Understanding Ethics in Business: Principles and Practice

1. BellWork • A neighbor offered you $15 for picking up her mail. Afterward, she gives you $20 and refuses change. She actually gave you two twenties that were stuck together. What do you do? • You should return one of the twenties because it is ethically and morally correct.

3. Why do you think ethical behavior is beneficial for long-term profitability and success? • Business engaging in ethical behavior earn a good reputation, which translates into sales.

4. If someone said they had a copy of answers to a test you were about to take, would you look at it? • Do you have a code of ethics? • Do you take responsibility for your behavior, or blame others?

5. Objectives • Define ethics and business ethics. • Describe why ethical behavior is good for business. • List the steps for dealing with an ethical dilemma.

6. The Main Idea Ethics are moral principles by which people conduct themselves personally, socially, and professionally. Business ethics are rules that guide the behavior of a business and its employees. Business ethics are generally based on moral principles. In business, good ethics is beneficial for long-term profitability and success.

7. Key Concepts • The Nature of Ethics • Ethics as Good Business • Ethical Questions

8. Key Terms moral principles by which people conduct themselves personally, socially, or professionally ethics rules based on moral principles about how businesses and employees ought to conduct themselves business ethics

9. Key Terms code ofethics a set of guidelines for maintaining ethics in the workplace a shop or factory in which workers are employed for long hours at low wages and under unhealthy conditions sweatshop

10. Key Terms conflict ofinterest a conflict between self-interest and professional obligation

11. The Nature of Ethics When you are guided by ethics, you do not cheat on a test or lie to friends or family. ethics moral principles by which people conduct themselves personally, socially, or professionally

12. The Nature of Ethics Most businesses are guided by business ethics. Different cultures, businesses, and industries have different ethical standards business ethics rules based on moral principles about how businesses and employees ought to conduct themselves

13. Business Ethics Fair treatmentof employees Creating safeproducts Creating jobs Truthful aboutfinancialstatus Environmentalprotection

14. Cultural Etiquette In Thailand, it is customary to exchange gifts during a second business meeting. In China, gift giving is considered a form of bribery and is illegal.

15. Law and Ethics In business, people follow rules as well as a code of ethics. code of ethics a set of guidelines for maintaining ethics in the workplace

16. Law and Ethics A sweatshop is an example of an unethical practice outlawed in the United States. sweatshop a shop or factory in which workers are employed for long hours at low wages and under unhealthy conditions

17. Law and Ethics The Occupational Safety and Health Administration (OSHA) sets and enforces work-related health and safety rules.

18. Ethics as Good Business Unethical business practices include: • Lying • Offering merchandise known to be substandard • Treating customers or employees unfairly

19. Ethics as Good Business If a business violates government regulations, the owner can be fined or go to jail. If an employee violates a company or professional code, the employee might be fired or lose his or her license.

20. Ethics as Good Business Unethical business practices can result in bad word of mouth and result in lost sales. Unethical behavior toward employees can lead to legal action or a high rate of employees quitting.

21. Conflicts of Interest Conflict of interest is a major ethical question that is generally not illegal. conflict of interest a conflict between self-interest and professional obligation

23. Graphic Organizer

24. Ethical Observations by Employees Figure 4.1

25. What is the difference between personal and business ethics? Personal ethics: moral principles that guide an individual; business ethics: rules, based on moral principles, used by a business.

26. Describe some of the ways that unethical business practices can affect a business. Customers will not patronize the business. It is hard to retain employees. If the behavior is illegal, the business might be fined.

27. What is the relationship between illegal behaviors of business and unethical behaviors of business? Generally, illegal behaviors of business are also considered unethical but there are some unethical behaviors that are not illegal.

28. Activity • What is the difference between personal and business ethics? • Describe some of the ways that unethical business practices can affect a business. • What is the relationship between illegal behaviors of business and unethical behaviors of business? • A large company decided it would give 1/8 of it profits to charity. If the amount given was spread equally among five different charities, what fraction of the companies profits was given to each? What percent of the companies profit is this?

29. Objectives/Exit ticket • Define ethics and business ethics. • Describe why ethical behavior is good for business. • List the steps for dealing with an ethical dilemma.

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