Business Law 1 (PowerPoint Business Ethics) – Flashcards

Is the study of how people should act. Also refers to the values and beliefs related to the nature of human conduct based on ethical standards or moral orientation.

Business conduct that seeks to harmonize the values of society with the goal of profitable operation.

Many businesses have adopted a ____ __ ____ to foster ethical behavior within a firm.

Some laws, such as the ____-____ ____, have forced some firms to adopt codes of ethics for their executives.

The ____ ____ ____ of behavior determines whether an act s, or is not, ethical by examining the interest of various stakeholders affected by a business action. Stakeholders are ____ and ____ to the firm.

Responsibilities Philanthropic Be a good corporate citizen. Contribute resources to the community; improve quality of life. Ethical Be ethical. Obligation to do what is right, just and fair. Avoid harm. Legal Obey the law. Law is society's codification of right and wrong. Play by the rules of the game. Economic Be profitable. The foundation upon which all others rest.

4th Be a good corporate citizen. Contribute resources to the community; improve quality of life.

3rd Be ethical. Obligation to do what is right, just and fair. Avoid harm.

2nd Obey the law. Law is society's codification of right and wrong. Play by the rules of the game.

1st Be profitable. The foundation upon which all others rest.

To consider when making a decision on a matter of ethics: 1) 2) 3) 4) 5) 6)

"If its necessary, it's ethical" "If its legal and permissible, it's proper" "It's just part of the job" "It's all for a good cause"

The ____ ____ ____. Overestimating the cost of doing the right thing and underestimating the cost of failing to do so.

"I was just doing it for you" "I'm just fighting fire with fire" "It does not hurt anyone" "Everyone is doing it"

"It is Ok if I don't gain personally" "I have got it coming to me" "I can still be objective" Be honest, can you really?

Harms sales Harms stock prices Worsens the risk from scandal Worsens employee fraud Lowers productivity

Lowers performance of skilled workers Worsens efficiency Worsens communication Worsens retention and recruiting Worsens employee absenteeism

Worsens sabotaging bahavior

1. What FACTS impact decision? 2. What are the ALTERNATIVES? 3. Who are the STAKEHOLDERS? 4. How do the alternatives impact SOCIETY AS A WHOLE? 5. How do the alternatives impact MY BUSINESS FIRM? 6. How do the alternatives impact, ME, THE DECISION MAKER? 7. What are the ETHICS of each alternatives? 8. What are the PRACTICAL CONSTRAINTS of each alternative? 9. What COURSE OF ACTION should be taken and how do we IMPLEMENT it?

Recognize unethical request and Bosses. Buy time. Find a mentor and peer group. Find alternative win-win solutions. Work within the firm to stop the unethical activity. Prepare to lose your job.