Presentation on theme: " Standards of moral behavior, that is, behavior is accepted by society as ‘right’ versus ‘wrong’ The study of how people try to live their lives."— Presentation transcript:
Standards of moral behavior, that is, behavior is accepted by society as ‘right’ versus ‘wrong’ The study of how people try to live their lives according to the standard of “right” or “wrong” behavior – in both how we think and behave toward others and how we would like them to think and behave toward us.
Application of standards of moral behavior to business situation. or… The study of how personal moral norms apply to activities and goals of commercial enterprise.
Break into a group of 5 (pick your group yourselves). Each group has to create a story related to business ethics and shows the impact of having ethics in business. Try to make your story interesting and capture all audiences attention. Then make a role play in front of the class (not over 10 mins/ group).
… Who are Stakeholders?
Someone with a share or interest(benefit) in a business enterprise including stockholders, employees, customers, suppliers /vendor partner, retailer/ wholesaler, federal government, creditors, and community.
STAKEHOLDERS Suppliers/Vendor partners Retailers/ Wholesalers INTEREST IN ORGANIZATION Prompt payment for delivered goods Regular orders with and acceptable profit margin Accurate deliveries of quality products on time and at a reasonable cost Safe and reliable product
STAKEHOLDERS Stockholders Employees INTEREST IN ORGANIZATION Growth in the value of company stock Dividend income Stable employment Fair rate of pay Safe & comfortable working environment
STAKEHOLDERS Federal government Creditors INTEREST IN ORGANIZATION Tax revenue Operation in compliance with all relevant legislation Principle and interest payments Repayment of debt according to the agreed schedule
STAKEHOLDERS Customers Community INTEREST IN ORGANIZATION “Fair Exchange” – a product or service of acceptable value and quality for the money spent Employment of local residents Economic growth Protection of local environment
STAKEHOLDERS Stockholders Employees INTEREST IN ORGANIZATION Misleading financial information on which to base investment decisions Loss of stock value Cancellation of dividend Loss of employment Unfair rate of pay Unsafe & uncomfortable working environment
STAKEHOLDERS Suppliers/Vendor partners Retailers/ Wholesalers INTEREST IN ORGANIZATION Delayed payment for delivered goods and services Inaccurate deliveries of quality products and at unreasonable cost Unsafe and unreliable product
STAKEHOLDERS Federal government Creditors INTEREST IN ORGANIZATION Loss of tax revenue Failure to comply with all relevant legislation Loss of principle and interest payments Failure to repay debt according to the agreed schedule
STAKEHOLDERS Customers Community INTEREST IN ORGANIZATION Poor service quality Poor product quality Unemployment of local residents Economic decline No protection of local environment
Impacts of operating firm unethically : Financial penalties: lawsuits, theft Deterioration (becoming worse) of relationships Damage to reputation Declining employee productivity, creativity, loyalty, ineffective information flow throughout organization, absenteeism (regular absence from work w/o good reason) Difficulties for recruiting and retaining valued professionals due to bad reputation of company
“Do unto others as you would have them do unto you.” or “Treat others as you would like to be treated.” (The goal of living an ethical life)
Not everyone thinks like that… So, if you apply the golden rule to everyone you met, you possibly get in trouble.
Example: If you are the person who values on honesty as a priority, and you found an expensive wallet fall on the sidewalk, you will definitely try to return it to the owner. However, if you lost your wallet, could you automatically expect that the person who found it would make the same effort to return it to you?
Situation in which there is no obvious “right” or “wrong” decision, but rather “right” or “right” answer.
Example: You are the manager of the restaurant which is not popular among customer, sales in each day is quite low, some days could sell only few serves. You, as the manager, notices one of ingredient (which is very expensive as it has to be imported from overseas) use in cooking process already expired. Then you report to your boss. Due to the fact that, revenues from sales is not quite good, he asks you to continue using that expired ingredient as it just only be used for 2 dishes on the menu (out of 30 dishes).
Example (con’t): In addition, chef also has to taste the dish has this ingredient before serving every time whether it still be the same taste for customer or not. The boss says, whenever the taste changes, he will order a new batch of this ingredient from overseas. What would you do after got your boss’s answer like this?
1. Analyze the consequences: who will be affected by your action (negative and positive effects) both in long run and short run? 2. Analyze the actions: consider all options from a different perspective, which option offers actions that are least problematic? 3. Make a decision
1. What are the facts? 2. What can you guess about the facts you don’t know? 3. What do the fact mean? 4. What does problem look like through the eyes of people involved? 5. What will happen if you choose one thing rather than another?
6. What do your feelings tell you? 7. What will you think of yourself if you decide one thing or another? 8. Can you explain and justify your decision to others?
Business Ethics Deals with what is “right” and “wrong” in organizational decisions, behavior, and policies Provides principles and guidelines that assist people in making informed choices that balance economic interests and social responsibilities.