What is ETHICS? The inner-guiding moral principles & values people use to analyze a situation and decide what is “right”
Ethics changes over time people shapes principles and values Business should operate by considering the principles & values of the people to be accepted
ETHICAL DILEMMA VS THE LESSER OF EVILS
EXTERNALITIES An externality refers to the uncompensated impact of one person's actions on the well-being of a bystander.
Ethical Behaviour Lower Transaction Cost Increases Efficiency & Effectiveness of Production & Trade Increases Company Profitability Increases National Standard of Living, Well-Being, & Prosperity Unethical Behaviour Increases Transaction Cost Reduces Efficiency & Effectiveness of Production & Trade Reduces Company Profitability Reduces National Standard of Living, Well-Being, & Prosperity REPUTATION