BUSINESS ETHICS AND ETHICAL DECISION-MAKING

Business ethics

is the moral principles, policies, and values that govern the way companies and individuals engage in business activity.

Utilitarianism (Consequentialism)

• Do what produces the greatest good for the greatest number.

• focuses on outcomes. An action is morally right if it results in the greatest good for the greatest number.

Deontology (Duty-Based Ethics)

• Follow moral duties and rules regardless of the outcome.

• Emphasizes duties and rules. Actions are right if they follow a set of moral principles,regardless of the consequences.

Virtue Ethics

• Act based on virtues like honesty, courage, and compassion.

• Focuses on the character and virtues of the decision-maker rather than the action itself or its outcomes.

Rights-Based Ethics

• Respect and protect fundamental human rights.

• emphasizes the protection and respect for individual rights, such as the right to privacy, freedom, and fairness.

Justice or Fairness Framework

• Ensure fair and equal treatment for all.

• Focuses on fair treatment and equitable distribution of benefits and burdens among individuals and groups.

Ethical Decision Making

Making choices that align with moral principles, values, and standards of right and wrong.

Conflict of interest

Happens when personal gain gets in the way of professional duty.

Discrimination and bias

• Unfair treatment based on gender, race, or age. Ethical companies work hard to support diversity and inclusion.

Whistleblowing

When employees report wrongdoings

• Example: In the Enron case, employees feared speaking up about fraud.