Ethics
the principles of right and wrong that guide an individual in making decisions
Business Ethics
What constitutes right or wrong behavior and the application of moral principles in a business context.
Why study business ethics?
-Unethical behavior is on the rise -Society's evaluation of right and wrong affects its ability to achieve business goals -Doing so shows you care while failing to do so can lead a business to fail
law does not equal ethics
Following a law doesn't mean that you are ethical
Private/Professional Codes of Ethics
Violation of these codes lead to discipline action
Moral minimum
The minimum degree of ethical behavior expected of a business firm, which is usually defined as compliance with the law.
Industry Ethical Codes
Numerous industries have also developed codes of ethics. This and Private/Professional codes must be followed.
Business as a profit maximizer
Making money as well as possible can lead to poor reviews.
Business as a Corporate Citizen
A business which puts some money towards making sure their customers are treated right.
4 part analysis for a business to be a profit maximizer and corporate citizen
Legal implications of a decision
Public relations impact of a decision
Safety risk for party in the decision
Financial implications
Attitude of top managment
Sets tone, things they do convey how they expect employees to act.
Unrealistic goals for future employees
The more unrealistic the goals the more likely employees will resort to unethical actions to complete it.
Fostering of unethical conduct
Business owners and managers engaging in such conduct
Shot run versus long run maximization
Short run leads more to unethical decisions
Hiring practice's over social media
Companies check us out on social media as we have information out there
(discussing work related issues) Responsibility of employees
Doesn't make it okay for them to rant, they should think about their behavior
(discussing work related issues) Responsibility of Employers
Have a role in controlling what your workers do at work