Business ethics


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Business ethics

  1. 1. I. Why Should We Study Business Ethics? 1) Studying business ethics is very important because in it lies the success of a corporation, company school or organization • 2) These guidelines will help you how to establish a business or decide whether to join a company or not or continue working for a company or not
  2. 2. I) A good businessman takes care of people working for him A) The most important resource is human resource
  3. 3. Story Sometimes happiness takes the form of a goldfish. When a travel-weary family of four checked into Chicago’s Hotel Allegro in the middle of the night, the two boys, both under 10, asked hopefully at the front desk about the possibility of a goldfish for their room.
  4. 4. It wasn’t as odd a request as it sounds—the Allegro is a part of the Kimpton chain, which makes goldfish available during a guest’s stay at some locations. But unfortunately for the parents, the Allegro is not one of them
  5. 5. Linton Murphy, a bellman at the property, overheard the crestfallen kids. He set out immediately on a 10minute walk to the chain’s Hotel Monaco, which does have goldfish for guests, and talked the night manager into loaning one out. Not long after, Murphy appeared at the door of the beleaguered family, pet in hand—along with a note from the fish that gave it a name and a back story.
  6. 6. 1) Happy employees make happy ________________
  7. 7. 2) Employers should _______ the morale of employees to ensure that they give their full ________ in their work because of the sense of fulfillment and support they get out of it.
  8. 8. 3) Nothing will take away the inspiration, ___________, enthusiasm and loyalty of employees more than derogatory or insulting words
  9. 9. 3) Nothing will take away the inspiration, ___________, enthusiasm and loyalty of employees more than derogatory or insulting words
  10. 10. 4) The most ________ and stressed employers are those who have a fast turn over of employees, those who are fast to hire and fire because of the never ending process of dealing with employee inexperience, periods of adjustment, customer complaints, etc.
  11. 11. 3) Nothing will take away the inspiration, ___________, enthusiasm and loyalty of employees more than derogatory or insulting words
  12. 12. 5) Employee __________ is very costly and stressful. The company, school or any business establishment will never reach competitiveness if the workers are always new and are just trying to adjust or survive. It is very stressful because of the never-ending hiring and firing system.
  13. 13. 6) The success of any company lies in the ____________ who work for them. If the workers have a sense of loyalty because of the excellent working conditions then the employees who do the decision making, promotion and thinking of strategies will work with full potential.
  14. 14. 7) Likewise, the people who give services or take care of customers will do a great job to maintain the company’s good
  15. 15. 8) If the employer takes care of the employees then the employees will give the best _________________
  16. 16. 9) Happy? Don't dismiss the sentiment as soft. Experience shows that happy employees equal ___________ customers. That means everybody else-including the boss and the shareholders-will be happy, too.
  17. 17. ‘ 10) Employee benefits Good basic pay, bonuses, paid ________, all-expenses paid holidays trips, good working conditions: comfortable workplace, good lighting, ventilation, equipment
  18. 18. Free lunch, _________, party give-aways, medical and life insurance, disability, retirement benefits, leaves, pleasant working atmosphere, opportunity for training and promotion, perks
  19. 19. 11) In a recent study, American Express reported that US customers will spend 9% more with companies that provide great ________service. Research by Right Now says 85% of customers are willing to spend more over the standard price to ensure a superior customer experience.
  20. 20. 12) The establishment should hire the most qualified and skilled, competent, trustworthy workers and let them undergo as many ________ as they can provide. Employers should be considerate enough to understand initial mistakes due to inexperience since the person is still trying to adjust and learn about the type of work, the workplace, the colleagues, etc.
  21. 21. 13) An employee made a mistake that cost the company 3 million dollars. She expected to be fired but the boss did not fire her. The boss said they spent a lot for her to learn a very valuable lesson so why should they fire her?
  22. 22. B) Labor Law Violations 1) McStrike: Old McDonald had a strike, E-I-E-I-O a) Not paying the wages of the workers b) Not giving overtime pay c) Understaffing d) Making the employees work on legal holidays
  23. 23. 2) Coca-Cola has allegedly violated a number of California Labor Laws in a case involving roughly 1,500 workers, with potential financial
  24. 24. a) Coca-Cola kills union leaders in Colombia C
  25. 25. b) Coca-Cola Accused of Using Death Squads to Target Union Leaders By Garry Leech · July 23, 2001 · Save & Share A lawsuit filed in U.S. District Court in Florida accuses the Coca-Cola Company, its Colombian subsidiary and business affiliates of using paramilitary death squads to murder, torture, kidnap and threaten union leaders at the multinational soft drink manufacturer’s Colombian bottling plants. The suit was filed on July 20 by the United Steelworkers of America and the International Labor Rights Fund on behalf of SINALTRAINAL, the Colombian union that represents workers at Coca-Cola’s Colombian bottling plants; the estate of a murdered union leader; and five other unionists who worked for Coca-Cola and were threatened, kidnapped or tortured by paramilitaries.
