Ethics in Business

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Ethics, an Overview
Ethics in Business
Business Stakeholders
Maintaining Ethical Standards
Corporate Social Responsibility
Ethical Responsibilities of Management
Ethics in Business
Ethics in Business > Ethics, an Overview
Ethics, an Overview
• Defining Ethics
• Ethics Training
• Culture and Ethics
• The Manager's Role in Ethical Conduct
• Blurring Ethical Lines
www.boundless.com/management/textbooks/boundless-management-textbook/ethics-in-business-13/ethics-an-overview-95/
Ethics in Business > Business Stakeholders
Business Stakeholders
• Internal Stakeholders
• External Stakeholders
www.boundless.com/management/textbooks/boundless-management-textbook/ethics-in-business-13/business-stakeholders-96/
Ethics in Business > Maintaining Ethical Standards
Maintaining Ethical Standards

• Ethical Decision Making
• Training Ethical Decision Making
• Whistleblower Protection
• Managers Role in Ethical Conduct
• Codes of Conduct
www.boundless.com/management/textbooks/boundless-management-textbook/ethics-in-business-13/maintaining-ethical-standards-97/
Ethics in Business > Corporate Social Responsibility
Corporate Social Responsibility

• Introduction to Corporate Social Responsibility
• Arguments for and against Corporate Social Responsibility
• Social Responsibility Audits
• Types of Social Responsibility: Sustainability
• Types of Social Responsibility: Philanthropy
• Types of Social Responsibility: Ecocentric Management
• The Financial Value of Social Responsibility
www.boundless.com/management/textbooks/boundless-management-textbook/ethics-in-business-13/corporate-social-responsibility-98/
Ethics in Business > Ethical Responsibilities of Management
Ethical Responsibilities of Management

• Ethical Conflicts
www.boundless.com/management/textbooks/boundless-management-textbook/ethics-in-business-13/ethical-responsibilities-of-management-99/
Appendix
Ethics in Business
Key terms
• accountability The state of being responsible for something.
• audit An independent review of records and activities to assess system controls, to ensure compliance with established policies
and procedures, and to recommend changes in controls, policies, or procedures.
• behavior The way a living creature acts.
• benchmark A standard by which something is evaluated or measured.
• bottom line The final balance; the amount of money or profit left after everything has been tallied.
• business ethics The branch of ethics that examines questions of moral right and wrong arising in the context of business
practice or theory.
• code Any system of principles, rules or regulations relating to one subject.
• cognitive Of the mental functions that deal with logic, as opposed to affective functions, which deal with emotion.
• compliance The department of a business that ensures all government regulations are met.
• conduct The manner of guiding or carrying one's self; personal deportment; mode of action; behavior.
• core The most important part of a thing; the essence.
• decision A choice or judgement.
Ethics in Business
• disclosure The act of revealing something.

• ecology The branch of biology dealing with the relationships of organisms with their environment and with each other.
• ethical dilemma A complex situation that often involves an apparent mental conflict between moral imperatives, in which
obeying one means transgressing another.
• ethics The study of principles relating to right and wrong conduct.
• ethnocentric Of the idea or belief that one's own culture is more important than, or superior to, other cultures.
• externalities Something that indirectly affects something else. In economics, a cost or benefit that is not captured in the price
mechanism.
• fiduciary One who holds a thing in trust for another; a trustee.
• goodwill The ability of an individual or business to exert influence within a community, club, market, or another type of group,
without having to resort to the use of an asset (such as money or property).
• governance The implementation of policies, processes, and rights.
Ethics in Business
• impact A significant or strong influence; an effect.

• impact A significant or strong influence; an effect.
• moral relativism Refers to any of several philosophical positions concerned with the differences in moral judgments among
different people and across different cultures.
• norms According to sociologists, social norms are the laws that govern society's behaviors.
• norms According to sociologists, social norms are the laws that govern society's behaviors.
• norms Rules or laws that govern a group's or a society's behaviors.
• responsibility A duty, obligation, or liability for which someone is held accountable.
• shared value model Idea that corporate success and social welfare relate; that a company succeeds and competes in a better
society because it needs a healthy, educated workforce and sustainable resources.
• shareholder One who owns shares of stock in a business.
• shareholder One who owns shares of stock in a business.
• stakeholder A person or organization with a legitimate interest in a given situation, action, or enterprise.
• stakeholder theory A theory of organizational management and business ethics that addresses morals and values in managing
an organization.
Ethics in Business
• stakeholders People or organizations with a legitimate interest in a given situation, action, or enterprise.
• stewardship The act of caring for or improving with time.
• triple bottom line A means of measuring a company's success based on its economic returns, its effect on its environment, and
its impact on the community.
• value A standard by which an individual determines what is good or desirable; a measure of relative worth or importance.
• values A collection of guiding principles; what one deems to be correct, important, and desirable in life, especially regarding
personal conduct.
Ethics in Business
Green building
This company building in the UK was created from green materials.
Wikimedia. "Eco building in Cwmbran - geograph.org.uk - 1088775." CC BY-SA http://commons.wikimedia.org/wiki/File:Eco_building_in_Cwmbran_-
_geograph.org.uk_-_1088775.jpg View on Boundless.com
Ethics in Business
A whistle
Whistle-blowers are provided some protection under the law.
Flickr. "Whistle | Flickr - Photo Sharing!." CC BY http://www.flickr.com/photos/katerha/4474670666/ View on Boundless.com
Ethics in Business
Stakeholders
This chart underlines some of the main internal and external stakeholders leaders will consider when looking at the implications of business operations.
Wikimedia. "Stakeholder_28en29.svg.png." CC BY-SA 3.0 https://upload.wikimedia.org/wikipedia/commons/5/56/Stakeholder_%28en%29.svg View on
Boundless.com
Ethics in Business
Emerging Values: Environmentalism and Green Energy

