Ppt1 Business Ethics

7/28/2019 Ppt1 Business Ethics

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Concepts of Ethics?


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Business Ethics

The application of general ethical concepts

to the unique situations confronted in

business. It asks what is right or wrong

behavior in business and what principles or

rules can be used as guidance in business

situations.


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Two Characteristics

Tells people what they ought to do

Set of principles or rules


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Relativism Egoism

Utilitarianism Deontologism

The4Conceptsof

Ethics


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Relativism

There is no universal standard by which

morality can be judged

What is correct for one society may be

wrong for another

Ethics and morality are relative

What do you think of this?


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Egoism

One ought to act in his or her own self

interest

Ethical behavior is that which promotes

ones own self interest

Does not mean should not obey laws - only

do so if in self interest


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Utilitarianism

The morality of an action can be determined

by its consequences

An action is ethical if it promotes the

greatest good for the greatest number


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What do you think of this

concept?How do you quantify benefits and costs?

How do you value benefits and costs?

Can lead to unjust consequencesRestrictions against the majority to protect a

minority is not utilitarian


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Deontologism

Derived from the Greek word for Duty

Actions are not justified by their

consequences. Factors other than good

outcomes determine the rightness of actions


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Utilitarianism Vs. Deontologism

Utilitarianism - The ends justify the means

Deontologism - It is the means which areimportant


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Catagorical Imperative

Developed by Immuel Kant

I ought never to act except in such a way

that I can also will that my maxim should

become a universal law

Are you willing to permit everyone to adopt

the action?

Yes - Moral No - Immoral


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Guidance in Dealing with People

People should never be treated as a means

to an end, but as ends in themselves

To treat people as ends requires respect for

persons

Reject slavery

Deals with murder, rape, etcHow to deal with employees


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General Ethical Behavior

Builds security, friendliness, cooperation

and trust in a society

These are public goods created by generally

ethical behavior


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Ethical Tests


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Is It Legal Test?

Quadrant II

Ethical and Illegal

Quadrant IV

Unethical and Illegal

Quadrant I

Ethical and Legal

Quadrant III

Unethical and Legal

Ethical

Unethical

LegalIllegalCorporate

Decisions

Codification

Manifestation


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Ethical Tests

1. Is It Legal?

I Ethical - Legal

II Ethical - Illegal

III Unethical - Legal

IV Unethical - Illegal

I and IV Easy

II and III Difficult


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Ethical Tests

2. Benefit Cost Test

Do the benefits exceed the costs to

whomsoever they accrue?

3. Categorical Imperative

Are you willing to allow everyone to

practice the proposed action or do you want

to be a special case?


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Ethical Tests

4. Light of Day Test

What would be your reaction if the

action were brought out into the open for

public scrutiny?

5. Do Unto Others Test

Golden Rule - If you would like others

to do the same to you - passes the test


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Ethical Tests

6. Ventilation Test

Seek out others views. Discuss the 5

tests with them. If others feel it is OK -

passes the test


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Ethical Dilemmas in Business

Conflict of Interest

Have two interests - cannot purse one

without having negative impact on other

Two Types

Private Interest Conflicts with Corporate

Business Interest Conflicts with Public


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Whistleblowing

Act of disclosing wrongdoing in an

organization

Like blowing a whistle to call attention to a

thief

Types

Internal

External


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Can Cause Bitterness in

OrganizationDissent - Must speak out against others in

organization

Breach of Loyalty- Perceived as one whoviolates confidentiality and loyalty

Accusation - Singles out specificindividuals as threats to organization or the

public


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Possible Retaliation

Fired

Blacklisted

Transferred to undesirable locationsLifestyles and mental stability questioned

Physical abuse and murder possible


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Failure to Reveal Wrongdoing

Severe problems for society or organization

Can be implicated as an accessory before orafter the fact


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Ethics of Whistleblowing

When is it ethical to reveal wrongdoing ?

When is it ethical to remain silent?


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Whistleblowing Example

In charge of Quality Control

Company makes parts for automobile

brakes

Find defect in brake part

Could cause failure in brakes

Failure not certainMay take many years to develop


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Whistleblowing Example (cont.)

Go to VP of Production, your boss

He tells you to overlook defect - company

may loose too much money

What would you do?


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Cautious Approach to

Whistleblowing1. Make sure situation involves an imminent

threat to society or to the business

2. Document all allegations

3. Examine internal whistleblowing first

4. Should you remain anonymous?

5. Get another job first!!!


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Bribery

A payment, usually to a public official, to

induce that person to either do something

improper or to influence decisions or

actions

Extortion - same as bribery - recipient of

payment initiates transaction


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Bluffing and Deception

Negotiating a labor contract

Plant has experienced losses over past

several years - not clear why

Want concessions from labor

Tell labor that plant will be closed if no

concessions are made. In reality , no such

plans contemplated

Is This Ethical?


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Managerial Implications

Top Management Leadership

Organizational Culture

Realistic Goal Setting

Ethics Audit

Code of Ethics

Ethics Committee


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Managerial Implications

Ethics Advocate

Whistleblowing Mechanism

Ethics Training

Date post:	03-Apr-2018
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Ppt1 Business Ethics

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