2. Contents
I. Review of Previous Lesson
II. Lesson Objectives
III. Introduction
IV.New Lesson
V. Summary
VI.Key Terms
VII.Discussion Questions
VIII.Homework / Journal Writing
3. I. Review of Previous Lesson
β’ Define the meaning of ethics
β’ Tell the role of values in ethical decision
making
β’ Understanding opposing ethical theories
and their limitations
4. II. Lesson Objectives
1. Deο¬ne the term business ethics.
2. Identify an organizationβs stakeholders.
3. Discuss the position that business ethics is an
oxymoron.
4. Summarize the history of business ethics.
5. Identify and propose a resolution for an ethical
dilemma in your work environment.
6. Explain how executives and employees seek to
justify unethical behavior.
5. II. INTRODUCTION
A large company was hiring a new CEO. The four leading
candidates worked inside the company so the board decided to ask
each candidate a very basic question. The comptroller was brought
in. "How much is 2 plus 2?" "This must be a trick question, but the
answer is 4. It will always be 4." They brought in the head of
research and development, an engineer by training. "How much is 2
plus 2?" "That depends on whether it is a positive 2 or a negative 2.
It could be 4, zero or minus 4." They brought in the head of
marketing. "The way I figure it, 2 plus 2 is 22." Finally, they brought
in legal counsel. "How much is 2 plus 2?" they asked. He looked
furtively at each board member. "How much do you want it to be?"
Tom Selleck, Commencement Speech,
Pepperdine University, 2000.
6. IV. New Lesson
Defining Business Ethics
Two Distinct Perspectives:
- A Descriptive summation of the
customs, attitudes, and rules that
are observed within a business. As
such, we are simply documenting
what is happening.
- A Normative (or Prescriptive)
evaluation of the degree to which
the observed customs, attitudes,
and rules can be said to be ethical.
Here we are more interested in
recommending what should be
happening
β’ ααααααααΈααααααααα
αΆ α
-ααΆαααααααααα·αααααΆα’αααΈααααααααααα
αΆ αα
α’αΆααααα·α α·ααΆ αα·αα αααΆα
α αααααααΌαααΆα
αααααααααα α
α α»αα’αΆααΈααααα ααΌααα αααΆαα αα αΎα
αααααα
α ααα αααααααα―αααΆαα’αααΈα’ααΈααα
αααα»αααααΎααα αΎαα
-ααΆαααΆ αααααΆααΆαααααα
αΆ α (α¬ααΆαααααα
αααα
α ) αααααααα·ααααααααααααααα
αΆ αα
α’αΆααααα·α α·ααΆ αα·αα αααΆα
α αααααΆα
ααααααα α’αΆα αααα·ααΆ ααΆαααΆααΆαααααααΈα
αααα ααα ααΈααααααα αΎαα αΆααα’αΆααααα
ααΆα
α ααααααα αααΎαα
α α»αααΆαααααα’αα»ααΆαααα
α’αααΈα’ααΈααααα½αααααΎααα αΎαα
7. Who are the Stakeholders?
- Stakeholders are those with a share or interest in a business
enterprise.
9. An Ethical Crisis: Is Business Ethics an Oxymoron?
β’ α’αα·ααΆααα·α ααα β
ααΆααΈααααCorporate Governance
- ααααααααααααΆααΈααααα’αΆααΈααα
α ααααΌαααΆαααΉαααΆα αα·α
ααααααααααThe system by which business
corporations are directed and controlled.
β’ α’α»αααα»αΈααΌαα»αOxymoron
- ααΆααα½αααα
α αΌαααα
αΆ αααααΆαααα α» ααΈαααΌα ααααΆ
"ααΆαααααα ααααΆ
α αα αααΆαα" α¬ "αααα
αΆ jumbo" αThe combination of
two contradictory terms, such as βdeafening silenceβ
or βjumbo shrimp.β
10. An Ethical Crisis:
Is Business Ethics an Oxymoron?
