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Business Ethics Fundamentals Business Ethics Fundamentals
MGT 3800 Chapter 6 MGT 3800 Chapter 6
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Chapter Outline
Business Ethics
and Public Opinion
What Does
Business Ethics
Mean?
Ethics, Economics
and Law: Venn
Model
Four mportant
Ethics Questions
Three Models of
Management
Ethics
Making Moral
Management
Actionable
Developing Moral
Judgment
Elements of Moral
Judgment
Summary

ntroduction
Business Ethics
Public's interest in business ethics
increased during the last four
decades
Public's interest in business ethics
spurred by the media

ntroduction
nventory of EthicaI ssues in
Business
Employee-Employer Relations
Employer-Employee Relations
Company-Customer Relations
Company-Shareholder Relations
Company-Community/Public
nterest

Public's Opinion of Business Ethics

Gallup Poll finds that only 17 percent to 20
percent of the public thought the business
ethics of executives to be ;ery high or
high
To understand public sentiment towards
business ethics, ask three questions
Has business ethics really deteriorated?
Are the media reporting ethical problems
more frequently and vigorously?
Are practices that once were socially
acceptable no longer socially acceptable?

Business Ethics: What Does t Really

Mean?
Ethical Problem
Ethical
Problem
Society`s
Expectations
oI Business
Ethics
Actual
Business
Ethics
1950s Early 2000s Time
Business Lthics:1oday vs. Larlier Period
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Business Ethics: What Does t
Really Mean?
efinitions
Ethics involves a discipline that
examines good or bad practices
within the context of a moral duty
MoraI conduct is behavior that is
right or wrong
Business ethics include practices
and behaviors that are good or bad

Business Ethics: What Does t

Really Mean?
%o Key Branches of Ethics
escriptive ethics involves
describing, characterizing and
studying morality
"What is
Normative ethics involves supplying
and justifying moral systems
"What should be

Conventional Approach to
Business Ethics
Conventional approach to business
ethics involves a comparison of a
decision or practice to prevailing
societal norms
Pitfall: ethicaI reIativism
Decision or Practice
Prevailing Norms
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Sources of Ethical Norms
ellow Workers
amily
riends
The Law
Regions oI
Country
ProIession
Employer
Society at Large
ellow Workers
Religious
BelieIs
%he Individual
Conscience
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Ethics and the Law
Law often represents an ethical
minimum
Ethics often represents a standard
that exceeds the legal minimum
Ethics Law
requent Overlap
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Making Ethical Judgments
Behavior or act
that has been
committed
Prevailing norms
oI acceptability
Value judgments
and perceptions oI
the observer
compared with
Ethics, Economics, and Law
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Four mportant Ethical
Questions
What is?
What ought to be?
How to we get from what is to what
ought to be?
What is our motivation for acting
ethically?
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Models of Management Ethics
mmoraI ManagementA style devoid of
ethical principles and active opposition to
what is ethical.
2 MoraI ManagementConforms to high
standards of ethical behavior.
3 moraI Management
ntentional - does not consider ethical factors
Unintentional - casual or careless about
ethical considerations in business
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Models of Management Ethics
1hree 1ypes Of Management Lthics
Three Approaches to Management
Ethics
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Three Models of Management
Morality and Emphasis on CSR
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Moral Management Models and
Acceptable Stakeholder Thinking

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Making Moral Management
Actionable
mportant Factors
Senior management
Ethics training
Self-analysis
Developing Moral Judgment

Developing Moral Judgment

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Developing Moral Judgment
ExternaI Sources of a
Manager's VaIues
Religious values
Philosophical values
Cultural values
Legal values
Professional values
2
Developing Moral Judgment
nternaI Sources of a Manager's
VaIues
Respect for the authority structure
Loyalty
Conformity
Performance
Results
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Elements of Moral Judgment
Moral imagination
Moral identification and ordering
Moral evaluation
Tolerance of moral disagreement and
ambiguity
ntegration of managerial and moral
competence
A sense of moral obligation
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Elements of Moral Judgment
Amoral Managers Moral Managers
Moral Imagination
Moral Identiication
Moral Laluation
1olerance o Moral Disagreement
and Ambiguity
Integration o Managerial and Moral
Competence
A Senses o Moral Obligation
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Selected Key Terms
Amoral management
Business ethics
Compliance strategy
Conventional approach
to business ethics
Descriptive ethics
Ethical relativism
Ethics
Feminist Ethics
mmoral management
ntegrity strategy
ntentional amoral
management
Kohlberg's levels of
moral development
Moral development
Moral management
Normative ethics
Unintentional amoral
management
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Selected Key Terms
Amoral management
Business ethics
Ethics
mmoral management
Levels of moral development
Moral management
Morality