1. FHF Business Ethics ] [ An identifiable problem, situation, or opportunity that requires a person to choose from among several actions that may be evaluated as right or wrong, ethical or unethical 2-3

2. Social Responsibility FHF Business’s obligation is to maximize its positive impact and minimize its negative impact on society 2-4

3. Laws and Regulations FHF  Laws and regulations encourage businesses to conform to society’s basic standards, values, and attitudes.  Sarbanes-Oxley Act, 2002  Troubled Assets Relief Program 2-5

4. The Role of Ethics in Business Business FHF Growing concerns about legal and ethical issues in business  Antitrust violations  Accounting fraud  Cybercrimes  Unfair competitive practices  Tax fraud 2-6

5. FHF Ethical Issues ] [ An identifiable problem, situation, or opportunity that requires a person to choose from among several actions that may be evaluated as right or wrong, ethical or unethical 2-7

6. Ethical Issues FHF  Involve all organizational activities For profit businesses Non-profits Government Schools and universities  Learning to recognize and resolve ethical issues are important in maintaining an ethical business climate 2-8

7. Ethical Conduct Helps To: FHF  Build Trust  Promote confidence  Validate relationships 2-9

8. FHF  Examine the situation from your stakeholders’ position, including customers and competitors  People often need years of experience to accurately recognize and react to ethical situations  Ethical situations vary by culture How to Judge the Ethics of a Situation 2-10

9. Unethical Behavior in Business Business FHF  Misuse of company resources  Abusive & intimidating behavior  Conflict of interest  Fairness & honesty  Communications  Business relationships 2-11

10. Sources of Unethical Behavior Behavior FHF Misuse of Company Resources  The most commonly observed misconduct Time theft Use of personal email and social networking sites at work is a growing problem Stealing office supplies Unauthorized use of equipment and software 2-12

11. Sources of Unethical Behavior Behavior FHF Abusive and Intimidating Behavior / Bullying 2-13

12. Sources of Unethical Behavior in Organizations FHF Conflict of interest  Advance personal interest over others’ interests  Benefit self at the expense of the company Bribes represent a conflict of interest because they benefit an individual at the expense of an organization or society 2-14

13. Corruption Perceptions Index Index FHF Source: “Corruption Perceptions Index 2009,” Transparency International, http://www.transparency.org/policy_research/ surveys_indices/cpi/2009/cpi_2009_table (accessed January 22, 2010). Least Corrupt Countries… 1. New Zealand12. Hong King/Luxembourg (tied) 2. Denmark14. Australia 3. Singapore/ Sweden (tied)16. Germany/ Ireland (tied) 5.Switzerland17. Japan/ United Kingdom 6. Finland/Netherlands (tied)19. United States 8. Australia/Canada/Iceland (3-way tie)20. Barbados 11. Norway 2-19

14. Fairness & Honesty FHF Are at the heart of business ethics  How employees use resources  No deceit, coercion, or misrepresentations  Fair competition  Disclosure of potential harm caused by products 2-15

15. Ethical Concerns in Communications FHF  False/misleading advertising  Deceptive personal selling tactics  Truthfulness in product safety and quality  Unsubstantiated claims  Product labeling 2-16