CHAPTER 1

ETHICS, BUSINESS, AND

BUSINESS ETHICS

Prepared by: Roberto H. Visitacion, DBA

Chapter Objectives
1. To define business, ethics, and
business ethics;
2. To discuss the reasons for the
study of business ethics;
3. To set the ground for the study of
business ethics; and
4. To situate ethics in the conduct of
business.

BUSINESS
Traditional definition of business is that it
has always been associated with profit.
The purpose of business is to provide
goods and services that benefit society.
Profit is the reward for doing good
business.

BUSINESS
Man aspires for the good life and he uses
business to achieve that good life.
Collective Programming
the good life is usually equated with wealth.

Vision of good life:

A life of having or of being

BUSINESS
The higher purpose of business is to
become a means to an authentic human
development.
Profit should be viewed as a reward and not
as the main goal.

ETHICS
Ethics refers to the discipline that deals with
what is right and wrong or what is good
and evil.
Business decisions and practices can be
classified as right or wrong, good or evil.
Importance of ethics in business
education:
Business students are made aware of the
ethical issues arising from business
decisions.

ETHICS
Moral is defined as relating to the principles
of right and wrong.
Standard is defined as a model or rule to be
followed.
Therefore, Moral Standard may be taken
to mean the principle of right and wrong
that should be followed.

Characteristics of Moral Standard:

1.They deal with matters that can seriously
injure or benefit human beings;
2.They cannot be changed by the decisions
of any authoritative body;
3.They should be preferred over other
values including self-interest;
4.They are based on objective and impartial
considerations; and
5.They are associated with special such as
guilt, remorse and shame.

ETHICS
Moral standard is universal and immutable.
Meaning it applies to all and cannot be
changed by the mere agreement of a
group of people.
Moral standard also take a higher place in
the hierarchy of values. The highest good
is the good of all.
Self-interest should be least in the order of
values.

BUSINESS ETHICS
Business ethics refers to the examination
of issues in business, whether they are
right or wrong, good or evil. Therefore,
Business ethics is an applied ethics.
Qualified issues for ethical examination:
Controversial two groups having
opposing position on the issue.
Distinctly moral concerns universally
obligatory practices.

BUSINESS ETHICS
Two
approaches
in
controversial issues:
1. Debate
2. Reflective Discourse

dealing

with

Place of Ethics in a Business

Organization
Business Organization comes to be when
people, with mutual interest, decide to
formalize their association in pursuit of a
common goal.
Common goal may have to do with the
production of goods and services to satisfy
a need or want.

TRIPLE REWARD SYSTEM

Employee
Goals

Superordinate
Goal

Organizational
Goals

Ethics

Mutual
Accomplishment
of Goals

Employee

Organization

Society

THANK YOU