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The document discusses the role of ethics in business. It explains that business is an integral part of human society and should be examined from an ethical perspective. While profit is important, business also has moral and social obligations. Ethics provides moral standards to guide business decisions and activities, as laws alone are insufficient. The document examines some myths about ethics in business and rationalizes the need for ethics to create order and avoid chaos. It also discusses the morality of profit-motive in business.
The document discusses the role of ethics in business. It explains that business is an integral part of human society and should be examined from an ethical perspective. While profit is important, business also has moral and social obligations. Ethics provides moral standards to guide business decisions and activities, as laws alone are insufficient. The document examines some myths about ethics in business and rationalizes the need for ethics to create order and avoid chaos. It also discusses the morality of profit-motive in business.
The document discusses the role of ethics in business. It explains that business is an integral part of human society and should be examined from an ethical perspective. While profit is important, business also has moral and social obligations. Ethics provides moral standards to guide business decisions and activities, as laws alone are insufficient. The document examines some myths about ethics in business and rationalizes the need for ethics to create order and avoid chaos. It also discusses the morality of profit-motive in business.
ETHICS AND BUSINESS 1 Explain the nature of business 4 Examine the morality of profit- from an ethical perspective motive in business.
2 Justify the importance of Ethics in 5 Rationalize the need for ethical
business propriety in business and the corporate world.
3 Appreciate the dynamics of moral
reasoning as a framework for making ethical decisions and business •Business is an old as human civilization. For as long as people have needs and wants, there will always be business.
•Business is an activity that is part and parcel of human
society. Society will not exist without business.
•Its activities must be examined from the ethical
perspective, in the same way that society examines politics, economics, government, culture and religion from the moral point of view. • It paves the way for common ground in our understanding of the fundamental idea of what is good and what is bad in our human conduct. • Without ethics, people will set their own moral standards, moral rules and moral principles. • Helps management to face and confront ethical issues and problems affecting the flow of business activities. There are some wrong perception of the role of Ethics in Business that affect their decisions and in some cases, forget to be ethical. Myth # 1: Ethics is a Personal Affair and not a Public Debatable Matter
Myth # 2: Ethics and Business do not Mix
Myth # 3: Ethics in Business is Relative
Myth # 4: Good Business Means Good Ethics
Myth # 5: Business is a War
• Ethics plays an important role in business. Without morality, business will be chaotic human activity. • Ethics is to discover that there are unwritten laws, written in the hearts of men that should govern our human conduct where positive laws may be absent and in some cases, not vey clear. • Business is an integral part of human society. • In business, as in any other human endeavor, “what is legal may not be necessarily be moral.” • Laws are insufficient. Ethics is the unwritten law, written in the hearts of men. • In today’s technocrat-oriented business education, the trend is to train managers to maximize profits and to quantify the operations of business. • Business corporation is not just created to make profits but to consider its moral and social obligations to the stakeholders. • A good moral standard is one that looks at the issue as something that is very serious. • A good standard must be grounded on good moral argument. • A good standard should be objective and not subjective. • A good standard, when violated, brings about feelings of guilt, shame, and remorse of conscience. • A good moral judgment must be logical. • A good moral judgment must be based on facts and solid evidence. • A good moral judgment must be based on sound and defensible moral principles. The Assumptions of Profit-Motive •Profit-motive in business is an ethical issue. •Profit-motive as an ethical issue operates within the two important aspects of human conduct- freedom and the structure of business. The Good Side of Profit-Motive •Profit-motive motivates people to do something meaningful. •Profit-motive promotes ingenuity and cleverness in running a business. •Profit-motive makes people productive. •Profit-motive generates potential capital for the business. The Bad Side of Profit-Motive •Profit-motive promotes rivalry among competitors. •Profit-motive makes people focus only on making money, that is, to sell as many goods as possible without considering whether or not these products satisfy the needs and wants of consumers and end users. •Profit-motive turns the businessman from being a reflective and a questioning person because it focuses his attention on the practical activity of making money. • Profit-motive promotes self-interest rather than the common good. Ethical Considerations of Profit-Motive in Business •Earning profit is a good and valid activity in business. •Making excessive profits is totally wrong. •Profit is not the “be-all and the end-all” of doing business. •“The teachings of the Catholic Church do not totally condemn profit as part of business activity. Pope Pius XI, in Quadragesimo Anno (1931), does not prohibit the producer from enriching himself provided,” one respects the laws of God, does not prejudice the rights of others, and works according to faith and right reason.” • Business Ethics is the study of what is right and wrong human behavior and conduct in business. • Business Ethics is a study of the perceptions of people about morality, moral norms, moral rules and ethical principles as they apply to people and institutions in business. • Business Ethics is the study, evaluation, analysis and questioning of ethical standards, policies, moral norms, and ethical theories that managers and decision makers use in resolving moral issues and ethical dilemmas affecting business.