Business ethics ethical decision making and cases pdf chapter 2
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- Chapter 2 ETHICAL DECISION-MAKING: PERSONAL AND PROFESSIONAL CONTEXTS
- Chapter 2 ETHICAL DECISION-MAKING: PERSONAL AND PROFESSIONAL CONTEXTS
- Business Ethics : Ethical Decision Making and Cases.
Chapter 2 ETHICAL DECISION-MAKING: PERSONAL AND PROFESSIONAL CONTEXTS
Business ethics also known as corporate ethics is a form of applied ethics or professional ethics , that examines ethical principles and moral or ethical problems that can arise in a business environment. It applies to all aspects of business conduct and is relevant to the conduct of individuals and entire organizations. These norms, values, ethical, and unethical practices are the principles that guide a business.
They help those businesses maintain a better connection with their stakeholders. Business ethics refers to contemporary organizational standards, principles, sets of values and norms that govern the actions and behavior of an individual in the business organization.
Business ethics have two dimensions, normative business ethics or descriptive business ethics. As a corporate practice and a career specialization, the field is primarily normative.
Academics attempting to understand business behavior employ descriptive methods. The range and quantity of business ethical issues reflects the interaction of profit-maximizing behavior with non-economic concerns. Interest in business ethics accelerated dramatically during the s and s, both within major corporations and within academia.
For example, most major corporations today promote their commitment to non- economic values under headings such as ethics codes and social responsibility charters.
Adam Smith said in , "People of the same trade seldom meet together, even for merriment and diversion, but the conversation ends in a conspiracy against the public, or in some contrivance to raise prices. Ethics implicitly regulates areas and details of behavior that lie beyond governmental control.
The emergence of large corporations with limited relationships and sensitivity to the communities in which they operate accelerated the development of formal ethics regimes. Maintaining an ethical status is the responsibility of the manager of the business. According to a article in the Journal of Business Ethics , "Managing ethical behavior is one of the most pervasive and complex problems facing business organizations today.
Business ethics reflect the norms of each historical period. As time passes, norms evolve, causing accepted behaviors to become objectionable. Business ethics and the resulting behavior evolved as well.
Business was involved in slavery ,    colonialism ,   and the cold war. The term 'business ethics' came into common use in the United States in the early s. By the mids at least courses in business ethics reached 40, students, using some twenty textbooks and at least ten casebooks supported by professional societies, centers and journals of business ethics.
The Society for Business Ethics was founded in European business schools adopted business ethics after commencing with the European Business Ethics Network. Firms began highlighting their ethical stature in the late s and early s, possibly in an attempt to distance themselves from the business scandals of the day, such as the savings and loan crisis.
The concept of business ethics caught the attention of academics, media and business firms by the end of the Cold War. This era began the belief and support of self-regulation and free trade, which lifted tariffs and barriers and allowed businesses to merge and divest in an increasing global atmosphere.
Many verses discuss business ethics, in particular, verse , adapting to a changing environment in verses , , and , learning the intricacies of different tasks in verses and Business ethics reflects the philosophy of business , of which one aim is to determine the fundamental purposes of a company. If a company's purpose is to maximize shareholder returns, then sacrificing profits for other concerns is a violation of its fiduciary responsibility.
Corporate entities are legal persons but this does not mean they are legally entitled to all of the rights and liabilities as natural persons. Ethics are the rules or standards that govern our decisions on a daily basis. Many consider "ethics" with conscience or a simplistic sense of "right" and "wrong. Corporations and professional organizations, particularly licensing boards, generally will have a written code of ethics that governs standards of professional conduct expected of all in the field.
It is important to note that "law" and "ethics" are not synonymous, nor are the "legal" and "ethical" courses of action in a given situation necessarily the same.
Statutes and regulations passed by legislative bodies and administrative boards set forth the "law. Economist Milton Friedman wrote that corporate executives' "responsibility A business cannot have responsibilities. So the question is, do corporate executives, provided they stay within the law, have responsibilities in their business activities other than to make as much money for their stockholders as possible?
