BUSA 2106 1st Edition Lecture 2 Outline of Last Lecture I Introduction to the course Objectives II Solve Exercise 1 III Discussion of Syllabus IV Desire2Learn D2L V Clickers Requirements VI To do list Outline of Current Lecture I Introduction to Business Ethics II Ethics Theory and Decision Making III Exercise 2 Current Lecture Questions What are ethics Where do ethical values come from What is the relationship between law and ethics Can law prevent unethical business behavior If not what can Key terms Ethics moral principles and values applied to social behavior also can be defined as the study of what constitutes right or wrong behavior Business Ethics a consensus as to what constitutes right or wrong behavior in the world of business and the application of moral principles to situations that arise in a business setting Ethics is the difference between knowing what you have a right to do and what is the right thing to do U S Supreme Court Justice Potter Stewart How to tackle an ethical problem 1 Identify the ethical issue 2 Know all the facts 3 Identify any applicable laws rules and codes of conduct 4 Figure out who is affected 5 Think creatively about alternatives 6 Reason through the alternatives to choose the most ethical outcome These notes represent a detailed interpretation of the professor s lecture GradeBuddy is best Used as a supplement to your own notes not as a substitute ETHICAL REASONING A reasoning process in which an individuallinks his or her moral convictions or ethicalstandards to the particular situation at hand Some approaches to ethical reasoning Key terms Religious ethical standards Kantian ethics The principle of rights Utilitarianism Religious ethical standards Fundamental rules for moral action Example Thou shalt not kill from 10 commandments Problems with usingthe religious ethical standards are Forone not everyone believes in the same God And secondly not everyone views on what s right or wrong are not always the same even if they share the same faith Kantian ethics A concept developed by the philosopherImmanuel Kant 1724 1804 as an ethical guideline forbehavior In deciding whether an action isright or wrong or desirable or undesirable aperson should evaluate the action in termsof what would happen if everybody else inthe same situation or category acted thesame way categorical Imperative Example Suppose that you are deciding whether to cheat on an exam if you have adopted Kant s categorical imperative you will decide not to cheat because if everyone cheated on the exam the entire education system would be meaningless Problems Some people actually do cheat on their exams so does that make it right because everyone is already doing it The Principle of Rights The principle that human beings have certain fundamental rights Those who adhere to this rights theory believe that a key factor in determining whether a business decision is ethical is how that decision affects the rights of various groups These groups include the firm s owners its employees the consumers of its products or services its suppliers the community in which it does business and society as a whole Example The right to vote Marry heterosexual and have children and the right to privacy Problems A conflict of interest may arise due to the interest of the deciding party The verdict may not be fair Utilitarianism It focuses on the consequences of an action not on the nature of the action itself or on any set of pre established moral values or religious beliefs Applying the utilitarian theory thus requires 1 a determination of which individuals will be affected by the action in question 2 a cost benefit analysis which involves an assessment of the negative and positive effects of alternative actions on these individuals and 3 a choice among alternative actions that will produce maximum societal utility the greatest positive net benefits for the greatest number of individuals Example Wal mart wanting to build a store on a Indian reservation secret gound They would have to consider the effects of them building a store Problem The problem is the same as ethical decision principle of rights The decision might be one sided Exercise on desire2Learn Purchasing agent ethical issue Work through the 6 questions