Business Ethics

Lesson 2-1

Anticipatory Set

What does ethics mean?

Definition

• Ethics is deciding what is right or wrong in a reasoned, impartial manner.

• Mrs. B’s def. - doing what is right even when no one is looking.

3 Elements

1. Decision about a right or wrong action2. Decision is reasoned3. Decision is impartial

Element 1

1. Decision about a right or wrong action.

To involve ethics, a decision must affect you or others in some significant way.

Element 2

2. Decision is reasoned

To make ethical decisions, we must base our decisions on reason, not emotion.

Element 3

3. Decision is impartial

Impartiality - the idea that the same ethical standards are applied to everyone.

Ethical SituationSuppose you accidentally back into your

neighbor’s car across the street while you are backing out of your driveway. No one saw you do it. You can’t decide if you should tell anyone or not. You think “I know I should tell the truth, but it would cost me more than $1,000 if I admit that I hit the car. I can’t afford that, but she can!”

What would you do?

• If you choose not to tell her, you are not being impartial.

• Is your neighbor a person who is entitled to the same treatment as you?

Organizations• Impartiality is especially important when

organizations are involved rather than individuals.

• When an ethical decision involves an organization, people’s self-interest can conclude that their actions will not injure other people.

Business Ethics

• The ethical principles used in making business decisions.

• All too often, ethics are not considered when dealing with business decisions.

• To move toward a more ethically motivated economy, the profit maximization ethic will need to be replaced by a more humane ethical standard.