β’ αααααααΈααααCode of ethics
- ααα ααααααααΆααΆ αααααα’ααααααααααα α»α
α α»ααααα’αΆααααα·α α·ααΆαααααααααα αααααααΈα
ααα αααααααΌαααΆααα ααααΆαα αΎα ααααΎαααΈααααΆαα’αΆ
ααααααααα αα·ααα»ααΆαα·αα
α α»αααΆααααααααα ααα ααα·αα
αα·ααααααααΎαα ααααα½ααααααααααα»αααΆααααα
ααΆαααααααα
- A companyβs written standards of ethical
behavior that are designed to guide managers and
employees in making the decisions and choices they
face every day.
11. A Code of Ethics
The Ethics Resource Center (ERC) defines a Code of
Ethics as:
"..a central guide to support day-to-day decision making at
work. It clarifies the cornerstones of your organization β its
mission, values and principles β helping your managers,
employees and stakeholders understand how these
cornerstones translate into everyday decisions, behaviors and
actions. While some may believe codes are designed to limit
oneβs actions, the best codes are actually structured to liberate
and empower people to make more effective decisions with
greater confidence."
15. Resolving Ethical Dilemmas - I
β’ ααααα αααααΈαα·ααααααααΉαααΆαααααΆ
α αααααααTruth versus Loyalty
- ααααΎα’αΆααα·ααΆ ααΆααα·α α¬αααΆααΆαααααΆ
α αααααααα αααααααΆαααα»ααΆα α¬
α’ααΆααΆααααααα»αα±ααα’αΆααα·ααααα
αΆ αααΆααα·αααααΆαα? Do you tell the truth
or remain loyal to the person or organization that
is asking you not to reveal that truth?
β’ α αααααααΆαΈαααααααΉαα αααααααα
Short-Term versus Long-Term
- ααααΎααΆααααααααα ααα ααα·αααααααα’αΆαααααααα α·ααΆα
α αααααααΆαΈ α¬ααα α·ααΆαα αααααααααααα¬ααα?
Does your decision have a short-term consequence or a
longer-term consequence?
16. Resolving Ethical Dilemmas β I (Conβt)
α»ααα·αααβ
αααβ
ααΉαβ
ααααα αααααΈβ
αααααΆ
α
β’ ααααΎβ
α’αΆαβ ααβ
αα αΎαβ
ααΆβ
αααα
αΆ β
αααααβ
ααΆβ
αααα
α½ αβ
αααβ
ααΆαβ
αα αααβ
α αΆ β α»ααα·ααα α¬β
ααααα αααααΈβ
αααααΆ
α β
ααα»ααΆ? (ααα αΎ αα½
ααΆααααα½αααΆα?)
αα»ααΆααααααααΉαααα αααα
β’ ααααΎαααααααΎαααααααα’αΆαααΉαααααα₯ααα·
ααααααΎαα»ααΆαααα
αΆ αα α¬ααα α»α α¬ααα
ααααααΌααααΌααΆ ααα?
Justice versus Mercy
o Do you perceive this issue as a
question of dispensing Justice or
Mercy? (and which one are you
more comfortable with?).
Individual versus Community
o Will your choice impact one
individual or a wider group or
community?
17. Resolving an Ethical Dilemma - II
ααααααααΆααααααααααααααΆ ααΈαThree Resolution Principles:
β’ 'Ends-Based'- ααααΎααΆααααααααα ααα ααα·αααα½ ααΆααΉααααααααα’ αα
αααα»ααααααααααααα»αααααααα αααΎααααα»α?
β’ 'Rules-Based'- ααααΎααΉαααααα’ααΈααααΎααα αΎα αααααα·αααααΎαααααααα
αΆ αααααΈ
ααΆααααααααα ααα ααα·ααααΌα ααα’αΆα?
β’ 'α αααΆααααααα' - 'αααααΈα αααααααΆααα’αΆαααααααΌα αααααα’αΆαα ααααα±αααα½αααααααααΈ
α αααααααΆααα’αΆα' α
β’ βEnds-Basedβ- which decision would provide the greatest good for
greatest good for the greatest number of people?
β’ βRules-Basedβ- what would happen if everyone made the same
the same decision as you?
β’ βThe Golden Ruleβ β βdo unto others as you would have them do unto
them do unto youβ.
