Making Decisions in Business

1
Making Decisions in Business

• Business Environment
• Steiner Steiner, Ch. 8

2
Objectives

1. Do businesses and business corporations have to
   adhere to the same set of ethical standards as
   individuals?, or should business be amoral?
2. Describe the four major sources of ethics.
3. Define ethics
4. Define your basic ethical values and apply them
   in business cases.

3
America Honda Motor Company

• What else could Conant have done?
• Speak out?
• Resign?
• Other?
• Is Conant guilty of fraud?

4
Ethics

• Concepts of right and wrong
• Distinguishing between conduct that is
• Good and evil, or
• Moral and immoral
• Benefit society, and
• Improve human condition

5
Business ethics

• How do you modify slide 3 to define BUSINE
  ETHICS?
• Essence of the remaining slides is people who are
  defining the BEST ETHICAL PRINICIPLES FOR
  CONDUCT

6
Principles of Ethical Conduct

• The Categorical Imperative
• The Conventionalist Ethic
• The Disclosure Rule
• The Doctrine of the Mean
• The Ends-Means Ethic

7
Principles of Ethical Conduct (cont.)

• The Golden Rule
• The Intuition Ethic
• The Might Makes Right Ethic
• The Organization Ethic
• The Principle of Equal Freedom

8
Principles of Ethical Conduct (cont.)

• The Proportionality Ethic
• The Rights Ethic
• The Theory of Justice
• The Utilitarian Ethic

9
Character Development/Virtue Ethic

• Habitually making ethical choices
• Principled reasoning over time

10
Practical Suggestions

• Rational terms
• Decision making tactics
• /-
• Imaginary conversations
• Two column balance sheet
• Sort out ethical priorities in advance
• Publicly commit
• Set a personal example
• Take action, have courage
• Cultivate sympathy and charity

11
Why Ethical Decisions are Difficult

• Facts vs. values
• Good and evil exist simultaneously
• Knowledge of consequences is limited
• Multiple stakeholders
• Incompatible ethical arguments
• Variable ethical standards
• Human imperfection

12
Objectives

• Do businesses and business corporations have to
  adhere to the same set of ethical standards as
  individuals?, or should business be amoral?
• Describe the four major sources of ethics.
• Define ethics
• Define your basic ethical values and apply them
  in business cases