Chapter 1 Ethics and Business (Philosophy and Ethics of Business)

INTRODUCTION

Business ethics is a contradiction in terms because there is an inherent

conflict between ethics and the self-interested pursuit of profit
(oxymoron)
Ethical behavior is the best long-term business strategy for a company.
- Over the long run and for the most part, ethical behavior can give a
company significant
competitive advantage over companies that are not ethical.
The ethical course of action is not always clear

3 preliminary topics:

1) The nature of business ethics and some of the issues it raises

2) Moral reasoning and moral decision-making
3) Moral responsibility

1. THE NATURE OF BUSINESS ETHICS

2 meanings of ethics:

1. The principles of conduct governing an individual or a group

a. Personal ethics= rules by which an individual lives his or her personal
life
b. Accounting ethics= the code that guides the professional conduct of
accountants
2. The study of morality
a. Ethics is a kind of investigation and morality is the subject matter that
ethics
investigates

Morality
Morality= the standards that an individual or a group has about what is
right and wrong or good and
evil
Moral standards= the norms about the kinds of actions believed to be
morally right and wrong as well
as the values placed on what we believe to be morally good and morally
bad
- Moral norms are usually expressed as general rules about our actions
O Example: Always tell the truth
- Moral values can usually be expressed with statements about objects or
features of objects
that have worth
o Example: Honesty is good
Moral standards come from:
- Learning as a child from family, friends, and other societal influences
- As we mature trough experience, learning, and intellectual
development
Nonmoral standards and norms= the standards by which we judge what
is good or band and right or
wrong in a nonmoral way
- Aka conventional standards and norms
- Standards or norms we hold about things that are not moral