Download - chap2, by Linda Ferrell
-
8/7/2019 chap2, by Linda Ferrell
1/16
Chapter 2
Ethical Issues in Business
-
8/7/2019 chap2, by Linda Ferrell
2/16
Ethical Issues are...
problems, situations, or opportunities
requiring an individual to choose among
actions that may be evaluated as right or
wrong, ethical or unethical
ethical issues arise because of:
conflict among personal/organizationalvalues
conflicts with societal values
-
8/7/2019 chap2, by Linda Ferrell
3/16
What do you see as some of the
causes of unethical behavior?
-
8/7/2019 chap2, by Linda Ferrell
4/16
Causes of Unethical Behavior...
meeting overly aggressive financial or
business objectives
meeting schedule pressures
helping the organization survive
rationalizing that others do it
resisting competitive threats
saving jobs
-
8/7/2019 chap2, by Linda Ferrell
5/16
Influences on Ethical Behavior...
personal values
attitudes/behaviors of supervisor
attitudes/behaviors of senior management
internal drive to succeed
performance pressuresno threat of punishment
friends/coworkers
-
8/7/2019 chap2, by Linda Ferrell
6/16
Why not report organizational
misconduct?afraid of not being considered a team player
did not believe corrective action would be taken
fear retribution or retaliation from
management
not on else cares about business ethics,
why should I
fear lack of confidentiality
-
8/7/2019 chap2, by Linda Ferrell
7/16
Classification of Ethical Issues...
conflict of interest
honesty & fairness
communications issues
organizational relationships
-
8/7/2019 chap2, by Linda Ferrell
8/16
Conflict of Interest...
exists when an individual must choose whether
to advance his or her own personal interests,
those of the organization, or some other group
must be able to separate personal interests from
business dealings
bribery is a significant concern
-
8/7/2019 chap2, by Linda Ferrell
9/16
Honesty & Fairness
honesty relates to truthfulness, integrity &
trustworthiness
fairness related to being just, equitable & impartial
breaking or bending laws violates trust
business should not be played as a game
lack of rules & poor enforcement leads to unethical
behavior
-
8/7/2019 chap2, by Linda Ferrell
10/16
Communications...
issues involved relate to advertising, productsafety, pollution, & employee work
conditionslying is a major ethical issue with internal &external communications
false advertising relates to: exaggerated claims concealed facts & ambiguous statements
lying
-
8/7/2019 chap2, by Linda Ferrell
11/16
Organizational Relationships...
relate to behavior of organizational members
toward customers, suppliers, subordinates,
superiors, peers & others
plagarism is one ethical issue of concern to
organizationsThe image cannot be displayed. Your computer may not have enough memory to open the image, or the image may have been corrupted. Restart your computer, and then open the file again. If the redx still appears, you may have to delete the image and then insert it again.
-
8/7/2019 chap2, by Linda Ferrell
12/16
Ethical Issues Related to
Ownership...owners have an obligation to society as well
as their employees & customers
minimize pollution
compensate workers fairly
produce safe products
must be sensitive to legal & ethical risksof their industry & region
-
8/7/2019 chap2, by Linda Ferrell
13/16
Financial Responsibilities...
reporting & use of the companies finances
pricing products/services fairly
avoiding any antitrust activities
price fixing
sensitivity to socially responsible investing
-
8/7/2019 chap2, by Linda Ferrell
14/16
Employees & Management
Concerns...employee theft, sabotage & competitive intelligence
fear of layoffs
salary plateaus
upward mobility
discrimination
privacy & data accesshealth & safety
-
8/7/2019 chap2, by Linda Ferrell
15/16
Consumer & Marketing Issues...
Must consider consumer feedback
safety
environmental (can lead to boycotts)
maximize positive publicity & avoid negative
-
8/7/2019 chap2, by Linda Ferrell
16/16
How to Identify an Ethical Issue...
an activity approved by most members of theorganization & customary in the industry is
probably ethicalif the issue withstands open discussionbetween groups within & outside theorganization is probably ethical
covert discussion, destroyed or disguiseddocuments indicate potential problems