1. Ethics

2. What is Ethics?
Ethics can be defined broadly as a set of moral principles or values.
Ethics has to do with asking 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.
Each of us has a set of values, although we may not think about them daily or openly talk about them.

3. Law versus Ethics… Law and ethics are not the same thing.
Asking the question, “Is an act legal?” is different from the question, “Is an act ethical?”
The law does not cover all ethical requirements.
Which means that 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.

4. Why people act Unethically…
The person’s ethical standards are different from those of society as a whole.
The person chooses to act selfishly.
In many instances, both reasons exist.

5. A Person’s Ethical Standards Differ from General Society…
Embezzlers
Con artists
Shoplifters
Most people who commit such acts feel no remorse when they are apprehended because their ethical standards differ from those of society as a whole.

6. A Person Chooses to Act Selfishly - Example
Person A finds a briefcase containing important papers and $1,000.
He tosses the briefcase and keeps the money.
He brags to his friends about his good fortune.
This action probably differs from most of society.

7. Rationalizing Unethical Behavior…
Everybody does it.
If it’s legal, it’s ethical.
Likelihood of discovery and consequences

8. Resolving Ethical Dilemmas
Obtain the relevant facts.
Identify the ethical issues from the facts.
Determine who is affected.
Identify the alternatives available to the person who must resolve the dilemma.
Identify the likely consequence of each alternative.
Decide the appropriate action.

9. Ethics in Business… Morality? Fair Trade? Ethical Trade?
Green Business?
Socially Responsible entrepreneurship?
Nickels 6e/Copyright © 2007 McGraw-Hill Ryerson

10. Ethics Check Questions…
Is it legal?
Is it balanced?
How will it make me feel about myself?

11. Why Manage Ethically? To maintain a good reputation
To keep existing customers
To attract new customers
To avoid lawsuits
To reduce employee turnover
To avoid government intervention
To please customers, employees and society
TO DO THE RIGHT THING!

12. Codes of Ethics Compliance-Based Integrity-Based
Increase control and penalize wrongdoers
Integrity-Based
Define guiding values
Support ethical behaviour
Shared accountability
Compliance-Based: A group that operates using a compliance-based ethics code is avoiding breaking a rule or law, and sees anything that has not been defined by a rule or law as right when there simply may have been no reason yet to create the rule or law.
Integrity-Based: A group that operates using an integrity-based ethics code encourages people to think for themselves, and work towards a set of principles by using what they think is right or wrong.