Business Ethics• The standards of conduct and moral values governing actions and decisions in the work environment. – Social responsibility. – Balance between what’s right and what’s profitable.• The moral values that governs business behaviour and restraints companies from pursuing the interest of the shareholder at the expense of all other considerations
Stakeholders• People and groups that supply the business with its productive resources and have a claim on its resources – Shareholder – Suppliers – Distributors – Employer – Employee – Customer
Relations in a Business• Employer-Employer Relations• Employee-Employer Relations• Company-Customer Relations• Company-Shareholder Relations• Company-Community/Public Interest
Ethical Issues• Honesty – communication & behaviour consistent with facts – Disclosure of information – Promises/commitments – Laws and professional standards – Representation of others like shareholders• Unfair Competition – Refrain from bribes and excessive gifts – Avoid quid pro quo transaction (what for what?) – Comply with anti-trust laws (pricing, monopolistic practices)
• Just Compensation – Respect intellectual property – Treat employees fairly• Respecting rights of others – treat others with fairness and respect regardless of: • Age, Religion, Ethnic group, Sex, Economic status – Respect the community you operate in by paying fair share of economic costs – Respect others and future generations by treating the environment well
Valuing of Ethical Behaviour• Better Information – Trust from investors – Lower costs for audits, controls, investigations – Better allocation of resources – Customers will be more loyal – Lower costs from suppliers – Attracting and retaining better employee• Better Competition – Lowers cost of business economy – Leads to a better decision making – Improve competitive nature of a country’s economy
• Just compensation – Creates a more vibrant, entrepreneurial economy – Attracts and retains better employees• Rights of others – Draws upon talents of wider set of individuals – Develops long-term respect from the community – Maintains the environment for long term value to all
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