Download Business Ethics Fundamentals

Business Ethics
Fundamentals
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Ethical Dilemma
Ethics
grey
area
Law
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Asking Key Questions
1. What are my core values and beliefs?
2. What are the core values and beliefs of my
organization?
3. Whose values, beliefs and interests may be at
risk in this decision, and Why?
4. Who will be harmed or helped by my
decision or the decision of the organization?
5. How will I, and my organization be affected
by the decision?
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Why use Ethical reasoning in business?
1. Many times laws do not cover all aspects or “grey
areas” of a problem
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EXAMPLES
2. Free-market and regulated-market mechanisms do not
inform owners/ managers how to respond to far
reaching ethical consequences.
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EXAMPLES
3. Many complex moral problems require an “intuitive/
learned understanding of fairness, justice to the
community.
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EXAMPLES
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Inventory of Ethical Issues in Business
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Employer-Employee Relations
Company-Customer Relations
Company-Shareholder Relations
Company-Community/Public Interest
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Business Ethics: What Does It Really Mean?
Business Ethics:Today vs. Earlier Period
Society’s
Expectations
of Business
Ethics
Ethical
Problem
Actual
Business
Ethics
Ethical Problem
1950s
Time
Early 2000s
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Business Ethics: What Does It Really
Mean?
Definitions
• Ethics involves a discipline that examines good
or bad practices within the context of a moral
duty
• Moral conduct is behavior that is right or
wrong
• Business ethics include practices and
behaviors that are good or bad
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Business Ethics: What Does It Really
Mean?
Two Key Branches of Ethics
• Descriptive ethics
– How people behave and what sort of moral
standards they claim to follow. “What is”
true and factual.
• Normative ethics involves supplying and
justifying moral systems
– “What should be”
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Conventional Approach to Business
Ethics
• Conventional approach to business ethics
involves a comparison of a decision or practice
to prevailing societal norms
– Pitfall: ethical relativism
Decision or Practice
Prevailing Norms
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Sources of Ethical Norms
Fellow Workers
Fellow Workers
Family
Regions of
Country
Profession
The Individual
Conscience
Friends
The Law
Employer
Religious
Beliefs
Society at Large
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Ethics, Economics, and Law
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Four Important Ethical Questions
• What is?
• What ought to be?
• How do we get from what is to what ought to
be?
• What is our motivation for acting ethically?
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3 Models of Management Ethics
1. Immoral Management—A style devoid of ethical
principles and active opposition to what is ethical.
2. Moral Management—Conforms to high standards
of ethical behavior.
3. Amoral Management
– Intentional - does not consider ethical factors
– Unintentional - casual or careless about ethical
considerations in business
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3 Models of Management Ethics
Three Types Of Management Ethics
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Three Approaches to Management Ethics
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Moral Management Models and
Acceptable Stakeholder Thinking
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Developing Moral Judgment
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Developing Moral Judgment
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Developing Moral Judgment
External Sources of a Manager’s
Values
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Religious values
Philosophical values
Cultural values
Legal values
Professional values
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Developing Moral Judgment
Internal Sources of a Manager’s Values
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Respect for the authority structure
Loyalty
Conformity
Performance
Results
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Elements of Moral Judgment
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Moral imagination
Moral identification and ordering
Moral evaluation
Tolerance of moral disagreement and
ambiguity
• Integration of managerial and moral
competence
• A sense of moral obligation
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