Chapter 1: Introducing Business Ethics

1- What is Ethics?

Ethics via Latin ethica from the Ancient Greek [] "moral philosophy",
from the adjective of thos "custom, habit"), a major branch of philosophy.

= The study of values and customs of a person or group. It covers the analysis and
employment of concepts such as right and wrong, good and evil, and responsibility
It is divided in 3 divided groups:
- meta-ethics: the study of the concept of ethics
- normative-ethics: the study of how to determine ethical values
- applied-ethics: the study of the use of the ethical value
Morality = from Latin moralitas "manner, character, proper behavior
Morality is concerned with norms, values and beliefs about social processes which
define right and wrong for an individual or a community
Value= investigates how people positively and negatively value things and concepts
2- Ethical and Unethical behaviors?

Ethical Behavior = the term ethical behavior refers to how an organization

ensures that all its decisions, actions, and stakeholder interactions conform to the
organizations moral and professional principles. These principles should support
all applicable laws and regulations and are the foundation for the organizations
culture and values. They define right from wrong.

Conform to approved standard of social and professional behavior.

Unethical Behavior = not conforming to approved standards of social or professional

behavior

3- Business (Work) Ethics?

Business Ethics is the study of business situations, activities, and decisions where
issues of right and wrong are addressed. Right and Wrong in morality, commercially,
strategically or financially.
Business Ethics do not only include commercial business but also:

Government organizations

Pressure groups

Not for profit businesses

Charities and other organizations

4- Why Business Ethics important?

Business Ethics is very prominent business topic.

Consumers and pressure groups request that any firm behave ethically and
ecologically
Media seems to keep the spotlight on corporate abuses and bad practices
Firms understand themselves that being ethical is good for businesses, inside the
organizations with employees and as well to gain some profit.

The power of influence of business in society is greater than ever before

Business malpractices inflict enormous harm on individuals, communities and the
environment.
Demand of being ethical are requested in order to be competitive on a market
Business ethics can improve ethical decision making by acknowledging managers
Business ethics can provide the ability to access the benefits and to solve internal
corporations problems.

Why applying Business Ethics?

List of some businesses ethical issues

Child labor and low-labor costs

It has long been commonplace for firms to move production and low-skill jobs from their
home countries, to other which offer lower production costs, in foreign countries. Including
lower labor issues, these practices sometimes result in unfavorable publicity and may even
expose fundamental issues associated with potential human right violations. Child labor is one
of the most denunciated practices nowadays. One in every eight children in the world is still
subjected to the worst forms of child labor, which endangers the child's physical, mental or
moral well-being. The exploitation of children through child labor occurs in more than twothirds of all countries in the world.
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Discriminations

The United Nations 1948 Declaration of Human Rights promoted the concept that All human
beings are born free and equal in dignity and rights. Unfortunately, in the workforce, people
are often victim of discrimination.
The discriminations made by companies toward their employees are considered to be
unethical in corporate behaviors. The term discrimination describes a large number of
wrongful acts in employment, housing, education, medical care and other important areas of
public life. Discrimination in employment generally arises from the decisions employers
make about hiring, promotion, pay, fringe benefits, and the other term and conditions of
employment that directly affect the economic interest of employees.
Discrimination at work could be sex discrimination. The Sex discrimination Act 1975 makes
it unlawful for an individual to be discriminated against in the workplace in relation to
selection for a job, training, promotions, work practices, dismissal or any other disadvantage
such as sexual harassment.
Discrimination is divided into two main categories, direct and indirect discrimination. Direct
discrimination occurs where a person is treated differently on the grounds of their gender.
Indirect discrimination is where an employer applies a requirement or policy, which though

on the face of it has nothing to do with gender, in practice tends to affect one sex rather than
another.
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Bribery and corruption

Bribery is the deliberate attempt to persuade someone (usually in a position of power and
authority) to act usually in favor of the briber by offering money or gifts or material gain.
Bribery has been the root of corruption in many countries and is considered an unethical
behavior for companies. Bribery occurs when property or personal advantage is offered,
without the authority of law.
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Overtime work

Often, companies ask their employees to do overtime, to avoid new employments and often
people are unpaid for these hours.
Around 15% of the employees declared that they worked overtime.
In some cases, overtime is an indirect way for companies to threaten their employees. Most of
the time employees show enthusiasm and hold on to their positions within the company.
Furthermore, sometimes the work is exciting and people voluntarily work over and above
their regular hours without asking for remuneration.
Employers use the tolerant employee attitude towards overtime work to their advantage and
do not offer payment.
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Environment

One of the most modern debates concerning the business ethics is the show of respect for the
environment by the companies. Indeed, companies are often accused to be unethical by the
non-respect of the environment. Companies should respect the environment, either in a legal
or moral sense.
Although products produced in an environmentally unfriendly way may appear at first to be
cheaper, the cost to the purchaser is not the final cost. Damage to the environment is paid for
by increases in ill health, and irreversible loss of biodiversity.
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Health and safety regulations

Companies do not always health and safety regulations. There are those who employ people
in bad and/or illegal conditions, especially in factories, for example the utilization of toxins
and using un-safe machinery.
This is usually to achieve and a high turnover of produce therefore a higher profit.
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Animal testing

Animals are routinely used to test the safety of consumer products before their products are
launched on the market.
Indeed, this knowledge can be used in the medical field for the benefit of humans, like
diseases.
Is this scientific knowledge worth the price of such unethical behavior?