...10 Business Ethics/Social Responsibility/Environmental Sustainability 1) Many people consider it unethical for a firm to be socially irresponsible. Answer: TRUE Diff: 1 Page Ref: 310 AACSB: Ethical Understanding and Reasoning Abilities Objective: 10.01 Explain why good ethics is good business in strategic management. Learning Outcome: Discuss the roles of ethics and social responsibility in strategic management 2) Social responsibility refers to actions an organization takes that are legally required to protect or enhance the well-being of living things. Answer: FALSE Diff: 2 Page Ref: 310 AACSB: Ethical Understanding and Reasoning Abilities Objective: 10.01 Explain why good ethics is good business in strategic management. Learning Outcome: Discuss the roles of ethics and social responsibility in strategic management 3) Sustainability refers to the extent that an organization's operations and actions protect, mend, and preserve rather than harm or destroy the natural environment. Answer: TRUE Diff: 1 Page Ref: 310 Objective: 10.05 Discuss specific ways that firms can be good stewards of the natural environment. Learning Outcome: Discuss the roles of ethics and social responsibility in strategic management 4) Good ethics is not a prerequisite for good strategic management. Answer: FALSE Diff: 2 Page Ref: 311 AACSB: Ethical Understanding and Reasoning Abilities Objective: 10.01 Explain why good ethics is good business in strategic...
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... MFC 301 MBA ETHICAL RELATIVISM & REASONING IN ETHICS INTRODUCTION People develop their judgment concerning morality over time. They improve and widen them through interactions with individuals and social institutions. In different societies each with their own ethnicity and traditions, there are different thoughts concerning how humans are to behave. Different societies and cultures have different policies, different customs, laws and regulations and moral ideas. ETHICAL RELATIVISM Cultures vary extensively in their ethical practices. Whatvarious practices that some societies considers morally acceptable, can be condemned in others, like polygamy or adultery, racism, sexism, and genocide, which is the deliberate killing of people who belong to a particular racial, political or cultural group. Differences like these may make us question whether there are any universal moral principles or whether morality is merely a matter of "cultural taste."Dissimilarities in these practices across cultures raise a vitalconcern in ethics -- the concept of "ethical relativism." Ethical relativism is the philosophy that states that morality is relative to the customs of one's culture. Albeit, whether an action is right or wrong is contingent on the moral norms of the society in which it is practiced.The same action may be morally right in one society but be morally wrong in another. It is a theory in which the point of ethics and their universality is brought...
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...Ethical Role of the Manager In a broad construction of the ethical role of the manager, managing and leading can be said to be inherently ethics-laden tasks because every managerial decision affects either people or the natural environment in some way—and those effects or impacts need to be taken into consideration as decisions are made. A narrower construction of the ethical role of the manager is that managers should serve only the interests of the shareholder; that is, their sole ethical task is to meet the fiduciary obligation to maximize shareholder wealth that is embedded in the law, predominantly that of the United States, although this point of view is increasingly accepted in other parts of the world. Even in this narrow view, however, although not always recognized explicitly, ethics are at the core of management practice. The ethical role of managers is broadened beyond fiduciary responsibility when consideration is given to the multiple stakeholders who constitute the organization being managed and to nature, on which human civilization depends for its survival. Business decisions affect both stakeholders and nature; therefore, a logical conclusion is that those decisions have ethical content inherently and that managerial decisions, behaviors, and actions are therefore inherently ethical in nature. Whenever there are impacts due to a decision, behavior, or action that a leader or manager makes, there are ethical aspects to that decision or situation. While some skeptics...
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...Chapter 5 Social Responsibility and Ethics How important is it for organizations and managers to be socially responsible and ethical? In this chapter, we’re going to look at what it means to be socially responsible and ethical and what role managers play in both. Focus on the following learning outcomes as you read and study this chapter. LEARNING OUTCOMES 5.1 Discuss what it means to be socially responsible and what factors influence that decision. 5.2 Explain green management and how organizations can go green. 5.3 Discuss the factors that lead to ethical and unethical behavior. 5.4 Describe management’s role in encouraging ethical behavior. 5.5 Discuss current social responsibility and ethics issues. SPOTLIGHT: Manager at Work Chapter 5 presents contemporary concepts of managerial ethics and social responsibility to help your students explore and appreciate the critical role of these issues in today’s complex business environment. In the opening case, “A Manager at Work,” we see firsthand the complications that arise when companies are caught in the middle of unethical and illegal allegations. The case revolves around allegations of attempted bribery by three Renault executives. After an investigation, all three of the employees were dismissed, but the story doesn’t end there as the Paris prosecutor in charge of the case later dismissed the charges for lack of evidence. Renault would eventually backtrack on the firing of the executives, rehiring all three...
