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Ethics in Business
What is ethical?
Personally?
 Organizationally?
 Is there a difference?
 Is ethics situational?

What is ethics?
Code of moral principles and values that
governs the behaviors of a person or
group with respect to what is right and
wrong.
Ethical Systems
Utilitarian Theory
 Universalist Theory
 Distributive Justice
 Personal Liberty/Individual Rights
 Eternal Law

The Law and Ethics
Rule of Law; set of codified principles and
regulations that describe how people are
required to act, are generally accepted in
society, and are enforceable in court.
 Ethical standards, for the most part, apply
to behavior not covered by the law and
the rule of law applies to behaviors not
necessarily covered by ethical standards.

Ethical Values in Organizations
Rule of Law
 Managerial Ethics
 Social Responsibility

Forces That Shape Managerial Ethics
Personal Ethics
Organizational Culture
Beliefs and Values
Moral Development
Ethical Framework
Rituals, Ceremonies
Stories, Heroes
Language, Slogans
Symbols
Founder, History
Organizational Systems
Structure
Policies, Rules
Code of Ethics
Reward System
Selection, Training
Is
Decision
or Behavior
Ethical and
Socially
Responsible?
External Stakeholders
Government Regulations
Customers
Special Interest Groups
Global Market Forces
Three Levels of Social Responsibility

Profit



Stakeholder




Owners
Stockholders
Employees
Customers
Suppliers/Distributors
Societal



General Public
Public Interest Groups
Ecological Environment
Ethical Dilemma
Arises in a situation concerning right and
wrong where values are in conflict.
Whose/which values are the most
important and should be considered
when making a decision?
“obey the law and make as much money
for the shareholders”
Issues of Emerging Technologies

Human Resource Issues




Security Issues




Monitoring
Managing
New Laws
Privacy Issues



Efficiencies
Training
Telecommuting
Public vs. private information
E-commerce
Stability Issues
Integrity
The man of integrity walks securely; but he
who takes crooked paths will be found
out. (Prov. 10:19)
The integrity of the upright guides them,
but the unfaithful are destroyed by their
duplicity. (Prov. 11:3)