Business Ethic

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Chapter 1
What is ethics?
-Moral principles that govern a person's or group's behavior. •-The moral correctness of specified conduct.

Understanding rights and wrong
Moral standard are principle based on religious, cultural or philosophical belief by judgments are made about good and bad behavior.

Value System
A set of personal formalized into a code of behavior. A well defined value system is a moral code.

Value conflict
A social problem is a condition defined by a considerable number of persons as a deviation from some social norm which they cherish.

List four sources influence for your personal moral standard? -Family
-Friend
-Religion-school
-Media
-ethic Background

Difference between intrinsic and instrumental value?
intrinsicinstrumental value
Something that has value as an instrument to reach an end goalValue belonging to something by it's very nature.

The Golden Rules
Do unto others as you would have them do unto you.

Ethical Theory can divide 2 category:
i) virtuous ethics
ii) ethic for the greater good
iii) universal ethic

Ethical Relativism
A tendency to make ethical choices only on the basis of what looks right or reasonable according to one's own belief or value system.

Ethical dilemma
An ethical dilemma is a debate between two moral principals, where two sides can argue about what is wrong or what is right.

Chapter 3

Organizational Ethic
The ethics of an organization, and it is how an organization ethically responds to an internal or external stimulus.

list the five key functional area within an organization
• Research and development (R&D), which develops and creates new product designs • Manufacturing, which sources the components
and builds the product
• Marketing (and advertising)
• Sales
• Customer service

List the four primary line functions
• Human resource management (HRM)
• Finance
• Information systems (IS or IT)
• Management

Ethics R&D
R&D professionals carry the responsibility for the future growth of the organization. Without new products to sell, organizations can lose their customers to competitors who are off erring better, faster, or cheaper products.

Ethics in manufacturing
Relationship between R&D and manufacturing is often a challenging one. The pressures here are very similar to those in the R&D function as manufacturers face the ethical question, “Do you want it built fast, or do you want it built right?

Ethics in marketing
Once the manufacturing department delivers a fi nished product, it must be sold. The marketing process (which includes advertising,public relations, and sales) is responsible for ensuring that the product reaches the hands of a satisfied customer. If the marketers did their research correctly and communicated the data to the R&D team accurately, and assuming the finished product meets the original design speci-fications and the competition hasn’t beaten you to market with their new product, this should be a slam dunk, but with all these assumptions, a great deal can go wrong

Chapter 5

Corporate governance refers to the set of systems, principles and processes by which a company is governed.

Six steps to effective corporate governance?
Create a climate of trust and candor
Foster a culture of open dissent
Mix up roles
Ensure individual accountability
Let the board assess leadership talent
Evaluate the board’s performance

22 Question for diagnosing your board
Are there three or more outside director for every insider? •Is your board the right size (8 to 15 members)?
Does your audit committee routinely review “high exposure” areas? •Is at least some of the director’s pay linked to corporate performance? •Is the performance of each of your director periodically reviewed? •Do you take the right measures to built trust among director?...
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