ethics m1

• Profit


  The difference between the amount received and the amount spent on something purchased, produced, or manufactured
• The fundamental reason for examining business activities from a moral point of view is that business organizations should, in principle, help promote the common good and protect the rights and interests of individuals
• Types of business organizations operated for profit


  • Service businesses
  • Merchandising businesses
  • Manufacturing businesses
• Service businesses


  • Provide services to customers rather than products
• Service businesses


  • computer repair
  • laundry services
  • tutoring
  • delivery services
  • wellness (such as gym or spa)
• Merchandising businesses


  • Sell to customers products they buy from other businesses
• Manufacturing businesses


  • Turn basic inputs into products which are sold to consumers
• Sole Proprietorship


  A one-person business. The owner has full control over the finances and operations and decides alone.
• Corporation


  An entity created by law that is independent and distinct from its owners and relies on the corporate laws of the state in which it is incorporated to continue its existence. Can raise funds by selling shares of stocks and files taxes separately from its owners.
• The management team of a corporation can operate the business without any real oversight from the owners
• Fairness


  • A boss listening to both sides of the story before judging
  • An employer giving 13th month pay to all employees
  • A person paying the right price for a product or service
• Accountability


  The explication and justification process. Testing, forming a judgment, and acting if necessary. Holding people responsible for their actions.
• Accountability


  • A cashier admitting he/she lost the company's collection
  • An engineer being blamed if a project did not meet deadlines
  • An employee being blamed for recommending a cousin who stole from the company
• Transparency


  Considers intrinsic or ethical salience as an important feature of the relational dimension of a person. Necessary to develop unity between and among individuals. An important mechanism for ensuring social responsibility.
• Transparency


  • Reporting accurately the company's financial situation and risks to investors
  • Holding and selecting bids according to an open pre-defined process
  • Having an open process of decision-making such as in hiring additional employees