Ch. 4 Ch. 4 Business Ethics and Social Business Ethics and Social

ResponsibilityResponsibility

4.14.1

Business EthicsBusiness Ethics

Nature of EthicsNature of Ethics

Ethics: moral principles by which people Ethics: moral principles by which people conduct themselves personally, socially, or conduct themselves personally, socially, or professionally.professionally. Not cheating on tests or lying to your familyNot cheating on tests or lying to your family

Business Ethics: rules based on moral Business Ethics: rules based on moral principles about how businesses and principles about how businesses and employees ought to conduct themselves.employees ought to conduct themselves. Provide safe productsProvide safe products Treat employees fairlyTreat employees fairly Protect the environmentProtect the environment

Law and EthicsLaw and Ethics What’s the difference between laws and What’s the difference between laws and

ethics?ethics? What do laws do?What do laws do? What do ethics do?What do ethics do?

Code of Ethics: a set of guidelines for Code of Ethics: a set of guidelines for maintaining ethics in the workplace.maintaining ethics in the workplace. Most businesses follow their own code of ethics.Most businesses follow their own code of ethics.

Many unethical practices lead to the Many unethical practices lead to the passage of laws that make them illegal.passage of laws that make them illegal.

Sweatshop: a shop or factory in which Sweatshop: a shop or factory in which workers are employed for long hours at low workers are employed for long hours at low wages and under unhealthy conditions.wages and under unhealthy conditions.

Ethics as Good BusinessEthics as Good Business

Code of ethics helps businesses police Code of ethics helps businesses police themselves.themselves.

Certain professions have their own Certain professions have their own code of ethics.code of ethics. Doctors, lawyers, teachers, and journalist.Doctors, lawyers, teachers, and journalist.

Unethical business practices:Unethical business practices: Lying, offering substandard products, Lying, offering substandard products,

treating customers or employees unfairly.treating customers or employees unfairly.

Conflict of InterestConflict of Interest

Conflict of Interest: a conflict between Conflict of Interest: a conflict between self-interest and professional self-interest and professional obligation.obligation. Suppose a manager hires their sister to Suppose a manager hires their sister to

do some work but she is clearly do some work but she is clearly unqualified to do the job. Is this a unqualified to do the job. Is this a conflict of interest? Why?conflict of interest? Why?

When making business decisions, When making business decisions, employees have an ethical obligation to employees have an ethical obligation to act in the best interest of the company.act in the best interest of the company.

Ethical Decision Making ProcessEthical Decision Making Process

5 steps to helping you make an 5 steps to helping you make an ethical decision:ethical decision:

1.1. Identify the ethical dilemmaIdentify the ethical dilemma

2.2. Discover alternative actionsDiscover alternative actions

3.3. Decide who might be affectedDecide who might be affected

4.4. List the probable effects of the List the probable effects of the alternativesalternatives

5.5. Select the best alternative.Select the best alternative.

HomeworkHomework

Ch. 4 Definitions-PacketCh. 4 Definitions-Packet Review the questions on page 58, 1-Review the questions on page 58, 1-

33 Complete the Chapter 4-1 Reading Complete the Chapter 4-1 Reading

Activity and Graphic OrganizerActivity and Graphic Organizer