1 CHAPTER 2 BUSINESSETHICS. 2 ETHICS THE STUDY OF HOW PEOPLE OUGHT TO ACT.

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CHAPTER 2CHAPTER 2

BUSINESS BUSINESS

ETHICSETHICS

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ETHICS

THE STUDY OF HOW PEOPLE OUGHT TO ACT

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NOT HOW THEY ACT

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HOW ETHICAL ARE YOU?

•Quiz time•Quiz rules:

•Do not put your name on this quiz•Do not put your name on this quiz•Do not put your name on this quiz

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CALLED IN SICK WHEN CALLED IN SICK WHEN NOT ILL?NOT ILL?

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TAKEN OFFICE TAKEN OFFICE SUPPLIES FROM AN SUPPLIES FROM AN

EMPLOYER FOR EMPLOYER FOR PERSONAL USE?PERSONAL USE?

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TAKEN ANYTHING TAKEN ANYTHING VALUABLE FROM AN VALUABLE FROM AN

EMPLOYER FOR EMPLOYER FOR PERSONAL USE?PERSONAL USE?

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MISSTATED FACTS ON MISSTATED FACTS ON A RESUME/JOB A RESUME/JOB APPLICATION?APPLICATION?

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SHIFTED BLAME TO A SHIFTED BLAME TO A CO-WORKER FOR CO-WORKER FOR

SOMETHING YOU DID?SOMETHING YOU DID?

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BEEN UNDERCHARGED BEEN UNDERCHARGED OR RECEIVED TOO OR RECEIVED TOO

MUCH CHANGE FROM MUCH CHANGE FROM A CASHIER AND NOT A CASHIER AND NOT

TOLD THEM?TOLD THEM?

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DOWNLOADED MUSIC DOWNLOADED MUSIC FROM AN INTERNET FROM AN INTERNET

SITE WITHOUT SITE WITHOUT PAYING FOR IT?PAYING FOR IT?

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““CHEATED” ON YOUR CHEATED” ON YOUR TAX RETURN (NOT TAX RETURN (NOT DECLARED INCOME DECLARED INCOME OR OVER-REPORTED OR OVER-REPORTED

DEDUCTIONS?DEDUCTIONS?

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SWITCHED PRICE TAGS SWITCHED PRICE TAGS TO GET A LOWER TO GET A LOWER

PRICE ON SOMETHING PRICE ON SOMETHING YOU WANTED TO BUY?YOU WANTED TO BUY?

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LIED TO FRIENDS OR LIED TO FRIENDS OR FAMILY MEMBERS FAMILY MEMBERS

ABOUT THEIR ABOUT THEIR APPEARANCES TO APPEARANCES TO AVOID HURTING AVOID HURTING THEIR FEELINGS?THEIR FEELINGS?

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KNOWING YOU HAD KNOWING YOU HAD LITTLE CHANCE OF LITTLE CHANCE OF GETTING CAUGHT, GETTING CAUGHT,

DRIVEN MORE THAN DRIVEN MORE THAN 20 MPH OVER THE 20 MPH OVER THE

SPEED LIMIT OR RAN SPEED LIMIT OR RAN A RED LIGHT?A RED LIGHT?

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LIED TO YOUR LIED TO YOUR SPOUSE, PARTNER, SPOUSE, PARTNER,

SIGNIFICANT OTHER, SIGNIFICANT OTHER, AND/OR PARENT, AND/OR PARENT,

ABOUT THE COST OF ABOUT THE COST OF A RECENT A RECENT

PURCHASE?PURCHASE?

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LIED TO YOUR LIED TO YOUR SPOUSE, PARTNER, SPOUSE, PARTNER,

SIGNIFICANT OTHER, SIGNIFICANT OTHER, ABOUT YOUR ABOUT YOUR

RELATIONSHIP WITH RELATIONSHIP WITH ANOTHER PERSON?ANOTHER PERSON?

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1. 63%1. 63%2. 63%2. 63% 3. 16%3. 16%

4. 18% 5. 13%4. 18% 5. 13% 6. 50%6. 50%

7. 37% 8. 17% 9. 12%7. 37% 8. 17% 9. 12%

10. 71% 11. 71% 10. 71% 11. 71%

12. 32% 13. 28%12. 32% 13. 28%

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WHY STUDYWHY STUDY

ETHICSETHICS

??

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WORLDCOM

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HEALTHSOUTH

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ImClone

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WORLDCOM

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HEALTHSOUTH

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ImClone

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KEY POINTS

Exploration of real-life business ethics issues

Teleological and deontological approaches to ethical issues

Corporate ethics codes Lots of rules and thoughtsLots of rules and thoughts

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LAW AND ETHICS LAW AND ETHICS MAY NOT MAY NOT

ALWAYS AGREE!ALWAYS AGREE!

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SOMETIMES IT IS SOMETIMES IT IS ETHICAL TO COMMIT AN ETHICAL TO COMMIT AN ILLEGAL ACT AND SOME ILLEGAL ACT AND SOME

LEGAL ACTS ARE LEGAL ACTS ARE UNETHICALUNETHICAL

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ETHICAL DILEMMASETHICAL DILEMMAS

Career and Family: Career and Family:

Are career and Are career and family goals ethically family goals ethically

compatible?compatible?

