CHAPTER 2 – BUSINESS ETHICS

Listen to the lecture and complete the summary notes. Write NO MORE THAN 3
WORDS for each blank.
Introduction
Topic: BUSINESS ETHICS
Main idea 1: Goals of business ethics and (1)______________________
Main idea 2: Why people are concerned about business ethics and (2)
______________________
Main idea 3: How (3) ______________________ from creating more ethical work
environment
Main idea 4: Ways to do
Main idea 1:

− Aim: give employees a sense of how to (4) __________________________

⇨ Need to consider responsibilities of all stake holders: suppliers, employees,

shareholders, clients and outside community
⇨ Complicated: Companies have to take competing interests of different stake
holders into consideration and (5) _________________________
Main idea 2:

− Reason: Reports of corporate fraud and crime: Business leaders don’t (6)
______________________

− Impacts: on all stakeholders, ex: lose jobs, salaries, investments when (7)
______________________ occur
a. Impacts on community when violations of (8) ______________________
regulations take place
b. Impact on (9) ___________________:
Survey in 2002: 70% of US investors claim they are unlikely to (10)
______________________ a company if they worry that the company and its
executives are cheating.
⇨ This hurts the company and (9)______________________
c. Impact on (11) ___________________: doubt the honesty of the executives’
One study: 91% employees believe that leaders just care for themselves.
 People at the top should (12) ______________________ to encourage or
discourage ethical behaviors
⇨Experts found that there is (13) ______________________ between how
employees think about leaders’ ethical behaviors and their own ethical
behaviors.
⇨ Corruption at executive level can negatively influence the company.
Main idea 3:

− Promoting business ethics helps

a. avoid scandals
b. create better work environments and (14) ___________________________

▪ Companies with honesty attract better employees

▪ Employees feel more satisfied in work, (15)______________________ as workers

and become (16) ______________________

▪ Companies (17) ______________________ financially

Main idea 4:

− Developing (18) ______________________ including

o codes of ethics (i.e. written rules or guidelines)

o employees training on how to follow the rules
o employees surveys for evaluation
⇨ Executives become (19) _________________________ for their behaviors
⇨ Employees more likely to report unethical behaviors.

− (20) ______________________ in business schools

🡪Future business leaders have (21) ______________________of how to behave

responsibly before entering business.
Next class: How to (22) ____________________________ at work.