1. Essentials of the Legal Environment today, 5E
Roger LeRoy Miller
© 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

2. Business ethics Chapter 3
© 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

3. learning objectives What is business ethics, and why is it important?
How do duty-based ethical standards differ from outcome-based ethical standards?
What are five steps that a businessperson can take to evaluate whether his or her actions are ethical?
How can business leaders encourage their employees to act ethically?
What types of ethical issues might arise in the context of international business transactions?
© 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

4. The need for Business ethics
Ethics is the study of right and wrong behavior.
Whether an action is fair, right or just.
In business, ethical decisions are the application of moral and ethical principles to the marketplace and workplace.
© 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

5. The need for Business ethics
Why Is Studying Business Ethics Important?
Profit maximization
Rise of corporate citizenship
Triple bottom line: a corporation’s profits, its impact on people, and its impact on the planet
LO-1
© 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

6. The need for business ethics
The Importance of Ethics in Making Business Decisions
Businesses should evaluate:
Legal implications
Public relations impact
Safety risks for consumers and employees
Financial implications
Long-run profit maximization
The Internet can ruin reputations
Image is everything
© 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

7. The need for business ethics
The Relationship of Law and Ethics
Moral minimum: minimum degree of ethical behavior expected of a business firm, which is usually defined as compliance with the law.
Ethics and company codes of ethics
Ethical uncertainty and “grey areas”
Make it difficult for companies to navigate and forecast.
© 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

8. Business ethics and social media
Hiring Procedures
Employers use of social media searches
The Use of Social Media to Discuss Work-Related Issues
Company guidelines for appropriate social media usage
2012 NLRB ruling
Ethics in Reverse
Employee ethics
© 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

9. Approaches to ethical reasoning
Duty-Based Ethics
Derived from religious or philosophical principles
Religious ethical standards
The principle of rights
Kantian ethical principles
LO-2
© 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

10. Approaches to ethical reasoning
Outcome-Based Ethics: Utilitarianism
An action is ethical based on whether it produces the greatest good for the greatest number of people upon which it has an effect.
If it affects the majority adversely, it is morally wrong.
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11. Approaches to ethical reasoning
Corporate Social Responsibility (CSR)
Those who manage corporations should be accountable to society for their actions.
Social aspects of CSR
Corporate aspects of CSR
Stakeholders: groups other than shareholders affected by corporate decisions
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12. Making ethical business decisions
People entering the global corporate community must be prepared to make hard decisions.
A Systematic Approach
Inquiry
Discussion
Decision
Justification
Evaluation
LO-3
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13. Making ethical business decisions
The Importance of Ethical Leadership
Attitude of top management
Commitment to ethical decision making
Setting realistic production or sales goals
Not accepting ethical transgressions of others
Behavior of owners and managers
The Sarbanes-Oxley Act
Requires companies to set up confidential systems so that employees and others can “raise red flags” about suspected illegal or unethical auditing and accounting practices
LO-4
© 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

14. Global business ethics
Employment Practices of Foreign Suppliers
Many U.S. firms contract with companies in other nations to produce goods
U.S. companies must remain aware of the practices of those foreign companies.
LO-5
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15. Global business ethics
The Foreign Corrupt Practices Act
Prohibition against bribery of foreign officials
FCPA does not permit “grease” payments to minor officials.
Nor does FCPA prohibit payments to foreign officials which are lawful in that country.
Accounting requirements
FCPA prohibits anyone from making false statements to accountants or false entries in a record or account.
© 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.