• BUSINESS ETHICS

• Ethics and Morals

• Morals define personal character

• Ethics stress a social system in which those morals are applied.

• Ethics point to standards or codes of behavior expected by the group to

which the individual belongs., e.g. national ethics, social ethics, company
ethics, professional ethics, or even family ethics.

• A person’s moral code is usually unchanging, the ethics he or she practices

can be other-dependent.

• Why Study Ethics In A Law Course?

• Legal decisions have consequences that go beyond the plaintiff and

defendant. There often is a public policy aspect to a case.

• Statutory law affects the general public.

• Regulations affect our conduct.

• A company’s business and legal strategy affects its stakeholders.

(customers, stockholders, suppliers, creditors, the community, the
environment, etc)

• LEGAL = ETHICAL??

• Laws Generally Reflect Society’s Ethically Code

• Business Ethics Focuses On How Moral And Ethical Principles Are Applied In
The Business Context.

• Business Ethics May Be More Complex Than Personal Ethics

• LEGAL = ETHICAL??

• Why Ethical Problems Occur:

- Focus Placed On Short-term Profit Maximization

Decision Makers Ignore Long Term Issue

– Corporate Influence On Law Making

Lobbyists Pressure Legislature & Government Agencies

Dangle Carrot Of Future Jobs To Agency Employees

 • Ethical Leadership

• Starts at the top w/ management

- Looking the Other Way

- Creating Realistic Goals

- Periodic Evaluation

• ROADS TO ETHICAL DECISIONS

• Consider Situation Based On Morals And Ethics

• Various Approaches:

– Duty Based

– Outcome Based

– Corporate Responsibility

• DUTY BASED ETHICS

• Starts W/ Premise That Human Beings Have Basic Rights

• Then Consider How A Particular Action Will Affect Rights Of Others “Principal
of Rights”

• But What If There Are Many Different Categories Of Others; Employees,

Stockholders, Community Etc.

• Then You Have To Pick The Most Important Other In The Particular Situation

• DUTY BASED ETHICS, cont.

• Based On:

- Religious Beliefs – Generally These Are Absolute (No Wiggle Room);

e.g. Ten Commandments

- Philosophical Reasoning, E.G. Immanuel Kant.

- Evaluate Your Actions By Asking What Would Happen If Everyone Did

As You’re Doing

• OUTCOME BASED ETHICS

• “Utilitarianism” - The Greatest Good For The Greatest Number

 • The Is Outcome Oriented

• Focuses On The Consequences

Rather Than The Morality, Etc, Of The Act Itself

• Must Determine:

(1) Who Will Be Effected; (2) Cost-benefit Analysis; & (3)Choose Among All Possible
Actions To Produce Maximum Benefit.

• Corporate Social Responsibility

• Corporations Can & Should Act Ethically & Be Accountable To Society For
Their Actions.

• Stakeholder Approach – In Addition To Shareholders, Corps Must Also

Stakeholders When Making Corporate Decisions.

• Corporate Citizenship – Corps Should Be Good Citizens By Promoting Goals

Good For Society & Try To Solve Social Problems

• LEGAL = ETHICAL??

• Legal acts are the moral minimum

• Legal does not necessarily equal ethical

• Look before you leap – Is It legal?

• Ignorance of the law is no excuse

• Closing the barn door after the cows escape

• GUIDELINES FOR ETHICAL DECISIONMAKING

• The George S. May International Company Has Provided Six Guidelines:

– The Law – Is It Legal?

– Rules And Procedures – Set By Company

– Values – Follow Spirit Of Law, Ignore Loopholes

– Conscience – Does It Bother You?

– Promises – Are You Breaking Any?

– Heroes – What Would Your Hero Do?

• ETHICS AROUND THE WORLD

• Things Are No The Same Everywhere

• Do Foreign Suppliers Treat Their Workers As Do We?

• Foreign Corrupt Practices Act - Greasing The Palm