1.2: Ethics and Business

Question 1

What are business ethics?

Answer 1

Business ethics refers to the rules, standards, codes, or principles that guide morally appropriate behavior in decision-making related to the operation of business enterprises and their relationships with society.

Question 2

Who are the key decision-makers in Canadian businesses?

Answer 2

Owners: Direct owners (shareholders, investors) and indirect owners (via mutual funds, pension plans).

Boards of Directors: Elected representatives who manage the business and affairs of the corporation, ensuring a return on investment while also increasingly focusing on corporate social responsibility.

Managers: Skilled individuals overseeing business operations, managing relationships with stakeholders, and addressing social, ethical, and environmental responsibilities.

Question 3

How is integrity related to ethics in business?

Answer 3

Integrity in business ethics refers to the appropriateness of a corporation’s behavior and adherence to moral guidelines such as honesty, fairness, and justice, ensuring responsible business conduct in social, ethical, and environmental contexts.

Question 4

What assumptions about business ethics are made in the textbook?

Answer 4

Ethics apply to business just as they do in other social institutions.

The appropriateness of behavior is examined based on the ethical implications of decisions and actions.

Integrity results in a responsible business that meets its social, ethical, and environmental responsibilities in addition to economic obligations.

Question 5

What is the “responsible business”?

Answer 5

A responsible business is one that meets its social, ethical, and environmental responsibilities in addition to fulfilling its economic obligations.