Chapter 5: Ethics Social Impact – ethical climate of society, bribes to secure
Environmental Impact – a key area of business influence
Ethics
 Set of moral principles or values that govern the action
Ethical Principles
1. Integrity – be principled, honorable
2. Honesty – be truthful, sincere
3. Trustworthiness and Promise Keeping – be worthy of trust,
keep promises
4. Loyalty (Fidelity) and Confidentiality – be faithful and loyal to
family
5. Fairness and Openness – be fair and open-minded and accept
errors
6. Caring for Others - be caring kind, compassionate
7. Respect for others – demonstrate respect for human dignity
8. Responsible Citizenship – obey just law
9. Pursuit of Excellence – meeting personal and professional
responsibilities
10. Accountability – foreseeable consequences. Parents and
teachers lead by example
Ethical Behavior – necessary to function in an orderly manner
Chapter 6: Business Ethics
Business Ethics
 standard of moral conduct, behavior, and judgment in
business
 based on personal values
Main purpose: determine what business practices are right or wrong
Economic Impact - wages it pays, materials it buys, prices charged
Ethical Challenges in Today’s World - Mercedes B. Suleik ( 02-13-2018
)
Chapter 7: Common Unethical Practices of Business Establishment
Misrepresentation
 Direct Misrepresentation
 Indirect Misrepresentation
Direct Misrepresentation – actively misrepresenting products or
customers
1. Deceptive Packaging
 Placing products in containers with exaggerated sizes.
Misleading shapes
2. Misbranding or Mislabeling
 False statement on label of products
 Making container similar to other products
3. False or Misleading Advertising
 Useful purpose if conveys right information
 Whole truth and nothing but the truth
4. Adulteration
 Debasing a pure or genuine commodity
 Imitating or counterfeiting
5. Weight understatement or Short Weighing
 Weighing scale is tampered, unobtrusively attached
6. Measurement understatement Short Measurement
 Measuring stick shorter than regular. Smaller volume
than standard
7. Quality understatement of Short Numbering
  Gives less than the number asked for or paid for Chapter 8: Ethical Dilemma

Indirect Misrepresentation – omitting adverse or unfavorable info’s Ethical Dilemma – situation a person faces in which decision must be
made
1. Caveat Emptor
 Means “let the buyer beware” SIX STEPS IN RESOLVING ETHICAL DILEMMA
 Common to salesmen
1. Obtain relevant facts
 Seller is not obliged to reveal any defect
2. Identify the ethical issues from the facts
2. Deliberate Withholding of Information 3. Determine who is affected
 Not Fair if does not exactly know what he is giving away or 4. Identify the alternatives
receiving in return 5. Identify the likely consequences
3. Passive Deception 6. Decide
 Businessmen are liars. Fact Buck
 Business ignorance is passive deception Chapter 9: Advocacy Against Corruption

Persuasion – the process of appealing. Urging him to buy item Corruption

Unethical Practices of BOD  abuse for personal gain

 acts of bribery, embezzlement
1. Plain Graft – help themselves to the earning. Voting for  receiving or giving gratification
themselves
 misuse of entrusted power
2. Interlocking directorship –conflict of interest. This leads to
 Dr. Petrus Van Duyne: Corruption is an improbity or decay
disloyal selling
 Dishonestly and criminal activity
3. Insider Trading – broker uses confidential info to trade
4. Negligence of Duty – failed to attend meetings regularly

Unethical Practices of Executive Officer and Lowe Level Managers

1. Claiming a vacation trip to be a business trip

2. Having employees do work unrelated to the business
3. Loose or ineffective controls
4. Unfair labor practice
5. ------
6. ---------
7. Sexual Harassment