Business Ethics

Chap 1: An Introduction to Business Ethics

1. What is ethics?
- Philosophical ethics: Ethics itself as a discipline.
- Normative ethics: follow on what ought or should be occurring.
- Practical ethics: In specific context
- Descriptive ethics: focuses on what is occuring

2. Ethical terms in organizational context

- Business ethics, based on normative ethics, is the study of right and wrong,
duty and obligation, moral norms, individual character and responsibility.
- CSR can be defined as the obligation companies have to develop and
implement courses of action that aid in social issues that impact society.
- Functional/ professional ethics
+ Marketing ethics
+ Human resources ethics
+ Accounting and finance ethics

3. Ethics and the law

- Frequently overlap
- The law is a reflection of what society thinks are minimal standards of
conduct and behavior.
- Ethics sometimes represents a standard that exceeds the legal minimum.

4. Role of business ethics

- Meet demands of the stakeholders
- Comply with legal requirements
- Enhance business performance
- Prevent or minimize harm
- Promote personal morality
5. Why ethical problems occur in the business
- Personal Gain and Self-interest
- Competitive pressures on profits
- Conflicts of interest
- Cross cultural contradictions