY SUFFER GREAT LOSS. WHEN MAKING BUSINESS DECISIONS, MANAGERS MUST CONSIDER ALL OF THE FIRM’S STAKEHOLDERS. BUSINESS DECISION THAT FAVOR ONE GROUP OF STAKEHOLDERS ARE LIKELY TO HARM THE INTEREST OF OTHERS. WHEN IT IS THE CASE THE COMPANY WILL FINALY SUFFER GREAT LOSS.

FOUR ETHICAL RULES TO ANALYSE THE EFFECTS OF BUSINESS DECISION ON STAKEHOLDERS UTILITARIAN,RULE, A RULE STATING THAT AN ETHICAL DECISION IS ONE THAT PRODUCES THE GREATEST GOOD FOR THE GREATEST NUMBER OF PEOPLE. UTILITARIAN,RULE, A RULE STATING THAT AN ETHICAL DECISION IS ONE THAT PRODUCES THE GREATEST GOOD FOR THE GREATEST NUMBER OF PEOPLE. THE MORAL RIGHT RULE, A RULE ATATING THAT AN ETHICAL DECISION IS ONE THAT ONE MAINTAINS AND PROTECTS FUNDAMENTAL, INALIENABLE RIGHTS AND PRIVILEGES OF THE PEOPLE AFFECTED BY IT. THE MORAL RIGHT RULE, A RULE ATATING THAT AN ETHICAL DECISION IS ONE THAT ONE MAINTAINS AND PROTECTS FUNDAMENTAL, INALIENABLE RIGHTS AND PRIVILEGES OF THE PEOPLE AFFECTED BY IT.

JUSTICE RULE, A RULE STATING THAT AN ETHICAL DECISION IS ONE THAT DISTRIBUTES BENEFIT AND HARMS AMONG PEOPLE IN A FAIR OR IMPARTIAL WAY. JUSTICE RULE, A RULE STATING THAT AN ETHICAL DECISION IS ONE THAT DISTRIBUTES BENEFIT AND HARMS AMONG PEOPLE IN A FAIR OR IMPARTIAL WAY. PRACTICAL RULE, A RULE STATING THAT AN ETHICAL DECISION IS ONE THAT MANAGER CAN COMMUNICATE TO SOCIETY BECAUSE THE TYPICAL PERSON WOULD THINK IT IS ACCEPTABLE. PRACTICAL RULE, A RULE STATING THAT AN ETHICAL DECISION IS ONE THAT MANAGER CAN COMMUNICATE TO SOCIETY BECAUSE THE TYPICAL PERSON WOULD THINK IT IS ACCEPTABLE.

RELATIONSHIP OF FOUR PRINCIPLES RULES FOR ETHICAL DECISION MAKING UTILITARIAN MORAL RIGHTS JUSTICE PRACTICAL

WHY SHOULD MANAGERS BEHAVE ETHICALLY ETHICAL BEHAVIOR INCREASES EFFICIENCY & EFFECTIVENESS LOWERS TRANSACTION COST INCREASES COMPANY PROFITABILITY INCREASES NATIONAL STANDARD OF LIVING, WELL-BEING & PROSPERITY UNETHICAL BEHAVIOR INCREASES TRANSACTION COST REDUCES EFFICIENCY & EFFECTIVENESS REDUCES COMPANY PROFITABILITY REDUCES NATIONAL STANDARD OF LIVING, WELL-BEING & PROSPERITY

DETERMINANTS OF DIFFERENCES IN BUSINESS ETHICS BETWEEN COMPANIES SOCIETAL ETHICS, STANDARDS THAT GOVERN HOW MEMBERS OF A SOCIETY SHOULD DEAL WITH ONE ANOTHER IN MATTERS INVOLVING ISSUES SUCH AS FAIRNESS, JUSTICE, POVERTY, AND THE RIGHTS OF THE INDIVIDUAL. SOCIETAL ETHICS, STANDARDS THAT GOVERN HOW MEMBERS OF A SOCIETY SHOULD DEAL WITH ONE ANOTHER IN MATTERS INVOLVING ISSUES SUCH AS FAIRNESS, JUSTICE, POVERTY, AND THE RIGHTS OF THE INDIVIDUAL. OCCUPATIONAL ETHICS, STANDARDS THAT GOVERN HOW MEMBERS OF A PROFESSION, TRADE, OR CRAFT SHOULD CONDUCT THEMSELVES WHEN PERFORMING WORK- RELATED ACTIVITIES. OCCUPATIONAL ETHICS, STANDARDS THAT GOVERN HOW MEMBERS OF A PROFESSION, TRADE, OR CRAFT SHOULD CONDUCT THEMSELVES WHEN PERFORMING WORK- RELATED ACTIVITIES.

INDIVIDUAL ETHICS, A PERSON’S STANDARDS AND VALUES THAT DETERMINE HOW HE OR SHE SHOULD ACT IN SITUATIONS WHEN HIS OR HER OWN SELF-INTEREST IS AT STAKE. INDIVIDUAL ETHICS, A PERSON’S STANDARDS AND VALUES THAT DETERMINE HOW HE OR SHE SHOULD ACT IN SITUATIONS WHEN HIS OR HER OWN SELF-INTEREST IS AT STAKE. ORGANIZATIONAL ETHICS, THE PRACTICES AND BELIEVES THAT GUIDE AN ORGANIZATION’S BEHAVIOR TOWARDS ITS STAKEHOLDERS. ORGANIZATIONAL ETHICS, THE PRACTICES AND BELIEVES THAT GUIDE AN ORGANIZATION’S BEHAVIOR TOWARDS ITS STAKEHOLDERS.

SOURCES OF BUSINESS ETHICS SOCIETAL ETHICS OCCUPATIONA L ETHICS ORGANIZATIO NAL ETHICS INDIVIDUAL ETHICS BUSINESS ETHICS