Business Ethics Notes Chapter 1 and 2
Chapter 1
Business Ethics- principles, values, and standards that guide behavior in the world of business
Principles- specific pervasive boundaries for behavior that are universal and absolute (freedom, speech, equal rights) –the basis for rules
Values- used to develop norms that are socially enforced (integrity, trust, accountability)
Development of business ethics
Before 1960’s:
-Questioning capitalism
-“living wage” income
-New Deal-blaming business for economic woes
-Individual moral issues related to business were addressed in churches. Religious leaders questioned labor wages and morality of capitalism
-New deal evolved to fair deal by pres Truman-program defined civil right and environmental responsibility ethical issues that businesses had to address
The 1960’s:
-Military industrial complex
-Growth of ecological problems(pollution, toxic waste)
-Turned to causes, emergence of social issues, rise in consumerism
-Pres Kennedy consumers’ bill of rights (right to safety, to be informed, to choose and to be heard) Delivered special message on protecting the consumer interest
-Nader’s unsafe at any speed criticizing automobile industry(safety belts)
-Pres Johnson and Great Society (told business community the us govts. Responsibility was to provide the citizen with some degree of economic stability, equality, and social justice)
-If activities destabilize economy or discriminate against class then unethical and unlawful by citizens
The 1970’s:
-Business ethics developed as an independent field of study
-Social responsibility organizations obligation to max positive impact on stakeholders an min negative impact
-Major ethical issues emerged, bribery, deceptive advertising, product safety, environment
-companies concerned w/ public image
-Watergate scandal stressed important of ethics in govt.
-centers dealing with issues of bus ethics were established and brought bues profs, theologians, and business people together
-Pres
Business Ethics- principles, values, and standards that guide behavior in the world of business
Principles- specific pervasive boundaries for behavior that are universal and absolute (freedom, speech, equal rights) –the basis for rules
Values- used to develop norms that are socially enforced (integrity, trust, accountability)
Development of business ethics
Before 1960’s:
-Questioning capitalism
-“living wage” income
-New Deal-blaming business for economic woes
-Individual moral issues related to business were addressed in churches. Religious leaders questioned labor wages and morality of capitalism
-New deal evolved to fair deal by pres Truman-program defined civil right and environmental responsibility ethical issues that businesses had to address
The 1960’s:
-Military industrial complex
-Growth of ecological problems(pollution, toxic waste)
-Turned to causes, emergence of social issues, rise in consumerism
-Pres Kennedy consumers’ bill of rights (right to safety, to be informed, to choose and to be heard) Delivered special message on protecting the consumer interest
-Nader’s unsafe at any speed criticizing automobile industry(safety belts)
-Pres Johnson and Great Society (told business community the us govts. Responsibility was to provide the citizen with some degree of economic stability, equality, and social justice)
-If activities destabilize economy or discriminate against class then unethical and unlawful by citizens
The 1970’s:
-Business ethics developed as an independent field of study
-Social responsibility organizations obligation to max positive impact on stakeholders an min negative impact
-Major ethical issues emerged, bribery, deceptive advertising, product safety, environment
-companies concerned w/ public image
-Watergate scandal stressed important of ethics in govt.
-centers dealing with issues of bus ethics were established and brought bues profs, theologians, and business people together
-Pres