18. Justifying Unethical Behavior
1. ααααααΏαααααΆαααααααΆααααααααΊααα α·αααα α
α α»ααααααααααααααα αα»αα αα·α
αααααααΈαααα - ααααΆααααΊααΆααΆαα·ααααααΆ "αα·αααΆ" αα»ααα αααΆαα α¬α’αααΈαααα
ααααΆαααααα
A belief that the activity is within reasonable ethical and legal
limits- that is, that it is not βreallyβ illegal or immoral.
2. ααααααΏβ
ααΆβ
αααααααΆαβ
ααΊβ
ααΆβ
αααααααααΆαααβ
ααααα
αα»ααΆαβ
α¬β
ααΆααΈααααβ- ααΆβ
αα»ααΆαβ
ααααΆααβ
ααΉαβ
ααααΌαβ
ααΆαβ
αααβ
ααααΉαβ
ααΆβ
ααΉαβ
αααααΈβ
αααααααΆαβ
ααααΆααβ
ααΌα ααααααα ααα
A belief that the activity is in the individualβs
or the corporationβs best interests β that the individual would
somehow be expected to undertake the activity.
19. Justifying Unethical Behavior
3. ααααααΏαααααΆαααααααΆααααααααΊ "ααααααα»αααα·ααΆα" ααααααΆααααΆααΉααα·αααααΌα
ααΆααααα αΎαα¬ααααααΆ ααΆααΆααΆαααα αααα
αΆ α§αααα·ααΆααα αα·αααΆαααααΆ
αΆ
αααααααααα»ααΆααααααΆααααα αΎαα
4. ααααααΏααΆααααα ααΆααααααααααΆααα½ ααα α»αα α»α
ααα α»αα α»αααΉαααααΎααααααααα ααα αΎ ααααααα
ααΆαααΆαα’αΆααααα αααΌααα½αααα α
α α»αααααΆααα
3. A belief that the activity is βsafeβ because
it will never be found out or publicized; the classic crime-and-punishment
issue of discovery.
4. A belief that because the activity helps the company, the company will
condone it and even protect the person who engages in it.
20. Building & Operating an Ethical Business
β’ αααααΌαβ
α±ααβ
ααααβ
αα·α ααα β
ααααβ
αααααααβ
ααΆβ
ααααα αααΎαβ
ααΆαβ
ααΆαβ
αααααααβ
ααβ
αααααΈβ
ααααΏαβ
ααααΉαβ
ααααΌαβ
β’ ααααΌααααααααααααααααααΆααααΎαααΈα’αα·αααααααααααΈααααααα’α·αααααααα "ααΆα
ααααΆαααΆαα½ ααΉαααΆαα’αΌαααα"
β’ ααααααΆααααααααααααα·ααααΆαα·αααα αααααα½ααααααααααα»αααΉααααα
αΆ αααααααΈα
ααα
β’ ααΆαααααααΎα αα·ααααΆααααααααΆααΈαααααααααΆαααααΏαα»αα ααα·αα
β’ Requires a great deal more than simply doing the right thing
β’ Must devote time to the development of a detailed code of
ethics that offers βguidance with tractionβ
β’ Offer support to employees when they are faced with an
ethical dilemma
β’ Creating and maintaining a corporate culture of trust
21. Review Questions
1. Describe the descriptive perspective of
business ethics.
2. Describe the normative perspective of
business ethics.
3. Who are the stakeholders?
4. Explain the three resolution principles.
5. How do you justify an unethical behavior?
22. SUMMARY
It is unfortunate that the media have been given so
much material on unethical corporate behavior over the last
decade. Unethical CEOs have become house-hold names to the
extent that the term business ethics seems to be more of an
oxymoron now than ever before. In such a negative
environment, it is easy to forget that businesses can and do
operate in an ethical manner and that the majority of
employees really are committed to doing the right thing in their
time at work
24. VII. Discussion Questions
1. Based on the history of business ethics reviewed in this
chapter, do you think the business world is becoming more or
less ethical? Explain your answer.
2. How would you propose the resolution of an ethical
dilemma using the Golden Rule?
3. Why should a short-term or long-term consequence make a
difference in resolving an ethical dilemma?
4. Of the four commonly held rationalizations for unethical
behavior proposed by Saul Gellerman, which one do you think
gets used most often? Why?
25. VII. Homework
β’ Please write a reflection on your journal book(
about what you learned in this lesson).