Business Management 3 C

Chapter 1

1. The chapter introduces you to the concepts of ethics and business ethics.
Ethics is concerned with what is right or wrong, good or bad, fair or unfair, responsible or irresponsible,
obligatory or permissible, praiseworthy or blameworthy. It is associated with guilt, shame, indignation,
resentment, empathy, compassion, and care. It is interested in character as well as conduct
Ethics consists of unwritten rules developed to guide interactions with others and serves as the values an
individual uses to interpret whether any particular action or behaviour is considered acceptable and
appropriate.
Business has its ethics which implies notions of right and wrong and it is expected of business to behave
responsiblyBusiness ethics is a specialized study of moral right and wrong, concentrating on moral
standards as they apply to systems and organizations through which modern societies produce and
distribute goods and services, and to the people who work within these organizations.
2. The chapter facilitates the development and awareness of what is/is not ethical
Ethics aside, there are other standards that influence our behaviour and beliefs but which should not be
confused with ethics. Not all rules and standards are part of morality like the following
Etiquette and Prudence
Etiquette concerns manners, e.g. when eating one does not speak with ones mouth full. This is a breach of
etiquette but not a moral wrong like taking money from someone elses purse.
o Prudence is a rule not necessarily linked to morality, e.g. look both ways before crossing the street
focusing on being prudent not moral.
Professional Codes
professional codes are a necessary but not sufficient means of assisting
professionals with managing moral conduct. Boylan
The Law
Law and ethics are not identical but they can coincide, e.g. laws that prohibit murder, rape, theft, fraud,
etc. also violate moral standards. Just as one has an obligation to be moral one also has to obey such laws
3. This chapter demonstrates perception of the ethical dimension of business
activities

1. Define ethics.
2. Is there a difference between ethics and morality?
3. Discuss the development of morality from childhood.
4. Define business ethics.