Business Ethics.

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BUSINESS ETHICS (Some Summary Only)

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Presentation transcript:

Business Ethics

What is ethics? Ethics has to do with fundamental questions such as What is fair? What is just? What is the right thing to do in this situation? Ethics involves an active process of applying values, which may range from religious principles to customs and traditions.

What is business ethics? Business ethics focuses on what constitutes right or wrong behavior in the world of business. Business people have a responsibility to the public and themselves to maintain ethical principles.

Business Ethics Business ethics is an application of ethics to business situations. All people have ethical responsibilities Higher ethical standards are imposed upon professionals who serve as social models, such as physicians, attorneys, and businesspeople.

The Relationship Between Law and Ethics The law is an expression of the ethical beliefs of our society. Law and ethics are not the same thing. The question, Is an act legal? is different from the question, Is an act ethical? An action might be unethical, yet not necessarily illegal. For example, it might be unethical to lie to your family, but it is not necessary illegal.

Work Ethics A group of moral principles, standards of behavior, or set of values regarding proper conduct in the workplace Examples of Business Abuse Stealing Merchandise or Money Shoplifting Unauthorized Discounts Vandalism Breaking Confidentiality Ignore Safety Rules

Business Ethics – Business Abuse How Do We Rationalize Business Abuse? Everybody does it The company won’t miss it The company overcharges I’m not paid enough The company doesn’t deserve my loyalty

Business Ethics – Business Abuse How Employers Respond to Business Abuse Increase Security Loss prevention mgmt. Surveillance Networks/Helplines Threats of prosecution Increase Employee Loyalty fair wages & benefits fair/consistent treatment recognition for good work

Business Ethics – Business Abuse If You’re Unsure - Before You Act -- ASK: Is this legal? Is it against company policy? Could the action cause loss or harm to anyone? If everyone I knew saw me, would I feel uncomfortable?

Code of Ethics A code of ethics is a formal document May contain a mission statement, a listing of corporate values, and general policies relating to operations General guidelines/rules for employees