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• Ethics is the practical science of the morality of human acts
• Ethics is the study of human conduct from the standpoint of morality
• Ethics is the practical science that guides us in our actions so that we may live rightly and well
• Ethics is derived from the Greek word "ethos" which means "characteristic way of acting" proper to man as a rational being
• Ethics is sometimes called Moral Science or Moral Philosophy, derived from the Latin word "ethos" which is "mos" or "mores"
• Ethics and Morality:

  • Ethics and morality are two words that are similar but have distinct differences
• Ethics and Business:

  • There must always be a motive to contribute some social benefits
  • Ethics must be regarded as a support and not a hindrance in making money
  • Ethically good behavior in the workplace can serve many benefits to the company
• Business Ethics:

  • Business ethics is the study of what is the right and wrong behavior and conduct in business
  • It is a form of applied ethics that examines moral rules, theories, and principles in a business context
• Features of Business Ethics:

  • Code of conduct
  • Gives protection to social groups
  • Based on moral and social values
  • Voluntary acceptance for enforcement
  • Provides a basic framework
  • Requires education and guidance
  • It is a relative term and not against profit-making
• Importance of Ethics in Business:

  • Satisfying basic needs
  • Connecting leaders and employees
  • Building credibility
  • Continuing gains
  • Enhancing decision-making
  • Protecting society
• Moral Reasoning in Business:

  • A process where ethical issues and problems are benchmarked against a moral standard for making moral judgments
• Characteristics of a Good Moral Standard:

  • Takes the issue seriously
  • Grounded on good moral judgment
  • Objective
  • Evokes feelings of guilt, shame, and remorse of conscience
• Requirements for a Good Moral Judgment:

  • Logical
  • Based on facts and solid evidence
  • Based on sound and defensible moral principles
• Morality of Profit:

  • Personal satisfaction/desire
  • To earn a livelihood
  • To serve society through goods and services offered
  • To make a profit (form of reward)
• Concept of Moral Responsibility:

  • Man is by nature a being and a creature who is supposed to be responsible and accountable for his actions
  • Man is a rational being
  • Man is a free being
  • These assumptions provide the basis for giving praise, blame, reward, and punishment for his actions
• Meanings of Moral Responsibility:

  • Refers to holding people morally accountable for past actions
  • Means care, welfare, or treatment of others derived from the specific social role one plays in society
  • Refers to one's capacity for making moral and rational decisions independently
• Areas of Concern for Business Ethics:

  • Product safety and quality
  • Fair employment practices
  • Bribery
  • Use of confidential information for personal gain
  • Fair marketing and selling practices
  • Community involvement
  • Employee favoritism
  • Gift-giving
  • Discrimination and harassment
  • Health and safety
  • Incorrect accounting
  • Social media
  • Whistleblowing
  • Non-disclosure and corporate espionage
  • Conflict of interest
  • Just compensation
  • Wrongful dismissal
  • Money laundering
  • Insider trading
  • Multi-level marketing and pyramiding
  • Mergers and acquisitions
  • Environmental issues
  • Unfair competition
• Factors in Determining the Morality of Gift-Giving:

  • Value of the gift
  • Purpose of the gift
  • Circumstances under which the gift was given or received
  • Position or relationship of the giver and receiver
  • Acceptable business practices in the industry
  • Company policy
  • Laws and regulations