Demonstrating Ethical Behavior

1. DEMONSTRATING ETHICAL
BEHAVIOR

2. Ethical Behavior
Acting in ways consistent with what society and
individual typically think are good values.
This involves demonstrating respect for key moral
principles that include honesty, fairness, equality,
dignity, diversity and individual rights.

3. As a business owner, your
example of ethical leadership is a
model for employees and
customer.
If you use your values typical of
ethical leaders, you can build a
staff of dedicated employee who
respect you, and you can
establish a reputation among
customers for being an ethical
entrepreneur.

4. How to Demonstrate Ethical
Behavior

5. Communicating Values
Your business can benefit from code of
ethics created by the entire organization.
These ethics should be shared with new
employees on their first day of work.
Example:
Use staff meeting and training
program to include discussion
of ethical scenario and how
you expect employees to act
in those situations.
Conflict of Interest:
As a department manager, you are
hosting an informal celebration in
the office. The food budget was
$200. Your next door neighbour
has just started her own catering
business and asks to supply the
food. Since she is just starting out,
she’ll do it at cost and provide
extra items at no charge. What
might you want to consider?

6. Using Integrity
When your business goes through tough
times, your integrity may be challenged.
Employees and customers will judge you
by how you respond.
Example:
If a competing business
opens a few blocks away, it
may be tempting to try
discredit the owner of the
new business.
Instead…choose proactive, ethical
strategies to drum up more sales,
such as:
 Increasing your advertising or
issuing new coupons.
 And you can also use your
social support system – Family,
friends and employees, to help
your business thrive without
compromising your ethics.

7. Maintaining Transparency
A business brings many opportunities for
behaviours that employees could
misinterpret as unethical. Always follow
solid business rules, especially in financial
matters.
Example:
Use standard practices to
handle payments for
customers, don’t take money
out of cash register for
personal expenses and pay for
any supplies or products that
you take home.
These practices help
employees see that you’re
committed to accounting
honestly for monies and
supplies handled by your
business.

8. Relating to Employees
A big part of your business that is not
related to financial transparency is
how you treated your employees.
Example:
From time to time, they will
have performance problem or
disciplinary issues. It’s best to
handle each situation in a
confidential manner.
 When an employee is not
performing well, do not discuss
the plan for improving her/his
performance with other
employee.
 When an employee must be
disciplined for violating the code
of ethics, you wouldn’t discuss
any circumstances of the case
with co-workers.

9. SOCIAL
RESPONSIBILITY

10. Social Responsibility
It means that individual and companies have a
duty to act in the best interests of their
environment and society.
In other words, in their daily operations, business
should be concerned about the welfare of society
and mindful of how its actions could affect society
as a whole.

11. • British Petroleum was accused of gross negligence for safety violations and knowingly
failing to maintain the oil rig, which caused the death of eleven workers and leaked oil in
the Golf of Mexico for eighty-seven days.
Example:
British Petroleum Negligence

12. In this case people will
question the ability of
companies to fulfill their duty
to society
Ideally companies should
look at four main areas of
SOCIAL RESPONSIBILITY

14. ECONOMIC RESPONSIBILITY
This focuses on practices that facilitate the
long term growth of the business, while also
meeting the standards set for ethical,
environmental and economic decisions with
their overall effects on society.
Business can improve their
operations while also
engaging in sustainable
practices
EXAMPLE:
Company modifies it’s
manufacturing processes to
include recycled products,
which could benefit the
company by potentially
lowering the cost of materials
and also benefit society by
consuming fewer resources.

15. LEGAL RESPONSIBILITY
The concept of LAISSEZ-FAIRE business is virtually
inexistent in modern free-market economies. In the United
State, particularly before 1930, business were free to act as
they pleased without restrains or restrictions. This resulted in
deplorable practices that made labourers and consumers
vulnerable to exploitation.
Government have now become
regulators of businesses in order to
maintain the integrity of business
practices and protect the interest of
the public. Like individual members of
the citizenry, a business also has an
obligation to follow all written and
codified laws that concern it’s
existence
Some laws affecting
business are:
 Basic Business permits and
requirements
 Tax laws
 Labour rights
 Intellectual property rights
 Consumer protection
 Contract and Obligations
 Anti-trust and competitions laws

16. ETHICAL BUSINESS PRACTICE
Acting ethically means going above and
beyond the legal requirements and meeting
the expectation of society.
Primary focus on providing
fair labour practices for
business employees as well
as the employees of their
suppliers
Fair business practices for
employees include:
 Equal pay for equal work
and living wage
compensation initiatives
 The use of products that
have been certified as
meeting fair trade standard.
Ethical labour practices for
suppliers include:

17. DIRECT PHILANTHROPIC GIVING
Include the donation of time, money or
resources to charities and organizations at
local, national or international levels.
This donations can be directed
to a variety of worthy causes
including human rights,
national disaster relief, clean
water and education programs
in underdeveloped countries.
EXAMPLE:
Microsoft co-founder Bill Gates has
donated billions of dollars to “The
Bill and Melinda Gates
Foundation”, supports numerous
causes including education, the
eradication of malaria and
agricultural development. In 2014,
Bill Gates was the single largest
giver in the world, donating $1.5
billion in Microsoft stock to “The
Bill and Melinda Gates
Foundation”.

20. THANK YOU!