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...Business Ethics Concepts & Cases Manuel G. Velasquez Copyright © 2012 Pearson Education, Inc. All rights reserved. Chapter One Basic Principles: Ethics and Business Copyright © 2012 Pearson Education, Inc. All rights reserved. Ethics and Morality • Ethics is the study of morality. – Morality = The standards that an individual or a group has about what is right and wrong, or good and evil. • Example: B.F. Goodrich A7-D Fraud – Moral Standards = norms about the kinds of actions that are morally right and wrong, as well as the values placed on what is morally good or bad. – Non-Moral Standards: The standards by which we judge what is good or bad and right or wrong in a non-moral way. Copyright © 2012 Pearson Education, Inc. All rights reserved. Five Characteristics of Moral Standards • Involve significant injuries or benefits • Not established by authority figures • Should be preferred to other values including self-interest • Based on impartial considerations • Associated with special emotions and vocabulary. Copyright © 2012 Pearson Education, Inc. All rights reserved. What is Business Ethics? • Broadly, ethics is the discipline that examines one’s moral standards or the moral standards of a society to evaluate their reasonableness and their implications for one’s life. • Business ethics is a specialized study of moral right and wrong that concentrates on moral standards as they apply to business institutions, organizations, and behavior. ...
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...the payments to the terrorist group to protect its employees? What ethical principles support your opinion. A. Chiquita was asked to make the payements to the terrorist group in 1995 when it was unaware of the actions of the paramaillitary group. It was only human for Chiquita to first think of its employees and protect them. However Chiquita failed to look at the bigger and failed to estimate what the terrorist organization actually did with the money. I believe it was ethically wrong for Chiquita to have involved in this activity, not disclosing it to the US government and also hiding it in its accounting. The best thing to do would have been to withdraw from these markets inspite of its good intensions. 2. Is there anything that Chiquita could have done to protect its employees adequately without paying the terrorists? A. Chiquita should have contacted the US Department of justice earlier and asked for help stating its good intensions to continue its business and also protect its employees. If sufficient help wasn’t available from the government it should have withdrawn from the market. 3. Using the four methods of ethical reasoning see figure 4.6 was it ethical or not for Chiquita to pay the terrorist organization? A. People in business can analyze ethics dilemmas by using four major types of ethics reasoning virtues ethics, utilitarian reasoning, rights reasoning and justice reasoning. The values and character of the company were right in trying to...
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...Introduction Ethical behavior is generally expected to be conducted within a business by its managers and employees. When business ethics is spoken by business people of it usually means one of three things (1) avoid breaking the criminal law in one’s work-related activity; (2) avoid action that may result in civil law suits against the company; (3) avoid actions that are bad for the company image (Erwin 2011). . Ethical issues in business will occur but can be solved and avoided in many cases that can help a company continue to be successful. Using an ethical decision making process will guide companies and its employees in the right direction to success and respect within the communities they serve. Most people involved in business whether functioning as a small business owner, employee, or chief executive officer of a multination company eventually face ethical or moral dilemmas in the workplace. Such dilemmas are usually complex, for they force the person making the decision to weigh the benefits that various business decisions impart on individuals including him or herself and groups with the negative repercussion that those same decisions usually have on other individuals or groups. What is Ethics? Business ethics is a subject that can be difficult to define. Any discussion of business ethics is a subjective one, for everyone brings different concepts of ethical behavior to the table. These moral standards are shaped by all sorts of things, from home environment to...
