1. © February 2014

2. What is ETHICS? The inner-guiding moral principles & values people use to analyze a situation and decide what is “right”

3. Ethics changes over time people shapes principles and values Business should operate by considering the principles & values of the people to be accepted

4. ETHICAL DILEMMA VS THE LESSER OF EVILS

5. ETHICAL DILEMMA

6. EXTERNALITIES An externality refers to the uncompensated impact of one person's actions on the well-being of a bystander.

7. Ethical Behaviour Lower Transaction Cost Increases Efficiency & Effectiveness of Production & Trade Increases Company Profitability Increases National Standard of Living, Well-Being, & Prosperity Unethical Behaviour Increases Transaction Cost Reduces Efficiency & Effectiveness of Production & Trade Reduces Company Profitability Reduces National Standard of Living, Well-Being, & Prosperity REPUTATION

8. Business Ethics Societal Ethics Individual Ethics Organizational Ethics Occupational Ethics

9. The Utilitarian Rule A rule stating that an ethical decision is one that produces the greatest good for the greatest number of people

10. A rule stating that an ethical decision is one that best mantains and protects the fundamental, inalienable rights and privileges of the people affected by it The Moral Rights Rule

11. A rule stating that an ethical decision is one that distribute benefit and harms among people in a fair or impartial way The Justice Rule

12. A practical that an ethical decision is one that a manager can communicate to society because the typical person would think it is acceptable The Practical Rule

13. Laws Affecting Business Commerce Antitrust Consumer Safety Environmental Protection Public Interest Laws Affecting Business Occupations Occupational Qualification Diversity Employee Health & Safety Laws Affecting Business Organization Incorporation Bankruptcy Patents Copyrights and Trademarks