BE

Morals are

*The standards of (the behavior or principle of beliefs) of an individual to judge what is right and wrong they are developed and later ruled as per the society expectations

Values

*is the (learners belief) system where an individual motivates themself to do several things

Firm survival

Business ethics effect on businesses

Highly visible business ethics issues influence the public attitude towards business

Can destroy trust

Business ethics effect on business

Contribute to societal goals

Ethical and socially responsible concerns 2000

Cybercrime Financial misconduct Global issues Bribery Sustainability Property theft

Values

Enduring beliefs and ideals that are socially enforced

Major business concern

Ethical misconduct

A high profitability cannot be attained in applying ethical business practice

False

Being a good manager with sound personal ethics is enough to handle the ethical issues that Aries in a business organization

False

Negative publicity associated with major misconduct increase the public trust in certain business sector

False

Value dilemma represents two or more morals conflict with one another

False

We can formulate a universal approach for resolving ethical business issues

False

Business ethics effect on business

Firm survival Profitability, revenues, sales Stakeholders: customers, employees, channel members (manufactures, wholesalers, retailers) Contribute to societal goals: community, country, world

Business ethics positive impact

Firm survival Profitability, revenues, sales Stakeholders: customers, employees, channel members (manufactures, wholesalers, retailers) Contribute to societal goals: community, country, world

Business ethics

Includes organizational principles values and norms that may originate from the legal system the primarily guide individual and group behavior in business

Often determine wether a specific action is right or wrong and ethical or unethical

Investors employees customers interest groups. The legal system. The community

Ethics

Is defined as behavior or decisions made within a groups values by groups of people that represents the business organization

Negative publicity associated with:

Major misconduct that lower public's trust

Ethics contribute to customer satisfaction

High levels of perceived corporate misconduct decreases customer trust Companies vied as socially responsible increases customers trust and satisfaction Consumer respondents stated they would pay more for products from company that give back society in socially responsible and sustainable manner

Eg for principles

Human rights freedom of speech

Important reasons to study business ethics:

Identify ethical issues- recognize approaches (methodologies) for resolving ethical issues - cope with conflicts between ur own values and those of the organization in which you work - gain knowledge to make more ethical business decisions

misleading advertising

Illegal and unethical

Identify ethical issues is

Important reason for studying business ethics

Issues in business ethics

Misuse of company resources Abusive behavior Accounting fraud Conflict of interest Defective products Bribery

regardless of an individual beliefs about a particular action if society judge it to be unethical or wrong

New legislation usually follows

Ethical culture *

Organizational principles, values, and norms that are followed by the company and its personnel

Morals

Personal philosophies that define right and wrong

Business ethics effects on busineses

Profitability revenues sales

Ethics contribute to investors loyalty

Provides a foundation for efficiency productivity and profits Negative publicity lawsuits complaints and fines can lower stock price diminish customers loyalty and threatening a company long term viability Demand for socially responsible investing is increasing

Within a corporate culture there are rules and ...

Regulations both written and unwritten that determine what decisions employees consider right or wrong as it relates to the firm

Sustainability

Relates specially to the environment (air land and water)

Value dilemma

Represents two or more beliefs/ideals in conflict with one another

Moral dilemma:

Represents two or more morals in conflict with one another

The Process of Legal to Unethical to Illegal Business Practice

Sell tobacco is legal>>minor unethical >>minor prohibit

The field of business ethics concerns questions about wether

Specific business practice are acceptable

Business ethics effect on business

Stackholesrs customers employees channel members (manufactures, wholesalers, retailers)

The worlds most ethical companies often have

Superior stock performance

Why there is no universal approach for resolving ethical issues

Value and judgment play a critical role in the making of ethical decision

Ethics contribute to employee commitment

Willingness to sacrifice for the organization Increases group creativity and job satisfaction; decreasing turn over Less pressure to compromise ethical standards Greater absence of misconduct Strong community involvement increases loyalty and positive self identity

Years of experience in a particular industry may be required to know what is

acceptable

Corporate social responsibility:*

actions associated by firms with various stakeholder interests as a priority

There is no conflict or trade off between profits and....

business ethics

The reasons for studying business ethics

1- an individual personal values and morals philosophy is only one factor in the ethical decisions making process 2- being good person with sound personal ethics is not enough to handle the ethical issues that Aries in a business organization 3- business strategy decisions involve complex and detailed discussions 4-the morals people learn from family religion and school may not provide specific guidelines for complex business decisions

Special aspects must be considered when applying ethics to business

1-businesses must earn a profit to survive, but these profits should not come from misconduct 2-to be successful businesses must address the needs and desire of stakeholders.

Recognizing approaches (methodologies) for resolving ethical issues

2 Important reason to study business ethics

The process of legal to unethical to illegal business practice

A major event occurs that negatively sensitize the public to a business practice. The public uses social media to increase awareness Legislators (local, state, federal) become sensitized to the negative business practice Bills laws and local state or federal agencies are interdouced to make specific item illegal or regulated

Decreased trust leads to

A reduction in customer satisfaction and customer loyalty

Why we study business ethics?

A way to deal with crisis in business ethics

observed misconduct in the workplace

Abusive behavior Lying to stakeholders Conflict of interest Pressure to compromise standards Experience retaliation for reporting Report observed misconduct

A puffery or exaggerated claim

Acceptable

Wether correct or not that judgment directly affects a company s ability to

Achive business goals

Principles

Are specific boundaries for behavior often become the basis for rules that should not be transgressed

Ethics contribute to profits

Better business performance Part of strategic planning toward obtaining the outcome of higher profitability Business ethics is becoming more than just a compliance it's becoming an integral part of management effort to achieve competitive advantage

Business ethics important for achieving competitive advantage

True

Businesss ethics contribute to enhance group creativity and job satisfaction

True

corporate culture incorporates rules and regulations that influence what decisions employees consider right or wrong

True

Eg for values

Trust and integrity