Ethics
Ethics
Ethics is more than legality
Ethics
Standards of moral behavior; behavior that is accepted by society as right versus wrong.
Ethics begins wit each of us
It is helpful to ask yourself the following questions when facing an ethical dilemma.
It is legal?
It is balanced? Am I acting fairly? Would I want to be treated this way?
How will it make me feel about myself? Would I feel proud if my family learned of my decision? My friends?
Managing Businesses Ethically and Responsibly
People learn their standards and values from observing what others do, not from hearing what they say.
A business should be managed ethically for many reasons:
to maintain a good reputation
to keep existing customers
to attract new customers
to avoid lawsuits
to reduce employee turnover
to avoid government intervention
to please customers, employees, and society
simply to do the right thing
Ethic of justice is based on principles like justice, fairness, equality, or authority.
Ethic of care is based on a sense of responsibility to reduce actual harm or suffering.
Setting Corporate Ethical Standards
Compliance-based ethic codes
Ethical standards that emphasize preventing unlawful behavior by increasing control and by penalizing wrongdoers.
Integrity-based ethic codes
Ethical standards that define the organization’s guiding values, create an environment that supports ethically sound behavior, and stress a shared accountability among employees.
Whistleblowers
People who report illegal or unethical behavior.
The following six-step process can help to improve business ethics:
Top management must adopt and support an explicit corporate code of conduct
Employees must understand that ethical behavior begins at the top, and that they are expected to act accordingly
Managers and others must be trained to consider ethical implications of all business decisions
Ethics