ETHICS AND

STRATEGIES
• The term ethics refers to accepted principles of right or wrong that govern the conduct of a
person, the members of a profession, or the actions of an organization.

• Business ethics are the accepted principles of right or wrong governing the conduct of
businesspeople.

• Ethical dilemmas are situations in which there is no agreement over exactly what the
accepted principles of right and wrong are or where none of the available alternatives seems
ethically acceptable.
ETHICAL ISSUES IN STRATEGY
• Potential conflict between the goals of the enterprise, or the goals of individual managers, and
the fundamental rights of important stakeholders, including stockholders, customers,
employees, suppliers, competitors, communities, and the general public.

• Self-dealing
• Information manipulation
• Anticompetitive behavior
• Opportunistic exploitation
• Substandard working conditions
• Environmental degradation
• Corruption
THE ROOTS OF UNETHICAL BEHAVIOR
• Personal ethical codes will exert a profound influence on the way we behave as
businesspeople.

• Businesspeople sometimes do not realize that they are behaving unethically because decisions
are mostly made on the basis of good economic logic.

• An organizational culture that de-emphasizes business ethics and considers all decisions to be
purely economic ones.

• Pressure from top management to meet performance goals that are unrealistic, which can be
attained only by cutting corners or acting in an unethical manner.

• Unethical leadership.
BEHAVING ETHICALLY
• Hiring and Promotion

• Organizational Culture and Leadership

• Decision-Making Processes

• Ethics Officers

• Strong Corporate Governance

• Moral Courage