BUSINESS ETHICS

Question 1

MORAL INTUITION

Answer 1

• We all have intuitive moral feelings about certain things
• When we explore these acts further, we may change our minds or at least see another viewpoint

Question 2

KEY ISSUES WITH BUSINESS ETHICS

Answer 2

1. Business ethics and public opinion
2. What does ‘Business ethics’ mean?
3. Four important ethics questions
4. Three models of management ethics
5. Developing moral judgement
6. Elements of moral judgement

Question 3

PUBLICS OPINION ON BUSINESS ETHICS

Answer 3

• Public’s interest in business ethics increased during the last 4 decades: Collapse of the financial market and Govt bailouts
• Public’s interest in business ethics spurred by the media: investigative reporting on TV shows

Question 4

ETHICAL ISSUES IN BUSINESS

Answer 4

• Employee-Employer Relations (e.g. employee theft)
• Employer-Employee Relations (e.g. discrimination)
• Company-Customer Relations (e.g. poor quality goods)
• Company-Shareholder Relations (e.g. poor reporting practices)
• Company-Community/Public Interest (e.g. environmental issues)
• Sole practitioner- client relations (e.g. misrepresentation to clients)

Question 5

BUSINESS - DEFINITION

Answer 5

Business – person or person offering goods or services to others with the aim of making a profit
- E.g. as an Osteopath you will offer your services to your clients in return for them paying you a fee

Question 6

ETHICS - DEFINITION

Answer 6

Ethics – Moral principles governing a person’s behaviour
- Ethical behaviour usually viewed as being positive i.e. telling the truth, behaving with integrity etc

Question 7

WHAT DOES BUSINESS ETHICS MEAN?

Answer 7

• Moral principles concerning acceptable and unacceptable behaviour by business people.
• Business ethics is the behaviour that a business adheres to in its daily dealings with the world.
• To some people, businesses are interested in making money, and that is the bottom line. Making money is not wrong in itself.
• It is the manner in which some businesses conduct themselves that brings up the question of ethical behaviour.

Question 8

WHY SHOULD BUSINESSES BEHAVE ETHICALLY?

Answer 8

• Protection of brand and representation
• The right thing to do
• Customer trust and loyalty
• Investor confidence
• Public acceptance/recognition
• Disadvantages – short term costs

Question 9

ETHICAL RELATIVISM

Answer 9

• Ethical relativism - One can argue that there are no moral absolutes, no moral rights or wrongs but instead based on social norms
• Indeed, the conventional approach to business ethics appears to involves a comparison of a decision or practice to prevailing societal norms

Question 10

ETHICAL RELATIVISM - ADVANTAGES

Answer 10

Advantage – allows people/businesses to adapt ethically as culture, knowledge and technology changes in society

Question 11

ETHICAL RELATIVISM - DISADVANTAGES

Answer 11

Disadvantage – Ethics is relative, just because a group of society think something is right, does not necessarily make it so