1. Apply ethics to demonstrate trustworthiness.
2.08 Assess risks of personal decisions
Created by: D. Burns, J. Bailey, J. Loudell, J. Winfree

2. Ethics
Guidelines for human behavior; the study of moral choices and values; choosing between right and wrong.

3. Ethical behavior
Knowing the difference between right and wrong and consciously choosing to do right.

4. Code of ethics
A systematic set of rules and procedures used to guide the behavior of an individual, a business, or a culture.

5. Business ethics
Applying principles of right and wrong to situations in the workplace.

6. Personal & Business Ethical Decisions
Generate & sustain trust
Demonstrate respect, responsibility, fairness & caring
Demonstrate good citizenship
Making ethical decisions requires:
Commitment – the desire to do the right thing regardless of the cost
Consciousness – awareness to act consistently & apply moral convictions to daily behavior
Competency – ability to collect & evaluate information, develop alternatives, & foresee potential consequences

7. Ethical Dilemmas Arise when responsibilities & loyalties conflict
A decision about the appropriate (ethical) course of action must be made
Are you willing to sacrifice pride, integrity, reputation and honor by making an unethical choice?
Are you willing to suffer the consequences of a bad choice?

8. How to Make Ethical Decisions
Think about the impact of your actions on all the stakeholders!
Stakeholders are those people affected by a decision.
Determine who is likely to be helped or harmed. Avoid or reduce the harm.
Ask yourself whether your options are trustworthy, respectful, responsible, fair, caring and examples of good citizenship.
Ethical values (trustworthiness, respect, responsibility, fairness, caring and citizenship) outrank and override unethical ones (money, popularity and prizes)!

9. How to Make Ethical Decisions
The long run outranks the short run.
Go with the choice that will produce the most good for the most people.
Eliminate choices that have nothing to do with ethics (like power, popularity and prizes). Then pick the most ethical option left.
Make your decision and take responsibility for the outcome
Whether good or bad

10. Ethics & Risk The Risk of Business as Usual
Companies are put at risk when leaders fail to see that ethical leadership is vital for effective & responsible management
Poorly managed corporate risk/ethical decisions have irrevocable human & financial consequences
Deaths & accidents from the unintended acceleration in Toyota vehicles
Deaths of oil platform workers in the BP explosion & subsequent environmental catastrophe in the Gulf of Mexico

11. Factors impacting risk/ethical decisions
Perception – How you see things
Is cheating ethical or unethical?
If you consider it ethical in some situations – why?
Emotions –
If your family has no food – do you steal food from the grocery store?
Known vs. Unknown information
Using a photo without knowing if it is copyrighted or not

12. Factors Businesses Should Consider when Assessing Risks/Ethical Decisions
Time – “Time is Money”
Coming in to work 5 minutes late or leaving early
Probability – The chance that the outcome will be negative
If I speed, what are the chances I’ll get caught or have an accident
Magnitude – The number of people affected
Oil spill in the Gulf of Mexico
Cost vs. benefit – human & financial
Physical & Personal distance
How might this decision affect you personally

13. Ethical responsibility towards customers
Treat all customers with respect.
Be honest.
Do not exaggerate the merits of your products/services.
Inform customers of possible dangers of your products/services.
Handle all disputes fairly.

14. Ethical responsibility towards employees
Establish an ethical workplace.
Hold yourself to high ethical standards
Serve as a role model to others
Always treat employees fairly & honestly
Employees tend to copy the behavior of the business owner
Ethical behavior gains the trust & respect of customers

15. Ethical responsibility towards employees
Create a written code of ethics to set guidelines to help the business owner and employees make ethical decisions.
Establish company policies and procedures to let business owners and employees know how to act in certain situations. Have employees attend an orientation meeting on this information

16. Ethical responsibility towards the community
Contribute money to charities, cultural institutions, and other reputable causes.
Get involved.
Donate products and services.