And my answer to that is, no, they do not. Peter Drucker once said, "There is neither a separate ethics of business nor is one needed", implying that standards of personal ethics cover all business situations. Another view of business is that it must exhibit corporate social responsibility CSR : an umbrella term indicating that an ethical business must act as a responsible citizen of the communities in which it operates even at the cost of profits or other goals.
For example, they can hold title to property, sue and be sued and are subject to taxation, although their free speech rights are limited. This can be interpreted to imply that they have independent ethical responsibilities. Ethical issues include the rights and duties between a company and its employees, suppliers, customers and neighbors , its fiduciary responsibility to its shareholders. Issues concerning relations between different companies include hostile take-overs and industrial espionage.
Related issues include corporate governance ; corporate social entrepreneurship ; political contributions ; legal issues such as the ethical debate over introducing a crime of corporate manslaughter ; and the marketing of corporations' ethics policies.
Ethical standards of an entire organization can be damaged if a corporate psychopath is in charge. The way a corporate psychopath can rise in a company is by their manipulation, scheming, and bullying. They do this in a way that can hide their true character and intentions within a company. Fundamentally, finance is a social science discipline.
It concerns technical issues such as the mix of debt and equity , dividend policy , the evaluation of alternative investment projects, options , futures , swaps , and other derivatives , portfolio diversification and many others.
Finance is often mistaken by the people to be a discipline free from ethical burdens. Aristotle said, "the end and purpose of the polis is the good life". However, a section of economists influenced by the ideology of neoliberalism , interpreted the objective of economics to be maximization of economic growth through accelerated consumption and production of goods and services.
Neoliberal ideology promoted finance from its position as a component of economics to its core. Neoliberals recommended that governments open their financial systems to the global market with minimal regulation over capital flows. Some pragmatic ethicists , found these claims to be unfalsifiable and a priori, although neither of these makes the recommendations false or unethical per se.
Neoliberal recommendations to developing countries to unconditionally open up their economies to transnational finance corporations was fiercely contested by some ethicists. Dobson observes, "a rational agent is simply one who pursues personal material advantage ad infinitum. In essence, to be rational in finance is to be individualistic, materialistic, and competitive.
Business is a game played by individuals, as with all games the object is to win, and winning is measured in terms solely of material wealth. Within the discipline, this rationality concept is never questioned, and has indeed become the theory-of-the-firm's sine qua non".
Such simplifying assumptions were once necessary for the construction of mathematically robust models. However, signalling theory and agency theory extended the paradigm to greater realism. Fairness in trading practices, trading conditions, financial contracting, sales practices, consultancy services, tax payments, internal audit, external audit and executive compensation also, fall under the umbrella of finance and accounting. Outside of corporations, bucket shops and forex scams are criminal manipulations of financial markets.
Cases include accounting scandals , Enron , WorldCom and Satyam. Human resource management occupies the sphere of activity of recruitment selection, orientation, performance appraisal , training and development , industrial relations and health and safety issues.
Some assess human resource policies according to whether they support an egalitarian workplace and the dignity of labor. A common approach to remedying discrimination is affirmative action. Once hired, employees have the right to the occasional cost of living increases, as well as raises based on merit. Promotions, however, are not a right, and there are often fewer openings than qualified applicants.
It may seem unfair if an employee who has been with a company longer is passed over for a promotion, but it is not unethical.
It is only unethical if the employer did not give the employee proper consideration or used improper criteria for the promotion. If an action is illegal it is breaking the law but if an action seems morally incorrect that is unethical. Potential employees have ethical obligations to employers, involving intellectual property protection and whistle-blowing. Employers must consider workplace safety , which may involve modifying the workplace, or providing appropriate training or hazard disclosure.
This differentiates on the location and type of work that is taking place and can need to comply with the standards to protect employees and non-employees under workplace safety. Larger economic issues such as immigration , trade policy , globalization and trade unionism affect workplaces and have an ethical dimension, but are often beyond the purview of individual companies.
