Ferrell7e student ch01


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Ferrell7e student ch01

  1. 1. Business Ethics:Ethical Decision Making and Cases, Seventh Edition O.C. Ferrell University of New Mexico John Fraedrich University of Wyoming Linda Ferrell For in-class note taking, University of New Mexico choose Handouts or Notes Pages from the print options, with three slides per page. Copyright © Houghton Mifflin Company 1-1
  2. 2. Chapter 1An Overview ofBusiness Ethics Copyright © Houghton Mifflin Company 1-2
  3. 3. Business Ethics• Comprises principles and standards that guide behavior in the world of business• Right or wrong, acceptable or unacceptable behavior within the organization• Determined by you and key stakeholders Copyright © Houghton Mifflin Company 1-3
  4. 4. Social Responsibility• Obligation a business assumes toward society• Designed to maximize the positive influence and minimize the negative• Includes economic, legal, ethical, and philanthropic dimensions Copyright © Houghton Mifflin Company 1-4
  5. 5. Why Study BusinessEthics and Social Issues?In a National Business Ethics Survey, employees perceived misconduct in these types of organizations:• For profit 31%• Government 38%• Nonprofit 29% Copyright © Houghton Mifflin Company 1-5
  6. 6. Business Ethics Development Before 1960U.S. politics: • A living wage • The New Deal • The Fair DealTheology’s domainPhilosophy’s domain Copyright © Houghton Mifflin Company 1-6
  7. 7. The 1960s The Great Society• Consumer’s Bill of Rights• Ralph Nader• Wholesome Meat 1967• Radiation Control 1968• Clean Water 1972• Toxic Substances 1976 Copyright © Houghton Mifflin Company 1-7
  8. 8. The 1970s Corporate Social Responsibility• Bribery• Deceptive advertising• Price collusion• Product safety• The environment Copyright © Houghton Mifflin Company 1-8
  9. 9. The 1980s• Organized field of study• Business ethics centers• Business ethics courses• Defense industry initiative• Multinationals• Self-regulation (Reagan/Bush) Copyright © Houghton Mifflin Company 1-9
  10. 10. The 1990s The U.S. and Clinton• Free trade• Self-regulation• Federal Sentencing Guidelines for Organizations (FSGO)• More multinationals Copyright © Houghton Mifflin Company 1-10
  11. 11. Federal Sentencing Guidelines for Organizations• Standards and procedures (code of ethics)• High level oversight• Care in delegation of authority• Effective communication (training)• Systems to monitor, audit, and report• Consistent enforcement• Continuous improvement Copyright © Houghton Mifflin Company 1-11
  12. 12. The 21 st Century• Sarbanes-Oxley Act• NAFTA• Mercosur• WTO• Caux Round Table Copyright © Houghton Mifflin Company 1-12
  13. 13. Common Unethical Acts• Insider trading of stocks and bonds• Bribery• Falsifying documents• Deceptive advertising• Defective products• Employee theft• Questionable activities of online companies Copyright © Houghton Mifflin Company 1-13
  14. 14. Benefits of Business Ethics • Better ethical climate • Employee commitment and trust • Investor loyalty and trust • Customer satisfaction and trust • Long term profits Copyright © Houghton Mifflin Company 1-14