Business ethics 2

• Ethical issue


  A problem, situation, or opportunity requiring an individual, group or organization to choose among several actions that must be evaluated as right or wrong, ethical or unethical
• Identifying and Analyzing an Ethical Issue


  1. Recognize there is an issue

  2. Identify the problem and who is involved

  3. Consider the relevant facts, laws and principles

  4. Analyze and determine possible courses of action

  5. Implement the solution

  6. Evaluate and follow up
• Classification of Ethical Issues

  • Honesty and Fairness
  • Conflict of Interest
  • Fraud
  • Discrimination
  • Unfair competition
  • Misappropriation of Trade Secrets
  • False Representation and False Advertising
• Honesty


  Truthfulness, integrity and trustworthiness
• Reality principle


  Seeing the world as it really is, not as you wish it to be
• Fairness


  The quality of being just, equitable and impartial
• Principles of Fairness


  • Treat all people equitably based on their merits and abilities and handle all essentially similar situations similarly and with consistency
  • Make all decisions on appropriate criteria, without undue favoritism or improper prejudice
  • Never blame or punish people for what they did not do, and appropriately sanction those who violate moral obligations or laws
  • Promptly and voluntarily correct personal and institutional mistakes and improprieties
  • Not take unfair advantage of people's mistakes or ignorance
  • Fully consider the rights, interests, and perspectives of all stakeholders, approach judgments with open-minded impartiality, conscientiously gather and verify facts, provide critical stakeholders with an opportunity to explain or clarify, and carefully evaluate the information
• Least-Trusted Businesses


  • Oil and gas
  • Groceries/Supermarkets
  • Insurance
  • Drug stores
  • Utilities
• Most-Trusted Businesses


  • Computer hardware/software
  • Airlines/travel
  • Health and beauty
  • Accounting
  • Fast-food restaurants
• Conflict of Interest


  A situation in which an individual's personal interests conflict with the professional interests owed to his employer or the company in which he is invested
• Conflict of Interest


  • Nepotism - Giving favors to relatives and friends
  • Self-dealing - When someone acts in their own interest rather than the interest of the organization
• Fraud


  Any false communication that deceive, or conceals facts in order to create a false impression and damage others
• Discrimination


  The unfair or prejudicial treatment of people and groups based on characteristics such as race, gender, age or sexual orientation
• Unfair competition


  • Trademark infringement - A business may have a trademark symbol, word or phrase that represents the company in the eyes of the public. If another company uses a similar trademark, it could confuse the consumers
  • Substitution of goods - This could also include instances of a name brand item proposed for sale to the consumers with the generic sold instead
• Social responsibility is the idea that businesses should consider their impact on society when making decisions.
• Businesses have an obligation to act responsibly towards society as a whole.
• The main principles of business ethics are honesty, integrity, fairness, respect, responsibility, trustworthiness, accountability, transparency, confidentiality, and social responsibility.
• Social responsibility is the idea that businesses should consider their impact on society when making decisions.
• Corporate social responsibility (CSR) refers to the actions taken by companies to address societal concerns beyond what is required by law.
• Business Ethics is the set of principles governing how we conduct ourselves in our work environment.
• Ethical issues are moral dilemmas faced by individuals and organizations in decision-making processes.
• Businesses have an obligation to act responsibly towards society as a whole.
• Companies can engage in CSR activities through philanthropy, community involvement, environmental sustainability, and fair labor practices.
• The main principles of business ethics are honesty, integrity, fairness, respect, responsibility, trustworthiness, accountability, transparency, confidentiality, and social responsibility.
• Ethical issues arise from conflicts between personal values and professional obligations.
• Corporate social responsibility (CSR) refers to the actions taken by companies to improve society and protect the environment.
• Honesty involves being truthful and transparent about all aspects of your business operations.
• Philanthropy involves donating money or resources to charitable causes.
• Fairness requires treating everyone equally and avoiding favoritism or discrimination.
• Moral dilemmas occur when there is no clear right answer and individuals must choose between two equally wrong options.
• Integrity means acting consistently with your values and beliefs, even if it's difficult or unpopular.
• Companies can engage in CSR activities such as philanthropy, community involvement, environmental sustainability, employee well-being, and stakeholder engagement.
• Moral dilemma - A situation where there is no clear right or wrong answer, forcing one to choose between two equally unattractive options.
• Profit maximization refers to the goal of achieving maximum profit by minimizing costs and maximizing revenue.
• Philanthropic activities involve donating money, products, services, or time to charitable causes.
• Moral values refer to the standards or beliefs about right and wrong that guide our decision-making process.
• Ethical behavior involves acting with integrity, being truthful, treating others fairly, and avoiding conflicts of interest.
• Moral values are beliefs about right or wrong behavior based on personal convictions.
• Ethical Issues can be classified into four categories: Personal, Professional, Organizational, and Societal.
• Legal compliance means following laws and regulations related to employment practices, consumer protection, environmental issues, etc.