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...Ethics and Business 1.1 The nature of Business Ethics Ethics is the principles of conduct governing an individual or a group, ethics also called the study of morality. Morality itself is the standard that an individual or a group has about what is right and wrong or good and evil. Business ethics is a specialized study of moral right and wrong that concentrates on moral standards as they apply to business institutions, organizations, and behavior. Business ethics investigates three kinds of issues : * Systemic issues in business ethics are ethical questions raised about the economic, political, legal, and other institutions within which business operate. * Corporate issues in business ethics are ethical questions raised about a particular organization. * Individual issues in business ethics are ethical questions raised about a particular individual or particular individuals within a company and their behaviors and decisions. Corporate Social Responsibility is a corporation’s responsibilities or obligations toward society. There are several arguments that supporting ethics in business : * Ethics applies to all human activities * Business cannot survive without ethics * Ethics is consistent with profit seeking * Customers, employees, and people in general care about ethics * Studies suggest ethics does not detract from profits and seems to contribute to profits 1.2 Ethical Issues in Business New technologies from agricultural...
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...Ethical & Moral Issues in Business Jennifer Luttrell (Webb) UOP Ethical & Moral Issues in Business Natural habits are the nurturer of one’s personal habitats; these personal habits are developed by the teaching of right from wrong. Morals as we know them are developed, and in business and in life are the ethical decisions that are at the discretion of the individual. In the following paper, a few questions will be answered, what the differences are between ethical and moral issues, the differences between personal and business ethics. Finally, explanations will be given of these ethical issues with today’s business environment that impact communities and organizations. Differences in ethical & moral Moral and ethical can sometimes be taken to have the same meaning, however “moral reasoning beings with the consideration of a moral or ethical issue” (LaBossiere, 2004, para. 1). Ethical decisions have three main parts, unmoral facts, concepts, and finally moral and ethical aspects. An example of issues that may occur within any business are, employees using the company’s finances for personal pleasure, the inaccuracy of reporting time worked, and of course, interoffice relationships. When these issues occur a business will most likely use the Code of Ethics. Although some of these issues discussed can be morally wrong by the Code of Ethics standards these issues are not considered to be ethically wrong according to the standards, unless the business itself prohibits...
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...Critical Thinking and Ethics Josh Hergatt ETH/316 The relationship between critical thinking and ethics is sometimes strong, and sometimes weak. The principles and rules of critical thinking are certainly applicable to ethical reasoning. There will always be a need for ethical decision making in order to be fair to everyone and to not be bias towards anyone for their religion, sex, race, etc. Critical thinking can certainly be used for ethical reasoning. Ethics is defined as the reasoned study of what is morally right and wrong or good and bad. Critical thinking is the active and systematic process of communication, problem solving, evaluation, analysis, synthesis, and reflection, both individually and in community, to foster understanding, support sound decision making, and guide action. With these two defined, critical thinking and ethics should come hand in hand. In ethical reasoning, the principles of communication, analysis, evaluation, and problem solving from critical thinking should be used. The problem with this is that there are people that let their emotions get the best of them while reasoning. Some may not have the patience to resolve an issue, which causes the relationship between critical thinking and ethics to be weak. If everyone in society followed the rules and guidelines and logic, there would still be a need for ethical decision making. Treating everyone fair should be the biggest aspect of our society...
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...Corporate Culture, Governance and Ethics Written By: Bilge-Kagan Ozturk 2007 Abstract This paper examines the critical importance of an ethically based corporate/organisational culture to ensuring company-wide ethical conduct. Testament to this topic I use the case of Enron and its ethical demise to successfully support my argument and highlight the need of top level management to be the main proponents of this culture to allow lower level employees to adopt a behaviour of moral reasoning. The body of the essay will highlight the importance of shaping an ethically based organisational culture, through a number of components, namely a company’s executive management team and its corporate governance system. I also briefly evaluate agency and stakeholder theories and how they relate to an organisational culture from an ethical perspective, and point out Enron’s culture was predominantly one of agency reasoning. Finally I provide a brief and direct conclusion to assert my argument that ethics needs to exist deep within an organisation’s culture and needs to be the key leading value of an organisation. A breakdown of ethics can eventually lead to the demise of a once very reputable and successful company. A great textbook example is of course, the fall of Enron – one of the biggest corporate bankruptcies in US history. Like most companies, Enron had a code of ethics in place and employees who were educated in the field of ethics, agency and stakeholder theories...
