 History of the development of business

ethics
 Five stages
1. Before 1960: Ethics in Business
2. During 1960s: The raise of social issues in Business
3. During 1970s: Business ethics as an emerging field
4. During 1980s:Consolidation
5. During 1990s: Institutionalisation of Business ethics
 The twenty-first century: a new focus on Business
Ethics
 Benefits of Business Ethics
1. Ethics contribute to employee
contribution
2. Ethics contribute to Investor loyality
3. Ethics contribute to Customer satisfaction
4. Ethics contribute to Profits
 Arguments for and against business ethics
Ethical Issues in business
An Ethical issue is a problem, situation or
opportunity that requires an individual,
group or organisation to choose among
several actions that must be evaluated as
right or wrong, ethical or unethical.
 Classification of Ethical Issues in business
1. Honesty and fairness
2. Conflicts of interest
3. Fraud –
Accounting,
Marketing and
Consumer fraud
4. Discrimination
5. Information technology
Steps of Social Responsibility
 Economic issues
 Competitive issues
 Legal and Regulatory issues
1. Laws regulating competition
2. Laws protecting consumers
3. Laws promoting equity and safety
4. Laws protecting environment
5. Laws that encourage ethical conduct
 Philanthropic issues

 Quality of life issues

 Philanthropic contributions

 Strategic philanthropy

 Ethics as a force in social responsibility

 Framework for ethical decision making
 Individual factors
 Organisational factors

 Opportunity
 A Framework for Ethical Decision Making

 Recognize an Ethical Issue

 Could this decision or situation be damaging to someone or to some group? Does this decision involve a choice between a good and bad alternative, or perhaps between
two "goods" or between two "bads"?
 Is this issue about more than what is legal or what is most efficient? If so, how?
 Get the Facts

 What are the relevant facts of the case? What facts are not known? Can I learn more about the situation? Do I know enough to make a decision?
 What individuals and groups have an important stake in the outcome? Are some concerns more important? Why?
 What are the options for acting? Have all the relevant persons and groups been consulted? Have I identified creative options?
 Evaluate Alternative Actions
 Evaluate the options by asking the following questions:
 Which option will produce the most good and do the least harm? (The Utilitarian Approach)
 Which option best respects the rights of all who have a stake? (The Rights Approach)
 Which option treats people equally or proportionately? (The Justice Approach)
 Which option best serves the community
as a whole, not just some members?
(The Common Good Approach)
 Which option leads me to act as the sort of person I want to be? (The Virtue Approach)
 Make a Decision and Test It

 Considering all these approaches, which option best addresses the situation?
 If I told someone I respect-or told a television audience-which option I have chosen, what would they say?
 Act and Reflect on the Outcome

 How can my decision be implemented with the greatest care and attention to the concerns of all stakeholders?
 How did my decision turn out and what have I learned from this specific situation?
 This framework for thinking ethically is the product of dialogue and debate at the Markkula Center for Applied Ethics at Santa Clara University. Primary contributors include
Manuel Velasquez, Dennis Moberg, Michael J. Meyer, Thomas Shanks, Margaret R. McLean, David DeCosse, Claire André, and Kirk O. Hanson. It was last revised in
May 2009.
 Corporate Governance — a dimension of
ethical making
1. Views of corporate governance
2. Elements of corporate governance related to
ethical decision making
a.Boards of directors
b.Executive compensation
 Using ethical decision making
Framework to improve ethical decisions