CHAPTER 6

Business

Ethics
Reporter: Jocelyn P. Timario
OBJECTIVES
1. Explain what business ethics is.
2. Discuss the purposes of business ethics.
3. Describe the scope and impact of business ethics on the
economy
society
environment
business managers
4. Explain the ethical challenges in today's world.
 ETHICS
Ethics, also called moral philosophy, the discipline
concerned with what is morally good and bad and
morally right and wrong.

The term is also applied to any system or theory

of moral values or principles.
 BASIC CONCEPT
OF
BUSINESS ETHICS
 BUSINESS ETHICS

Business ethics refers to standards of moral

conduct, behavior and judgment in business.

It involves making the moral and right decisions

while engaging in such business activities.
 PURPOSES
OF
BUSINESS ETHICS
 Main Purpose

The main purpose of business

ethics is to help business and
would-be business to determine
what business practices are right
and what are wrong.
 Special Purpose
1. To make businessmen realize that they cannot employ
double standards to the actions of other people and to their
own actions.

2. To show businessmen that common practices which they

have thought to be right because they see other
businessmen doing it, are really wrong.

3. To serve as a standard or ideal upon which business

conduct should be based.
SCOPE AND IMPACT
OF
BUSINESS ETHICS
 BUSINESS ETHICS
Business ethics covers all conduct, behavior and
judgment in business.

Generally, actions that are not forbidden by law

are ethical.
 Economic Impact
A business has an economic impact on
society through the wages it pays to
its employees, the materials that it
buys from their suppliers and the
prices it charges its customers.
 Social Impact

The social impact of corporate

governance contributes to the ethical
climate of society.
Environmental Impact
Environmental protection is a key
area of business influence on
society.
 IMPACT ON BUSINESS MANAGERS

The concepts and principles for the ethical

conduct in business are relegated to the
managers of the business enterprise.
In particular, a manager should:

acknowledge that his role is to serve the business enterprise and the
community;

avoid all abuse of executive power for personal gain, advantage or

prestige;

reveal the fact to his superior whenever his personal business of

financial interests conflict with those of the company;

be actively concerned with the difficulties and problems of

subordinates, treat them fairly and by example, lead them effectively,
assuring to all the right of reasonable access and appeal to superiors;
recognize that his subordinates have a right to information on
matter affecting them, and make provision for its prompt
communication unless such communication is likely to undermine
the security and efficiency of the business;

fully evaluate the likely effects on employees and the community of

the business plans for the future before taking a final decision.

cooperate with his colleagues and not attempt to secure personal

advantage at their expense.
ETHICAL CHALLENGES
IN
TODAY'S WORLD
 Pope Francis
In a system that idolizes increased profit,
everything that stands in its way is
pushed aside.
 Pope Benedict XVI
The economy needs ethics in order to
function correctly - not an ethics
which is people oriented.
 Business ethics refers to standards of moral
conduct, behavior and judgment in business.

CONCLUSION The main purpose of business ethics is to help

business and would-be business to determine
what business practices are right and what are
wrong.
There are different scope and impact of business
ethics such in the economy, society,
environment, and business managers.
Some ethical challenges in today’s world
includes people or businesses pushing ethics
aside for personal gain or interests such as
profit. Pope Benedict XVI emphasized that the
economy needs ethics in order to function
correctly—not an ethics which is people oriented.
THANK YOU!

CHAPTER 6
(BUSINESS ETHICS)

REPORTER:
TIMARIO, JOCELYN P.