Ethics in the Business System

1. Ethics in the Business System Chapter 7, Steiner & Steiner Business Environment . Ethics in the Business System

2. Objectives • Do businesses and business corporations have to adhere to the same set of ethical standards as individuals?, or should business be “amoral?” • Describe the four major sources of ethics. • Define “ethics” • Define your basic ethical values and apply them in business cases Ethics in the Business System

3. Correct Craft • Review the facts of the case • Was it ethical to cause that much suffering? • How might you have responded to inspector? Ethics in the Business System

4. Two Theories of Business Ethics • Theory of Amorality • Herbert Spencer • Family ethics—relations and friends • State ethics—merit through competitive justice • Theory of Moral Unity • One set of standards • Business • People • Government Ethics in the Business System

5. Permissions to Break Your Moral Code • Ignorance • Incapacity • Unrealistic costs • No power to influence and outcome • No alternatives • External forces Ethics in the Business System

6. Major Sources/Theme? • Religion • Philosophical systems • Cultural Experience • Legal System Ethics in the Business System

7. Religion • Reciprocity • Religious works • Teachings of leaders • US Impact • 67% of top execs attend church regularly Ethics in the Business System--sources

8. Western Philosophical Systems • Greeks– • Absolute justice • Golden Mean • Christian ethics • God’s will • Ten Commandments • Golden Rule Ethics in the Business System--sources

9. Western Philosophical Systems (cont.) • Secular Philosophies of Idealism • Logic leads to ethics • Kant’s Imperative • Bentham’s utilitarianism • Pleasure to the most, • Pain to the fewest • Rights: Locke – Life, liberty & pursuit of: • Happiness or property Ethics in the Business System--sources

10. Western Philosophical Systems (cont.) • Realist School of Ethics • Evil is permanent in human nature • Ends justify the means • Fit survive, and society prospers • Idealism in business is unachievable Ethics in the Business System--sources

11. Cultural Experience • Hunting and gathering • Agricultural setting • Industrial setting • Information age setting? Ethics in the Business System--sources

12. The Legal System • Fines – US Sentencing Commission • Court awarded damages • Prosecution of individual managers Ethics in the Business System--sources

13. Business Ethics in Other Countries • Additonal sources in other countries • Historical Experience • Stage of Economic Development Ethics in the Business System

14. Ethical Behavior • Ethical relativism • Ethics are subjective • No ethical superiority • Ethical Universalism • Basic needs of justice, equity, humility • Overlapping consensus • Human dignity—not to be manipulated • Basic rights • Support institutions & bonds of a community Ethics in the Business System

15. Factors that Influence Managerial Ethics • Leadership & fast tracker at Bottlg Plt • Strategy and Performance – Pru-Bache • Corporate Culture • Harvard MBA • Make your numbers • Be loyal, team player • Be legal • Be realistic (not idealistic) • Moral Muteness Ethics in the Business System

16. Factors that Influence Managerial Ethics (cont.) • Individual Characteristics • Religious conviction • Age? • Business students vs. managers? • Results can’t be consistently confirmed Ethics in the Business System

17. How Corporations Manage Ethics • Ethics programs • Scandal • Muted damages • General Dynamics • Major effort • Little progress Ethics in the Business System

18. Guidelines for Managing Ethics Programs • Top Management • Codes of ethics • Organizational structure • Training • Enforcement • Cases on page 229 Ethics in the Business System

19. Objectives • Do businesses and business corporations have to adhere to the same set of ethical standards as individuals?, or should business be “amoral?” • Describe the four major sources of ethics. • Define “ethics” • Define your basic ethical values and apply them in business cases Ethics in the Business System