Objectives1. To distinguish between ethical/unethical and legal/illegal business practices. 2. To...

transcript

Objectives

1. To distinguish between ethical/unethical

and legal/illegal business practices.

2. To relate the ethical decision-making

process to business situations.

3. To examine ethical considerations of

technology and workplace politics.

4. To relate the historical impact of unethical

practices and government regulations.

Main Menu

• Introduction to Business Ethics

• The Ethical Decision-Making Process

• Ethics: Then & Now

• Legislative Acts Affecting

Business Ethics

Introduction to

Business Ethics

• Are defined as:

– professional standards of conduct, based on

moral principles and values, guiding decision-

making processes and actions

• Are defined by:

– the employer in a “Code of Ethics” or in an

employee manual

Ethical vs. Legal Choices

• Ethical choices are made based on moral

principles and values

• Legal choices are made according to law

• Choices can be legal, yet still be unethical

• For example:

– Is telling a lie illegal? Is it unethical?

– Is using company e-mail for personal use

illegal? Is it unethical?

Examples of Unethical

Business Practices

• Discrimination

• Workplace harassment

• Confidentiality breaches

• Unfair treatment of staff

• Personal use of company property

• Inaccurate maintenance of records

Reasons for Unethical

Business Practices

• Low morale or lack of care for company

• Desire to succeed or advance career

• Extreme pressure to meet schedules and

deadlines

• Unrealistic earning expectations set by

upper management

• Inadequate training, background or

explanation of company policy

• Desire to steal from or harm company

Effects of Unethical

Business Practices

• On businesses:

– decrease in profits and drop in stock value

– increase in legal proceedings

• On employees:

– decrease in loyalty and faith in company

– decrease in employee morale and job satisfaction

– decrease in retirement benefits based on stock

• On consumers:

– decrease in confidence in company

– increase in prices9

Confidentiality

• Occurs when information relating to a

company, product or person is not

available or disclosed to unauthorized

individuals

• Examples of confidential information found

in the workplace include:– research and production of new products or

services

– employee records

– customer/client records

Workplace Politics

• Are “games” played in a workplace

environment– attempt to achieve status, advancement and

– majority are unethical

• Are found in every organization

• Are impossible for people within

the organization to avoid

• For example:– stealing ideas from colleagues and presenting

them as your own for a raise or promotion

Workplace Politics

• Should be dealt with by remembering and

abiding by your moral principles and

values

• Are often addressed in a company’s “Code

of Ethics” or employee manual and should

never break company policies to remain

ethical

The Ethical

Decision-Making

Process

Ethical Decision-Making Process

1. Define the problem

2. List all possible alternatives and the

consequences of each

3. Select the best choice

4. Act on your decision

5. Evaluate your decision

Step 1: Define the Problem

• Devise an accurate problem definition

– exclude irrelevant and unimportant

information

• Be as exact as possible

Step 2: List All

Alternatives & Consequences

• List the alternatives and consequences of each decision

• Include at least three alternatives• Ask yourself the following questions about

each alternative:– Is it legal?– Does it fit company values?– Does it fit my personal values?– Who will be affected?– How will it look if it makes the news?

Step 3: Select the Best Choice

• Review alternatives and consequences

• Select the most appropriate alternative

based on the following:

– benefits the most people

– benefits the company

– maintains moral principles and values

Step 4: Act On Your Decision

• Be confident in your choice

• Take action!

Step 5: Evaluate Your Decision

• Reflect on your decision and the

implications it has on the following:

– the company

– yourself

– others involved

• Repeat the process if it is

not the best decision

Ethics: Then & Now

Technology Advances in the

Workplace• Include the following:

– e-mail

– Internet networks

– telecommuting

– cellular phones

– robots

Technology Advances in the

Workplace• Raise ethical issues, such as:

– privacy and confidentiality breaches

– using company property for personal use

– ownership disputes about electronic

information

Business ethics

development:• established codes

of conduct and

value statements

• social responsibility

movement

• addressed ethics

through legal or

personnel

departments

Business Ethics Timeline: 1960s

Ethical climate:• social unrest• anti-war sentiment• adversarial

employee/ management relationship

• values shifted away from loyalty to an employer and toward loyalty to ideals

• old values cast aside

www.ethics.org

Ethical

dilemmas:• environmental

issues

• increased

employee/

employer

tension

• civil rights issues

• honesty

• work ethic

changes

Ethical climate:• major industries

riddled by scandal

• economic recession

• unemployment escalated

• heightened environmental concerns

• public pushed for corporate accountability

www.ethics.org

Ethical dilemmas:• employee militancy

(employee vs.

management

mentality)

• human rights

(forced labor, sub-

standard wages,

unsafe practices)

