3.4.4 Business Ethics

• Business ethics refers to the set of moral principles that guide how a business operates
• What are the different stakeholders affected by business ethics?

  Employees, customers, suppliers, shareholders, community
• Ethical decision-making in business is important for building a strong and sustainable business.
• Ethical behavior in business is based on a foundation of moral principles and values
• What does Corporate Social Responsibility (CSR) encompass in business ethics?

  Environmental sustainability, fair labor practices, community engagement
• Ensuring fair wages and safe working conditions for employees demonstrates good business ethics.
• Business ethics involves considering the interests of all stakeholders, including employees, customers, suppliers, and the community
• What are the three main impacts of ethical decision-making in business?

  Reputation, morale, financial performance
• Committing to sustainable environmental practices enhances reputation and often improves efficiency.
• Ethical decision-making enhances a business's reputation
• How does ethical decision-making strengthen financial performance in the long term?

  Promotes sustainability and profitability
• Ethical decision-making enhances employee morale
• What are the four main ethical approaches to decision-making?

  Utilitarianism, deontology, virtue ethics, justice approach
• Match the ethical approach with its key principle:

  Utilitarianism ↔️ Maximize overall happiness

  Deontology ↔️ Follow moral duties

  Virtue Ethics ↔️ Decisions based on character

  Justice Approach ↔️ Distribute benefits and burdens fairly
• A business refusing to bribe officials despite potential benefits is an example of deontology.
• What is the role of organizational culture in ethical behavior?

  Promotes ethical decision-making
• Ethical leaders reinforce ethical values and set a positive example
• Clear policies and procedures guide ethical behavior and prevent misconduct in organizations.
• What are employees entitled to in ethical business practices?

  Fair wages, safe conditions, respect
• Customers are entitled to honest product information, fair pricing, and data privacy
• What are suppliers entitled to in ethical business relationships?

  Fair contracts, timely payments
• The community benefits from environmental protection, social responsibility, and development
• What is an example of a company benefiting the community through sustainable environmental practices?

  Reducing pollution and preserving resources
• Why is ethical decision-making crucial for building a strong business?

  Enhances reputation, improves morale
• An enhanced reputation attracts customers, investors, and top talent
• Improved employee morale reduces turnover and increases productivity.
• How does stronger financial performance relate to ethical business practices?

  Promotes sustainability and profitability
• What is the key principle of utilitarianism in ethical decision-making?

  Maximize overall happiness
• Deontology emphasizes following moral duties and rules
• Virtue ethics focuses on making decisions based on character and virtues.
• What does the justice approach emphasize in ethical decision-making?

  Distribute benefits and burdens fairly
• What is the role of organizational culture in ethical behavior?

  Guides behavior within the organization
• Ethical leadership sets an example for employees to follow.
• Policies and procedures provide clear guidelines to prevent misconduct
• How do external influences shape ethical behavior in organizations?

  Stakeholder expectations and legal norms
• What are the potential benefits of ethical business practices?

  Enhanced reputation, improved loyalty
• Patagonia's commitment to sustainability enhances its reputation.
• What is the impact of fair treatment and safe working conditions on employee retention?

  Reduces turnover
• Which company's CSR initiatives attract socially responsible investors?

  Unilever
• What is one challenge of ethical decision-making in business?

  Complexity of ethical dilemmas