Chapter 2

Contemporary Issues in Business Ethics

Chapter Learning Objectives
1. Describe the historical development of business ethics.
2. Define integrity. Explain the role of integrity in the corporation.
3. Describe some of the tests used for measuring integrity.
4. Explain the ethical cycle.
5. Explain the methods people use to rationalise their unethical behaviours.
6. Explain unintentional unethical behaviour.
7. Explain why people make bad decisions.
8. Discuss the reasons businesses should operate ethically.
Ethical Thoughts

Ethical Decision-making isnt an option today. Its an obligation in business, in education, in

government, in our daily lives.

William C. Butcher Retired Chairman of Chase Manhattan Corporation

History of Business Ethics

Ethical Climates are created by individual judgments

Knowing the corporate stand on certain aspects can contribute to managements creation of a
strong ethical culture

Ethics began with Aristotle, Socrates, and Plato

1960s:

Period of social unrest

Employees and employers began to have a real adversarial relationship

Environment, drug use among employees began to be dilemmas for employers

Birth of CSR movement corporations began to establish codes of ethics

1970s:

US economy suffered a recession