Trade unions , for example, may push employers to establish due process for workers, but may also cause job loss by demanding unsustainable compensation and work rules. Unionized workplaces may confront union busting and strike breaking and face the ethical implications of work rules that advantage some workers over others. Among the many people management strategies that companies employ are a "soft" approach that regards employees as a source of creative energy and participants in workplace decision making, a "hard" version explicitly focused on control  and Theory Z that emphasizes philosophy, culture and consensus.
Marketing ethics came of age only as late as the s. According to Borgerson, and Schroeder , marketing can influence individuals' perceptions of and interactions with other people, implying an ethical responsibility to avoid distorting those perceptions and interactions.
Marketing ethics involves pricing practices, including illegal actions such as price fixing and legal actions including price discrimination and price skimming.
Certain promotional activities have drawn fire, including greenwashing , bait and switch , shilling , viral marketing , spam electronic , pyramid schemes and multi-level marketing. Advertising has raised objections about attack ads , subliminal messages , sex in advertising and marketing in schools.
Scholars in business and management have paid much attention to the ethical issues in the different forms of relationships between organizations such as buyer-supplier relationships, networks, alliances , or joint ventures. It especially discusses the importance of formal contracts and relational norms between partners to manage ethical issues. Being the most important element of a business, stakeholders' main concern is to determine whether or not the business is behaving ethically or unethically.
The business' actions and decisions should be primarily ethical before it happens to become an ethical or even legal issue. This area of business ethics usually deals with the duties of a company to ensure that products and production processes do not needlessly cause harm.
Since few goods and services can be produced and consumed with zero risks, determining the ethical course can be problematic. In some case, consumers demand products that harm them, such as tobacco products.
Production may have environmental impacts, including pollution , habitat destruction and urban sprawl. The downstream effects of technologies nuclear power , genetically modified food and mobile phones may not be well understood. While the precautionary principle may prohibit introducing new technology whose consequences are not fully understood, that principle would have prohibited the newest technology introduced since the industrial revolution.
Product testing protocols have been attacked for violating the rights of both humans and animals.
Chapter 2 ETHICAL DECISION-MAKING: PERSONAL AND PROFESSIONAL CONTEXTS
Business ethics also known as corporate ethics is a form of applied ethics or professional ethics , that examines ethical principles and moral or ethical problems that can arise in a business environment. It applies to all aspects of business conduct and is relevant to the conduct of individuals and entire organizations. These norms, values, ethical, and unethical practices are the principles that guide a business. They help those businesses maintain a better connection with their stakeholders. Business ethics refers to contemporary organizational standards, principles, sets of values and norms that govern the actions and behavior of an individual in the business organization. Business ethics have two dimensions, normative business ethics or descriptive business ethics.
Quizlet is an American online study application that allows students to study various topics via learning tools and games. It was created by Andrew Sutherland in October and released to the public in January Quizlet trains students via flashcards and various games and tests. Master Program of Global Business Dr. Part One: Foundations of Business Ethics. Criminal Justice. Business Ethics Chapter
Chapter 5: Ethical Decision Making Case 2: Wal-Mart: The Future Is Part Two, “Ethical Issues and the Institutionalization of Business Ethics,” consists of version, ExamView; Lecture PowerPoint® slides; and Word and PDF files from the.
Business Ethics : Ethical Decision Making and Cases.
A company has a special obligation to its customers to ensure that its decisions are legal and ethical. Believe it or not, to bring ethics into the equation you do not need to be a philosopher, historian, or professional ethicist. Manuel Velasquez, Following are the steps that can help in reachin… It is an approach to identifying and resolving issues in the business context. Ethical Decision Making 2.
Those who have a claim in some aspect of a firm's products, operations, markets, industry, and outcomes are known as A shareholders. B stockholders. C stakeholders. D claimholders. E special-interest groups.
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