1. Ethics in Business Case studies, Theory, and Application

2. Definition Ethics in business are the values and standards that guide the behavior of executives, managers and employees. Ethics impact all areas of business. – Internal and external financial procedures – Treatment of employees and contractors – Possible conflicts of interest – Pricing policies – Global expansion and operations

3. Influences on Personal Ethics Legislation Personal value system Peer influence Corporate culture Company policies

4. Two Views of Ethics Shareholder view – Friedman, 1970s – Executive’s obligation is to serve the interest of the shareholders Stakeholder view – There are a range of people affected by a firm – Shareholders, employees, governments, suppliers, customers, local communities, etc.

5. Stakeholder view: Internal Environment Corporate culture – beliefs, customs, values of the firm – Guides the behavior of the organization Codes of ethics – Support of upper management – Explanation of what are ethics – Principles of the code and core values – Specific behaviors to promote – List of stakeholders of the firm & obligations to them

6. Stakeholder view: Internal Environment Management structure – Job descriptions should reflect a commitment to ethics – A formal corporate governance committee – Training and education for managers and employees Promote culture Identify ethical issues Develop skills to deal with the issues

7. Theories of Ethical Decision Making Utilitarianism – Cost-benefit analysis – Maximize the benefit for all stakeholders Pluralism – Universal acceptability – Publicity test Contractarianism – Rights of affected parties

8. Discussion Read each case study and identify the ethical issue(s) How should the employee/firm proceed? Explain how you came to that decision – Use theory to support your answer

9. Discussion What are other ethical issues that you’ve noticed in the marketplace? What is the difference between a legal issue and an ethical issue? Universities typically have a “school culture” similar to that of a corporate culture. What is the culture of Winthrop? With respect to ethics, what are our strengths? Where is there room for improvement?