Business Ethics• Applying your standards of moral behavior to business situations ▫ Descriptive ▫ Normative (prescriptive) ▫ http://www.youtube.com/watch?v=85HgXXjyw2 Q&feature=related ▫ http://www.youtube.com/watch?v=UKCGydtInzA &feature=related
Stakeholders• Most impacted by unethical behavior
Code of Ethics• Central guide• Clarifies cornerstones of an organization• Structured to liberate and empower people to make effective (and ethical) decisions
History of Business Ethics• Medical Research Regulations (1960s) ▫ http://www.experiment-resources.com/research- regulations.html• Nestle Boycott (1970s) ▫ http://www.infactcanada.ca/What%20Is%20The%20 Nestl%C3%A9%20Boycott.pdf• General Dynamics Corporation (1980s) ▫ http://www.ethikospublication.com/html/generaldyn amics.html• Newt Gingrich’s Ethics Violations (1990s) ▫ http://abcnews.go.com/Archives/video/dec-21-1996- newt-gingrich-ethics-violations-15200716
Ethical Dilemmas Resolved• Recognize the type of conflict ▫ Truth vs. Loyalty ▫ Short-term vs. Long-term ▫ Justice vs. Mercy ▫ Individual vs. Community• Resolution Principles ▫ Ends-based ▫ Rules-based ▫ The Golden Rule
Justification for Unethical Behavior• Commonly held rationalizations ▫ Activity is within ethically reasonable or legal limits ▫ Activity is in the best interest of the person or company ▫ Activity is safe – no one will ever know ▫ Activity helps the company, therefore the company will protect me and even praise me
What Would You Do?• Your supervisor enters your office and asks you for a check for $150.00 for expenses he tells you he incurred entertaining a client last night. He submits receipts from a restaurant and lounge. At lunch your supervisor’s girlfriend stops by to pick him up for lunch and you overhear her telling the receptionist what a great time she had at dinner and dancing with your supervisor the night before. What do you do?