COMMERCE 1E03 Lecture Notes - Lecture 3: Business Ethics, Gerber Baby, Insider Trading
15 Jan 2019
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Document Summary
Ethical issues: often arise out of a firm"s relationship with its stakeholders. E. g. , investors want financial decisions to boost sales, profits, and return on investment (roi) E. g. , customers expect products to be safe, reliable, and reasonably priced. E. g. , employees expect fair treatment in hiring, promotion, and compensation. E. g. , competitors expect fair and honest business practices. An ethical decision or action is one that is right according to some standard of behaviour. Ethical decisions are resolved through religious teachings, individual rights, legislation, and court decisions. Business ethics: the application of moral standards to business: laws: society"s values and standards that are enforceable in the courts. Standards that are legal may not always be ethical, and vice versa: morals: rules people develop as a result of cultural values and norms. Ethics consists of personal moral principles and values rather than societal prescriptions. Thus, morals may be considered the foundation of ethical behaviour. Factors influencing managerial ethics: personal moral philosophy and ethical behaviour.
