Business Ethics PDF

Business Ethics Objectives To know and understand the concept of Business Ethics 01 To know and understand the concept of Ethical Dilemma 02 To know and understand the framework of Ethical Decision Making 03 An Overview  "Business Ethics comprises organizati...

Business Ethics Objectives To know and understand the concept of Business Ethics 01 To know and understand the concept of Ethical Dilemma 02 To know and understand the framework of Ethical Decision Making 03 An Overview  "Business Ethics comprises organizational principles, values, and norms that may originate from individuals, organizational statements, or from the legal system that primarily guides individual and group behavior in business." Ferrell, et al., 2019 WHY DO WE NEED TO STUDY BUSINESS ETHICS?  Legal System Investors Employees Community Customers Interest Groups  Business Ethics contributes to Employee Commitment, Investor Loyalty, Customer Satisfaction, and Profits (Ferrell, et al., 2019)  Employee commitment - employees are more efficient and loyal to the company; group creativity and job satisfaction - benefits, health care, etc. Investor Loyalty - investors are now more concerned about the ethics and social responsibility because it creates a good reputation for the company Customer Satisfaction - develop long term relations with customers and build trust; caring for customers - honest product ads, safe ingredients Profits - builds financial advantage and competitive position - more people will patronize the product or service "Business Ethics is concerned primarily with the relationship between business goals and techniques to specifically human ends." Padilla, 2016 BOSS DA Ethical Dilemma  According to Tota and Shehu (2012), a dilemma may derive from the conflict between the rightness or wrongness of the actions and the goodness or badness of the consequences of the actions. In other words, doing what is morally right apparently results in a bad outcome (Calling out a co-worker who is habitually neglecting their duty-may create bad or negative relations) and doing what is morally wrong seems to lead to better effects (Laying off employees during a recession).  Ethical dilemma is a complex situation a person or business faces in which a decision must be made about the adequate action to be taken. (Harrison, 2005)  From another perspective, an ethical dilemma is a conflict between at least two ethical principles both of which could lead to an equally good or equally bad outcome. In such a situation, obeying one principle leads to transgressing another, whereas both principles seem equally valid. Would you protect your best friend/co-worker whose excessive drinking is causing problems in the company?  ETHICAL DECISION-MAKING IN BUSINESS Framework for Ethical Decision Making in Business Ethical Issue Intensity Individual Factors Business Ethical or Ethics Unethical Evaluations Behavior Organizational Factors and Intentions Opportunity Ethical Issue Intensity The relevance or importance of an event or decision in the eyes of the individual, work group, and/or organization. Individual Factors Personal values and morals Gender Education Age Organizational Factors Corporate culture Significant others (workgroup) Obedience to authority Opportunity The conditions in an organization that limit or permit ethical or unethical behavior. Reference Shaw, W. (2011). Business Ethics.