Chapter 10: Ethics Flashcards
What are ethics?
Ethics are codes concerned with distinguishing between good and bad to create rules and principles that govern behaviour.
How are ethics applied in… a) Technology b) Business Strategy c) Finance?
Technology: Privacy, Surveillance, Data Collection & Storage and Employee Monitoring.
Business Strategy: Moving Operations Abroad, Monopolies and Dealing with Competitors.
Finance: Pay on time, realistic forecasts and proper accounting.
What are the 3 philosophical approaches to ethics?
[1] Absolutists: Some actions are wrong - no exceptions. [2] Relativists: Context matters to decide if something is right or wrong (culture or historical period etc.)
[3] Consequentialism: Impact determines if something was right or wrong (hindsight effect), wouldn’t have prevented issues like environmental damage.
What is a corporate code of ethics?
A statement of the companies ethical position on a variety of subjects. It’s collected and published to all employees and possibly the public as a means of improving the companies image.
Why would a company publicise the code of ethics?
To create a desirable image of themselves.
What does Coca Cola’s code of ethics say?
[1] Will never engage in unfair on deceitful practices.
[2] Always present products in an honest manner.
[3] Will not pay for competitive advantage like the pepsi recipe etc.
Are unethical practices ever worth it?
Abiding by ethics harms potential short run income with restrictions but a positive image ensures long term success. Avoiding detection could provide benefit but if caught there are huge issues like fines etc.
What are the 6 benefits of good ethical foundations?
[1] Reduce risks for shareholders.
[2] Easier to raise capital with a good image.
[3] More sales when customers think well of you.
[4] No damages or lawsuits to pay.
[5] Attract good employees with the good reputation.
[6] Easier to persuade other companies to enter partnerships, mergers and other joint ventures.
