Ethics . . . Ethics is the study of right and wrong and of the morality of the choices individuals make. An ethical decision is one that is ‘right’ according to some standard of behavior. Business Ethics. Business Ethics is the application of moral standards to business situations.
Ethics is the study of right and wrong and of the morality of the choices individuals make.
An ethical decision is one that is ‘right’ according to some standard of behavior.
Business Ethics is the application of moral standards to business situations.
Cigarette companies are being fined for their advertising practices.
Businesses are often influenced by group pressure in their ethical practices:
Deceiving or intimidating others
Taking credit for others work
Pressuring others to behave unethically
Conflict of Interest
When an employee takes advantage of a situation for his or her benefit (bribe), rather than for the employer’s interest
When communication in business, especially advertising, is false or misleadingCommon Ethical Issues
BMW received a court order to pay $2 million to a U.S. buyer because it had failed to inform him that his car paint had been damaged and retouched.
Identify the ethical issue that is violated by BMW
Assume that you are an employee in XYZ Company. Your manager requested a report about the ‘The Demand and Supply of the Real-Estate Market in Bahrain'. After submitting the report, which is part of your duties, you found that your manager submitted it to the CEO under his name only.
Identify the ethical issue that is violated by the manager
Assume that you are a 'contract manager' in XYZ company. You received an expensive watch from one of the bidders.
Identify the ethical issue that you violated
Fairness and Honesty
Conflict of Interest
CommunicationCase - Misleading Advertising
(Figure 2.2, p 40)
The recognition that business activities have an impact on society and the consideration of that impact in business decisions
Business decisions are made within the firm; so social responsibility begins with the attitude of management.
Government regulations and public awareness have increased the social responsibility of businesses.
The Economic Model of Social Responsibility states that society will benefit most when business is left alone to produce and market profitable products that society needs.
The Socioeconomic Model of Social Responsibility states that business should emphasize not only its profits but also the impact of its decision on society.
Arguments For Social Responsibility:
Arguments Against Social Responsibility:
Consumerismincludes all activities undertaken to protect the rights of consumers.
Six Basic Rights of Consumers
Someone will listen and take appropriate actionwhen the consumer complains
Entitles people to be fully informed about their rights as consumers
Entitles customer to receive convenient,courteous and responsive treatment from manufacturers and sellers