What is Business Ethics

1
What is Business Ethics?

• Simply statedIts coming to know what is right
  or wrong in the workplace and doing whats right
  in regards to effects on products and services
  and in relationships with stakeholders.

2
How to develop a code of conduct?

• Identify key behaviors needed to adhere to the
  ethical values of the company
• State all employees must conform to the behaviors
  specified in the code of conduct.
• Key members of the organization must review and
  accept the code of conduct.
• Announce and distribute the new code of conduct.
• Update the code at least once a year.

3
The role of management in Business Ethics

• The CEO must be fully supportive of the business
  ethics program.
• Committees should be established dealing with
  ethics.
• Consider designating an officer or ombudsperson
  for the ethics program

4
Benefits of managing Ethics in Business

• Substantially improves society
• Cultivates strong teamwork and productivity
• Maintains moral cause
• Promotes employee growth and meaning
• Helps to ensure that current policies are legal
• Manages values associated with quality
  management, strategic planning, and diversity
  management.
• Promotes a strong public image

5
Myths about Business Ethics

• Our employees are ethical so we dont need to pay
  attention to business ethics
• Ethics cant be managed
• Business ethics and social responsibility are the
  same thing
• Our organization is not in trouble with the law,
  so were ethical
• Managing ethics in the workplace has little
  practical relevance

6
Examples of Codes of Ethics

• Halliburton
• Jet Propulsion Laboratory-NASA

7
What would you do in the following ethical
dilemmas?
8
Corporate examples of how Business Ethics have
been detrimental or advantageous to the company
9
Tylenol
10
Starbucks
11
Ikea
12
Kathie Lee Gifford Clothing Line
13
Adelphia Cable
14
Enron
15
Worldcom
16
Questions each business needs to ask?

• Does concern for the bottom line always trump
  ethical considerations?
• Are profits too high and exploiting the customer?
• Is the company exploiting the labor force?
• Has the company ignored a product defect?

17
Conclusions

• Ethical business behavior starts with top
  management
• Requires Employee Buy-in
• Good Ethics leads to Good Business