List a minimum of 3 products and/or services that you consider

unethical or morally wrong to sell? Provide a reason why you think these products are unethical.

***Save as Sept. 23 and in your Response Journal Folder***

What would you do in each of the following situations?

Your friend asks you to add a few extra hours to a work time sheet for him, but you know that he did not put in the time.

A salesperson in an electronics store offers to sell you an iPod after hours at a discount price.

You are aware that the teller gave you back too much money when completing a banking transaction.

____________ are the rules that help us tell the difference between right and wrong, and encourage us to do the right thing

They can help people decide on the best course of action in situations where they aren’t sure what to do

Ethics

Ethical behaviour is behaviour that conforms to ethics - individual beliefs and social standards about what is right and good

Ethics are important for getting along with others, living with yourself and having a good character

Ethical behaviour is based on values such as:• Trustworthiness• Respect• Responsibility• Caring• Justice• Good citizenship• Adherence to moral rules

Our ___________ tell us what we think is important and this, in turn, helps us make decisions about right and wrong • E.g. a person who values trustworthiness is

unlikely to betray a friend _____________ are the rules that are

used to decide what is good or bad• E.g. one moral rule might be that stealing is

bad because it harms the person or business you are stealing from

Values

Morals

As a society, we tend to judge others more on their morals than on their values

Some of the most difficult decisions to make are the ones in which our personal values conflict with our moral rules• Read the example found in the bottom

paragraph on page 75

Ethics are based on both individual beliefs and standards in society

Ethics vary from person to person, situation to situation, and culture to culture

Society’s ethics are usually _____________ standards for decency and respect of others

_______________________ are related to both society’s ethics and the individual’s ethics, who works for and buys products from, the company• Read the example in paragraph 1 on page 77

Minimum

Business Ethics

Businesses face ethical questions every day concerning the products/services they sell and the way they deal with people inside and outside the company

A _____________________ is a document that describes specifically how a company’s employees should respond in different situations• Read the example in paragraph 4 on page 77

Helps different people approach problems in the same way

Code of Ethics

Instead of referring to a written guideline, you can ask yourself …

“If I take this action, will anyone suffer as a result?”

• Read the example in paragraph 1 on page 79 In Canada, the law details acceptable business

behaviour, but companies can still behave unethically without actually breaking the law

Although codes of ethics can help people make decisions, they are not conclusive guides to right and wrong – as a result, people should rely on their own judgment first

A _______________ is a situation where there is a difficult choice between 2 or more options

Dilemmas have good and bad points on both sides

Not all dilemmas are choices between right and wrong•Read the example in paragraph 3 on page 79

An ______________________ is a moral problem with potential right or wrong answers. It occurs when a business has a decision to make that weighs values and morals against profitability and competitiveness

Dilemma

Ethical Dilemma

Downsizing of staff Pollution control How to dispose of toxic waste Depletion of scarce resources Changes in laws and technology Employee rights Product safety Discrimination against women and

minorities

Resolving ethical dilemmas requires honesty, ability to work together, respect for others, willingness to learn, dependability, loyalty and integrity

Questions to consider:1. Who will be helped by what you do?2. Who will be hurt?3. What are the benefits and problems of

such a decision?4. Will the decision survive the test of time?

_____________________ is the decision of an employee to inform company officials or the public about a legal or ethical violation• May happen when an employee discovers

some type of unethical, immoral or illegal actions at work

• Sometimes whistle-blowers are rewarded (E.g. 3 whistle-blowers were named Time Magazine’s Person of the Year in 2002), however sometimes they are punished (E.g. getting fired or demoted)

Whistle-Blowing

Examples of issues that a whistle-blower might report include;

Someone submitting false info on an expense report

A business that ignores hiring practices for minorities

A business that ignores workplace health and safety rules

Students please complete the following;

Activity: Ethics In the News (Posted on ClassNet under Tasks)

Review Questions #4 & 5 on page 89

Create a list of businesses that come to mind when you think of unethical

practices? What makes them unethical?

***Save as Sept. 25 and in your Response Journal Folder***

Read paragraph 1 on page 82 Some of the major ethical issues

associated with business are:•Fraud•Accounting Scandals•Insider Trading

_____________ is the crime of lying or pretending

Some businesses mislead consumers and try to trick them into buying something in order to maximize their profits

The Competition Act, 2002 banned the below types of fraud and deceptive business practices:1. False or misleading advertising2. Bait and switch selling

Advertising a product on sale and then not having enough of the product available

3. Double Ticketing Placing different prices on a product and selling it at

the higher price

Fraud

There are many types of fraud that impact individuals and businesses …

1. Bank Fraud› A banking official makes a fraudulent loan to a non-

existent business/person and pockets the cash2. Consumer Fraud

› Unethical advertising or false claims are used to make consumers purchase products they don’t need

3. Contract Fraud› Temptations, such as bribes or kickbacks are used

to create a contract

4. Insurance Fraud• Falsely claiming lost, damaged or stolen

property to receive insurance settlements5. Mail Fraud

• The post office is used to mail phony job opportunities, chain letters or inheritance scams

6. Pyramid Scheme Fraud• A person recruits others in order to receive

more money than he/she invested in the scheme

7. Stock Market Fraud› Someone uses insider trading to buy and

sell stocks at artificial values8. Telemarketing Fraud

› Company uses high-pressure phone calls to get customers to buy goods or donate money to phony charities

9. Welfare Fraud› Someone receives welfare benefits when

they’re not eligible Read Bre-X on page 83 - 84

__________________ is the process of identifying, measuring, and communicating financial information about a business so that informed judgments and decisions can be made based on that info

An _____________________________ is a publicly exposed crime involving accountants or senior company executives who alter accounting records for personal gain

When an accounting scandal is uncovered, outside accountants are appointed to find out what happened

A ___________________________ is an accountant who investigates legal and financial documents, looking for evidence of tampering

Read Enron on page 87 - 88

Accounting

Accounting Scandal

Forensic Accountant

Wouldn’t it be great to have access to winning lottery numbers before they are drawn?

