Emerging

Business
Ethics Issues
Presented by Group 3
 Topic of discussion
1 — Recognizing an 3 — Ethical Issues and 5 — Case
ethical issue dilemmas
2 — Foundational 4 —Impact of social
Values values on ethics
 RECOGNIZING AN ETHICAL ISSUE

Business Decisions like personal decisions may involve a

01 delimma. An ethical issue in business is simply a situations
involving a group, an opportunity that requires a thought or
investigation before a final decision can be made.

A number of relationships and situations may generate ethical

02 issues, in practice. It may be difficult to identify them which may
pose a great danger to an organization.

There are a wide range of issues that could be identified as

03 misconduct such as abusive behavior, conflict of interest,
discrimination, etc and it is impossible to list every conceivable
ethical issue or even just be absence of transparency and decision
making can create harm to others.
 Foundational Values
Integrity
Integrity involves adhering to a set
of moral principles and values, even
when faced with difficult situations.
It helps individuals and
organizations maintain consistency
and make ethical choices in their
actions and decisions. When
assessing ethical issues, integrity
guides us to evaluate whether our
actions align with our core values
and moral standards.
Honesty
Honesty entails truthfulness and
transparency in communication
and interactions. It involves
providing accurate information and
not misleading or deceiving others.
When evaluating ethical issues,
honesty prompts us to consider
whether our actions involve
truthfulness, disclosure of relevant
information, and avoidance of
misleading or deceptive practices.
Fairness
Fairness refers to treating all
individuals equitably and impartially,
without favoritism or discrimination. It
involves providing equal
opportunities, considering the
interests of all stakeholders, and
making decisions based on objective
criteria. When examining ethical
issues, fairness helps us assess
whether our actions uphold principles
of justice, equality, and respect for the
rights and well-being of others.
 WHAT IS AN ETHICAL ISSUE AND
ETHICAL DILEMMA?

An ethical issue is a problem, situation or opportunity that

01 requires an individual, group or organization to choose
among several actions that must be evaluated as right or
wrong, ethical or unethical.

An ethical dilemma is a problem, situation or opportunity

02
that requires an individual, group or an organization to
choose among several actions that have negative outcomes.
.
 MISUSE OF COMPANY TIME AND
ABUSIVE INTIMIDATING
BEHAVIOUR

01 Misuse of Company time and resources: This is difficult to

measure but an average employee steals 4.25 hours per
week in form of late arrivals, early leaves, sick days,
excessive socializing and engaging in personal activities.
The greatest way employees misuse their work time is by
using company computer for personal use.

Abusive or intimidating behavior: This term refers to

02
physical threats, false accusations, being annoying ,
profanity, insults, yelling, harshness and ignoring someone.
Wage theft is also a way of abusive environment in which
employer fails to pay the employee over time.
Bullying is also associated with a hostile workplace where
someone considered target is threatened, harassed and
belittled.
 Lying
This refers to the distorting of
truth.
Commission Lying: It is creating
a perception or belief by words
that intentionally deceive the
receiver of the message. E.g.
lying about being at work.
Omission lying: It is intentionally
not informing others of any
differences, problems , safety
warnings or negative issues
relating to the product or the
company that significantly affect
the awareness, intention or
behavior.
Conflict of Bribery
Interest
It is the practice of offering
It exists when an individual
something in order to gain
must choose whether to
an illicit advantage from
advance his or her own
someone in authority.
interests, those of
organizations or those of
Active bribery means the
some other groups. To avoid
person who promises or
this employees must be able
gives the bribe and Passive
to separate their private
bribery means the offense
interests from their business
committed by the official
dealings.
who receives the bribe.
 Corporate
Intelligence
It is the collection and analysis
of information on markets,
technologies and competitors
as well as socioeconomic and
external political trends. There
are three types of intelligence
models:
1)A passive monitoring system
for early warnings
2)Tactical field support
3)Support dedicated to top
management strategy
Discrimination
This can be on the basis of race,
color, religion, sex, marital
status, sexual orientation,
public assistance status,
disability, age, nationality or
veteran status.
•The age discrimination
employment act outlaws hiring
practices that discriminate
against people 40 years of age
or older as well as those that
require employees to retire
before the age of 70.
Many companies have
affirmative action programs
which involves efforts to recruit
people who have faced any sort
of discrimination.
.
Sexual
Harrasment
It can be defined as any
unwanted or repeated behavior
of a sexual natural perpetrated
upon one individual by another.
•It can be verbal, visual, written,
physical and can occur between
people of same gender or
different genders.
A key ethical issue is of dual
relationship which is defined as
personal/loving sexual
relationship with someone with
who you share professional
responsibilities.
 Fraud

