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the inner-guiding moral principles, values, and beliefs that people use to analyze or interpret a situation and then decide what is the right or appropriate way to behave
define ethical dilemma
a quandary that people find themselves in when they have to decide if they should act in a way that might help another person even though doing so might go against their own self-interest.
what are the four different sources of business ethics and describe them
- societal ethics- standards that govern how members of a society should deal with with one another in matters involving issues such as fairness, justice, poverty, and the rights of the individual
- individual ethics- personal standards and values that determine how people view their responsibilities to other people and groups.
- Organizational ethics- guiding practices and beliefs through which a particular company and its managers view their responsibility toward stakeholders
- Occupational Ethics- standards that govern how members of a profession, trade, or craft should conduct themselves when performing work-related activities.
what are the four rules for making an ethical decision and describe them?
- Utilitarian Rule- an ethical decision should produce the greatest good for the greatest number of people.
- Justice Rule- decision should distribute benefits and harm among people in a fair, equitable, and impartial manner.
- Practical Rule- decision should one that a manager has no hesitation about communicating to people outside the company bc a typical person would think the decision is normal
- Moral Rights Rule- an ethical decision should maintain and protect the fundamental rights and privileges of people
why should managers behave ethically?
The relentless pursuit of self-interest can lead to a collective disaster when one or more people start to profit from being unethical because this encourages other people to act in the same way.
what are the drivers of unethical business strategies and business behavior?
- 1. faulty internal oversight
- 2. short-term pressure to meet short term goals
- 3. a culture that puts profitability and business performance ahead of ethical behavior.
occurs when managers take advantage of their position to further their own private interests rather than those of the firm.
the tendency for managers to focus excessively on short-term performance objectives at the expense of longer-term strategic objectives. It has negative implications for the likelihood of ethical lapses as well as company performance in the longer run.