Business

Ethics
 ETHICS
The set of principles by
which people in a society
conduct themselves in
regard to good and right
behavior
 VALUES
Our personal,
fundamental beliefs that we use
to define what is most important
to us in life, which determines our
view of right and wrong
 Business ethics

The set of principles by which

a business should conduct
itself in relation to its social
responsibility.
 Social Responsibility
The duty to do what is best
for the good of society.
1. Customers
2. Employees
3. Environment
 customers
 Businesses should offer a good, safe
product or service at a reasonable
price.
 Food and Drug Administration (FDA)
– Government agency that protects
consumers from dangerous or falsely
advertised products.
 employees
A. Safe Working Conditions
 Occupational Safety and Health
Administration (OSHA) – A division
of the Department of Labor that
sets and enforces work-related
health and safety rules.
 . . . employees
B. Equal Treatment and Fair Pay
 Equal Pay Act (1964) – Requires
men and women to be paid the same
wages for doing equal work.
 since then = ½ a penny of improvement per year
 Women still only earn 75% of what men do in the
same job. (March 2011)
 Americans with Disabilities Act –
Bans discrimination against persons
with physical or mental disabilities.
 environment
 Businesses have an obligation to
conserve resources, and protect
the environment around them.
 Environmental Protection Agency
(1970) – Federal agency that enforces
rules that protect the environment and
control pollution.
 Employee rights
Those things that workers are owed
by their employers.
Examples:
 Safe working conditions

 Equal pay and treatment

 Insurance?

 Paid Time Off?

 Retirement Benefits?
 Employee duties
Ethical obligations that employees
have to their employers.
Examples:
 Honesty

 Loyalty to the company

 Giving a fair day’s work
 Code of ethics
A written set of ethical guidelines
that workers are expected to
follow
 More than 85% of corporations in
America have one
 Ex: abuse of sick time, theft, drug &
alcohol abuse, and confidentiality
 Businesses can be held legally
responsible for their employees’ actions!
 Conflict of interest
When people who have agreed to act
in the best interest of others are
tempted to act in their own interest
instead.

“Others” = their employer!

 Whistle-blowing
Reporting unethical or illegal actions
by a superior or co-worker to
authorities or the media.
 Could save lives, save taxpayers
money, or bring criminals to justice
 Could be false, or even a

misunderstanding!
 Civil Rights Act (1964)
Prohibits all discrimination on the
grounds of race, color, gender,
religion or national origin.
 What is Discrimination?
 Any exclusionary practice not
necessary to an institution’s activities.
 Affirmative action
Positive steps taken to increase
the representation of women and
minorities in areas of employment,
education, and business from
which they have been historically
excluded.
 Preferential selection
 Businesses must research the
numbers of those minorities (and
women) who would be hired if they
were NOT discriminating.
 These numbers determine the
quotas that businesses must meet!