When individuals engage in intentional deceptive practices to advance their own

interests over those of the organization or some other group, they are committing fraud.
In gen- eral, fraud is any purposeful communication that deceives, manipulates, or
conceals facts in order to harm others. Fraud can be a crime and convictions may result
in fines, imprison- ment, or both.
 Types of Fraud
Accounting fraud: Accounting scandals are business scandals which arise from intentional
manipulation of financial statements with the disclosure of financial misdeeds
Marketing fraud-the process of dishonestly creating, distributing, promoting, and pricing products is
another business area that generates potential ethical issues. False or misleading marketing
communications destroy customers' trust in a company.
Puffery can be defined as exaggerated advertising, blustering, and boasting upon which no
reasonable buyer would rely upon and is not actionable under the Lanham Act.
Implied falsity means the message has a tendency to mislead, confuse, or deceive the public. Claims
that use implied falsity are those that are literally true but imply another message that is false.
Labeling issues: When is product is sold other misleading label.
Consumer fraud occurs when consumers attempt to deceive businesses for their own gain. Types of
consumer frauds are:
Friendly fraud
Price Arbitrage
Return Fraud
Wardrobing
Returning Stolen Goods
 Financial Misconduct
Financial Misconduct means fraud, gross negligence or intentional or willful misconduct that contributes,
directly or indirectly, to the Company’s financial or operational results. It breach regulations, ethics, or
professional standards.
 Insider Trading
Illegal Insider Trading: Illegal insider trading is the buying or selling of stocks by insiders who possess
information that is not yet public.
Legal Insider Trading: Legal insider trading involves legally buying and selling stock in an insider's
own company, but not all the time. Insiders are required to report their insider transactions within
two business days of the date the transaction occurred.
 Intellectual Property
Rights

Intellectual property rights involve the legal protection of intellectual property such as music. books, and
movies.
 Privacy Issues

Privacy issues refer to concerns and challenges related to the protection and control of personal
information, including the collection, use, storage, and sharing of individuals' data, often in the context of
technology, online platforms, and data privacy regulations.
 Impact of social values on ethics

01 02 03 04

CHANGING ETHICAL TREATING CYBERSECURITY

CONCERNS EMPLOYEES AS AND DATA
SOCIETAL
WITH BIG ORGANIZATIONAL PROTECTION
VALUES
DATA AND ASSETS
MARKETING
ANALYTICS
 Case
Demarco's Dilemma: The case revolves around Demarco's dilemma
and his role in explaining to indigenous populations the plans of Xeon
Natural Resources to extract niobium from lands owned by them. He
recognizes that strip mining in the area would disrupt their cultural
heritage and introduce external influences. While he understands the
potential benefits of improved living conditions, he feels the tribes
may not fully comprehend the impact on their culture. There are
conflicting interests among stakeholders, including the company,
tribes, government, and other communities. Demarco must meet
with tribal elders to address their concerns, knowing that any
decision will negatively impact some stakeholders and alter the lives
of the indigenous tribes. He is uncertain about the advice he should
provide to the tribal leaders.
 Presented by Group 3

Thank you!