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Ethics
What is Ethics?
 Ethics
can be defined broadly as a set of moral
principles or values.
 Ethics
has to do with asking fundamental
questions such as:



“What is fair?”
“What is just?”
“What is the right thing to do in this situation?”
 Ethics
involves an active process of applying
values, which may range from religious
principles to customs and traditions.
Law versus Ethics…
 Law
and ethics are not the same thing.
 Asking
the question, “Is an act legal?” is
different from the question, “Is an act
ethical?”
 The
law does not cover all ethical
requirements.
 Which
means that an action might be
unethical, yet not necessarily illegal.

For example, it might be unethical to lie to
your family, but it is not necessary illegal.
Why people act Unethically…

The person’s ethical standards are
different from those of society as a
whole.

The person chooses to act selfishly.

In many instances, both reasons exist.
A Person’s Ethical Standards Differ from
General Society…
Embezzlers
 Most
Con artists
Shoplifters
people who commit such acts feel
no remorse when they are apprehended
because their ethical standards differ
from those of society as a whole.
A Person Chooses to Act
Selfishly - Example

Person A finds a briefcase containing
important papers and $1,000.



He tosses the briefcase and keeps the
money.
He brags to his friends about his good
fortune.
This action probably differs from most of
society.
Rationalizing Unethical
Behavior…
 Everybody
 If
does it.
it’s legal, it’s ethical.
 Likelihood
of discovery and
consequences
Resolving Ethical Dilemmas
1.
Obtain the relevant facts.
2.
Identify the ethical issues from the facts.
3.
Determine who is affected.
4.
Identify the alternatives available to
the person who must resolve the
dilemma.
5.
Identify the likely consequence of each
alternative.
6.
Decide the appropriate action.
Ethics in Business…
•
•
•
•
•
Morality?
Fair Trade?
Ethical Trade?
Green Business?
Socially Responsible
entrepreneurship?
Nickels 6e/Copyright © 2007 McGraw-Hill
Ryerson
Ethics Check Questions…
o Is
it legal?
o Is
it balanced?
o How
will it make me feel
about myself?
Why Manage Ethically?
o
To maintain a good reputation
o
To keep existing customers
o
To attract new customers
o
To avoid lawsuits
o
To reduce employee turnover
o
To avoid government intervention
o
To please customers, employees and society
o
TO DO THE RIGHT THING!
Codes of Ethics
 Compliance-Based
 Increase
control and
penalize wrongdoers
 Integrity-Based
 Define
guiding values
 Support ethical behaviour
 Shared accountability