Business Ethics

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Business Ethics

• Lesson 2-1

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Anticipatory Set

• What does ethics mean?

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Definition

• Ethics is deciding what is right or wrong in a
  reasoned, impartial manner.
• Mrs. Bs def. - doing what is right even when no
  one is looking.

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3 Elements

1. Decision about a right or wrong action
2. Decision is reasoned
3. Decision is impartial

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Element 1

• Decision about a right or wrong action.
• To involve ethics, a decision must affect you or
  others in some significant way.

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Element 2

• 2. Decision is reasoned
• To make ethical decisions, we must base our
  decisions on reason, not emotion.

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Element 3

• 3. Decision is impartial
• Impartiality - the idea that the same ethical
  standards are applied to everyone.

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Ethical Situation

• Suppose you accidentally back into your
  neighbors car across the street while you are
  backing out of your driveway. No one saw you do
  it. You cant decide if you should tell anyone or
  not. You think I know I should tell the truth,
  but it would cost me more than 1,000 if I admit
  that I hit the car. I cant afford that, but she
  can!

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What would you do?

• If you choose not to tell her, you are not being
  impartial.
• Is your neighbor a person who is entitled to the
  same treatment as you?

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Organizations

• Impartiality is especially important when
  organizations are involved rather than
  individuals.
• When an ethical decision involves an
  organization, peoples self-interest can conclude
  that their actions will not injure other people.

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Business Ethics

• The ethical principles used in making business
  decisions.
• All too often, ethics are not considered when
  dealing with business decisions.

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• To move toward a more ethically motivated
  economy, the profit maximization ethic will need
  to be replaced by a more humane ethical standard.