Business Ethics The

Basics

Ethics ... A set of Rules that

help to tell us the difference between right and wrong and encourages us to do the right thing.

Help people decide best actions to take in a situation.

Ethical Behaviour- influenced by:

Individual beliefs Social standards Corporate Culture Traditions and

customs laws

Based on…. Good character Trustworthyness Respect Responsibility Caring for others Good citizenship Moral rules values

Do what’s best for me…

Do what’s right!!

Situation #1 Your Friend asks you to

add a few extra hours to a work time sheet for him, but you know that he did not put in the time.

What would you do? Who wins and who loses if

you agree to put down the time?

How do you feel about it?

Situation #2 A salesperson in an

electronics store offers to sell you an iPod after hours at a discounted price.

What would you do? Who wins and who loses

if you agree to buy it? How do you feel about

it?

Ethics in Business Business ethics

are tied to both society’s ethics and the ethics of individuals.

Employees, customers, suppliers shareholders etc.

Business Situation #1 You work for a company

that makes cyanide gas. You know this is harmful to people.

Is it unethical for you to make the

gas, knowing it is used to poison people?

What about helping the company make a profit?

What if workers health is at risk? Shouldn’t you follow employers

instructions?

How can Businesses Solve Ethnical Dilemmas?

Dilemmas- situation with difficult choice or 2 or more options

Positive and Negative points for every option.

Key Questions:

1.Who will be helped by what you do?

2. Who will be hurt?

3.What are benefits and problems of each decision?

4. Will the decision survive the test of time?

A Code of Ethics Business create a

document that explains how employees and management should respond in different situations.

Red Bull Case Caffeine drinks for kids

http://watch.ctv.ca/news/clip95795#clip103556

Energy drinks potentially harmful: study (Hamilton Spectator Sept 2008)

Health Canada

Ethical Questions for Red Bull Case

What are the responsibilities of the Company?

Why are teens being targeted?

What should be on the labels?

Should these drink be banned from schools?

More articles:Studies show link between caffeine drinks and violence

http://www.naturalnews.com/024117.html

http://www.cbc.ca/consumers/market/files/health/redbull/index.html

What happens when companies don’t behave ethically?

FRAUD - crime of lying or

pretending Accounting Scandals

Publicly exposed crime- account records altered. Bre-X

Embezzlement-company money redirected for personal gain

Insider trading- misuse of confidential information.

Information in this presentation is adapted from Nelson 5th edition

The World of Business –Chapter 3 Oct 2008