Ethics and Decision Making

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- Each society form a set of rules that establishes the boundaries of general accepted behavior. These rules are often expressed in statements about how people should behave, and they fit together to form the MORAL CODE by which a society lives. - The term MORALITY refers to a social conventions about right and wrong that are so widely shared that they become the basis for an established consensus. DEFINITION OF ETHICS:

ETHICS – is a set of beliefs about right and wrong behavior within a society. Ethical behavior conforms to generally accepted norms-many of which are almost universal. VIRTUES – are habits that incline people to do what is acceptable. VICES – a re habits if Unacceptable behavior.

- Your moral principles are statements of what you believe to be rules of right conduct. - A person who acts with integrity acts in accordance with a personal code of principles. - One of the cornerstones of Ethical behavior- is to extend to all people the same respect and consideration that you expect to receive from others. THE DIFFERENCE BETWEEN MORALS, ETHICS, AND LAWS

- MORAL’s are one’s personal beliefs about right and wrong while the term ETHICS describes standards or codes of behavior expected of an individual by a group to which an individual belongs. LAW is a system of rules that tell us what we can and cannot do. ETHICS IN THE BUSINESS WORLD

- Ethics has risen to the top of the business agenda because the risks associated with inappropriate behavior have increased, both in their likelihood and in their potential negative impact. Several trends have increased the likelihood of unethical behavior. 1st- greater globalization

2nd – in today’s necessionary economic climate, organizations are extremely challenge to maintain profits. WHY FOSTERING GOOD BUSINESS ETHICS IS IMPORTANT
1. Gaining the good will of the community.
2. Creating an organization that operates consistently.
3. Fostering good business practices.
4. Protecting the organization and its employees from legal action. 5. Avoiding unfavorable publicity.
- Although organization exist primarily to earn profits or provide services to customers, they also have some fundamental responsibilities in a formal statement of their company’s principles or beliefs. CREATING AN ORGANIZATION THAT OPERATES CONSISTENTLY

- Organizations develop and abide by values to create an organizational culture and to define a consistent approach for dealing with the needs of their stakeholders, employees, customers, suppliers and the community.

Many companies share the following values:

•Operate with honesty and integrity
•Operate according to standards of ethical conduct, in words and action •Treat colleagues, customers, and consumers with respect
•Strive to be the best at what matters most to the organization •Value diversity
•Make decisions based on facts and principles

Protecting the Organization and it’s Employees from Legal Action In a 1909 ruling the U.S. Supreme Court established that an employer can be held responsible for the acts of it’s employees even if the employees act in a manner contrary to corporate policy and their employer’s directions.

Avoiding Unfavorable Publicity
The public reputation of a company strongly influences the value of its stock, how consumer regard it’s product and services, the degree of oversight it receive from the government agencies, and the amount support and cooperation it receives business partners.

Fostering Good business practices
In many cases, good ethics can mean good business and improved profits. Companies that produce safe and effective products avoid costly recalls and lawsuits. Companies that provide excellent service retain their customers instead of losing them to competitors.

Improving Corporate Ethics
Only one in four organizations has s well-implemented ethics and compliance...
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