business ethics lesson 1

• Business

  an active process which is an integral part of human society. It is an organization where economic resources or inputs, such as materials and services, are brought together and distributed to deliver or to give consumers goods, products, or outputs. 
• Profit

  the aim of most businesses, refers to the difference between the amount received and the amount spent on something purchased, produced, or manufactured.
• business organizations should, in principle, help promote the common good and protect the rights and interest of individuals.
• TYPE OF BUSINESS

  1. Service Business
  2. Merchandise Business
  3. Manufacturing Business
• Service Business it provide services to customers rather than products
• Merchandising Business it sells products to customer that they buy from other businesses
• Manufacturing Businesses it turn basic inputs into products which are sold to consumers.
• Sole Proprietorship

  one person business, has full control over the finances and operations and decides alone.
• Partnership

  a business relationship between two or more people, it refers to an arrangement where individuals share a business venture’s profits and liabilities. Decisions can have different perspectives.
• Corporation is an entity that is created by law that is independent and distinct from its owners and relies on the corporate law.
• Social Development it describes company activities that provide the local community with opportunities to develop. It is also the part of company's core business
• Social Development is also defines as a theory that obligates individuals and groups to act in a way that benefits the greater good of the society
• Economic Development is enhancing the factors of productive capacity - land, labor, capital and technology of a national state or local economy (reduce risks & costs)
• Factos Affecting:

  1. Social and Cultural Values
  2. Governmental Policies
  3. Personal Happiness of the Individuals Comprising the Economic Community
  4. Agriculture
• refers to the process by which a community, nation or region of the world raises its living standards
• Agriculture - Modern industrial system
• Related issues to consider (by the company)

  1. Moral
  2. Reputation
  3. Abilities to compete
  4. Legal exposure
• Business Enterprise

  • Businesses that are attempting to enter industries or create market.

  • Simply a business started to make a profit.

  • revolves around a single idea, a mission which the owner intends to use to createviable company for the purpose of making a profit and succeeding in the businessworld.
• Business Failure Reasons:

  1. inexperience
  2. funding problems
• Business Organization an individual or group of people that collaborate to achieve certain commercial goals.
• Business has a commercial objectives
• profit business sells product or services to generate revenue and earnings
• non-profit business must bring in enough revenue to pay employees and cover the costs to administer or support program
• organization groups of people organized
• Organization have a specific structure and hierarchy
• organizations people and systems create a culture and guide its operations
• organizations have different policies, workflows, and objectives
• Business leaders work on business mission, vision, values, objectives & strategies that establish organizational systems.
• people + processes + policies = Fulfilled mission & strategies
• Organizational Culture

  • reflects the shared values within the organization that impact employee morale, communication, and ultimately success.
• Process/Activities to influence culture
• formal – social activities to promote teamwork

  informal – informal encounters in/out the workplace
• the purpose of establishing business enterprise beyond being profitable and functional
• A successful business should be invested in its community. (local/large businesses)
• Business that are respected by their communities will do better in the long run and it is expected that companies must give back to the community that helps make them a success.
• employees (especially low rank) should be treated with respect, paid fair wages and have access to benefits that improve upon their quality of life.
• Strong business most important responsibility is keeping their employees challenged and satisfied to encourage innovation and productivity.
• Companies are expected to act ethically and honestly with the community, their employees and shareholders.
• • corporate fraud, shutting down local businesses, cheating on taxes and violation of laws and regulations (serious repercussions)
• Customer want their companies to act like responsible & respectable members of the community.