BUS 481 Business Ethics

Introduction - Week 1

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 ????
 Business ethics ???
 The stakeholders of any company ??
 Can business and ethics co-exist ?
 Ethical dilemma faced as consumers,
students, managers, workers, citizens....

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What is Business Ethics?

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 Business Ethics

Determination of what is right, proper

and just behavior in the decisions

and actions of management to the

stakeholders

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Your decision is affected by

 Upbringing, family
 Values , norms
 Culture
 Religion
 Education
 .....

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??????

 What would be the right, proper,

just, socially accepted behavior???

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 Ethical dilemmas
 Confronted by the managers in the business
world???
- VW scandal – gas emission

- Corruption

- Bribery

- Sweatshops – fast fashion - Working conditions

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Ethical dilemmas
 Indiviual decision making – why good
managers make bad ethical choices??
‘Everybody is doing it.. ‘ or James Burke J&J
 The role of managers as ethical leaders in
the company - setting the tone
 Organizational decision making- Enron,
Union Carbide

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 Ethical Dilemma
Conflict between economic performance

and social performance

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• Economic Performance

Measured in terms of revenues, costs, profit

owed to stockholders / shareholders

• Social Performance owed to stakeholders

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Ethical Dilemmas / Problems

 Are complex
 Are gray areas - are not white nor black
 Have extended consequences
 Have mixed outcomes
 Have multiple alternatives
 Have uncertain consequences

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According to the Ethics Officer of
Texas Instruments ...

 “It is easy to tell what is red and what is

green most of the time, but it is that

yellow light where you really have to

make those tough decisions...”

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Homework

 Search examples of ethical

scandals/dilemmas/problems faced
by global and Turkish managers

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