MGMT: Chapter 3

Ethics

the principles of right and wrong that guide an individual in making decisions

Business Ethics

What constitutes right or wrong behavior and the application of moral principles in a business context.

Why study business ethics?

-Unethical behavior is on the rise
-Society's evaluation of right and wrong affects its ability to achieve business goals
-Doing so shows you care while failing to do so can lead a business to fail

law does not equal ethics

Following a law doesn't mean that you are ethical

Private/Professional Codes of Ethics

Violation of these codes lead to discipline action

Moral minimum

The minimum degree of ethical behavior expected of a business firm, which is usually defined as compliance with the law.

Industry Ethical Codes

Numerous industries have also developed codes of ethics. This and Private/Professional codes must be followed.

Business as a profit maximizer

Making money as well as possible can lead to poor reviews.

Business as a Corporate Citizen

A business which puts some money towards making sure their customers are treated right.

4 part analysis for a business to be a profit maximizer and corporate citizen

1. Legal implications of a decision
2. Public relations impact of a decision
3. Safety risk for party in the decision
4. Financial implications

Attitude of top managment

Sets tone, things they do convey how they expect employees to act.

Unrealistic goals for future employees

The more unrealistic the goals the more likely employees will resort to unethical actions to complete it.

Fostering of unethical conduct

Business owners and managers engaging in such conduct

Shot run versus long run maximization

Short run leads more to unethical decisions

Hiring practice's over social media

Companies check us out on social media as we have information out there

(discussing work related issues) Responsibility of employees

Doesn't make it okay for them to rant, they should think about their behavior

(discussing work related issues) Responsibility of Employers

Have a role in controlling what your workers do at work