1. Chapter 4 Lesson 1
Ethics in Business

2. What You’ll Learn Importance of business ethics
How businesses should be ethical
What laws relate to business ehtics

3. Initiation
What would you do if you were a manager of a business that was acting unethical?

4. The Importance of Ethics
What is ethics?
Set of moral principles or values that govern behavior/choices.
Businesses develop ethics to help them determine how to behave
They reflect a company’s belief

5. Codes of Ethics
The role of ethics in management decisions can be difficult
Companies develop codes of ethics to help guide managers decisions
What do you think should be included in this code?
Create a list of principals that you think should appear on the codes.
Example: Abiding by all laws
Check your list with the example on pg 85. How did you match?
More detailed example: Texas Instruments pg 86

6. Behaving Ethically
Making unethical decisions as a manager will not only hurt a business but also your career.
Example- Enron pg 87-
Ways employees act unethical
Theft-embezzle money or steal products/supplies
Lying about hours worked
Falsifying records
Sarbanes-Oxley Act of 2002: Contains rules affecting reporting and corporate governance of public companies and their officers/directors
As a manager you will have to respond to unethical situations.

7. What Would You Do?

8. Laws Relating to Ethics in Business
The Sherman Act: makes it illegal for companies to monopolize trade
The Clayton Act: makes it illegal to charge different prices to different wholesale customers
The Wheeler-Lea Act: bans unfair or deceptive acts or practices, including false advertising

9. Laws Relating to Ethics in Business
Federal Food, Drug, and Cosmetic Act of 1938: bans the sale of impure, improperly labeled, falsely guaranteed, and unhealthful foods, drugs, and cosmetics
Consumer Product Safety Commission (CPSC): establishes minimum product safety standards on consumer products
Truth in Lending Act of 1968: creditors are required to let consumers know how much they are paying in finance charges and interest

10. Laws Relating to Ethics in Business
Equal Credit Opportunity Act of 1975: prohibits creditors from making credit decisions on the basis of discriminatory practices
The National Environmental Policy Act of 1969: created the EPA, whose mission is to protect human health and safeguard the air, water, and land

11. Laws Relating to Ethics in Business
The Clean Air Act of 1970: comprehensive federal law that regulates air emissions
The Toxic Substances Control Act of 1976: enacted to give the EPA the ability to track the 75,000 industrial chemicals currently produced in or imported into the United States
The Clean Water Act of 1977: gives the EPA the authority to set standards on the type and quantity of pollutants that industries can put into bodies of water

12. Closing Exercise
Complete the following statement: “Ethics is important because…”

13. Group Activity
In groups of 2-4, develop a code of ethics for Wolcott High School Staff and Students
Use your own ideas, ideas from the text (p.85), or other sources
Type up your codes and be prepared to discuss them in class & submit for a grade