Business Notes Chapter 3.docx - Chapter 3 Business Ethics Ethics are the rules that help us determine the difference between right and wrong and

Business Notes Chapter 3.docx - Chapter 3 Business Ethics...

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Chapter 3 Business Ethics Ethics are the rules that help us determine the difference between right and wrong and encourage us to do the right thing. What is Ethical Behaviour Ethical behaviour is behaviour that conforms to ethics. Our values tell us what we think is important, and this in turn, helps us make the decision between right and wrong. Morals are the rules that we use to decide what’s good and what’s bad. What Role Should Ethics Play in Business Business ethics are based on society’s ethics, which are those of the people who work for and buy from the business. A Code of Ethics Some companies write a code of ethics, a document that explains specifically how employees should respond in certain situations. Example. Canadian laws address acceptable business behaviours. However, business can still behave unethically without breaking this law. How Can Businesses Resolve Ethical Dilemmas A dilemma is a situation where a difficult choice must be made between two or more options. An ethical dilemma is a moral problem with a choice between a potential right and wrong. Some questions to consider are Who will be helped by what you do? Who will be hurt? What are the benefits and problems of such a decision? Will the decision stand the test of time? Whistle-blowing Whistle-blowing occurs when an employee informs officials or the public about an illegal/ethical violation. What Happens When People Don’t Behave Ethically Fraud, accounting scandals, and insider trading are some of the major ethical issues that have become associated with business.
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