Ethics for Business Revision

Ethics for Business Revision

Chapter 1

Environmental Dimensions

Political - Rise of global terrorism (EG Islamic State), fall of communism (EG China opening it’s door to the world), Increased awareness of issues via electronic technology (EG Facebook launched SafetyCheck to enable victims to report back to their relatives).

Demographic - Aging workforce (EG more old workers than young workers), Workforce diversity (Sexual harassment, discrimination), Downsizing and outsourcing workforce (contract out of jobs).

Legal - consumer protection (gun control), corporate copyright protection (napster vs recording industry), competing rights (patriot act in the U.S).

Economic - Common markets and trade agreements (TPPA), business expansion and product expansion, the effects of the EU (currency exchange, negotiating power)

Technological - access to information (Internet), change in jobs, financial transactions and market operations (online fund transfer, new technologies create job opportunities), internet and telecommunications innovations (data packages)

Governmental - changing standards for products and processes (food safety), constantly changing and updating laws and procedures (SPM), judicial actions against anticompetitive practices (monopoly by ASTRO)

What is Business Ethics?

Business Ethics is the study of moral values, specific moral choices, moral philosophy, and the rules and standards governing professionals

Unethical practices of employees

Distortion of facts (Enron), lying (lying to shareholders about share prices), withholding information (Volkswagen), deception. Trickery, rule bending (cause someone to believe something that is false), abusive or intimidating behavior (offensive, threatening), Greed (stealing money from the company).

Why does business ethics matter

Financially and economically - doing the right thing is important to employers, employees, stakeholders, and the public. Acting ethically save billions of dollars in lawsuits, settlements and thefts. Workplace theft costs approximately 600 billion annually.

Relationships and reputation - costs to businesses include deterioration of relationships and reputation. Company image will be tarnished when involved in unethical practices

Moral and productivity - costs include employee productivity, creativity, loyalty, absenteeism, retaining valued professionals and etc.

Integrity, culture, communication and the common good - managing ethically also means managing with integrity. Employees are attracted to ethical and socially responsible companies.

5 levels of business ethics

Individual - pressures from conflicting dilemma when making decisions, workplace pressure from supervisor’s assignment, risk integrity, job or career. EG just do the job mentality, regardless of the methods.

Organization - engage in questionable practices and activities, dilemmas with stakeholders. EG management of control of foreign labor, wages, and living condition