Business Ethics

Grade 10 Business

What is Ethical Behaviour?

A conduct that conforms to ethics - individual beliefs and social standards about what is right and good

What role should ethics play in business?

Business ethics are based on society’s ethics and those of the people who work for and buy them

What is a Code of Ethics?

A document that explains specifically how employees should respond in certain situations. Canadian laws address acceptable business behaviours. However, businesses can still behave unethically without breaking these laws.

What is an ethical dilemma?

A moral problem with a choice between potential right and wrong. Some questions to consider are

• Who will be helped by what you do?

• Who will be hurt by what you do?

• What are the benefits and problems of such a decision

• Will the decision survive the test of time?

What is Whistle-blowing?

Whistle-blowing happens when an employee informs officials or the public about an illegal or ethical violation

What is Fraud?

Fraud is a crime of lying or pretending. Some businesses mislead consumers and trick them to buy their products or services. The Competition Act 2002 bans such fraud and deceptive business practices and defines these as

• false or misleading advertising

• “bait and switch” selling

• double ticketing items for sale

What is Accounting Scandals?

An accounting scandal occurs when accountants or senior executives alter accounting records for personal benefit. Embezzlement is a form of scandal, which involves an accountant/senior executive creating false accounts and redirecting money into them for personal gain. Businesses use auditors to check validity.

What is Insider Trading?

The act of buying or selling shares of a company based on confidential information. This type of trading is illegal, punishments include:

• Fines

• Turning over profits

• Incarceration

• Banned from future trading

What does CRS stand for and what are some of the principles they follow?

Stands for Corporate Social Responsibility, they are driven by the desire to protect customers and to treat employees and shareholders fairly. Duties include:

• Provide safe and healthy work environment

• Adopting fair labour policies

• protecting the environment

• being truthful in advertising

• avoiding price discriminations

• donating to charity

What is Duty to Report?

They must disclose all important information to shareholders, partners, lenders, insurers, communities, regulators, consumers, employees, and investors

What is the duty to accommodate referring to?

Employer’s accessibility for all employees. The Canadian Human Rights Act, states that employees with disabilities must be accommodated by business as long as undue hardship does not occur to the business

What is the Kyoto Protocol?

Canada signed the Kyoto Protocol in 1998 that states countries must reduce carbon dioxide emissions by 2012 (five percent less than in 1990)

Name some minimum employment conditions in the Employment Standards Act

• Hours of work

• Overtime pay

• Minimum wage

• Holidays

• Vacations

• Equal pay for male and female employees

What is Pay Equity?

Act to help equal pay between sexes for the same work done, though it still does not always deliver equal pay for work of equal value.

What is the Personal Information Protection and Electronic Documents Act?

It requires all provincially regulated businesses to explain what personal information they need from employees or customers and why they need it

What is Fair Trade?

Is the voluntary practice of helping producers in developing countries bypass expensive middlemen so they can sell their goods in other countries for a fair profit

What is the grassroots movement?

Location action of or response by a group of people to a problem: the movement develops from the bottom up, not from the top down