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...BMB2033: BUSINESS ETHICS AND VALUES Course Leader: Shaharudin Yunus COURSE NOTES TOPIC 1: Fundamentals of Values, Ethics and Morality LEARNING OBJECTIVES At the end of this chapter, you will be able to: Define values List the sources of value Identify the roles of values in decision-making Identify the definition of ethics Identify the nature of ethical reasoning Identify the concept of ethical standards and judgement Define morality Identify the various phases of Kohlberg's theory of moral development Identify the differences between ethics and morality Identify the similarities between ethics and morality Identify the basic unification of ethics, values and morality NATURE OF VALUES 1.1.1 Definition A small company has just employed Rizal as a marketing executive. As a fresh graduate, Rizal feels enthusiastic about the job and is determined to be a good worker. On the first day of work, new employees were briefed on how work is done. At that point, Rizal realized that some of the company's marketing strategies somewhat deceived the customers. This is just one example of ethical issues in business that we will look at in this course. Values, ethics, and morality are three concepts used in discussing 'Business Ethics and Values'. We will see how they should be applied in businesses. However, in this section, we will discuss values first. Values are defined as fundamental principles or enduring beliefs about the most desirable conditions and...
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...Ethical dilemmas are common issues that every businessman has to face at their working environment. It is not such an easy task for businessman to have an ethical decision making, to choose what the “right” thing to do. In this following factual scenario, John also has to face some ethical dilemmas in his working environment and have difficulty to find appropriate solution. After a brief summary of the facts, I will discuss some ethical dilemmas which John is confronting and some approaches to ethical reasoning. John is a Patient Accounts Manager of Greensburg Hospital with responsibility to monitor the charges which accrue to a patient’s account while the patient is hospitalized. He discovers an unusual bill listed on a patient’s account without charged. This patient is Izzy Indigent, who is an unemployed Medicaid one and she has been hospitalized for several day. She gave her children the supply of body lotion, soap, toothpaste, mouthwash, and Kleenex in the hospital when they come to visit her daily and asked for refilling on the next day. John asked the supervising nurse and received the answer that she knew about it but let it go. The prognosis is that the hospitalization of Ms. Indigent will last several more weeks. In this situation, John has to face an ethical dilemma which is whether his personal value system are versus his professional responsibiities, whether he should keep silent about the charges on Indigent’s account or he should report it accurately and truthfully...
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...and Ethics Krystal Borrego ETH/316 January 12, 2015 Tim Tietjen Critical Thinking and Ethics When it comes to human organs and individuals buying them from prisoners that have been executed to survive one would have to ask themselves if they are making an ethical decision. Buying and selling human organs is illegal in the United States yet it is happening right now as we enter into the year 2015, a lot of critical thinking has gone into this industry and made a world wide business out of it. Although China was the leading source of this crude and horrid operation, the buying and selling of human organs is happening right here on American soil. Blood Money Analysis Do the leaders of China and the prisoners understand what ethical decision making really is? Ordering an execution and then knowingly preparing the bodies for a liver transplant is something that you or I would say it unethical but this just goes to show that everyone has different decision making skills. How these individuals apart of this business were raised and taught ethics is very different from how we were taught here in the United States. Some would say that because it is a foreign country that they have different beliefs and find no wrong doing in this exchange of organs, their critical thinking was done on their own ethical template. Providing a perfectly healthy organ from an executed prisoner to help save someone’s life is completely ethically correct to them. Critical Thinking and Ethical Reasoning ...
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...is an introduction to Business Ethics subject. The discussion included businessman’s myth about business ethics, the relationship of ethics and business, moral reasoning in business, the theory of profit motive, and business ethics definition. These given me deeper understanding of the subject “Business Ethics and Social Responsibility”. Some of businessman’s myth about business ethics includes: Ethics is a personal affair and not a public debatable matter; Ethics and business do not mix; This in business is relative; Good business means good ethics; and Business is war. These myths will remain a myth. The relationship of ethics and business which cannot be separated from one another. Ethics is an unwritten law, written in the heart of men. Business is an integral part of the human society with activities must also be examine from the moral perspective. In business, what is legal may not be necessary be moral. Today, the trend is to train managers to maximize profits and to quantify the operation of business. With moral reasoning in business, ethical issues and problems affecting the organization must be solved by the manager. Always judge the action based on an ethical principle. A good moral standard will be necessary have a good for me and for everyone, must be objective and not subjective, and when violated bring about feelings of guilt, share and remorse of conscience. The assumption of profit-motive is that it is an ethical issue in business and operates within the...
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