Business Ethics

misbahuddin azzuhri

Define Ethical Issues in Business Business Ethics

Justice as an Objective
Distributive justice-an evaluation of the outcomes or results of a business relationship Procedural justice-based on the processes and activities that produce the outcomes or results Interactional justice-based on an evaluation of the communication processes used in business relationships (often based on the accuracy of information provided)

Ethical Issues are...

problems, situations, or opportunities requiring an individual to choose among actions that may be evaluated as right or wrong, ethical or unethical ethical issues arise because of:
conflict among personal/organizational values conflicts with societal values

What do you see as some of the causes of unethical behavior?

Causes of Unethical Behavior...

meeting overly aggressive financial or business objectives meeting schedule pressures helping the organization survive rationalizing that others do it resisting competitive threats saving jobs

Influences on Ethical Behavior...

personal values attitudes/behaviors of supervisor attitudes/behaviors of senior management internal drive to succeed performance pressures no threat of punishment friends/coworkers

Classification of Ethical Issues...

conflict of interest honesty & fairness communications issues organizational relationships

Conflict of Interest...
exists when an individual must choose whether to advance his or her own personal interests, those of the organization, or some other group must be able to separate personal interests from business dealings bribery is a significant concern

Honesty & Fairness

honesty relates to truthfulness, integrity & trustworthiness fairness related to being just, equitable & impartial breaking or bending laws violates trust business should not be played as a game lack of rules & poor enforcement leads to unethical behavior

Communications...
issues involved relate to advertising, product safety, pollution, & employee work conditions lying is a major ethical issue with internal & external communications false advertising relates to:
exaggerated claims concealed facts & ambiguous statements lying

Organizational Relationships...
relate to behavior of organizational members toward customers, suppliers, subordinates, superiors, peers & others plagarism is one ethical issue of concern to organizations

Ethical Issues Related to Ownership...

owners have an obligation to society as well as their employees & customers
minimize pollution compensate workers fairly produce safe products

must be sensitive to legal & ethical risks of their industry & region

Financial Responsibilities...
reporting & use of the companies finances pricing products/services fairly avoiding any antitrust activities
price fixing

sensitivity to socially responsible investing

Employees & Management Concerns...

employee theft, sabotage & competitive intelligence fear of layoffs salary plateaus upward mobility discrimination privacy & data access health & safety

Consumer & Marketing Issues...

Must consider consumer feedback
safety environmental (can lead to boycotts) maximize positive publicity & avoid negative

GROUP DISCUSSION & PRESENTATION

G1 (Roidah Baisa + Mohamad Risal Zawawi) T 4 G2 (Rudy Madeten + Laksmi Nur Qamarina) T 5 G3 (Rakhmansyah Wildan + Kurrotul Desfirea) T 6 G4 (Radya Mahardika + Tia Dewanti Sylvina) T 7 G5 (David Aprianto + Cunanda Ayu Oktiviane) T 9 G6 (Angga Hutama + Eka Fikri Masyhuri) T 10 G7 (Jozarky Fajrianto + Marsha Deawati) T 11 G8 (Ruella Juniar Tritanti + Ramadhani Condro) T 12 G10 (Alamsyah Previa + Chabsy Al Riezal + Ni Made Dewi) T 13 G9 (Dimas Bagus + Ayuni Berta Anugrahsari) T 14 G11 (Aditya Dwi Permana + Dhiya Nur Annisa) T 15

Case Discussion
Case 1: Wal-Mart: The Challenge of Managing Relationships with Stakeholders

After Class Discussion please submit the results according to your group opinion