2. Business Ethics: Acting and Communicating Ethically

3. What is Ethics?  ________ is defined as a code of moral principles that sets standards of what is “good” and “right” as opposed to “bad” and “wrong” in the conduct of a person or group  Today’s society requires businesses to operate in an ethical manner Ethics

4. Ethical Systems  As our workplaces become increasingly more competitive and complex it is important to develop a strong sense of right and wrong in the daily decision-making process  As a future professional, you need to have a practical working knowledge of ethics  There are three ___________________ which can be used to analyze the correctness of business and personal decisions Ethical Systems

5. Ethical Systems 1. ________________  Under this system, you judge whether your act is ethical by weighing its consequences; that is, how the act impacts those affected by it.  An ethical act should have utility (usefulness); that is, it should work for the general good of whatever group it concerns.  An ethical act will do the greatest good for the greatest number of people. Conversely, an unethical act will do the greatest good for the least number of people Utility Based

6. Scenario You are asked to write a cigarette advertisement as part of your job. Using the Utility Based system of ethics, is this an ethical task?

7. Utility Based Scenario Analysis Positive Points TTobacco farmers (jobs) CCigarette manufacturers (jobs) SStockholders in cigarette companies TThe economy Negative Points SSmokers suffer cigarette related illnesses SSmokers die prematurely HHigh costs of health burden on insurance companies HHigh costs of health burden on the government’s medical programs HHigher insurance premiums for all citizens HHigher taxes for all citizens (whether you smoke or not)

8. From a Utility-Based point of view writing advertisements to market cigarettes is … An unethical act since it does more harm than good, as writing the ad would hurt more people than it would help.

9. Ethical Systems 2. ________________  Under this system the ethical test judges the acts themselves rather than the consequences of the acts; that is, acts are measured against rules  These rules often come from religion (the 10 commandments), from generally accepted principles (it is unethical to lie, cheat, etc.) or from the law (It illegal to steal, kidnap, assault, etc.)  A ____________ Rule-Based system might accept no lying under any circumstances whereas as a _____________ Rule-Based system might accept white lies as being okay Rule-Based Strict Flexible

10. Scenario You are asked to write a cigarette advertisement as part of your job. Using the Rule-Based system of ethics, is this an ethical task?

11. Rule-Based Scenario Analysis From a Rule-Based point of view the act of writing an advertisement to market cigarettes does not break any rules and therefore is an ethical act. Unless you are lying in the advertisement and/or it is directed at an inappropriate target market, such as minors.

12. Ethical Systems 3. __________________  Under this system of ethics it is assumed that everyone has certain rights that, except under certain strictly defined circumstances, cannot be taken away  Our Canadian Constitution states that all Canadians share certain freedoms such as speech, liberty, personal happiness, etc. However, under certain circumstances criminals will lose their rights in order to protect society at large  We should treat our fellow human beings with dignity and not use them solely for our own interest or the interest of our organization  A Rights-Based system implies a fair exchange of goods for money and appropriate payment for a safe worth-while product Rights-Based

13. Scenario You are asked to write a cigarette advertisement as part of your job. Using the Rights-Based system of ethics, is this an ethical task?

14. Rights-Based Scenario Analysis From a Rights-Based point of view the act of writing an advertisement to market cigarettes is … An ethical act because the employees and organization have the right to freedom of speech, and consumers have the right to purchase the products they choose.

15. Business Ethics on the Job Business Leadership: BOH4MI

16. The Seven Business Ethics 1. ________________  Standing up for what you believe is right  This is how one gains trust in the business world 2. ____________  Being committed to certain people or groups  Regardless of your position, continued loyalty to the job and company is usually rewarded with a salary increase, promotion, etc INTEGRITY LOYALTY

17. The Seven Business Ethics 3. ____________  Telling the truth  Being open and honest shows that an employee deserves the confidence of their boss 4. ____________________  Taking care of all aspects of your job  Employees should recognize the value of going above and beyond their own personal tasks for the good of the entire workplace HONESTY RESPONSIBILITY

18. The Seven Business Ethics 5. _____________  Understanding another person’s point of view  The ability to see situations from another’s perspective opens the way for smooth, conflict-free business 6. ________________________  Keeping other people’s personal information private  The ability to distinguish between harmless gossip and sensitive facts, that should not be discussed, is vital EMPATHY CONFIDENTIALITY

19. The Seven Business Ethics 7. _____________  Considering the feelings and viewpoints of others when you act  All people, from customers to co-workers to the owner of the company, should be treated with respect RESPECT

20. The Golden Rule of Ethics Treat others as you would like to be treated!!

21. Ethical Decision Making 1. ____________________ Ask yourself;  What are the facts?  Who has a stake in the outcome of my decision? How?  What are all of my opinions?  Who can I consult about this decision? Consider the Situation

22. Ethical Decision Making 2. ____________________________________ Ask yourself;  Which option will do the most good?  Which option will do the least harm?  Which option promotes the common good for all people involved?  If you told someone you respect about your decision, what would they say?  How would you feel if your decision were published on the Internet for all to see? Evaluate your Possible Courses of Action

23. Ethical Decision Making 3. _______________________ Ask yourself;  How did the situation turn out?  If I could do it over, would I make the same decision twice?  What have I learned for the future? Reflect on your Decision

24. Great Workers …  Are open to new ideas  Have the initiative to put new ideas into action  Show an interest in learning how to do the job the right way  Are flexible and ready to do anything  Care about what others find important  Pay attention when they are customers and notice how others provide good service  Know how to work well with a team  Know when to take a break  Volunteer to help others if they see a need

25. Great Workers Do Not …  Blame others for their mistakes  Get discouraged when others disagree with their ideas  Assume anything negative about anyone or any situation  Gossip  Excessively to talk to their friends while on the job  Put off things that can be done now  Complain helplessly instead of working to find a solution  Support an idea simply because others agree with it

26. Go Forth and Be Ethical!!!