Velasquez Ch01 JAT

7/25/2019 Velasquez Ch01 JAT

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Copyright 2012 Pearson Education, Inc. All rights reserved.

Business Ethics

Concepts & Cases

Manuel G. Velasquez


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Chapter One

Basic Principles: Ethics and

Business


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Ethics and Morality

Ethics is the study of morality. Morality = The standards that an individual or

a group has aout !hat is right and !rong" or

good and evil. E#ample: B.$. %oodrich '() $raud

Moral *tandards = norms aout the +inds ofactions that are morally right and !rong" as!ell as the values placed on !hat is morallygood or ad.

,on(Moral *tandards: The standards y !hich!e -udge !hat is good or ad and right or!rong in a non(moral !ay.


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$ive Characteristics of Moral

*tandards

nvolve signi/cant in-uries or ene/ts

,ot estalished y authority /gures

*hould e preferred to other valuesincluding self(interest

Based on impartial considerations

ssociated !ith special emotions andvocaulary.


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0hat is Business Ethics1

Broadly" ethics is the discipline thate#amines one2s moral standards orthe moral standards of a society to

evaluate their reasonaleness andtheir implications for one2s life.

Business ethics is a speciali3ed study

of moral right and !rong thatconcentrates on moral standards asthey apply to usiness institutions"

organi3ations" and ehavior.


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Types of Ethical ssues

*ystemic4ethical 5uestions aoutthe social" political" legal" oreconomic systems !ithin !hich

companies operate. Corporate4ethical 5uestions aout a

particular corporation and its

policies" culture" climate" impact" oractions.

ndividual4ethical 5uestions aout aparticular individual2s decisions"

ehavior" or character.


7/25Copyright 2012 Pearson Education, Inc. All rights reserved.

Can ethical 5ualities e attriuted

to corporations1

6ie! 78: corporations" li+e people" actintentionally and have moral rights" andoligations" and are morally responsile.

6ie! 79: it ma+es no sense to attriuteethical 5ualities to corporations since theyare not li+e people ut more li+e machinesonly humans can have ethical 5ualities.

6ie! 7;: humans carry out thecorporation2s actions so they are morallyresponsile for !hat they do and ethical5ualities apply in a primary sense to themcorporations have ethical 5ualities only in a

derivative sense.



rguments gainst BusinessEthics n a free mar+et economy" the

pursuit of pro/t !ill ensure ma#imumsocial ene/t so usiness ethics is

not needed.

manager2s most importantoligation is loyalty to the company

regardless of ethics. *o long as companies oey the la!

they !ill do all that ethics re5uires.



rguments *upporting Business

Ethics

Ethics applies to all human activities.

Business cannot survive !ithoutethics.

Ethics is consistent !ith pro/tsee+ing.

Customers" employees" and people ingeneral care aout ethics.

*tudies suggest ethics does notdetract from pro/ts and seems tocontriute to pro/ts.



ME

Should the company develop a drug that was potentially life-saving butlittle chance of making a prot.

!he drug was "vermectin# one of their best-selling animal drugs. !he

potential market for the drug was those su$ering from river blindness anagonizing disease a%icting about &' million poor people in (frica and)atin (merica. !he need for the drug was clear but users of the drug arepoor. Merck would never recoup the *&++ million cost to develop thehuman version of the drug.

"f there proved to be adverse human side e$ects# this might a$ect sales

the animal version that were *,++ million of Mercks * billion annualsales. /ongress was getting ready to pass the 0rug 1egulation (ct# whichwould intensify competition in the drug industry by allowing competitorsto more quickly copy and market drugs originally developed by othercompanies.

2uestions3 4as Merck morally obligated to develop this drug5Merck managers felt they were. 6ven gave the drug away for free. Mostcompanies would probably not invest in an 1 7 0 pro8ect that promises noprot. Merck# as a for-prot corporation# has responsibilities to itsshareholders to make a prot. /ompanies that spend all their funds onunprotable ventures will nd themselves out of business. "n the longrun# Merck will benet from this act of kindness as ethical behavior can

give a company signicant competitive advantages over companies thatare not ethical.


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Eti+a

)es+ritif

6tik

aEti+a

,ormatif

Etika Deskriptif & Etika Normatif


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disiplin yang memincang+an se-arah

sistem moral

menyata+an apa+ah sistem moral yangdianuti oleh seseorang individu ? golongantertentu

cua menghurai . tida+ cua untu+mencapai apa(apa

+esimpulan mengenai per+ara apa+ahyang

seenarnya ai+ dan uru+ ? etul &

6tika 0eskritif

1.5 Etika Deskriptif & Etika Normatif


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suatu penyiasatan untu+ cuamencapai +esimpulan normatif

( +esimpulan mengenai per+ara apayang

ai+ atau uru+

( +esimpulan mengenai tinda+anapa yangetul atau salah

menilai" meng+riti+ dan memuat

+eputusan terhadap sistem moral

9a8ian:6tika ;ormatif

1.5 Etika Deskriptif & Etika Normatif


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Corporate *ocial


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,e! ssues in BusinessEthics dvances in technology often create

ne! issues for usiness ethics. Currently" advances in information

technology are creating ne! issues inusiness ethics.

ncreasing connections et!een the

economic and social systems ofdi@erent nations" +no!n asAgloali3ation" has also created ne!

issues in usiness ethics.


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ohlerg2s Three Fevels of Moral

)evelopment

$irst Fevel: Pre(conventional *tages *tage One: punishment and oedience

orientation

*tage T!o: instrumental and relativeorientation

*econd Fevel: Conventional *tages *tage One: interpersonal concordance

orientation *tage T!o: la! and order orientation

Third Fevel: Post(conventional *tages

*tage One: social contract orientation


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Moral


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$our *teps Feading to Ethical

Behavior

*tep One:


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Behavior

*tep T!o: Gudging the ethical courseof action.


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Behavior

*tep Three: )eciding to do theethical course of action. )eciding to do !hat is ethical can e

inHuenced y:The culture of an organi3ation4people2s

decisions to do !hat is ethical are greatlyinHuenced y their surroundings.

Moral seduction4organi3ations can alsogenerate a form of Amoral seduction thatcan e#ert sutle pressures that cangradually lead an ethical person intodecisions to do !hat he or she +no!s is

!rong.


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Behavior

*tep $our: Carrying out the ethicaldecision.

$actors that inHuence !hether a personcarries out their ethical decision include:

One2s strength or !ea+ness of !ill

One2s elief aout the locus of control ofone2s actions


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Moral

Velasquez Ch01 JAT

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