› In business, corporate executives normally do have access to winning lottery numbers – in the form of confidential info about the business and its future plans

Buying or selling of company shares based on confidential information that is not available to the general public is known as _______________________ and is illegal

The stock market operates on the premise that everyone learns about the same info at the same time and therefore no one gets an unfair advantage

It is fine to buy and sell shares as long as you use information that is in the public domain and/or if you tell the stock exchange about it ahead of time

Read the Martha Stewart example on page 88

Insider Trading

Students please complete the following;

Activity: Canadian Anti-Fraud Centre (provided)

Create a list of businesses that come to mind when you think of ethical

practices? What makes them ethical?

***Save as Sept. 26 and in your Response Journal Folder***

Businesses exhibit _______________________________________ through their values, their ethics, and the contributions that they make to their communities

In other words, CSR has to do with …“What you do, how you do it and when and

what you say” A socially responsible business provides goods

and services in line with society’s values A socially responsible business is concerned

about how they protect consumers and the treatment of their employees and shareholders

Read the example in paragraph 2 on page 90

Corporate Social Responsibility (CSR)

Businesses that practice CSR adhere to the following CSR Principles …

Provide a safe and healthy work environment

Adopt fair labour policies Protect the environment Are truthful in their advertising Avoid price discrimination Donate to charity

The concept of business ethics and CSR have been around for some time, so wouldn’t most businesses have already adopted these guidelines? › The answer – NO!!!! The news is filled with

examples of unethical and illegal business practices

› The sad truth is that too many business people believe that normal business procedures mean dealing with ethics only when necessary, or not dealing with them at all

Read An Example of CSR on page 92

In Canada, we have many different laws that govern ethical behaviours in business. These laws relate to the following 6 major areas …

1. Workplace safety2. Anti-discrimination issues3. Harassment4. Accessibility issues5. Environmental responsibility6. Labour practices

The workplace use to be a place where people often died• Read paragraphs 1, 2 & 3 on page 94

In Ontario, the Occupational Health and Safety Act (OHSA) was instituted to ensure workplace safety and health • The OHSA ensures workplace health and

safety is a priority for all businesses in Ontario

• The OHSA defines the rights and responsibilities of workers in Ontario

Workers have the following 3 basic rights in the workplace …

1. Right to refuse unsafe work2. Right to participate in workplace

health and safety activities3. Right to know about actual

hazards in the workplace

Discrimination is NOT ethical behaviourDiscrimination can be based on a person’s

…› Gender› Race› Religion› Age› Sexuality, etc

Although businesses have come along way, many women and minorities still face discrimination in workplace today, usually in the form of a _________________› An invisible barrier facing women, disabled or

those from visible minorities as they approach senior management positions

Glass Ceiling

__________________ refers to those behaviours that are found to be threatening or disturbing, those that are not acceptable in society

Many companies have policies and procedures in place for dealing with these types of situations

Harassment

Examples of harassment include … Bullying Stalking Written or verbal threats Abusive comments about race Ridicule based on cultural grounds Name calling Racist jokes Damage to property Offensive graffiti

Laws exist to help guide businesses by balancing the rights of the disabled to work and the rights of businesses to limit how much they need to do for disabled workers› E.g. Business – built ramps and purchased

alternative equipment. Disabled – right to receive a fair job interview that doesn’t discriminate

Employers have a _______________________› An employer is obligated to take the appropriate

steps to eliminate discrimination in the workplace› Written into Canadian Human Rights Act

Duty to Accommodate

Both individuals and businesses are responsible for protecting the environment

Sadly, it has taken much media attention to get environmental issues high on the list of priorities for many businesses

Most environmental concerns can be categorized under _______, ________ or _________

The government of Canada has responded to environmental challenges by passing environmental protection laws, such as the Environmental Protection Act (1999)

Land AirWater

In Ontario, the Employment Standards Act identifies mandatory minimum conditions of employment. It covers areas such as …

Hours of work Overtime pay Minimum wage Holidays and vacations Equal pay for men and women Employee benefit plans Pregnancy Parental leave Severance and termination pay

Pay equity is designed to ensure men and women are paid the same amount of money for the same work

Pay equity legislation came into effect in 1978

However, this legislation still doesn’t mean that there is equal pay for work of equal value• According to a recent study, women only earn

72 cents for every $1 earned by men

Same Work is judged by assessing … The skill The effort The responsibility required The conditions under which work is

performed

The Personal Information Protection and Electronic Documents Act (PIPEDA) came into effect January 1, 2004

This law requires that all provincially regulated businesses must fully explain __________ information they require from employees and customers and ________ they need it, before they can obtain it

WhatWhy

____________ is the practice of helping producers in developing countries bypass middlemen so they can sell their goods in other countries for a ________ profit

Fair trade is _____________, not required by law

Fair trade started about 50 years ago• E.g. fair trade coffee and chocolate

Fair Trade products are always marked with a logo to identify them

Voluntary

Fair Trade

Fair

The benefit of buying fair trade products is that you are not exploiting (taking advantage of) poor farmers in developing worldsBusinesses can help the sale of fair trade products by …

1.Enforcing fair trade practices on their suppliers

2.Using fair trade products (E.g. coffee and tea) for business meetings

Students please complete the following;

Read the Profile: Kicking Horse Coffee Co. on pages 73 -74 and answer the 2 questions

Review Questions #8 on pg105