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Introduction to Ethical Dilemma

Learning Outcomes:
- What is business ethics?
- Why is business ethics important?
- Why is it important to read business ethics?
- Globalisation
- Sustainability

Ethics:
- Belief of what is right and wrong or good and bad

Ethical behaviour
- Behaviour conforming to individual beliefs and social norms about what is right or wrong

Business ethics
- Ethical behaviour in the context of a business
- Has an impact on the company and stakeholders

What are Business Ethics and Accounting Ethics?

In Business ethics we study
- business situations,
- activities, and
- decisions
where issues of right and wrong are addressed.

Accounting ethics focuses on ethics in relation to the accounting professions such as

financial accounting, management accounting, tax accounting, auditing, consulting etc.

Why Study Business Ethics?

1. know how you can protect yourself and your organization against forces that lead to
unethical behaviour
2. A better understanding of why and under what conditions good people make bad
ethical decisions
3. Empowers you to analyse various organizational contexts and to assess the risks of
unethical behaviour

What is Ethical Dilemma?

 When we have a situation where the decision has to be made (Two or more options).

 How do we make a decision?

We may violate the interests/values of others whatever we decide.
There may simply not be an objective correct answer therefore, it may not just be a
case of deciding between right and wrong but, often at an individual level it involves
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deciding between different courses of action that different people believe to be right
or wrong.
 We have to choose between values/objectives/principles which are equally
important to us.

Quiz:
When you are in an ethical dilemma, the first question you have to ask yourself is:
What are my options?

Key Definition:

• Morality is concerned with the norms, values and beliefs embedded in social
processes which define right and wrong for an individual or a community.
• Ethics is concerned with the study of morality and the application of reason to
explain specific rules and principles that determine right and wrong for any given
situation.
• These rules and principles are called ethical theories.

Relationship between Morality, Ethics and Ethical Theory

Globalisation

The development of an increasingly integrated global economy is marked especially by free

trade, free flow of capital, and the tapping of cheaper foreign labour markets.

• Issues that arise due to globalisation can be Cultural issues, Legal issues,
Accountability issues
• Globalization can affect all stakeholders of the corporation
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Sustainability

Development that meets the need of the present without compromising the ability of future
generations to meet their own needs.

 Sustainability is about system maintenance or ensuring that our actions do not

impact upon the system, such that future generations can also benefit.

 A key goal for business ethics is sustainability and is widely used by corporations,
governments, consultants, pressure groups, and academics.

Concept of Long-Term Sustainability

- Economic perspectives
- Social perspectives
- Environmental perspectives
refers to the long-term maintenance of these systems.