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Unformatted text preview: Ch.5 Business Ethics Ethics is the study of right and wrong behavior; whether an action is fair, right or just. Moral Principles and Values applied to social behavior. In business: Ethical Decisions are the Application of moral and ethical principles to the marketplace and workplace. Why is Business Ethics Important?- Directors a nd Officers owe a co mplex s et of e thical duties to th e co m p any (long- run) , sh areholders, custo m ers, co m m unity, e m ploye es, a nd suppliers. Why Ethical Proble ms Occur?- When th es e duties conflict, ethical dile m m a s are cre at ed.- Short-Run Profit Maximization- Corporations role in influencing th e law. Setting th e Right Ethical Tone Importanc e of Ethical Leadership- Attitude of Top Manag e m e nt.- Looking th e oth er Way Two Approach es to Ethical Reasoning : A reasoning process in which a n individual links his or h er m oral convictions or e thical st and ards to th e p articular situation at h and. 1. Duty Based Ethics Derived from religious a nd Philosophical principles. Religious Ethical Stand ards....
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- Spring '11