BUS5013 Chapter 2 notes - BUS5013 Chapter 2...

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BUS5013Chapter 2 notes/DiscussionEthics: Study of right/wrong morality of choices; ethical decision is one that is right.Business ethics: Application of moral standards to business situationsFairness and honesty: business people are to refrain from deceiving, misrepresenting, and intimidating othersOrganizational relationships: businessperson should put welfare of others/organization above personal welfare.Conflict of interest: Issues arise when businessperson takes advantage of situation than that of employer’s interest for personal gain.Communications: Business communications that are false, misleading, deceptive are illegal/unethical.Factors affecting ethical behavior: individual, social, opportunity.Individual factors: individual knowledge of issue, personal values/goalsSocial factors: cultural norms, coworkers, significant others, use of internetOpportunity: presence of opportunity, ethical codes, enforcementExternal to specific organization: govt legislation/regulation, trade assoc guidelinesWithin organization: code of ethics, organizational environment (mgmt. direction, employee training, ethics officer)Whistle-blowing: informing press/govt about unethical practicesSocial responsibility: Recognition that business activities have an impact on society and consideration of that impact in business decision making. Costs money, but good business. How socially responsible a firm acts may affect decisions of customers to do or continue to do business with firmGuidelines for making ethical decisions: Listen and learn, identify the ethical issues, create and analyze options, identify the best option from your point of view, explain your decision and resolve any differences that arise.The evolution of social responsibility in business: Early 1900 caveat emptor – let the buyer beware, what you see is what u get and if its not what u expect then too bad.Interstate commerce act: first federal act to regulate business; provided regulation of railroads/shipping ratesSherman antitrust act: Prevented monopolies/mergers where compt was endangered.Federal trade commissions act: investigated illegal trade practices.Clayton antitrust: eliminated many forms of price discrimination that gave large business a competitive advantage over smaller firms.Evolution of social responsibility in business: Great depressions – pressure mounted for govt to help w/ econ/social conditions; FDR made econ/social programs; laws passed to correct business abuse; as govt increased, everyone awareness of social responsibility of businessEconomic model: -

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