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3. Read to Learn
Define ethics and business ethics.
Describe why ethical behavior is good for business.
List the steps for dealing with an ethical dilemma.

4. The Main Idea
Ethics are moral principles by which people conduct themselves personally, socially, and professionally. Business ethics are rules that guide the behavior of a business and its employees. Business ethics are generally based on moral principles. In business, good ethics is beneficial for long-term profitability and success.

5. Key Concepts
The Nature of Ethics
Ethics as Good Business
Ethical Questions

6. Key Terms
moral principles by which people conduct themselves personally, socially, or professionally
ethics
rules based on moral principles about how businesses and employees ought to conduct themselves
business ethics

7. Key Terms
code of ethics
a set of guidelines for maintaining ethics in the workplace
a shop or factory in which workers are employed for long hours at low wages and under unhealthy conditions
sweatshop

8. Key Terms
conflict of interest
a conflict between self-interest and professional obligation

9. The Nature of Ethics
When you are guided by ethics, you do not cheat on a test or lie to friends or family.
ethics
moral principles by which people conduct themselves personally, socially, or professionally

10. The Nature of Ethics Most businesses are guided by business ethics.
Different cultures, businesses, and industries have different ethical standards
business ethics
rules based on moral principles about how businesses and employees ought to conduct themselves

11. Graphic Organizer Business Ethics Fair treatment of employees
Creating safe products
Creating jobs
Truthful about financial status
Environmental protection

12. Cultural Etiquette
In Thailand, it is customary to exchange gifts during a second business meeting.
In China, gift giving is considered a form of bribery and is illegal.

13. In business, people follow rules as well as a code of ethics.
Law and Ethics
In business, people follow rules as well as a code of ethics.
code of ethics
a set of guidelines for maintaining ethics in the workplace

14. Law and Ethics
A sweatshop is an example of an unethical practice outlawed in the United States.
sweatshop
a shop or factory in which workers are employed for long hours at low wages and under unhealthy conditions

15. Law and Ethics
The Occupational Safety and Health Administration (OSHA) sets and enforces work-related health and safety rules.

16. Ethics as Good Business
Unethical business practices include:
Lying
Offering merchandise known to be substandard
Treating customers or employees unfairly

17. Ethics as Good Business
If a business violates government regulations, the owner can be fined or go to jail.
If an employee violates a company or professional code, the employee might be fired or lose his or her license.

18. Ethics as Good Business
Unethical business practices can result in bad word of mouth and result in lost sales.
Unethical behavior toward employees can lead to legal action or a high rate of employees quitting.

19. Conflicts of Interest
Conflict of interest is a major ethical question that is generally not illegal.
conflict of interest
a conflict between self-interest and professional obligation

20. Graphic Organizer Ethical Questions
Is it against the law? Does it violate company or professional policies?
Even if everyone is doing it, how would I feel if someone did this to me?
Am I sacrificing long-term benefits for short-term gains?

21. The Ethical Decision-Making Process
Graphic Organizer
The Ethical Decision-Making Process
Identify the ethical dilemma.
Discover alternative actions.
Decide who might be affected.
List the probable effects of the alternatives.
Select the best alternative.

22. Ethical Observations by Employees
Figure 4.1
Ethical Observations by Employees

23. What is the difference between personal and business ethics?
Personal ethics: moral principles that guide an individual; business ethics: rules, based on moral principles, used by a business.

24. Describe some of the ways that unethical business practices can affect a business.
Customers will not patronize the business.
It is hard to retain employees. If the behavior is illegal, the business might be fined.

25. What is the relationship between illegal behaviors of business and unethical behaviors of business?
Generally, illegal behaviors of business are also considered unethical but there are some unethical behaviors that are not illegal.

26. End of