What is Ethics?
Developed by Manuel Velasquez, Claire Andre,
Thomas Shanks, S.J., and Michael J. Meyer
• A few years ago, sociologist Raymond Baumhart
asked business people, "What does ethics mean
to you?" Among their replies were the following:
• "Ethics has to do with what my feelings tell me is
right or wrong."
"Ethics has to do with my religious beliefs."
"Being ethical is doing what the law requires."
"Ethics consists of the standards of behavior our
society accepts."
"I don't know what the word means."
What is Ethics?
• Like Baumhart's first respondent, many people tend to equate ethics
with their feelings. But being ethical is clearly not a matter of
following one's feelings.
• Nor should one identify ethics with religion. Most religions, of course,
advocate high ethical standards. But ethics applies as much to the
behavior of the atheist as to that of the saint. Ethics, however,
cannot be confined to religion nor is it the same as religion.
• Being ethical is also not the same as following the law. The law
often incorporates ethical standards to which most citizens
subscribe. But laws, like feelings, can deviate from what is ethical.
Our own pre-Civil War slavery laws and the apartheid laws of
present-day South Africa are grotesquely obvious examples of laws
that deviate from what is ethical.
What is Ethics?
• Finally, being ethical is not the same as
doing "whatever society accepts." In any
society, most people accept standards that
are, in fact, ethical. But standards of
behavior in society can deviate from what
is ethical. An entire society can become
ethically corrupt. Nazi Germany is a good
example of a morally corrupt society.
What is Ethics?
• What, then, is ethics? Ethics is two things. First, ethics
refers to well based standards of right and wrong that
prescribe what humans ought to do, usually in terms of
rights, obligations, benefits to society, fairness, or
specific virtues.
• Secondly, ethics refers to the study and development of
one's ethical standards. As mentioned above, feelings,
laws, and social norms can deviate from what is ethical.
So it is necessary to constantly examine one's standards
to ensure that they are reasonable and well-founded.
What is business ethics? (Trevino
& Nelson)
• Business ethics is the "principles and standards
that guide behavior in the business world."[1]
• In informal language, business ethics is about
how to conduct business in the "right" way
• Business ethics and the determination of what is
right and wrong in the business world is shaped
by the opinion of many stakeholders -customers, employees, investors, interest
groups, the legal system, the community, among
others[1]
What are some broad categories of ethical issues
common to business? (Baker & Comer)
Drawing from several classification schemes based on
ethical issues, Baker & Comer identify these four broad
categories of ethical issues:
• Human resource issues:
– Describe ethical issues that occur when people work together.
These are responsibilities that employers have to employees.
– The specific types of issues include:
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Discrimination (Discrimination occurs when something other than
qualifications determines how an employee is treated.)
Sexual harassment (Sexual harassment is unwelcome sexual
behavior that makes someone feel uncomfortable at work.)
Privacy issues
Hiring, performance appraisal, discipline, and termination practices
– Human resource issues concern FAIRNESS.
Categories of Ethical Issues
2.
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Consumer confidence issues:
Occurs when the issue is about your or your company's relationship with
the customer/client.
These are responsibilities that employers and employees have to their
customers/clients.
The specific types of issues include:
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confidentiality (right of privacy);
product safety;
truth in advertising;
fiduciary responsibilities (codes of conduct that establish standards of
professional behavior for accountants, doctors, and other professionals)
Consumer confidence issues broadly concern TRUST, PRIVACY, and/or
HONESTY. The customer TRUSTS you and your company to protect his/her
PRIVACY, TRUSTS that product safety is protected, TRUST that product
advertising is HONEST, and TRUSTS that you and your company’s employee
have adhered to all standards of professional conduct.
Categories of Ethical Issues
3.
Use of corporate resources:
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Includes your being truthful with your employer and your being responsible in
the use of corporate resources, including its finances and reputation. These
are responsibilities that employees have to employers.
The specific types of issues include:
use of corporate reputation;
use of corporate financial resources;
Compliance with oversight agencies;
Reporting practices;
Providing honest information;
Employee theft (time, ideas, money); and
Employee integrity (honesty; taking credit for someone else’s work; not
accepting responsibility for one’s mistakes).
Use of corporate resources issues concern HONESTY and FAIRNESS,
specifically your being honest and fair with your employer
Categories of Ethical Issues
4.
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Conflicts of interest:
Occur when one's judgment or objectivity is compromised -- or appears to be
compromised (appears to be compromised means that a third party could think
that your judgment or objectivity in your judgment or decisions)
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Appearance of a conflict of interest is generally regarded as damaging as an actual
conflict.
These are responsibilities that employees have to employers and stakeholders.
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The specific types of issues include:
overt bribes or kickbacks;
subtle bribes (gifts and entertainment);
use of influence (this is not the use or misuse of positional power or legitimate
authority; rather, it is use of influence to gain an outcome that likely wouldn’t occur
otherwise);
use of privileged information (e.g., insider trader);and
Company-vendor relations
Conflicts of interest issues concern TRUST, specifically your employers’ and
stakeholders’ trust of YOU.
TRUST is the basis of every personal and corporate relationship
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