Understanding Business Ethics - Introduction to Business

Key Concepts

Ethics: Set of moral standards for judging actions as right or wrong.
Ethical Issue: Situation that requires a choice between actions that may be ethical or unethical.
Example: Martin Shkreli's price hike on a drug vs. survival actions during Hurricane Katrina.

Taking things that don’t belong to you: Unauthorized use or claiming false ownership.
Saying things you know are not true: Lying or falsely accusing others.
Giving or allowing false impressions: Misleading customers about product capabilities or history.
Buying influence/engaging in conflict of interest: Decisions influenced by personal gain.
Hiding or divulging information: Failing to disclose harmful product information or sharing trade secrets.
Taking unfair advantage: Exploiting less knowledgeable consumers.
Improper personal behavior: Personal conduct affecting company performance or reputation.
Abusing power and mistreating individuals: Harassment or unfair treatment in the workplace.
Permitting organizational abuse: Unfair labor practices, especially in international operations.
Violating rules: Ignoring internal controls or managerial authority.
Condoning unethical actions: Ignoring or tolerating unethical behavior.

Justice: Fairness according to societal standards, equitable distribution of burdens and rewards.
Utilitarianism: Actions judged by the greatest good for the greatest number; includes winners and losers.
Deontology: Meeting obligations and duties; consistent decisions based on duties.
Individual Rights: Human rights are inherent and legal rights are protected by law.

Formation of Business Ethics: Influenced by personal philosophy and legal/environmental factors.
Utilitarianism: Philosophy focusing on the consequences and the greatest good for the majority.
Recognizing Unethical Activities: Identifying actions that fall into recognized unethical categories.