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Business Ethics: Key Issues & Challenges

This chapter examines emerging ethical issues in business such as abusive behavior, lying, conflicts of interest, bribery, discrimination, environmental issues, fraud, and intellectual property rights. It defines ethical issues, outlines common business dilemmas, and explores how to recognize ethical problems and determine appropriate solutions while balancing interests of stakeholders. The challenge of ethical decision-making is also discussed.

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Karam Alhaj
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301 views19 pages

Business Ethics: Key Issues & Challenges

This chapter examines emerging ethical issues in business such as abusive behavior, lying, conflicts of interest, bribery, discrimination, environmental issues, fraud, and intellectual property rights. It defines ethical issues, outlines common business dilemmas, and explores how to recognize ethical problems and determine appropriate solutions while balancing interests of stakeholders. The challenge of ethical decision-making is also discussed.

Uploaded by

Karam Alhaj
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
  • Chapter Introduction: Introduces the concept and importance of emerging business ethics issues.
  • Chapter Objectives: Outlines the objectives for the chapter, including defining ethical issues and examining related values.
  • Chapter Outline: Provides an overview of the topics that will be covered in the chapter related to ethical business dilemmas.
  • Recognizing an Ethical Issue: Describes what constitutes an ethical issue and the risks of ignoring them in corporations.
  • Honesty: Defines honesty and contrasts it with dishonesty in business practices.
  • Fairness and Integrity: Explores the concepts of fairness and integrity as vital components of ethical behavior.
  • Ethical Issues and Dilemmas in Business: Discusses the differences between ethical issues and dilemmas and their impact on business decision-making.
  • Abusive or Intimidating Behavior: Covers ethical problems arising from abusive or intimidating behavior in the workplace.
  • Lying: Describes various forms of lying and their ethical implications in business.
  • Conflicts of Interest: Examines situations where personal and professional interests collide, causing ethical concerns.
  • Bribery: Explains bribery as a practice in business ethics, distinguishing active and passive types.
  • Corporate Intelligence: Discusses how corporate intelligence involves gathering and analyzing market and competitor data ethically.
  • Discrimination: Describes discrimination issues in the workplace, including hiring and employment practices.
  • Sexual Harassment: Defines sexual harassment and the characteristics that make behavior offensive in a work environment.
  • Environmental Issues: Details environmental issues as they relate to business ethics, including climate change and waste management.
  • Fraud: Explains various types of fraud and their ethical implications in business.
  • Financial Misconduct: Discusses the mismanagement of ethical risks that contributed to financial crises.
  • Intellectual Property Rights and Privacy: Addresses the legal protection of intellectual property and consumer privacy issues.
  • The Challenge of Determining Ethical Issues in Business: Explores the challenges businesses face in identifying and addressing ethical issues.

CHAPTER 3

Emerging Business Ethics


Issues
Chapter Objectives

• To define ethical issues in the context of organizational


ethics
• To examine ethical issues as they relate to the basic
values of honesty, fairness, and integrity
• To delineate abusive and intimidating behavior, lying,
conflicts of interest, bribery, corporate intelligence,
discrimination, sexual harassment, environmental issues,
fraud, insider trading, intellectual property rights, and
privacy as business ethics issues
• To examine the challenge of determining an ethical issue
in business
Chapter Outline

• Recognizing an Ethical Issue


• Ethical Issues and Dilemmas in Business
• The Challenge of Determining an Ethical Issue in
Business
Recognizing an Ethical Issue

• An ethical issue is a situation or a problem that


requires thought, discussion, or investigation to
make a decision
• Failure to do so puts corporations at great risk
Honesty

• Honesty: Truthfulness or trustworthiness


• Dishonesty: A lack of integrity, incomplete
disclosure, or an unwillingness to tell the truth
Fairness and Integrity

• Fairness: The quality of being just, equitable, and


impartial
– Equality
– Reciprocity
– Optimization
• Integrity: One of the most important terms regarding
virtue. It means uncompromising adherence to ethical
values
Ethical Issues and Dilemmas in
Business

• An ethical issue is a problem or opportunity that requires


an individual or group to choose among actions that are
evaluated as ethical or unethical
• An ethical dilemma is a problem, situation, or opportunity
that requires an individual or group to choose among
several wrong or unethical actions
Abusive or Intimidating Behavior

• One of the most common ethical problems


• Can mean anything from physical threats, false
accusations, profanity, insults, harshness, ignoring
someone, or even unreasonableness
• Bullying is a growing legal problem in the workplace
Lying

Three types of lies:


1. Joking without malice
2. Commission lying
3. Omission lying
Conflicts of Interest

• Exist when an individual must choose whether to


advance his or her own personal interests, those
of the organization, or some other group
Bribery

• Bribery is the practice of offering something in order


to gain an illicit advantage
• Different types of bribery
– Active bribery
– Passive bribery
Corporate Intelligence

• Corporate intelligence is the collection and analysis


of information on:
– Markets
– Technologies
– Customers and competitors
– Socioeconomic and external political trends
Discrimination

• A company in the U.S. can be sued for discrimination


if it:
– Refuses to hire an individual for discriminatory
reasons
– Unreasonably excludes an individual from
employment
– Unreasonably discharges an individual
– Discriminates against an individual with respect to
hiring, employment terms, promotion, or privileges
Sexual Harassment

• A repeated, unwanted behavior of a sexual nature


perpetrated upon one individual by another
• Hostile Work Environment
– The conduct was unwelcome
– The conduct was severe, pervasive, and regarded
by the claimant as so hostile or offensive as to
alter his or her conditions of employment
– The conduct was such that a reasonable person
would find it hostile or offensive
Environmental Issues

• The environment is a significant and growing issue in


business
• The Kyoto Protocol: An international treaty on
climate change that commits nations to reducing
greenhouse gas emissions
• Water pollution: Results from dumping sewage and
toxic chemicals in places where they can filter into
water supplies
• Green energy sources are perceived to have lower
emissions or waste than traditional ones
Fraud

• Any purposeful communication that deceives,


manipulates, or conceals facts in order to create a
false impression is fraud
• Accounting fraud
– Misrepresentation of company’s financial reports
– Sarbanes-Oxley Act sought to improve this
– 2008-2009 Wall Street financial meltdown and
recession revealed continuing problems
• Marketing fraud
• Consumer fraud
Financial Misconduct

• The failure to understand manage ethical risks played


a key part in the financial meltdown and recession of
2008-2009
Intellectual Property Rights and
Privacy

• Intellectual Property Rights involve the legal


protection of intellectual properties, such as music,
books, and movies
• Many privacy issues in the business world
– Employee use of technology
– Consumer privacy
– It can be a challenge for businesses today to meet
the needs of consumers while protecting their
privacy
The Challenge of Determining Ethical
Issues in Business

• Most ethical issues will become visible through


stakeholder concerns about an event, activity, or the
results of a business decision
• Determining ethical issues is a challenge
• The ethical decision making process starts when
ethical issue awareness occurs and individuals begin
discussion

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