CHAPTER 2 BUSINESS ETHICS 1 ETHICS THE STUDY

CHAPTER 2 BUSINESS ETHICS 1

ETHICS THE STUDY OF HOW PEOPLE OUGHT TO ACT 2

NOT HOW THEY ACT 3

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HOW ETHICAL ARE YOU? • Quiz time • Quiz rules: • Do not put your name on this quiz 5

CALLED IN SICK WHEN NOT ILL? 6

TAKEN OFFICE SUPPLIES FROM AN EMPLOYER FOR PERSONAL USE? 7

TAKEN ANYTHING VALUABLE FROM AN EMPLOYER FOR PERSONAL USE? 8

MISSTATED FACTS ON A RESUME/JOB APPLICATION? 9

SHIFTED BLAME TO A COWORKER FOR SOMETHING YOU DID? 10

BEEN UNDERCHARGED OR RECEIVED TOO MUCH CHANGE FROM A CASHIER AND NOT TOLD THEM? 11

DOWNLOADED MUSIC FROM AN INTERNET SITE WITHOUT PAYING FOR IT? 12

“CHEATED” ON YOUR TAX RETURN (NOT DECLARED INCOME OR OVER-REPORTED DEDUCTIONS? 13

SWITCHED PRICE TAGS TO GET A LOWER PRICE ON SOMETHING YOU WANTED TO BUY? 14

LIED TO FRIENDS OR FAMILY MEMBERS ABOUT THEIR APPEARANCES TO AVOID HURTING THEIR FEELINGS? 15

KNOWING YOU HAD LITTLE CHANCE OF GETTING CAUGHT, DRIVEN MORE THAN 20 MPH OVER THE SPEED LIMIT OR RAN A RED LIGHT? 16

LIED TO YOUR SPOUSE, PARTNER, SIGNIFICANT OTHER, AND/OR PARENT, ABOUT THE COST OF A RECENT PURCHASE? 17

LIED TO YOUR SPOUSE, PARTNER, SIGNIFICANT OTHER, ABOUT YOUR RELATIONSHIP WITH ANOTHER PERSON? 18

1. 63% 2. 63% 4. 18% 5. 13% 7. 37% 8. 17% 10. 71% 11. 12. 32% 13. 3. 16% 6. 50% 9. 12% 71% 28% 19

WHY STUDY ETHICS ? 20

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WORLDCOM 22

HEALTHSOUTH 23

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Im. Clone 26

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WORLDCOM 28

HEALTHSOUTH 29

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Im. Clone 32

KEY POINTS n n Exploration of real-life business ethics issues Teleological and deontological approaches to ethical issues Corporate ethics codes Lots of rules and thoughts 33

LAW AND ETHICS MAY NOT ALWAYS AGREE! 34

SOMETIMES IT IS ETHICAL TO COMMIT AN ILLEGAL ACT AND SOME LEGAL ACTS ARE UNETHICAL 35

ETHICAL DILEMMAS Career and Family: Are career and family goals ethically compatible? 36

Ethical Structures n Religion: n Libertarianism: n Virtue Ethics: 37

TELEOLOGICAL ETHICAL SYSTEMS SOMETIMES CALLED CONSEQUENTIAL SYSTEMS 38

DEONTOLOGICAL ETHICAL SYSTEMS 39

AMERICA’S MORAL CLIMATE 1. Teens 2. College students 3. Business practices 4. Schools 5. Politics 40

TESTING HONESTY AROUND THE WORLD Reader’s Digest intentionally “lost” more then 1, 100 wallets in 117 cities to see how many would be returned. The wallets contained up to $50 along with a name and phone number. 41

MANAGERIAL ETHICS: PART I In a recent study of 600 workers, “Teams that viewed their supervisor as ethical showed a positive correlation with the following outcomes: 42

MANAGERIAL ETHICS: PART II Managers are the ethics teachers of their organizations 43

Corporate Ethics Codes n Address such topics as: n relations with government, n matters of personal character, n product safety, n environmental issues, n customer/supplier relations, 44

CORPORATE ETHICS CODES (CONT’D) n political contributions, n employees’ working conditions, n bribery, n workplace safety, n collective bargaining, n freedom of expression and n fair trade. 45

FIGHTING BUSINESS CRIME n The 2002 Sarbanes-Oxley Act n Federal sentencing guidelines n Whistleblower protection 46

ETHICAL CHECK LIST: WHAT ARE THE FACTS? WHAT ARE THE CRITICAL ISSUES? WHO ARE THE STAKEHOLDERS? WHAT ARE THE ALTERNATIVES? IS IT LEGAL? 47

HOW WOULD IT LOOK IN THE LIGHT OF THE DAY? WHAT ARE THE CONSEQUENCES? DOES IT VIOLATE IMPORTANT VALUES? DOES IT VIOLATE THE GOLDEN RULE? IS IT JUST? HAS THE PROCESS BEEN FAIR? 48

ETHICAL RESPONSIBILITIES TO OTHERS n TO CUSTOMERS n TO EMPLOYEES n TO STAKEHOLDERS n TO THE COMPANY n TO SOCIETY n TO YOURSELF n 49

AND REMEMBER EXECUTIVES WHO BEHAVE ETHICALLY HAVE HAPPIER, MORE FULFILLED LIVES 50

AND UNETHICAL BEHAVIOR CAN DESTROY A COMPANY 51

CHESTER’S RULES FOR ETHICAL BEHAVIOR 52

WHEN IN DOUBT, DON’T 53

IF IT SMELLS BAD, IT PROBABLY IS 54

IF IT SOUNDS TO GOOD TO BE TRUE, IT PROBABLY IS 55

NEVER DO ANYTHING YOU WOULD BE EMBARRASSED TO TELL YOUR MOTHER ABOUT 56