Business Ethics and
Explain the concern for ethical and
Describe the contemporary ethical
Discuss how organizations shape ethical
Describe how businesses can act
responsibly to satisfy society.
Explain the ethical responsibilities of
businesses to investors and the
The standards of conduct and moral values
governing actions and decisions in the work
Balance between what’s right and what’s profitable
Often no clear-cut choices
Often shaped by the organization’s ethical climate
Concern for Ethical and
The Contemporary Ethical
High-profile investigations and arrests in
Vast majority of businesses are ethical.
New corporate officers charged with deterring
wrongdoing and ensuring ethical standards.
See how Walmart highlights corporate
responsibility on its website.
A 2002 law that added oversight for the nation’s
major companies and a special oversight board
to regulate public accounting firms that audit the
financial records of these corporations.
Engage in traditional corporate philanthropy,
which involves giving to worthy causes.
Anticipate and manage risks.
Identify opportunities to create value by doing
the right thing.
Business Approach to Ethics and
Individuals can make the
difference in ethical
expectations and behavior.
Putting own interest
ahead of the
Lying to employee
Technology is expanding
Individuals Make a Difference
On-the-Job Ethical Dilemmas
Situation in which a
business decision may
be influenced for
disclosure of illegal,
in the organization.
Telling the truth and
adhering to deeply felt
ethical principles in
expect employees to
be loyal and truthful,
but ethical conflicts
Code of Conduct: Formal
statement that defines how
the organization expects
and requires employees to
resolve ethical questions.
Codes of conduct cannot
detail a solution for every
ethical situation, so
corporations provide training
in ethical reasoning.
recognize and reason
through ethical problems
and turning them into ethical
TI Ethics Quick Test
Executives must demonstrate
ethical behavior in their
use clear, explicit language rather
than euphemisms for corrupt
encourage behavior that generates
and fosters ethical values
Acting Responsibly to Satisfy
Management’s consideration of profit, consumer
satisfaction, and societal well-being of equal value in
evaluating the firm’s performance.
Contributions to the overall economy, job
opportunities, and charitable contributions and
Responsibilities to the General
Public Health Issues. What to do about inherently
dangerous products such as alcohol, tobacco, vaccines,
Protecting the Environment. Using resources
efficiently, minimizing pollution.
Developing the Quality of the Workforce. Enhancing
quality of the overall workforce through education and
Corporate Philanthropy. Cash contributions, donations
of equipment and products, and supporting the volunteer
efforts of company employees.
Responsibilities to Customers
The Right to Be Safe. Safe operation of products,
avoiding product liability.
The Right to Be Informed. Avoiding false or misleading
advertising and providing effective customer service.
The Right to Choose. Ability of consumers to choose the
products and services they want.
The Right to Be Heard. Ability of consumers to
express legitimate complaints to the appropriate parties.
Responsibilities to Employees
Workplace Safety. Monitored by Occupational Safety and
Quality-of-Life Issues. Balancing work and family through
flexible work schedules, subsidized child care, and regulation
such as the Family and Medical Leave Act of 1993.
Ensuring Equal Opportunity on the Job. Providing equal
opportunities to all employees without discrimination; many
aspects regulated by the Equal Employment Opportunity
Age Discrimination. Age Discrimination in Employment Act
of 1968 protects workers age 40 or older.
Sexual Harassment and Sexism. Avoiding unwelcome
actions of a sexual nature; equal pay for equal work without
regard to gender.
Responsibilities to Investors and
the Financial Community
Obligation to make profits for
Expectation of ethical and moral
Protection of investors by the
Securities and Exchange Commission
and state regulations.