Personal and Business Ethics Business Management The Scope of Management

Personal & Business Ethics O BJECTIVES  We will explore the principles of personal and business ethics and their role in business decisions.  We will explore the relationship between social media and ethics in the decision- making process. E SSENTIAL Q UESTIONS  Describe the difference between legal and ethical conduct.  How are business ethics established?  What is a whistleblower?

Personal Ethics

Ethical Decision-Making 1) What is the ethical dilemma? 2) List the facts that have the most bearing on the dilemma. 3) Identify the stakeholders involved and how they may be affected. 4) Describe all possible actions and alternatives. 5) Determine a course of action.

Case #1  Lorna is an administrative assistance in the Human Resources department. Her good friend, Bill, is applying for a job with the company. She has agreed to serve as a reference for him.  Bill approaches her for advice on preparing for the interview. Lorna has the actual interview questions that will be asked of all applicants.

Case #2  Emily works in Quality Control. Once a year, her supervisor gives away the refurbished computers to the local elementary school.  No specific records are kept of this type of transaction, and Emily really needs a computer for her son in college.

Case #3  Richard & Conway are talking in the hallway about the employee benefits program. Conway has had recent financial trouble, and he is explaining how the benefits program has a loophole that will allow him to receive financial assistance.  Cathy overhears. Later, she is approached by her supervisor who says he has heard rumors about employees taking advantage of the benefits program.

Ethical Issues

Ethics  Laws provide a minimum standard of behavior for people and businesses to follow.  Many behaviors are neither allowed or disallowed by law.  Ethics refers to standards of moral conduct that individuals and groups set for themselves  Ethics help define what behaviors are valued as right or wrong. Describe the difference between legal & ethical conduct.

Business Ethics  Ethical behavior is closely linked to personal values – underlying beliefs and attitudes that individuals or groups possess or share.  Business ethics are a collection of principles and rules that define right and wrong conduct for an organization. Describe the difference between legal & ethical conduct.

Business Ethics  Not all firms have the same rules of ethical conduct.  Ideas of ‘right and wrong’ vary from manager to manager, business to business, and country to county.  Have you heard of…  Tyco International?  Enron?  MCI? How are business ethics established?

Role of Ethics in Business  Some companies hire Chief Ethics Officers to ensure workers are trained in the company’s ethics policies.  Many businesses have created a code of ethics to guide managers. formal, published collection of values & rules that reflect philosophy and goals How are business ethics established?

Communicating Ethical Standards  Formal Training  Memos  Newsletters  Posters  Employee Manuals How are business ethics established?

Business Ethics Example  In Japan, it is an accepted business practice for employees to give expensive gifts to their bosses.  In the United States, gifts may be considered a form of bribery and are discouraged.  Should an American company behave in Japan as it does in its home country of the United States?

Real-World Business Ethics Nike Case Study

Whistleblowers  Person who exposes misconduct or alleged dishonest or illegal activity occurring in an organization  Whistleblower Protection Act  Edward Snowden – fugitive or whistleblower? What is a whistleblower?

Closing Task #1 1) Describe the difference between legal and ethical behavior. 2) Explain how business ethics are established. 3) Do you think whistleblowers need protection? Why or why not?

Using Social Media

Social Media in Business  Social media is always changing and should be watched closely to monitor trends.  Take full advantage of the benefits of social media!  Positive Image  Networking  Always remember to use RESPECT.

Social Media Policies in the Workplace It’s All About Respect

Closing Task #2 1) Describe the potential benefits of using social media for personal or business reasons. 2) Explain at least two concerns that exist regarding the way businesses or employees use social media.