Presentation on theme: "BA 385: Who’s Pencil Is It? Chapter Six: Business Ethics Fundamentals."— Presentation transcript:
1 BA 385: Who’s Pencil Is It?Chapter Six: Business Ethics Fundamentals
2 Business Ethics: What Does It Really Mean? DefinitionsEthics involves a discipline that examines good or bad practices within the context of a moral dutyMoral conduct is behavior that is right or wrongBusiness ethics include practices and behaviors that are good or bad
3 Business Ethics: What Does It Really Mean? Two Key Branches of EthicsDescriptive ethics involves describing, characterizing and studying morality“What is”Normative ethics involves supplying and justifying moral systems“What should be”
4 Business Ethics Categories Employee-Employer RelationsEmployer-Employee RelationsCompany-Customer RelationsCompany-Shareholder RelationsCompany-Community/Public Interest
5 Public’s Opinion of Business Ethics Gallup Poll finds that only 17 percent to 20 percent of the public thought the business ethics of executives to be very high or highTo understand public sentiment towards business ethics, ask three questions:Has business ethics really deteriorated?Are the media reporting ethical problems more frequently and vigorously?Are practices that once were socially acceptable no longer socially acceptable?
6 First conviction in HP board leak scandal case Business Ethics in the News:Dirty dining?‘Dateline’ hidden cameras investigate cleanliness of America’s top 10 fast food chainsFirst conviction in HP board leak scandal caseEnron scandal• Fast food chains under scrutiny 'Dateline' hidden cameras investigate cleanliness of America's top fast food chains. NBC's Lea Thompson reports.Dateline NBCWall Street scandals
7 Conventional Approach to Business Ethics Conventional approach to business ethics involves a comparison of a decision or practice to prevailing societal normsPitfall: ethical relativismDecision or Practice Prevailing Norms(padding expense acct.) (my boss does it)
8 Sources of Ethical Norms Fellow WorkersFamilyFriendsThe LawRegions of CountryProfessionEmployerSociety at LargeLocal communityReligious BeliefsThe IndividualConscience
9 Business Response to Ethics: The Ethics Officer Ethics Officers Association is a professional association of managers of corporate ethics and compliance. Visit EOA’s web site at::
11 Four Important Ethical Questions What is?What ought to be?How to we get from what is to what ought to be?What is our motivation for acting ethically?
12 3 Models of Management Ethics Immoral Management— A style devoid of ethical principles and active opposition to what is ethical.Moral Management— Conforms to high standards of ethical behavior.Amoral ManagementIntentional - does not consider ethical factorsUnintentional - casual or careless about ethical considerations in business
17 Elements of Moral Judgment Amoral ManagersMoral ManagersMoral ImaginationAbility to perceive web of competing economic, moral and ethical relationships.Moral IdentificationAbility to discern the relevance or nonrelevance of moral factors that are introduced into a decision-making situations.Moral EvaluationHave clear principles, develop processes for weighing ethical factors, develop way to identify ethical and economic outcomes.Tolerance of Moral Disagreement and AmbiguityAbility to deal in “gray” areas and operate within disagreement.Integration of Managerial and Moral CompetenceSee each decision within a moral perspective that is integrated with a management perspective.A Sense of Moral Obligation“Get it”, that is, have a sense of integrity that oversees decision-making processes and understands what is at stake for all.