Image of an energy plant.
Wikimedia. "Coal power plant Datteln 1." CC BY-SA 2.5 http://commons.wikimedia.org/wiki/File:Coal_power_plant_Datteln_1.jpg View on Boundless.com
Ethics in Business
Triple bottom line

Sustainable design of a business can be an aspect of corporate social responsibility.
Wikimedia. CC BY-SA http://upload.wikimedia.org/wikipedia/commons/2/2a/Triple_Bottom_Line_graphic.jpg View on Boundless.com
Ethics in Business
Corporate social responsibility

The benefits a company obtains from having a strong community and healthy environment may not generally be expressed in dollars, but these
elements do have a financial impact on a business.
OpenStax CNX. "Carol Laman, Introduction to Psychology Chapter One Basics. March 12, 2014." CC BY 3.0 http://cnx.org/content/m35612/latest/ View on
Boundless.com
Ethics in Business
The manager's role in ethical conduct

The manager has an important role in maintaining ethical conduct in a firm, but a firm's ethics cannot simply be based on a "manager to the rescue"
approach.
Flickr. "Sign in to Yahoo." CC BY http://www.flickr.com/photos/14152446@N02/7952500042/ View on Boundless.com
Ethics in Business
This way to ethics

Ethical decisions are not always clear-cut.
Flickr. "That Way | Flickr - Photo Sharing!." CC BY http://www.flickr.com/photos/justinbaeder/194066146/ View on Boundless.com
Ethics in Business
Factory workers in 1920s

One metric that might be tested in a social responsibility audit is worker conditions in the company's plants.
Wikimedia. CC BY http://upload.wikimedia.org/wikipedia/commons/b/bc/Can_factory_workers_stamping_out_end_discs,_published_1909.jpg View on
Boundless.com
Ethics in Business
Corporate social responsibility (CSR)

CSR refers to the practice of companies integrating ethical, social, environmental, and other global issues into their business operations and in their
interaction with their stakeholders (employees, customers, shareholders, investors, local communities, government).
OpenStax CNX. "Carol Laman, Introduction to Psychology Chapter One Basics. July 3, 2012." CC BY 3.0 http://cnx.org/content/m35612/latest/ View on
Boundless.com
Ethics in Business
Guiding conduct
Public signage often contains messages guiding conduct. Similarly, behavior in organizational settings may be guided by organizational codes of
conduct.
Flickr. "TRAX Rules 2 | Flickr - Photo Sharing!." CC BY-SA http://www.flickr.com/photos/mpk/49121180/ View on Boundless.com
Ethics in Business
Ethics are important

In every type of business, ethics are needed to keep business standards high.
Wikimedia. "Journal of International Business Ethics." CC BY-SA http://commons.wikimedia.org/wiki/File:Journal_of_International_Business_Ethics.jpg View on
Boundless.com
Ethics in Business
Corporate social responsibility

CSR pertains to the positive effects a company's operations have on the environment, consumers, and society at large.
Flickr. "Authenticity in Corporate Social Responsibility | Flickr - Photo Sharing!." CC BY-SA http://www.flickr.com/photos/geoliv/4366618513/ View on
Boundless.com
Ethics in Business
Cultural map of the world

This diagram attempts to plot different countries by the importance of different types of values. One axis represents traditional values to secular-rational
values, while the other axis accounts for survival values and self-expression values. Different groups of countries can be grouped into certain categories,
such as Catholic Europe, English speaking, and Ex-Communist.
Wikipedia. "Value (personal and cultural)." CC BY http://en.wikipedia.org/wiki/Value_(personal_and_cultural) View on Boundless.com
Ethics in Business
Stakeholders for a Search Engine

This graphic is a good illustration of the stakeholders involved in a search engine organization. Various groups are impacted by their operations, such as
consumers, owners, financiers, governments, and advertisers. Owners are directly involved in the process, and thus described as internal stakeholders.
Wikimedia. "Stakeholders_of_a_search_engine_and_their_interactions.svg.png." CC BY-SA 3.0
https://upload.wikimedia.org/wikipedia/commons/6/63/Stakeholders_of_a_search_engine_and_their_interactions.svg View on Boundless.com
Ethics in Business
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Ethics in Business
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Maintaining Ethical Standards

Corporate Social Responsibility

Ethical Responsibilities of Management

Maintaining Ethical Standards

Corporate Social Responsibility

Ethical Responsibilities of Management

• disclosure The act of revealing something.

• impact A significant or strong influence; an effect.

Emerging Values: Environmentalism and Green Energy

Triple bottom line

Corporate social responsibility

The manager's role in ethical conduct

This way to ethics

Factory workers in 1920s

Corporate social responsibility (CSR)

Ethics are important

Corporate social responsibility

Cultural map of the world

Stakeholders for a Search Engine

• Wikibooks. "Introduction to Moral Reasoning/Why Study Moral Reasoning?." CC BY-SA 3.0

• Wiktionary. "core." CC BY-SA 3.0 http://en.wiktionary.org/wiki/core

• Wiktionary. "values." CC BY-SA 3.0 http://en.wiktionary.org/wiki/values

• Wikipedia. "externalities." CC BY-SA 3.0 http://en.wikipedia.org/wiki/externalities

• Wiktionary. "ethics." CC BY-SA 3.0 http://en.wiktionary.org/wiki/ethics

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