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Video6notes - Leader as Ethical Decision Maker Where do you...

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Leader as Ethical Decision Maker Where do you stand? Most companies you work with have very clear ethical principles, but how well do they enforce those principles? What is ethics? Often people will say, “is it legal?”; they link ethics to laws, in many cases ethical standards are much higher than legal standards What stakeholders should the company serve? Each stakeholders have specific interests and values, some of which may collide and conflict Companies like Enron tell you they serve the shareholders, but we all know that’s not true, for instance many parents lost their entire retirement plans A Few Myths of business ethics Business is not value neutral, every decision is a potential ethical problem uncommon unethical acts Ford Pinto – gas tank designed in a way where if it was rear ended it would explode and kill the drivers. It would cost 60 – 70 dollars a car to recall it and relocate the gas tank, Ford decides not to this after doing a thorough study of the cost of a human value. They came up with a number for how many people would die driving a pinto, as well as the cost of a human life, compared and came to the conclusion it was not worth investing their money into saving these people’s lives. Good business decision, terribly unethical Union Carbide – Bhopal, Put up a plant in India because it has lower pollution standards, caused
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This note was uploaded on 04/01/2012 for the course BUAD 304 taught by Professor Cummings during the Fall '07 term at USC.

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Video6notes - Leader as Ethical Decision Maker Where do you...

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