Business Ethics as Determinant of Organizational Risk

1
Business Ethics as Determinant of Organizational
Risk

• Julie Ann Huelskoetter
• Creighton University Student
• Principles of Insurance and Risk Management
• December 5, 2001

2
What is Business Ethics?

• Doing what is right in the workplace.
• Varies from person to person

3
What are the Advantages of Being an Ethical
Organization?

• Personal Satisfaction
• Benefits in the Workplace
• Relationships with Consumers
• Benefits to Stakeholders
• Government Incentives

4
Benefits in the Workplace

• Past ethical decisions serve as guideposts.
• Improves employee-employee relationships.
• Less stress increases the likelihood of an
  ethical decision.
• Greater productivity.

5
Relationships with Consumers

• Consumers buy products that make them feel good.
• Strong public image

6
Benefits to Stakeholders

• Who are stakeholders?
• Corporations goal is to increase shareholder
  wealth.
• Example Bridgestone/Firestone Tires.

7
Government Incentives

• Positive Incentive vs. Punitive Incentive
• Example of Positive Incentive OSHA
• Example of Punitive Incentive Microsoft

8
What Steps Need to be Taken to Develop a Code of
Ethics?

• Review laws.
• Identify departments and ethical traits.
• Review SWOT analysis
• Consider values favored by stakeholders and
  create list of values most important to
  organization.

9
What Steps Need to be Taken to Develop a Code of
Ethics? (Contd)

• Compose the code.
• Have key members review it and provide feedback.
• Distribute
• Review the code each year.

10
Closing

• Conclusion/Overview
• Example sites
• Questions?