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Ethical StructuresEthical Structures

Religion:Religion:

Libertarianism:Libertarianism:

Virtue Ethics:Virtue Ethics:

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TELEOLOGICAL TELEOLOGICAL ETHICAL SYSTEMSETHICAL SYSTEMS

SOMETIMES CALLEDSOMETIMES CALLED

CONSEQUENTIAL CONSEQUENTIAL SYSTEMSSYSTEMS

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DEONTOLOGICAL DEONTOLOGICAL ETHICAL ETHICAL SYSTEMSSYSTEMS

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AMERICA’S MORAL CLIMATEAMERICA’S MORAL CLIMATE

1.Teens 1.Teens 2. College students2. College students3. Business practices3. Business practices4. Schools4. Schools5. Politics5. Politics

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TESTING HONESTY AROUND TESTING HONESTY AROUND THE WORLDTHE WORLD

Reader’s Digest Reader’s Digest intentionally intentionally “lost” more then 1,100 wallets in “lost” more then 1,100 wallets in 117 cities to see how many would 117 cities to see how many would

be returned. The wallets be returned. The wallets contained up to $50 along with a contained up to $50 along with a

name and phone number. name and phone number.

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MANAGERIAL ETHICS: PART IMANAGERIAL ETHICS: PART I

In a recent study of 600 In a recent study of 600 workers, “Teams that workers, “Teams that

viewed their supervisor as viewed their supervisor as ethical showed a positive ethical showed a positive

correlation with the correlation with the following outcomes:following outcomes:

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MANAGERIAL ETHICS: PART IIMANAGERIAL ETHICS: PART II

Managers are the ethics Managers are the ethics teachers of their teachers of their organizationsorganizations

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Corporate Ethics CodesCorporate Ethics Codes

Address such topics as:Address such topics as: relations with government, relations with government, matters of personal character, matters of personal character, product safety, product safety, environmental issues, environmental issues, customer/supplier relations, customer/supplier relations,

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CORPORATE ETHICS CODES CORPORATE ETHICS CODES (CONT’D)(CONT’D)

political contributions, political contributions, employees’ working conditions, employees’ working conditions, bribery, bribery, workplace safety, workplace safety, collective bargaining, collective bargaining, freedom of expression and freedom of expression and fair trade.fair trade.

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FIGHTING BUSINESS CRIMEFIGHTING BUSINESS CRIME

The 2002 Sarbanes-Oxley Act The 2002 Sarbanes-Oxley Act

Federal sentencing guidelines Federal sentencing guidelines

Whistleblower protectionWhistleblower protection

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ETHICAL CHECK LIST:ETHICAL CHECK LIST:

WHAT ARE THE FACTS?WHAT ARE THE FACTS?

WHAT ARE THE CRITICAL ISSUES?WHAT ARE THE CRITICAL ISSUES?

WHO ARE THE STAKEHOLDERS?WHO ARE THE STAKEHOLDERS?

WHAT ARE THE ALTERNATIVES?WHAT ARE THE ALTERNATIVES?

IS IT LEGAL?IS IT LEGAL?

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HOW WOULD IT LOOK IN THE HOW WOULD IT LOOK IN THE LIGHT OF THE DAY?LIGHT OF THE DAY?

WHAT ARE THE CONSEQUENCES?WHAT ARE THE CONSEQUENCES?

DOES IT VIOLATE IMPORTANT DOES IT VIOLATE IMPORTANT VALUES?VALUES?

DOES IT VIOLATE THE GOLDEN DOES IT VIOLATE THE GOLDEN RULE?RULE?

IS IT JUST?IS IT JUST?

HAS THE PROCESS BEEN FAIR?HAS THE PROCESS BEEN FAIR?

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ETHICAL RESPONSIBILITIESETHICAL RESPONSIBILITIES

TO OTHERSTO OTHERS TO CUSTOMERSTO CUSTOMERS TO EMPLOYEESTO EMPLOYEES

TO STAKEHOLDERSTO STAKEHOLDERS TO THE COMPANYTO THE COMPANY

TO SOCIETYTO SOCIETY TO YOURSELFTO YOURSELF

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AND REMEMBERAND REMEMBER

EXECUTIVES WHO BEHAVE EXECUTIVES WHO BEHAVE ETHICALLY HAVE HAPPIER, ETHICALLY HAVE HAPPIER,

MORE FULFILLED LIVESMORE FULFILLED LIVES

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ANDAND

UNETHICAL BEHAVIOR CAN UNETHICAL BEHAVIOR CAN DESTROY A COMPANYDESTROY A COMPANY

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CHESTER’SCHESTER’S

RULESRULES

FORFOR

ETHICAL ETHICAL

BEHAVIORBEHAVIOR

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WHEN IN DOUBT,WHEN IN DOUBT,

DON’TDON’T

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IF IT SMELLS BAD, IF IT SMELLS BAD, IT PROBABLY ISIT PROBABLY IS

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IF IT SOUNDS TO IF IT SOUNDS TO GOOD TO BE TRUE, GOOD TO BE TRUE,

IT PROBABLY ISIT PROBABLY IS

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NEVER DO ANYTHING YOU NEVER DO ANYTHING YOU WOULD BE EMBARRASSED WOULD BE EMBARRASSED

TO TELL YOUR MOTHER TO TELL YOUR MOTHER ABOUTABOUT