• some corporations

chose to cover

rather than correct

problems

Business ethics

development:• ERC founded

• Federal Corrupt

Practices Act

passed in 1977

• increased

compliance with

• ethics moved

from compliance

orientation to

values-centered

Business ethics

development:• U.S. Code of

Ethics for

Government

Service - 1980

• ERC forms first

business ethics

office at General

Dynamics - 1985

• Defense Industry

Initiative - 1986

• False Claims Act

Ethical climate:• employer/

employee social contract redefined

• defense contractors conformed to stricter rules

• corporations downsized

• loyalty toward employer eroded

• healthcare emphasized

www.ethics.org

Ethical

dilemmas:• bribes and illegal

contracting

• influence

peddling

• deceptive

advertising

• financial fraud

(savings and

loan scandal)

• transparency

issues

Business ethics

development:• federal sentencing

guidelines - 1991

• Global Sullivan

Principles - 1999

• IGs requiring

voluntary

disclosure

• ERC established

international

business ethics

centers

Ethical climate:• global expansion

brought new

ethical challenges

• major concerns

about child labor,

bribes and

environmental

issues

• birth of the Internet

• cultural borders

challenged

www.ethics.org

Ethical

dilemmas:• unsafe working

conditions in

third-world

countries

• increased

corporate liability

for personal

damages

• financial

mismanagement

and fraud

Business ethics

development:• multinationals made

• anti-corruption

efforts grew

• rules enacted by

Non-governmental

Organizations

affected business

• corporate social

responsibility

emphasized

Ethical climate:• unprecedented

economic growth• digital economy

opened borders• personal data sold

openly• e-commerce

posed new ethical problems

• hackers plague businesses and government agencies

www.ethics.org

Ethical

dilemmas:• cyber crime

• privacy issues

• product quality

• international

financial fraud

• loss of privacy

• employees

versus

employers

• intellectual

property theft

Legislative Acts

Affecting Business

Ethics

Legislative Acts

• Protect employees from unethical

business practices

– The Fair Labor Standards Act of 1938

– The Equal Pay Act of 1963

– Title VII of the Civil Rights Act of 1964

– The Age Discrimination in Employment Act of

– The Americans with Disabilities Act of 1990,

Title I and V

Legislative Acts

• The Fair Labor Standards Act of 1938– requires one and a half times the regular rate

of pay for more than 40 hours worked for qualified employees

– establishes the minimum wage rate– restricts working hours for youth less than 16

years of age– lists hazardous occupations too dangerous for

young workers– prohibits pay discrimination on the basis of

Legislative Acts

• The Equal Pay Act of 1963

– prohibits sex-based wage discrimination

paying men and women who share similar

responsibilities within the same establishment

different wages based on their sex

Legislative Acts

• Title VII of the Civil Rights Act of 1964

– prohibits employment discrimination based on

color, religion, sex and national origin

– includes sexual harassment as a form of sex

discrimination

sexual harassment is unwelcomed conduct of a

sexual nature occurring in the workplace

Legislative Acts

• The Age Discrimination in Employment

Act of 1967

– prohibits employment discrimination toward

persons 40 years of age or older

– applies to companies with 15

or more employees

Legislative Acts

• The Americans with Disabilities Act of

1990, Titles I and V

– prohibits employment discrimination toward

qualified individuals with disabilities

– applies to companies with

15 or more employees

Legislative Acts

• The Family and Medical Leave Act of 1993

– provides 12 weeks of unpaid, job-protected

leave per year, while maintaining group health

benefits

– applies to companies who employ 50 or more

employees for 20 weeks out of the current or

preceding year

Legislative Acts

• The Family and Medical Leave Act of 1993

– is applicable to employees in the following

situations:

during birth and care of a newborn child

after placement of an adopted or foster care child

when caring for an immediate family member

(spouse, child, sibling or parent) with a serious

medical condition

when unable to work because of a serious

medical condition

Resources

Center for Ethics and Business at Loyola Marymount University – Oct. 18, 2002 http://www.ethicsandbusiness.org

E-center for Business Ethics at Colorado State University – October 18,2002 http://e-businessethics.com

Ethics Resource Center – Nov. 13, 2002 http://ethics.org

Markkula Center for Applied Ethics – Nov. 25, 2002 http://www.wcu.edu/ethics/

The U.S. Equal Employment Opportunity Commission –Nov. 13,2002 www.eeoc.gov

©MMIV

CEV Multimedia, Ltd. 37

Acknowledgements

Krista Scott - Production Coordinator

Jennifer Donaldson - Graphics Editor

Jessica Odom - Technical Writer

Geoff Scott - Production Manager

G.W. Davis – Executive Producer

©MMIV

CEV Multimedia, Ltd.38

Objectives1. To distinguish between ethical/unethical and legal/illegal business practices. 2. To...

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