Business Ethics
Social & Legal Issues
Business Ethics and Values
Social & Legal Issues
Ethics
• Greek word: Ethos that means both an individual’s character and a community culture. • Business ethics involves adhering to legal, regulatory, professional and company standards, keeping promises and commitments and abiding by general principles like fairness, honesty and respect
Social & Legal Issues
Business Ethics
The application of general ethical concepts to the unique situations confronted in business. It asks what is right or wrong behavior in business and what principles or rules can be used as guidance in business situations.
Social & Legal Issues
Two Characteristics
• Tells people what they ought to do • Set of principles or rules
Social & Legal Issues
Case
• Jonica Gunson is the environmental compliance manager for a small plastics manufacturing company. She is currently faced with the decision whether or not to spend money on new technology that will reduce the level of a particular toxin in the wastewater that flows out the back of the factory and into a lake. • The factory's emission levels are already within legal limits. However, Jonica knows that environmental regulations for this particular toxin are lagging behind scientific evidence. In fact, a scientist from the university had been quoted in the newspaper recently, saying that if emission levels stayed at this level, the fish in the lakes and rivers in the area might soon have to be declared unsafe for human consumption.
Social & Legal Issues
Case
• Further, if companies in the region don't engage in some selfregulation on this issue, there is reason to fear that the government — backed by public opinion — may force companies to begin using the new technology, and may also begin requiring monthly emission level reports (which would be both expensive and time consuming). • But the company's environmental compliance budget is tight. Asking for this new technology to be
Business Ethics and Values
Social & Legal Issues
Ethics
• Greek word: Ethos that means both an individual’s character and a community culture. • Business ethics involves adhering to legal, regulatory, professional and company standards, keeping promises and commitments and abiding by general principles like fairness, honesty and respect
Social & Legal Issues
Business Ethics
The application of general ethical concepts to the unique situations confronted in business. It asks what is right or wrong behavior in business and what principles or rules can be used as guidance in business situations.
Social & Legal Issues
Two Characteristics
• Tells people what they ought to do • Set of principles or rules
Social & Legal Issues
Case
• Jonica Gunson is the environmental compliance manager for a small plastics manufacturing company. She is currently faced with the decision whether or not to spend money on new technology that will reduce the level of a particular toxin in the wastewater that flows out the back of the factory and into a lake. • The factory's emission levels are already within legal limits. However, Jonica knows that environmental regulations for this particular toxin are lagging behind scientific evidence. In fact, a scientist from the university had been quoted in the newspaper recently, saying that if emission levels stayed at this level, the fish in the lakes and rivers in the area might soon have to be declared unsafe for human consumption.
Social & Legal Issues
Case
• Further, if companies in the region don't engage in some selfregulation on this issue, there is reason to fear that the government — backed by public opinion — may force companies to begin using the new technology, and may also begin requiring monthly emission level reports (which would be both expensive and time consuming). • But the company's environmental compliance budget is tight. Asking for this new technology to be