The Importance of Business Ethics

Chapter 1: The Importance of Business Ethics

* What is it about?

* Field of business ethics deals with questions about whether specific business practices are acceptable.

* Can you give examples?

* This field is controversial, and there is no universally accepted approach for resolving its issues.

Ethics is...

- defined as inquiry into the nature and grounds of morality where the term morality is taken to mean moral judgments, standards and rules of conduct

- study and philosophy of human conduct with emphasis on determining right and wrong

Difference between ordinary decision and ethical decision:

Ordinary Decision Ethical Decision

-routinary (eg: dress attire) -new decisions

-little to no impact -crucial

Business ethics comprises the principles, values and standards that guide behavior in the world of business

Values are used to develop norms that are socially enforced

Principles are specific and pervasive boundaries for behavior that are universal and absolute. They often become the basis for rules.

Why study Business Ethics?

* Crisis in Business Ethics

- Increasing number of observed misconduct

- Specific abuses:

* Abusive behavior and harassment

* Accounting fraud

* Conflict of interest

* Defective products

* Bribery

* Employee theft

* What are some examples in Philippine setting?

* Reasons for studying business ethics:

- Promotes good organizational citizenship

- Promotes professionalism

- Promotes good business and long term relationship with stakeholders

- Promotes brand and image of company

- Studying business ethics will help you identify ethical issues when they arise and recognize the approaches available for resolving them

The