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Chapter 02
Business Ethics
McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.
Chapter 2 Case Hypothetical and Ethical Dilemma
As hiring coordinator for Hennessey Networking Solutions, Inc. (Hennessey), Andrea
Templeton knew that her position was of utmost importance to her company in terms of
hiring candidates who were well-qualified, and who would best contribute to the company’s
overall success. On her desk was the employment application and resume of Timothy
Carraway. Andrea had just finished her interview of Timothy, who was the last in a long line
of interviewees who had applied for an entry-level information technology (IT) position at
Hennessey. Hennessey only had one (1) opening available. During Timothy’s interview, the
candidate revealed that seven (7) years ago, he had been tried and convicted in federal court
for selling a significant amount of cocaine. Timothy had also revealed the conviction on his
employment application. Timothy went to great lengths to explain to Andrea that he
sincerely regretted the indiscretions of his youth, and that he had spent the last seven (7)
years of his life “paying penance,” and reforming his life. After serving three (3) years in
federal penitentiary, Timothy had earned his bachelor’s degree in Information Technology,
graduating with honors.
Timothy’s interview had gone very well. In fact, Andrea felt that in terms of his personality
and education, he was the best “fit” for the position. Andrea was obviously concerned about
Timothy’s criminal background, but she was also concerned about the young man should he
not find an employment opportunity after graduating from college. Without a legitimate
employment option, would Timothy revert back to his “criminal ways?
Does Andrea Templeton and Hennessey Networking Solutions, Inc. have an ethical
obligation to hire Timothy Carraway? Should Andrea’s “hire” decision be based exclusively
on Timothy’s qualifications for the job? Why or why not?
2-2
Chapter 2 Ethical Dilemma
What is the best source for ethical business practices: The
individual employee, or the business organization itself? To
what extent should individual employees be allowed to lend
input in the creation of a code of ethics for a business
organization? In the event that an individual employee’s
ethical standards differ from his/her employer’s code of
ethics, what can/should be done to resolve those differences?
2-3
Business Ethics and Social
Responsibility
 Ethics: The study and practice of decisions about what
is good or right
 Business Ethics: The application of ethics to the
problems and opportunities experienced by
businesspeople
 Ethical Dilemma: A problem about what a firm should
do for which no clear, right decision is available
 Social Responsibility of Business: Expectations that the
community imposes on firms doing business inside its
borders
2-4
The “WPH” Process of Ethical Decision
Making: W—WHO (Stakeholders)
 Consumers
 Owners or Investors
 Management
 Employees
 Community
 Future Generations
2-5
The “WPH” Process of Ethical Decision
Making: P—PURPOSE (Values)
 Freedom
 Security
 Justice
 Efficiency
2-6
Primary Values and Business Ethics:
Freedom
 To act without restriction from rules imposed by
others
 To possess the capacity or resources to act as
one wishes
 To escape the cares and demands of this world
entirely
2-7
Primary Values and Business Ethics:
Security
 To possess a large enough supply of goods and
services to meet basic needs
 To be safe from those wishing to interfere with
your property rights
 To achieve the psychological condition of self-
confidence to such an extent that risks are
welcome
2-8
Primary Values and Business Ethics:
Justice
 To receive the products of your labor
 To treat all humans identically, regardless of
race, class, gender, age, and sexual preferences
 To provide resources in proportion to need
 To possess anything that someone else is willing
to grant you
2-9
Primary Values and Business Ethics:
Efficiency
 To maximize the amount of wealth in society
 To get the most from a particular output
 To minimize costs
2-10
The “WPH” Process of Ethical Decision
Making: H—HOW (Guidelines)
 Public Disclosure
 Universalization
 Golden Rule
2-11

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Business Ethics

  • 1. Chapter 02 Business Ethics McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.
  • 2. Chapter 2 Case Hypothetical and Ethical Dilemma As hiring coordinator for Hennessey Networking Solutions, Inc. (Hennessey), Andrea Templeton knew that her position was of utmost importance to her company in terms of hiring candidates who were well-qualified, and who would best contribute to the company’s overall success. On her desk was the employment application and resume of Timothy Carraway. Andrea had just finished her interview of Timothy, who was the last in a long line of interviewees who had applied for an entry-level information technology (IT) position at Hennessey. Hennessey only had one (1) opening available. During Timothy’s interview, the candidate revealed that seven (7) years ago, he had been tried and convicted in federal court for selling a significant amount of cocaine. Timothy had also revealed the conviction on his employment application. Timothy went to great lengths to explain to Andrea that he sincerely regretted the indiscretions of his youth, and that he had spent the last seven (7) years of his life “paying penance,” and reforming his life. After serving three (3) years in federal penitentiary, Timothy had earned his bachelor’s degree in Information Technology, graduating with honors. Timothy’s interview had gone very well. In fact, Andrea felt that in terms of his personality and education, he was the best “fit” for the position. Andrea was obviously concerned about Timothy’s criminal background, but she was also concerned about the young man should he not find an employment opportunity after graduating from college. Without a legitimate employment option, would Timothy revert back to his “criminal ways? Does Andrea Templeton and Hennessey Networking Solutions, Inc. have an ethical obligation to hire Timothy Carraway? Should Andrea’s “hire” decision be based exclusively on Timothy’s qualifications for the job? Why or why not? 2-2
  • 3. Chapter 2 Ethical Dilemma What is the best source for ethical business practices: The individual employee, or the business organization itself? To what extent should individual employees be allowed to lend input in the creation of a code of ethics for a business organization? In the event that an individual employee’s ethical standards differ from his/her employer’s code of ethics, what can/should be done to resolve those differences? 2-3
  • 4. Business Ethics and Social Responsibility  Ethics: The study and practice of decisions about what is good or right  Business Ethics: The application of ethics to the problems and opportunities experienced by businesspeople  Ethical Dilemma: A problem about what a firm should do for which no clear, right decision is available  Social Responsibility of Business: Expectations that the community imposes on firms doing business inside its borders 2-4
  • 5. The “WPH” Process of Ethical Decision Making: W—WHO (Stakeholders)  Consumers  Owners or Investors  Management  Employees  Community  Future Generations 2-5
  • 6. The “WPH” Process of Ethical Decision Making: P—PURPOSE (Values)  Freedom  Security  Justice  Efficiency 2-6
  • 7. Primary Values and Business Ethics: Freedom  To act without restriction from rules imposed by others  To possess the capacity or resources to act as one wishes  To escape the cares and demands of this world entirely 2-7
  • 8. Primary Values and Business Ethics: Security  To possess a large enough supply of goods and services to meet basic needs  To be safe from those wishing to interfere with your property rights  To achieve the psychological condition of self- confidence to such an extent that risks are welcome 2-8
  • 9. Primary Values and Business Ethics: Justice  To receive the products of your labor  To treat all humans identically, regardless of race, class, gender, age, and sexual preferences  To provide resources in proportion to need  To possess anything that someone else is willing to grant you 2-9
  • 10. Primary Values and Business Ethics: Efficiency  To maximize the amount of wealth in society  To get the most from a particular output  To minimize costs 2-10
  • 11. The “WPH” Process of Ethical Decision Making: H—HOW (Guidelines)  Public Disclosure  Universalization  Golden Rule 2-11