Lesson 3.3: Business Ethics
Introduction
- Ethics in Business
- Importance of ethics in labeling products (e.g., organic strawberries)
- Ethical advertising prevents false claims.
- Relevance
- Common topic in exams (district, state, international)
Code of Ethics
- Definition: Set of standards to distinguish right from wrong.
- Principles: Integrity, honesty, fairness.
- Application: Expected to be followed by members of an organization.
- Example: Schools have a code of ethics for students.
Workplace Ethics
- Components
- Honesty: Completing assigned work, accurate records, respecting property.
- Integrity: Fair treatment, adherence to rules.
- Responsibility: Keeping promises, completing work.
- Confidentiality: Keeping secret information secret.
Consumer Rights
- Consumer Bill of Rights (President Kennedy, 1962)
- Right to safety, information, choice, being heard, satisfaction, redress, education, healthy environment.
Common Ethical Issues in Business
- Legality
- Misrepresentation & inappropriate software use.
- Misrepresentation involves false portrayal of goods/services.
- Legal penalties: lawsuits, fines, jail time.
- Privacy
- Protection of consumer information (e.g., CRM systems).
- Importance of netiquette.
- Promotions
- False advertising and spam.
- Ethical promotion practices.
- Pricing
- Avoid unfair practices like predatory pricing.
- Accounting
- Importance of accurate financial reporting.
- Selling
- Ethical selling practices, avoiding bribes, and maintaining legal compliance.
Cost of Unethical Behavior
- Loss of customer trust, sales, and negative business image.
- Example: British Petroleum's oil spill in the Gulf of Mexico.
Conclusion
- Understanding ethics is crucial for business success and compliance.
- Encouragement to review provided sources for further understanding.
Quiz & Review
- Example quiz question about phishing.
Note: Ethics involves both individual responsibility and organizational policies that guide behavior in business and consumer interactions.