1. Business Ethics: Ethical Decision Making and Cases, Seventh Edition
O.C. Ferrell
University of New Mexico
John Fraedrich
University of Wyoming
Linda Ferrell
For in-class note taking, choose Handouts or Notes Pages from the print options, with three slides per page.
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2. An Overview of Business Ethics
Chapter 1
An Overview of Business Ethics
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3. Copyright © Houghton Mifflin Company
Business Ethics
Comprises principles and standards that guide behavior in the world of business
Right or wrong, acceptable or unacceptable behavior within the organization
Determined by you and key stakeholders
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4. Social Responsibility
Obligation a business assumes toward society
Designed to maximize the positive influence and minimize the negative
Includes economic, legal, ethical, and philanthropic dimensions
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5. Why Study Business Ethics and Social Issues?
In a National Business Ethics Survey, employees perceived misconduct in these types of organizations:
For profit %
Government 38%
Nonprofit 29%
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6. Business Ethics Development Before 1960
U.S. politics:
A living wage
The New Deal
The Fair Deal
Theology’s domain
Philosophy’s domain
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The 1960s The Great Society
Consumer’s Bill of Rights
Ralph Nader
Wholesome Meat 1967
Radiation Control 1968
Clean Water 1972
Toxic Substances 1976
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8. The 1970s Corporate Social Responsibility
Bribery
Deceptive advertising
Price collusion
Product safety
The environment
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The 1980s
Organized field of study
Business ethics centers
Business ethics courses
Defense industry initiative
Multinationals
Self-regulation (Reagan/Bush)
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The 1990s The U.S. and Clinton
Free trade
Self-regulation
Federal Sentencing Guidelines for Organizations (FSGO)
More multinationals
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11. Federal Sentencing Guidelines for Organizations
Standards and procedures (code of ethics)
High level oversight
Care in delegation of authority
Effective communication (training)
Systems to monitor, audit, and report
Consistent enforcement
Continuous improvement
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The 21st Century
Sarbanes-Oxley Act
NAFTA
Mercosur
WTO
Caux Round Table
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Common Unethical Acts
Insider trading of stocks and bonds
Bribery
Falsifying documents
Deceptive advertising
Defective products
Employee theft
Questionable activities of online companies
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14. Benefits of Business Ethics
Better ethical climate
Employee commitment and trust
Investor loyalty and trust
Customer satisfaction and trust
Long term profits
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