1. Defining Business Ethics
Chapter 2
Defining Business Ethics
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2. Business Ethics Application of ethical standards to business behavior
Approachable in two perspectives
Descriptive - Documentation of what is happening
Normative (prescriptive) - Recommendation of what should happen
Not applicable as a separate set of moral standards or ethical concepts from general ethics

3. Who are the Stakeholders?
Someone with a share or interest in a business enterprise
Not every stakeholder will be relevant in every business situation
Concern is the extent to which stakeholders would be impacted by unethical behavior

4. Figure 2.1 - Stakeholder Interests

5. Figure 2.2 - Stakeholder Impact from Unethical Behavior

6. An Ethical Crisis: Is Business Ethics an Oxymoron?
Ethical track record of many organizations have been unable to tackle:
Unethical concerns that can arise in the business environment
Impact that such unethical behavior can have on the stakeholders of an organization
Standard of corporate governance is at the lowest level in business history

7. An Ethical Crisis: Is Business Ethics an Oxymoron?
Corporate governance: System by which business corporations are directed and controlled
Business ethics is considered an oxymoron as the business world lacks any sense of ethical behavior
Oxymoron: Combination of two contradictory terms

8. Code of Ethics
Company’s written standards of ethical behavior that are designed to guide managers and employees in making the decisions and choices they face every day
Cornerstones of the organization
Mission
Values
Principles

9. An Ethical Crisis: Is Business Ethics an Oxymoron?
Dual function of code of ethics
Message to the organization’s stakeholders, representing a commitment to the highest standards of ethical behavior
Internal document, representing a guide to managers and employees in making every day decisions and choices

10. Figure 2.3 - A Brief History of Business Ethics

11. Resolving Ethical Dilemmas
Ethical dilemma: Situation in which there is no obvious right or wrong decision, rather a right or right answer
Recognizing the type of conflict can lead to the resolution of an ethical dilemma
Truth versus loyalty
Short term versus long term
Justice versus mercy
Individual versus community

12. Resolving Ethical Dilemmas
Resolution principles
Ends-based
Which decision would provide the greatest good for the greatest number of people?
Rules-based
What would happen if everyone made the same decision as you?
The golden rule
Do unto others as you would have them do unto you

13. Justifying Unethical Behavior
Belief that an activity is within reasonable ethical and legal limits
Belief that an activity is in the individual’s or the corporation’s best interests
Belief that the activity is safe because it will never be found out or publicized
Belief that because an activity helps the company, it will be condoned and the perpetrator protected