Introduction to

Issues in
Business Ethics

Two opposing views on

Business Ethics
Business

Ethics is simply a field of human

activity and as such is governed by the
same moral principles as in other spheres
of human life
Business can be seen as a form of
warfare in which the rules of the jungle
applies.

Relationships between Morals, Values

and Ethics
Cultural & Religious Traditions

Ethical Principles
of Analysis

Value Judgments

Moral
Standards

Social & Economic Situations

Source: L T Hosmer (1994)

Benefits to
Some

Moral
Dilemmas

Harm to
Others

Ethics and Behaviour

What

happens to the morale of managers ?

Can discipline be enforced when
management are seen as corrupt and sleazy?
Can firms attract good people if they are seen
as operating unethically ?
Can companies sustain good long term
relationships with its key stakeholders if it
disregards good ethical standards ?

Ethical Issues
Ethical

Problems as Management
Dilemmas

Ethical

Problems and Issues are Complex

and have far reaching consequences

Ethical Problems as Mgmt

Dilemmas
Dilemmas

involved in environmental

protection
Dilemmas involved in the issues of safety
Dilmmas involved in the issues of privacy
Dilemmas involved in the issues of location
and costs .......downsizing
Dilemmas involved in issues of competition

Some Examples of Ethical

Issues
Insider

dealing and making a false market

Cartel behaviour and price fixing
Advertising claims that are false
Product performance
Pollution and environmental issues
Community relations and jobs issues
Advertising approaches

Characteristics of Ethical
Decisions in Management
Most

ethical decisions have extended

consequences
Most ethical decisions have multiple
alternatives
Most ethical decisions have uncertain
outcomes
Most ethical decsions have personal
implications

How can we Analyse Ethical

Issues ?
Economic Analysis

- Cost-benefit etc..

Legal Analysis

- Can we legally do this

and what is the legal downside ?

Ethical Analysis

- What is the ethical and

moral responsibility that we face ?

Ethical Decision
Process
Step One Evaluate decision from ethical standpoint.
Identify affected stakeholders .
Step Two

Evaluate decision from ethical standpoint.

What are the moral issues in this case ?

Step Three Establish moral intent

Step Four Engage in ethical behaviour

Ethical Balance in Business Operations

Development
Stages

Concern
Stage 5

Stage 4
Stage 3
Stage 2
Stage 1

Ethical
Emerging
Ethical

Responsive
Legalistic
Amoral
Source: Reidenbach & Robin

Concern for Profits/Ethics

Balanced

Unbalanced
Concern

Possible Responses to Ethical

Dilemmas
Avoid

Thinking About it
Obey Orders
Leave the Organisation
Conscientiously Object
Secretly Tell the Press or Government
Publicly Tell the Press or Government
Build Consensus for Change Internally

Finally
Live

Honourably
Hurt Nobody
Render to each his Due