Ethics

Definition

Ethics is the code of moral principles that set standards of good or bad, or right or wrong in a person's conduct and thereby dictates their behavior.

Views

• Utilitarian view: Greatest good for the greatest number of people
• Individualism: Committed to one's own long term interests
• Moral-rights view: Respects the fundamental rights of all people
• Justice view: Fair and impartial treatment based on rules and standards

Determining ethical approach

• Cultural relativism: Ethics are determined by the culture where the situation occurs
• Ethical imperialism: Ethics are always determined by the organizations “home” culture

Methods for maintaining high ethical standards

• Ethics training
• Whistleblower protection
• Ethical role models
• Codes of ethics

CSR - Coprorate social responsibility

An obligation to act not only its own interests but also those of external stakeholders

For

• Adds long-run profits
• Better public image
• Avoids regulation
• Better environment

Cons

• Reduced profits
• Higher costs
• Dilution of business purpose
• Reduced business power

Strategies

• Obstructionist - Meets only economic responsibilities
• Defensive - Meets legal and economic responsibilities
• Accommodative - Meets economic, legal & ethical responsibilities
• Proactive - Meets all plus digressional responsibilities

Government influence

Governments influence through regulation, business can influence governments as well.