Business Ethics

The value of what should be done and what should not be done from
the business point of view
Ethical Issues
• 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
Ethical issues for Business
• Product safety standards
• Advertising contents
• Working environment
• Unauthorized payments
• Employee’s privacy
• Environmental issues
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.
Ethical Issues in Business Communication
• Every business needs to impress upon its employees the importance
of communicating ethically, whether the communication is between
company employees or between company representatives and the
outside world. 
• Employees must be honest, fair, sensitive and respectful in
communicating with one another and in communicating with
customers, vendors and the public.
Dishonesty
• Honesty refers to telling the truth in its entirety. Using exaggeration or
manipulation seems to be common in business, both in internal
communication and external communication. When honesty is
compromised, people and businesses can lose credibility and respect.
ETHICAL ISSUES IN BUSINESS

• In the complex global business environment of the 21st century, companies of every size face a multitude of ethical
issues. Businesses have the responsibility Co develop codes of conduct and ethics that every member of the
organization must abide by and put into action. Fundamental ethical issues in business include promoting conduct
based on integrity and that engenders trust, but more complex issues include accommodating diversity, empathetic
decision-making, and compliance and governance consistent with a company's core values.
• (I) Fundamental Issues
• The most fundamental or essential ethical issues that businesses must face are integrity and trust. A basic
understanding of integrity includes the idea of conducting your business affairs with honesty and a commitment to
treating every customer fairly. When customers thin k a company is exhibiting an unwavering commitment to ethical
business practices, a high level of trust can develop between the business and the people it seeks Co serve. A
relationship of trust between you and your customers may be a key factor in your company's success.
• (ii)Diversity Issues
• Your current and potential employeesarea diverse pool of people who deserve Co have their differences respected
when they chooseto work at your business. An ethical response Co diversity begins with recruiting a diverse
workforce, enforces equal opportunity in all training programsand is fulfilled when every employee is able to enjoy a
respectful workplace environment that values their contributions. Maximizing the valueof each employees'
contribution is a key element in your business's success.
• Decision -Making Issues
• A useful method for exploring ethical dilemmas and identifying ethical courses of action includes
collecting the facts, evaluating any alternative actions, making a decision, testing the decision for
fairness and reflecting on the outcome. Ethical decision-making processes should center on protecting
employee and customer rights, making sure all business operations are fair and just, protecting the
common good, and making sure the individual values and beliefs of workers are protected.
• (iv) Compliance and Governance Issues
• Businesses are expected to fully comply with environmental laws, federal and state safety regulations,
fiscal and monetary reporting statutes and all applicable civil rights laws. For example, the Alu minu m
Company of America's approach Co compliance ensures no one at the company may ask any
employee to break the law or go against company values, policies and procedures. The company's
commitment to compliance is shored up by its approach to corporate governance: the company
expects all ALCOA directors, of ficers and executives to conduct business in accordance with its
business conduct policies.
LEGAL ISSUES IN BUSINESS

• Business communication can take many forms, including sales pitches,

marketing messages, press releases and even company meetings,
depending on the audience and communication medium. Business
communication competencies tend to focus on building relationships
and achieving productive results, but the legal aspect must also be
considered. Certain areas of business communication are strictly
regulated by law,while others can lead to potentially harmful civil
litigation. Understanding the legal framework in which business
communicators work is essential for entrepreneurs, managers and
front-line employees alike.
 Legal Issues
• Product and service disclaimers protect businesses from potentially harmful litigation in the event of misuse or misunderstanding by customers. Disclaimers can be
used in court to prove that customers were warned about dangers and risks before using a product or service. Disclaimers can be found on a variety of media,
including product packaging and commercial advertisements, or even in sales conversations. Most disclaimers are preventive measures, but some are legally
mandated by regulatory bodies. Financial advisers must include disclaimers related to the risks inherent in following their advice, for example, while healthcare
products are required Co list potentially harmful side effects.
• (ii)Disclosures
• Legal disclosures are similar Co disclaimers, but less specific. Although disclaimers area type of disclosure, other types of disclosures can be legally significant as well.
Conflict-of-interest disclosures for stock analysts and financial advisers are one example, as are references for research-based claims in marketing. Non-disclosure
agreements approach the issue of legal disclosure from another angle. In non-disclosure agreements, one party agrees Co refrain from sharing proprietary
information outside of a contractual relationship.
• NO Marketing Communications
• Advertising and sales communications must follow legal guidelines for honesty a nd accuracy. According to the Small Business Administration's overview of advertising
and marketing law, advertising claims must be honest, non-deceptive and based on factual evidence. According to the same overview, advertising and marketing law
extends to regulate testimonials, product endorsements, advertising to children, claims of environmental responsibility and claims of domestic production. The
Federal Trade Commission also strictly regulates direct marketing activities, including telemarketing and email marketing.
• (iv)Reporting
• Financial reporting can be considered a form of business communication, since it involves formally presenting information to investors, regulators and the general
public. Using deceptive accounting practices to misrepresent com pany finances is a weighty legal matter potentially resulting in lawsuits, fines or even criminal
charges, not to mention damage to a company's brand reputation. This is one of the most closely regulated areas of business communications and is especially
important for publicly traded corporadons.
• (v) Internal Communications
• Business communication deals just as much with internal dialogs as communication with outside sta keholders. The Equal Opportunity Employment Commission and
the Department of Labor regulate such issues as harassment, threats, hostile work environments and dishonest communication with employees. Individual states
further enforce their own internal communications regulations via state agencies, such as the California Department of Fair Employment and Housing.
• Thank you