BU111 Chapter 7: Conducting Business Ethically and Responsibly
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BU111 Full Course Notes
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Ethics: beliefs about right and wrong according to moral values. Ethical behavior is acting consistently with moral beliefs. Business ethics: ethical behavior by an organization though its members. Ethics and laws may vary from country to country. Individual values and codes begin with perceptions of our parents and determine our priorities. 1. towards employees: hiring and firing decisions must be only regarding abilities. 2. towards the organization: the employee must avoid conflict of interest in situations where the individual reaps benefit but the organization suffers a negative impact. 3. towards economic agents: ethical relationship with customers, competitors and suppliers. 3. ethical judgement based on rightness or wrongness of the activity. How businesses balance its goals and organizational stakeholders. Control pollution of air, water and land. Be informed about all relevant aspects of a product. Avoid collusion: illegal agreement among producers in an industry to fix prices to obtain more revenue. Stealth advertising should be avoided: paying for word of mouth advertising.
