Principles of Business Ethics PDF

SRGG PRELIM - REVIEWER Principles of business ethics CHAPTER 1: Ethics and Business 1. Leadership - The conscious effort to adopt, integrate, and emulate the other principles to ETHICS - w...

SRGG PRELIM - REVIEWER Principles of business ethics CHAPTER 1: Ethics and Business 1. Leadership - The conscious effort to adopt, integrate, and emulate the other principles to ETHICS - well-founded standards of right and guide decisions and behavior in all aspects of wrong that prescribe what humans ought to do, professional and personal life. usually in terms of rights, obligations, benefits to society, fairness, or specific virtues. 2. Accountability - Holding yourself and others responsible for their actions. BUSINESS ETHICS - standards for morally right and wrong conduct in business. set of moral 3. Integrity - Incorporates other standards and practices that guides business principles—honesty, trustworthiness, and organizations. reliability. WHY BUSINESS ETHICS IS IMPORTANT? 4. Respect for others - To foster ethical behavior and environments in the workplace, respecting 1. Public perception - Studies have shown that others is a critical component. about half of the public pays attention to corporate social behavior. Furthermore, a 5. Honesty - Truth in all matters is key to negative reputation can hurt a business’s fostering an ethical climate. chance to gain new customers. 6. Responsibility - Promote ownership within an 2. Employee perception - To attract and keep organization, allow employees to be responsible talented individuals, companies should maintain for their work, and be accountable for yours. an atmosphere of fairness and openness. 7.Transparency - Stakeholders are people with Some of the ways an organization can exhibit an interest in a business, such as shareholders, good business ethics employees, the community a firm operates in, and the family members of the employees. 1. Treat employees well - Companies that hold their employees to high but fair standards 8. Compassion - Employees, the community benefit from attracting and keeping talented, surrounding a business, business partners, and engaged, ethical workers. customers should all be treated with concern for their well-being. 2. Implement honest Business Practices - Companies should also treat their customers 9. Fairness - Everyone should have the same and partners fairly. They shouldn’t overcharge opportunities and be treated the same. for products or services or overstate the value of 10. Loyalty - Leadership should demonstrate what they offer. confidentially and commitment to their 3. Practice corporate social responsibility - The employees and the company. public is increasingly aware of the corporate 11. Environmental concern - In a world where social responsibility (CSR) activities of resources are limited, ecosystems have been organizations. These efforts may include damaged by past practices, and the climate is reducing their carbon footprint and otherwise changing. exhibiting environmental responsibility or committing to workplace diversity. WHY BUSINESS IS IMPORTANT? CHAPTER 2: Philosophical background of business ethics - Brand recognition and growth Philosophy - etymologically, came from two - Increase ability to negotiate Greek words “philos,” which means love, and “sophia,” which means wisdom. Philosophy - Increase trust in products and services means “love of wisdom.” - Customer retention and growth Ethis and Morality - Morality refers to the quality - Attract talent of goodness or badness in human act. Good is described as moral and bad is described as - Attract investors immoral. It means conformity to the rules of the right conduct. It implies judgment and refers to TYPES OF BUSINESS ETHICS what we could call moral standards and moral 1. Corporate Social Responsibility - Corporate conduct while ethics is used to refer to the social responsibility (CSR) is the concept of formal study of those standards and conduct. meeting the needs of stakeholders while For this reason, Ethics is also often called “moral accounting for the impact meeting those needs philosophy.” has on employees, the environment, society, and MORAL PRINCIPLES OF BUSINESS ETHICS the community in which the business operates. ETHICS AS NORMATIVE SCIENCE – PROVIDES 2. Transparency and Trustworthiness - It's PRINCIPLES AND GUIDELINES essential for companies to ensure they are reporting their financial performance in a way - Ethics is a branch of philosophy and it is that is transparent. This not only applies to considered as a normative science because it is required financial reports but all reports in concerned with the systematic study of norms general. of human conduct. 