UNIT 6 – EHICS

 “Ethics is about how we meet the challenge of doing

the right thing when that will cost more than we want
to pay”

 The Josephson Institute of Ethics

 What is Ethics?
 How people try to live their lives according to a standard of “right”
or “wrong” behaviors -- in both how we think and behave toward
others and how we would like them to think and behave toward us.

 Ethics is the set of moral principles by which people conduct

themselves personally, socially, or professionally.
 What is business ethics?
 Business ethics is a set of laws about how a business should conduct
itself.

 In general, for any business to be successful, it must operate legally

and humanely.
Ethics is the set of principles
by which you conduct yourself
in society.

How often do you help the

environment?
What do you do?
 Ethics as Good Business

 Unethical business practices can affect your business indirectly.

 The amount you make in profits from one unhappy customer can
translate into a lot more lost because of missed repeat business.
 Treating employees unethically can also backfire.
 Mistreating employees leads to a high turnover rate. This increases the
cost of hiring and training new employees.
 Important Ethical Questions
 When considering a questionable course of action, you have to ask
yourself these important questions:

 Is it against the law?

 Does it violate company or professional policies?
 What if everyone did this? How would I feel if someone did this
to me?
 Am I sacrificing long-term benefits for short-term gains?
 Making Decisions on
Ethical Issues

 Here are some steps if you find yourself in an ethical dilemma:

 Identify the ethical dilemma.
 Discover alternative actions.
 Decide who might be affected.
 List the probable effects of the alternatives.
 Select the best alternative.
 Important Ethical Questions
 Does it violate the law or policies?  YES – UNETHICAL
NO
 What if everyone did this, but it’s bad?  YES – UNETHICAL
NO
 Would this sacrifice long-term benefits for short-term gain?
  YES – MAYBE UNETHICAL

== ETHICAL DECISION

 Fast Review
1. How do companies benefit by enforcing their own codes of ethics?

2. Why does it pay to treat customers ethically?

3. What are some important ethical questions to ask?