Test 2 notes - TEST 2 NOTES 7 Business Ethics What are...

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TEST 2 NOTES 7. Business Ethics What are business ethics? - the study of what is right and wrong in business, Ethics generally- the study of what is just and unjust Almost everyone knows what ethical business actions should be 0. A few common guidelines resolve most ethical issues for most people 1. They allow us to make decisions, just or unjust 0. Eighth Commandment forbids stealing 1. Buyers should not be purposely deceived 0. this principle dates back to Mosaic law, Code of Hammurabi, Roman Law and others 2. generally, ethical business practices support 2. truth telling 3. honesty 4. protection of life 5. respect for rights 6. fairness 7. obedience to law 3. not all ethical issues are this obvious however Two Theories of Business Ethics 0. Theory of Amorality 0. business conducted without regard for society’s views of ethical behavior solely for economic self interest 1. best businessmen are selfish, commerce is amoral 2. the natural market mechanism guarantees that business success will aid humanity 3. though not openly, this still guides many business decisions (competition makes everything right) 1. Theory of Moral Unity 4. only one basic societal set of ethical standards exist, so both society and business should function in harmony 5. actions do not become moral because they make money, 6. high levels of personal ethics can be harmonized with business life Do circumstances exist that may diminish ethical responsibility? 0. Aristotle’s Theory of Responsibility 0. You are responsible for your actions unless they are involuntary. The two factors that create involuntariness are: 1. Ignorance Ignorance of facts or consequences of an act; 2. Incapacity Incapacity to perform an action due to a. high costs b. no power c. no alternative d. external force CAUTION: “There are some things such that a man cannot be compelled to do them—that he must sooner die than do, though he suffer the most dreadful fate.” Aristotle in The Nicomachean Ethics
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Sources of the Ethical Business Values 4. All involve the idea of reciprocity 8. mutual help 9. central purpose is often conceived to be the binding of society into one cooperative unit 5. religion- divine will reveals what is right and wrong 6. philosophy- over 2000 years of philosophical musings to guide society 7. culture transmits ethical values across generations, three distinct stage exist for civilizations, these lead to patterns of behavior 10.hunter/gatherer 11.agricultural 12.industrial 8. law codifies or formalizes ethical expectations Factors that Shape Business Ethics in Other Countries history culture philosophy stage of economic development Are some cultures right and others wrong? Viewpoints about Ethical Variations:
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This note was uploaded on 03/26/2009 for the course BA 4307 taught by Professor Ritchey during the Spring '09 term at University of Texas at Dallas, Richardson.

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Test 2 notes - TEST 2 NOTES 7 Business Ethics What are...

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