3. Technological Practices and Ethics - The THREE CATEGORIES OF GENERAL ETHICS growing use of technology of all forms in business operations inherently comes with a 1. Descriptive ethics - Descriptive Ethics need for a business to ensure the technology consists of studying and describing the morality and information it gathers is being used ethically. of people, culture, or society. It also makes comparisons and contrasts on the different 4. Fairness- A workplace should be inclusive, values, principles, code of ethics, beliefs, and diverse, and fair for all employees regardless of practices of people. race, religion, beliefs, age, or identity. A fair work environment is where everyone can grow, be a. Psychological Egoism - concrete example of promoted, and become successful in their own Descriptive Ethics is the study of human way. motivation. Is says nothing about what is good or bad or right or wrong, rather it simply declares Business ethics concerns employees, results based on various scientific studies. customers, society, the environment, shareholders, and stakeholders. Therefore, every b. Cultural Relativis- It does not prescribe how business should develop ethical models and people should act, rather it describes how practices that guide employees in their act. people, when grouped and observed in their own cultural realities, actually differ in their behavior. 2. NORMATIVE ETHICS- MORAL PRINCIPLES CHAPTER 3: THE RELATIONSHIP OF ETHICS AND THEORIES - Normative Ethics involves WITH OTHER SCIENCES AND OTHER PHASES moral judgment based on ethical norm or theory. OF HUMAN LIFE This consists both of the basic moral principles and values and the particular moral rules that A. Ethics and logic - Ethics is the study of govern people’s behavior, which is right or moral correct action or doing, while Logic studies the and wrong is immoral. process of correct and organized thinking. Doing follows thinking. Logic therefore is aimed at the The three tasks of Normative Ethics are the right thinking and Ethics is aimed at the right following; acting or right doing and behavior. - To form into a related whole the various norms, B. Ethics and psychology - Ethics is the study of rules and values of a society’s morality. human behavior from the perspective of morality. Psychology, on the other hand, is the scientific - To find the basic principle from which the study of mental and behavioral characteristics, particular norm can be derived. associated with a particular kind of behavior. - To justify an ethical norm or moral principle C. Ethics and sociology - Sociology deals with the study of social order while Ethics deals with 3. METAETHICS - a branch of Normative Ethics. the study of moral order in the society. There is In some other ways, both Normative and no social order if there is no moral order. Descriptive Ethics involve some mathematical activity. Metaethics is concerned with analysis D. Ethics and economics - Economics as a of the meaning of words and logic of moral science deals with the study of wages, labor, reasoning. production, and distribution of wealth. The study of these issues also involves relationships THREE LEVELS OF ETHICAL STANDARDS IN A among individuals. According to Wilber (1988), BUSINESS ORGANIZATION there are 3 ways in which Ethics enters 1. Law - The U.S. is a society bound by laws. Economics. These laws define the difference between right RELATIONSHIP OF ETHICS WITH OTHER and wrong, and what is considered acceptable PHASES OF HUMAN LIFE behavior by the majority of people. A. Ethics and law - Ethics and law are closely 2. Policies - The second level of ethical related. Ethics deals with morality, and when we standards for a business organization concerns speak of morality, we mean primarily the moral its internal policies and procedures. The law. business creates these as a guideline for its managers and employees to follow. B. Ethics and religion - Ethics is a disciple or set of moral principles and values governing an 3. Individuals - Though a business organization individual or institutional behavior. Religion may be bound by applicable laws and internal generally refers to the service and worship of policies, adherence by individuals determines God and is typically expressed as a personal or the true integrity of the company. institutional set of beliefs, attitudes and practices. C. Ethics and professional code of conduct - Professional code of ethics is a set of behavioral guidelines that members of a profession are required by their association to observe in the course of their professional practice. D. Ethics and education - Education is defined as an instruction or training by which people learn to develop and use their mental, moral, and physical powers and abilities. It is also one way of gaining experience about human life. E. Ethics and art - Art is concerned with the use of imagination to make things of aesthetics significance. Ethics is aimed at conforming to an accepted standard of good behavior. Ethics also stands for moral goddess, art, and beauty. Both true art and true ethics have the same aim; That is, to arouse and inspire the noble emotions of man, thereby creating no conflict at all.