2GOALS Define ethics Describe each element of the definition Define business ethics
3What is Ethics?Lisa found a $20 bill in the girl’s restroom at school. She bought her sister a gift with part of the money and put the rest of the money in her savings.Jim found $20 in the boy’s restroom. He knows whoever lost the money would probably need it, so he turned the money in to the office.Who is displaying more ethical behavior?What would you do?
4Hot DebateShould Julian inform the INS of Achmed’s whereabouts? If so, why?What are the reasons in favor of Julian not informing the INS?
5What’s your Verdict? Has Jane made an ethical decision? If you were in Jane’s position, what would you do?Why so you think Jane's decision is okay? Not okay?What do you think Jane should do with the exam she found?
6EthicsDeciding what is right or wrong in a reasoned, impartial manner
73 Elements: Decision about right or wrong action Decision is reasoned Decision is impartial
81) Decision about Right or Wrong Action Decision to buy blue jeans with wide pant legs or narrow pant legs?Ethical component?Decision to discontinue medical support for an unconscious, terminally ill relative.Many decisions have little effect on other persons or yourselfTo involve ethics, a decision must affect you or others in some significant way
92) Reasoned Decisions We often act in response to our ________. EMOTIONSEthical decision must be based on reason, not our emotionsUsually refer to a written authority that provides consistencyLawReligious texts“I believe that God is the source of the Bible and the Bible tells me not to lie. Therefore, it would be wrong, or unethical, for me to lie”
103) Impartial Decisions Impartiality The idea that the same ethical standards are applies to everyoneEthics does not value one person or group of persons more than any other doesMen vs. WomenEach person is an individual and should receive equal respect and consideration from others
11Impartial Decisions (cont) It requires us to make ethical decisions while we balance our self-interest with the interest of othersIf you hit someone’s car and no one sees you, is it ethical not to report it?Who is affected?All of our actions affect others
12Impartial Decisions (cont) Particularly important when organizations and institutions are involved“It was only the school’s property”“Just the insurance company was cheated”Consider how the people behind the institution are affected by the action
13In this Case What would you have done in Gabe’s place? Why? What would prompt them to keep the wallet? Return the wallet?
14PROFIT MAXIMIZATION Business Ethics The ethical principles used in making business decisionsToo often, ethics are not considered when business decisions are madeWhy?PROFIT MAXIMIZATION
15Business Ethics (cont) Move factories offshore and cut jobs to reduce costsIncrease profits for the business ownersThe profit maximization ethic will need to be replaced by the more humane ethical standards
16AssignmentPg 27 #1-11Make sure that you answer all parts of the question!!!!Complete sentences
18GoalsReason based on consequencesReason using ethical rules
19Based on ConsequencesRightness or wrongness is based only on the results of the actionParticular acts have no ethical, or moral characterA good act = good consequencesA bad act = bad consequences
20Based on Ethical Rules Acts are either right or wrong Truth = rightLying = wrongGood consequences do not justify wrong or bad actsCan’t justify lying if it has a good consequences
21Same ConclusionsFor almost all ethical decisions, you reach the same conclusion using either form of reasoningOne should not lieConsequence-based reasoningRecognizes that lying usually produces bad consequencesRule-based ethicsLying is always wrong
22Ethical Reasoning Based on Consequences Describe alternative actionForecast consequencesEvaluate consequencesSelecting the standard for judging consequences as right or wrongCounting the persons affected
24Fundamental Ethical Rule Fundamental Ethical Rule – the acts themselves are judged as right or wrongStandard for judging comes from 2 sources:Recognized Authority (law, religious text)Human Reasoning (shows that things are basically wrong)A test has been devised to determine whether an action is right or wrong……
25UniversalizingPicturing in your mind’s eye everyone in the world doing the actionIrrational?Illogical?Self-Defeating?If any of the three are true, the action is inconsistent with reason and therefore ethically wrong
26Moral RightsRightful claims on other people that flow from each person’s status as human beings
28Do our laws more reflect consequence based or rule based ethics? Majority RuleElected representatives vote for laws acceptable to the majority of people they representDo our laws more reflect consequence based or rule based ethics?Consequence
30Our Laws Reflect Rule-Based Ethics Laws desired by the majority may conflict with moral rightsThe majority may benefit from unjust lawsThe courts would declare invalid because they deny “equal protection of the law” to the minority
31Our Laws Reflect Rule-Based Ethics The U.S. supports and recognized human rightsUndermine human rights = unconstitutionalCivil RightsPersonal, human rights recognized and guaranteed by the U.S. Constitution
32Our Laws Reflect Rule-Based Ethics Federal JudgesAppointed NOT electedAppointed for lifeProtect human rights without risking their job
33Declaration of Independence Recognizes our fundamental rights“We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty, and the pursuit of Happiness”
34Other Ethical Goals Reflected in Our Law Laws need to be clearly stated and communicatedEx. – GradesWhat’s your Verdict?
35Are We Obligated to Obey Laws? Yes – Ethical reasoning demands it (avoid punishment)
36Are We Obligated to Obey Laws? Ethics demands that we obeyWe consent to be governed by lawsIntegrityThe capacity to so what is right even in the face of temptation or pressure to do otherwiseWe want to avoid punishmentFined, jailed, put to deathBarred from jobs with security clearance (Banks)Licensed (Lawyers, doctors, accountants)
37Employers usually purchase fidelity bonds for persons who handle large sums of money (cashiers) An insurance policy that pays the employer money in the case of theft by employeesSerious crimes do cannot qualify
38Are We Ever Justified in Violating The Laws? What’s your verdict?Civil DisobedienceOpen, peaceful, violation of a law to protest its alleged injusticeParticipants may be willing to be arrested in order to test the validity of the law in courtGoal = to make the legal system more just
39Are We Ever Justified in Violating The Laws? ScofflawsPersons who do not respect the lawThey assess the risk of being caught against the benefits they obtainThey are NEVER ethically justified in violating the law
40Chapter Review Ethics applies when decisions affect people Ethical decisions must be grounded on reason and impartialityThere are two basic forms of ethics: those based on consequences and those based on fundamental ethical rulesEthics based on consequences evaluates only the results or effects of acts
41Chapter Review (cont) The law tries to advance the goals of Reflecting the will of those governedPreserving natural rightsMaintaining orderBoth consequential and rule-based ethics compel us to obey the lawIntegrity is doing what is right even in the face of temptation or pressure to so what is wrong
42Chapter Review (cont)We are obligated to obey the law because, by accepting society’s benefits, we have consented to be bound by lawsWe are obligated to obey the law if we believe in helping others. Civil disobedience is only justifies in rare and extraordinary circumstancesWe should obey the law if we desire to avoid punishmentCivil disobedience is the open, peaceful violation of a law to protest its alleged injustice or unfairness