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The Importance of Business Ethics

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lydie
15 diapositives · 3.8K Views · Oct 16, 2012

The Importance of Business Ethics. Ethical Decision Making for Business 8 e Fraedrich/ Ferrell/ Ferrell. CHAPTER 1. Chapter Objectives. To explore conceptualizations of business ethics from an organizational perspective To examine the historical foundations and evolution of business ethics

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The Importance of Business Ethics
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  1. The Importance of Business Ethics Ethical Decision Making for Business8eFraedrich/ Ferrell/ Ferrell CHAPTER1

  2. Chapter Objectives • To explore conceptualizations of business ethics from an organizational perspective • To examine the historical foundations and evolution of business ethics • To provide evidence that ethical value systems support business performance • To gain insight into the extent of ethical misconduct in the workplace and the pressures for unethical behavior

  3. Chapter Outline • Why Study Business Ethics? • The Development of Business Ethics • Developing an Organizational and Global Ethical Culture • The Benefits of Business Ethics • Our Framework for Studying Business Ethics

  4. Business Ethics Comprises principles and standards that guide behavior in the world of business Right or wrong, acceptable or unacceptable behavior within the organization Determined by you and key stakeholders

  5. A Crisis in Business Ethics Consumer trust of businesses is declining No sector is exempt from ethical misconduct Stakeholders determine what is ethical/unethical Investors Employees Customers Interest groups Legal system Community

  6. Why Study Business Ethics? Reports of unethical behavior are on the rise Society’s evaluation of right or wrong affects its ability to achieve its business goals Studying business ethics is a response to Sarbanes-Oxley, FSGO, and stakeholder demands for ethics initiatives Individual ethics alone is not sufficient Studying business ethics helps identify ethical issues to key stakeholders

  7. Before 1960: Ethics in Business A living wage Theology’s domain Philosophy’s domain

  8. The 1960s: The Rise of Social Issues in Business Consumer’s Bill of Rights Ralph Nader

  9. The 1970s: Business Ethics as an Emerging Field Bribery Deceptive advertising Price collusion Product safety The environment

  10. The 1980s: Consolidation Organized field of study Business ethics centers Business ethics courses Defense industry initiative Multinationals Self-regulation (Reagan/Bush)

  11. The 1990s: Institutionalization of Business Ethics Free trade Self-regulation Federal Sentencing Guidelines for Organizations (FSGO) More multinationals

  12. The Federal Sentencing Guidelines for Organizations Standards and procedures capable of detecting and preventing misconduct High level oversight Care in delegation of authority Effective communication (training) Systems to monitor, audit, and report misconduct Consistent enforcement Continuous improvement

  13. The 21st Century: A New Focus Continued issues with corporate non-compliance Sarbanes-Oxley Act (2002) FSGO reform (2004) Firm’s greatest danger is not discovering misconduct early Basic assumptions of capitalism being debated

  14. Organizational and Global Ethical Culture Ethical culture describes the component of corporate culture that captures the values and norms that an organization defines as appropriate conduct

  15. Benefits of Business Ethics Better ethical climate Employee commitment and trust Investor loyalty and trust Customer satisfaction and trust Long term profits