  26. 26. II) A)All transactions, all procedures should be ______
  27. 27. B) All employees must be qualified and highly ______. Do not hire people just because they are your relatives. It will lessen the quality of your product or service.
  28. 28. C) Avoid Machiavellianism 1) Niccolo Macchiavelli was an Italian diplomat and writer. The political doctrine of Machiavelli is one which denies the relevance of morality in political affairs and holds that craft and deceit are justified in pursuing and maintaining political power.
  29. 29. 2) Macchiavellianism definition: Activity characterized by subtle cunning (deception ), duplicity and bad faith  “The end justifies the means.” It means that the process how a person became successful in not important as long as he is prosperous, rich and lives comfortably.
  30. 30. 3) All transactions should be legal and clean if you plan to make the company a big and a successful one. Any illegal of shady business will surface especially if the company has become famous. Any issues like this will give ______________ publicity to the company which can cause the downfall of the company.
  31. 31. 4) The company should not _______ the health of the consumers. If the product will be proven dangerous to the health of the consumers then sooner or later, the company will go out of business.
  32. 32. Ex.: Coca-cola Soft drink users have a lower intake of calcium, magnesium, ascorbic acid, riboflavin and vitamin A. -use of caffeine and MSG which makes it addictive -Osteoporosis in women because of the presence of phosphoric acid -stomach hyperacidity -tooth decay -High fructose corn syrup (GMO which is linked to obesity and diabetes) -Using aspartame which is the most dangerous food additive at present which gives a lot of side effects -Coccaine: the extract from the coca leaf
  33. 33. Man who drank eight litres of cola a day loses all his teeth – and he’s still only 25 William Kennewell has had a full set of dentures fitted to replace his teeth The Australian drank six to eight litres of cola each day His addiction to the sugary drink even left him with blood poisoning
  34. 34. A 31- year old New Zealander named Natasha Harris who is a mother of 8 kids died of overconsumption of coke. She consumed 2.25 liters of coke and drank no other beverage. She suffered hypokalemia, had an enlarged liver, and had deposits of fat in her liver. She died of a cardiac arrest caused by too much consumption of sugar. She had no teeth and no energy.She died in February 2010. Coke was the leading drink in India until 1977 when the company refused to reveal their secret formula. Coca-cola went back to India only in 1993 after the introduction of the Liberalization policy. Pesticides were discovered in Coca-cola by Indian and European scientists
  35. 35. Mcdonald’s has been known to put ingredients that are _________ to the health of
  36. 36. The beef from which the patties are made are from animals that did not grow naturally. They are from animal farms with very bad living conditions or CAFO (Concentrated Animal Feeding Operations)
  37. 37. These cows are not fed with grass but with corn, chicken feathers and animal byproducts, are given hormones and antibiotics for them to grow faster. Most of the cows are sick : they have ulcers, major infections and liver failure
  38. 38. The bun will not decompose even for years because of the chemicals and preservatives. Enriched flour (bleached wheat flour, malted barley flour, niacin, reduced iron, thiamin mononitrate, riboflavin, folic acid, enzymes), water, high fructose corn syrup, sugar, yeast, soybean oil and/or partially hydrogenated soybean oil, contains 2% or less of the following: salt, calcium sulfate, calcium carbonate, wheat gluten, ammonium sulfate, ammonium chloride, dough conditioners (sodium stearoyl lactylate, datem, ascorbic acid, azodicarbonamide, mono- and diglycerides, ethoxylated monoglycerides, monocalcium phosphate, enzymes, guar gum, calcium peroxide, soy flour), calcium propionate and sodium propionate (preservatives), soy lecithin.
