Ethics

1. Chapter 1:
Questions for Discussion
1. Discuss why ethics is important in business.
• Business Ethics paves the way for a common understanding of the fundamental idea of
what is good and what is bad in our human conduct. Without ethics, people will set
their own moral standards which would result into a kind of subjective morality.
2. Refute the businessman’s myth that “ethics has no place at all in business.”
• Business is a social activity thus, being a social activity it should conform to the norms,
rules and principles of this society. These standards are embedded in ethics.
3. Explain the phrase: “Not all that is legal is moral, but what is moral is worth legalizing.”
• An action may be legal but not necessarily moral. Ethics provides a clear distinction
between morality and legality. Consider abortion- in some countries abortion is legal but
in the Christian faith abortion is an immoral act.
4. Define Business Ethics. What is your own personal definition of Business Ethics?
• Business Ethics is the study of what is the right and wrong human behavior and conduct
in business.
• For me, business ethics is putting a conscience in the science of profit making.
5. Explain the phrase: “Ethics is the unwritten law written in the hearts of men.”
• I interpret that as ethics has been a tried and tested guide of men in ages that have
been handed down from one generation to another. These are actions that society
consider as the proper action given a particular circumstance.
6. What is your personal view on profit-motive?
• Personally, profit making is not bad. I go by the tenet of giving Caesar what is due Caesar
and God what is due God. In profit making it means giving the business person his due
profit but also giving his customers their due in terms of quality of products and services
and it should be commensurate to the product or service.
7. Do you agree with Milton Friedman that the only responsibility of business is to maximize
profits? Why or why not? Discuss your answer.
• No, this is really a very simplistic view. I believe that a business entity has other
responsibilities such as paying the correct taxes, giving quality products and services to
its clients and sharing its fruits through CSR.
8. What is the Catholic Church’s stand on profit-motive?
• The church is not against profit -making. Pope Pius XI just reminds that “one should
respect the laws of God, not prejudice the rights of others, and works according to faith
and right reason.” (QA #136)
9. What is your concept of reasonable profit?
• This a hard question to answer. For me, it is about justice. If your profits take away food
from another’s table then it is excessive.

2. Case 1: Ethics vs. Profit
Questions:
1. What are the ethical problems mentioned in this particular case and what are the probable
causes of these problems?
• Providing unsafe products/ questionable products in lieu of savings to increase profits
• Questionable business practices such as bribery to obtain more sales to increase income
2. Is it all right to do something illegal or unethical to maintain the company’s image and
profitability?
• No, because one cannot keep a secret for long. The unethical or illegal practices will
haunt the company and will cause more problems in the future. Also, there is the ethical
consideration of doing what is right and true in one’s dealings.
3. If you are the CEO of the company, what would you do and why?
• I will not condone those behaviors. I will institute rules on the contrary as well as
provide a culture program to ensure that people working in my company are guided in
the values of my company.
Case 2: Friendship in Business
Questions:
1. Was the action of Mr. Dy to cancel the contract legally correct and morally justified?
• In my opinion, it is not justified. He delivered a substandard product and this is the
reason why Mr Gutierrez returned the materials.
2. Is it appropriate to extend friendship in business transactions? Why or why not? Discuss your
answer.
• For me, extending friendship in business transactions can be very tricky although it is
not totally wrong. Friendship is a social activity and cannot be totally neglected even in
business transactions. It can be part of interpersonal relationships which is important in
business dealings.