© february 2014. what is ethics? the inner-guiding moral principles & values people use to...
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Business Ethics & Social Responsibility
TRIHADI PUDIAWAN ERHAN - [email protected] -
Universitas Pembangunan JayaProgram Strata Satu
© February 2014
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What is ETHICS?The inner-guiding moral principles & values people use to analyze
a situation and decide what is “right”
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About Ethics
Ethics changes over time
people shapes principles and values
Business should operate by considering the principles & values of the people to be accepted
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About Ethics
ETHICAL DILEMMA
VS
THE LESSER OF EVILS
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About Ethics
ETHICAL DILEMMA
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Why Should Be Ethical?
EXTERNALITIES
An externality refers to the uncompensated impact of one person's actions on the well-being of
a bystander.
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Why Should Be Ethical?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
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Business Ethics
BusinessEthics
SocietalEthics
IndividualEthics
OrganizationalEthics
OccupationalEthics
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Rules For Ethical Decission Making
The Utilitarian Rule
A rule stating that an ethical decision is one that produces the greatest good for the greatest
number of people
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Rules For Ethical Decission Making
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
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Rules For Ethical Decission Making
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
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Rules For Ethical Decission Making
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
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Laws & Rules
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
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© February 2014