The study and practice of decisions about what is good or right.
The use of ethics and ethical principles to solve business dilemmas.
A question about how a person should behave that requires the person to reflect about the advantages and disadvantages of the optional choices for various stakeholders.
social responsibility of business
The responsibility of firms doing business within a community to meet the expectations that the community imposes on them.
WPH process of ethical decision making
A set of ethical guidelines that urges us to consider whom an action affects, the purpose of the action, and how we view its morality (whether by utilitarian ethics, deontology, etc.).
(W)PH – WHO are the relevant stakeholders?
1. Owners or shareholders.
5. The general community where the firm operates.
6. Future generations.
W(P)H – what are the ultimate PURPOSES of the decision?
turn to the basic unit of business ethics—values of the business
WP(H) – HOW do we make ethical decisions?
The Golden Rule
Public Disclosure Test
Summary – Business Ethics and Social Responsibility
Business ethics is the application of ethics to the special problems and opportunities experienced by businesspeople.
The social responsibility of business consists of the expectations that the community imposes on firms doing business with its citizens.
Summary – Business Law and Business Ethics
Business ethics builds on business law. The law both affects and is affected by evolving ethical patterns. But business law provides only a floor for business ethics, telling business leaders the minimally acceptable course of action.
Summary – The WPH Framework for Business Ethics
Who are the relevant stakeholders? This question determines which interests (consumers, employees, managers, owners) are being pushed and prodded. What are the ultimate purposes of the decision? This question determines which values (freedom, efficiency, security, and justice) are being upheld by the decision.
How do we make ethical decisions? This question leads us to apply general ethical guidelines:
Golden Rule: Do unto others as you would have them do unto you.
Public disclosure test:If the public knew about this decision, how would you decide?
Universalization test:What would the world be like were our decision copied by everyone else.