  39. 39. 1)Amonium chloride: found in fireworks, safety matches and explosives 2)Ammonium sulfate: an artificial fertilizer 3)Soybean and Canola oil are probably GMO 4)High fructose corn syrup (HFCS) is GMO 5)Malathion – is a poisonous pesticide 6)Chloroform – causes unconciousness 7) Diazinon-pesticide to kill cockroaches
  40. 40. 8) Dicamba: a herbicide that kills weeds 9)Iprodione: herbicide, kills fungi
  41. 41. McDonalds and other fastfood restaurants A study done in Jeddah has shown that current fast food habits are related to the increase of overweight and obesity among adolescents in Saudi Arabia. [26]
  42. 42. Gummy bears are made from the left over bones and muscles of dead animals
  43. 43. Products from China: poisonous powdered milk, radioactive drywall, toxic dog food, dangerous candies (with melamine and formaldehyde), toxic toothpaste, ginger with pesticides, cancercausing fish(fed with pig and chicken feces, toys with lead paint
  44. 44. dangerous candies (with melamine and formaldehyde), toxic toothpaste, ginger with pesticides, cancer-causing fish(fed with pig and chicken feces and , toys with lead paint
  45. 45. 5) Operations of the company should observe and perform operations in an acceptable way Example: Making sure that animals are given good living conditions because if not then it will always have a negative impact on people
  46. 46. Chickens are scalded alive. Brutal treatment and neglect of the living conditions of chicken resulted in the bird flu epicemic in that lead to almost 100 million deaths.
  47. 47. Pigs living with their excrement have respiratory disease because of the ammonia that comes from the excrement. They live in dark and damp rooms that do not get any sunlight which has UV rays which can kill germs. Animals living nose to nose spread disease very quickly and viruses mutate because of these torturous and inhumane living conditions. Antibiotics are injected to the animals to keep them from diseases but this can be detrimental to human health. Bird flu, swine flue, H1N1 originated from CAFO’s .
  48. 48. 6) Make sure your business does not destroy the environment Example: KFC is causing deforestation in the Amazon ( Brazil) because they use soya as chicken feed which are grown there
  49. 49. a) Air pollution
  50. 50. b) Water Pollution
  51. 51. c) Land Pollution
  52. 52. d) Should not pollute the mind: 1)liquor stores
  53. 53. Should not pollute the mind like night clubs 2) Night clubs
  54. 54. 3) Stores selling pornographic books, magazines, sex toys and videos
  55. 55. 4) casinos
  56. 56. video arcade 5) Video arcades
  57. 57. 7) Advertizing Fraud: Promotion Methods should not be deceptive Truth in advertizing: misuse of the word, “sale”,buy 1 get 1 free, clearance sales, oversized packaging, oversized pictures, fillers(injecting water to chicken), , hidden ingredients(chalk in soap), manipulation of words like “organic,” angel dusting-whitening creams, bait- and –switch ( limited supply) ,
  58. 58. 8) Accounting Fraud Enron Corporation: An American energy, commodities and service company based in Houston, Texas founded in 1985 by Kenneth Lay. It produced electricity, natural gas, communications and pulp for paper. It had a beautiful building with 20,000 staff. The company has revenues of $101 billion dollars in 2000. It was held by the magazine Fortune as the “Most Innovative Company” for 6
  59. 59. Kenneth Lay hired Jeffrey Skilling a graduate of Harvard University as the Chief Executive Officer or CEO. Their scheme was to make accounting books for projects which are still in the making. And they would hide losses by passing the books to some of their smaller companies so there were no records of their losses. The result was that t they did not try to solve any financial losses because they were all hidden. So on December 2001, Enron declared bankruptcy. 20,000 people lost their jobs, savings and benefits. They protested in the streets naked as a show of their hatred for the company. Many investors lost their money. Enron was declared as the largest bankruptcy and the biggest auditing failure.
  60. 60. Kennedy Lay was charged with 11 cases. He died before he could serve his sentence at the age of 64. Skilling was sentenced to 24 years in prison and has to pay $45 million dollars. He is serving his sentence until now.
  61. 61. 9) Tax Evasion Declaring less income, profit or gain than what is actually earned which includes dishonest tax reporting or overstating deductions. (Illegal) Tax Avoidance – it is legal. Passing the tax to the costumers example : VAT in restaurants, malls, etc.
  62. 62. 10) Child Labor The full-time employment of children who are under a minimum legal age.
  63. 63. 10) Prison Labor Prisons are supposed to be where criminals are reeducated. But risoners engage in work, typically manual labor or factory work where the prisoners become exploited.
  64. 64. . Kennedy Lay was charged with 11 cases. He died before he could serve his sentence at the age of 64. Skilling was sentenced to 24 years in prison and has to pay $45 million dollars. He is serving his senctence until now.