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Chap 2 Defining Business Ethics
Chap 2 Defining Business Ethics
BUSINESS ETHICS
Chapter 2
Defining
Business
Ethics
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Learning Outcomes
1. Define the term business ethics
2. Identify an organization’s stakeholders
3. Discuss the position that business ethics is an
oxymoron
4. Summarize the history of business ethics
5. Identify and propose a resolution for an ethical
dilemma in your work environment
6. Explain how executives and employees seek to
justify unethical behavior
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Business Ethics
Business ethics: Nike’s sweatshops
• https://www.youtube.com
Application of /watch?v=nTOHKcggvsE
ethical • https://www.youtube.com
standards/standa /watch?v=2no2L-5-yfI
rds of moral
behavior to
business
situations/behavi
or
© 2018 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not
be copied, scanned, duplicated, forwarded, distributed,©
Copyright or 2013
posted The
on a website, in whole orCompanies,
McGraw-Hill part. Inc. All rights reserved.
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© 2018 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not
be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 2-7
© 2018 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not
be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 2-8
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A Code of Ethics
The Ethics Resource Center (ERC) defines a Code of Ethics as:
"..a central guide to support day-to-day decision making at
work. It clarifies the cornerstones of your organization – its
mission, values and principles – helping your managers,
employees and stakeholders understand how these
cornerstones translate into everyday decisions, behaviors
and actions.
While some may believe codes are designed to limit one’s
actions, the best codes are actually structured to liberate
and empower people to make more effective decisions
with greater confidence."
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Progess questions
• 5. Define the term oxymoron and provide three
examples.
6. Is the term business ethics an oxymoron?
Explain your answer.
7. Define the term corporate governance.
8. Explain the term code of ethics.
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Progess questions
• 9. Identify a major ethical dilemma in each of
the past five decades.
10. Identify a key development in business
ethics in each of the past five decades.
11. Which decade saw the most development in
business ethics? Why?
12. Which decade saw the most ethical
dilemmas? Why?
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Short-Term ‘Ends-Based’
Truth v.
v. Long-
Loyalty ‘Rules-
Term
Based’
Justice v. Individual v. ‘The Golden
Mercy Community Rule’
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Justifying/Rationalizations for
Unethical Behavior
1. A belief that the activity is within reasonable
ethical and legal limits
2. A belief that the activity is in the individual’s or
the corporation’s best interests
3. A belief that the activity is safe because it will
never be found out or publicized
4. A belief that because the activity helps the
company, the company will condone it and
even protect the person who engages in it.
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CONCLUSION –
Building & Operating an Ethical Business
• Requires a great deal more than simply doing
the right thing
• Must devote time to the development of a
detailed code of ethics that offers “guidance
with traction”
• Offer support to employees when they are
faced with an ethical dilemma
• Creating and maintaining a corporate culture of
trust
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