Business Ethics: Principles and Dilemmas

Business Ethics

• These are rules distinguishing right from wrong in a business context.
• Companies establish a code of ethics to guide employee conduct in specific situations.
• Business ethics stem from societal values and the principles of individuals within the business.

Ethical Dilemmas

• These are moral problems presenting a choice between potential right and wrong actions.
• To resolve, consider who benefits and who is harmed by the decision, along with its long-term implications.

Whistle-blowing

• This occurs when an employee reports illegal or unethical conduct to authorities or the public.

Fraud

• It involves deception to mislead consumers into purchasing products or services.
• The Competition Act 2002 addresses fraudulent and deceptive business practices.

Accounting Scandals

• These arise when executives manipulate financial records for personal gain.
• Forensic accountants investigate irregularities to uncover evidence of tampering.

Insider Trading

• Illegal practice of trading securities using confidential information.
• Penalties may include fines up to $1 million, forfeiture of profits, imprisonment up to 2 years, and trading bans.

Corporate Social Responsibility (CSR)

• Businesses demonstrate CSR through values, ethics, and community contributions.
• CSR is driven by a desire to protect customers and fairly treat employees/shareholders.
• Key principles include safe work environments, fair labor policies, environmental protection, truthful advertising, avoiding price discrimination, and charitable donations.
• Corporations and employees must disclose crucial information to stakeholders.

Laws Governing Corporate Ethics: Workplace Safety

• The Occupational Health and Safety Act (OHSA) defines workplace rights and responsibilities to ensure employee safety and health.
• Focus is not only making profits but also looking after the safety and health of workers.

Laws Governing Corporate Ethics: Anti-Discrimination and Harassment

• The Ontario Human Rights Code prohibits discrimination based on religion, gender, sexual orientation, or disability.
• Gender discrimination involves differential treatment based on sex.
• The "glass ceiling" refers to invisible barriers hindering career advancement for women and minorities in corporate roles.
• Harassment includes threatening or disturbing behaviors, with many businesses having policies to address it.
• The Canadian Human Rights Act requires employers to ensure accessibility.
• Sections 2 and 15 mandate accommodations for employees with disabilities.

Laws Governing Corporate Ethics: Environmental Responsibility

• The Environmental Protection Act (1999) was a response to environmental disasters such as the Exxon Valdez.
• Canada signed the Kyoto Protocol in 1998, committing to reduce CO2 emissions by 2012, but withdrew in December 2011.
• Business goals include financial, environmental, and social objectives.
• Corporate spending on environmental/social goals is typically less than on profit generation.

Laws Governing Corporate Ethics: Labour Practices

• The Employment Standards Act addresses minimum employment conditions.
• Including hours, minimum wages, holidays, equal pay, leave, termination notice, and severance pay.
• Pay Equity prohibits gender-based pay disparities for substantially similar work.

Laws Governing Corporate Ethics: Privacy Laws

• The Personal Information Protection and Electronic Documents Act requires federally regulated businesses to explain their need for employee/customer personal information.

Fair Trade

• This is when ethically/sustainably sourced products are from places that employ helping producers in developing countries bypass expensive middlemen allowing them to sell their goods in other countries for a fair profit .
• Fair-trade products, marked by logos like Fairtrade Canada, ensure respect for workers' rights in other countries.