Limited time offer 20% OFF StudySoup Subscription details

BUS 3013 - Class Notes - Week 2

Created by: Dimira Goudeau Elite Notetaker

> > > > BUS 3013 - Class Notes - Week 2

BUS 3013 - Class Notes - Week 2

School: Texas Woman's University
Department: OTHER
Course: Business Law & Ethics
Term: Spring 2018
Tags: business, Law, and Law and ethics
Name: Chapter 2 and 3 Notes
Description: Very detailed notes form Chapters 2 and 3. Contains information about the Judicial System and Ethics of Law.
Uploaded: 02/03/2018
This preview shows pages 1 - 3 of a 9 page document. to view the rest of the content
background image Chapter 2: Business Ethics & Social 
Responsibility
Thursday, January 18, 2018
10:46 AM
WHAT IS ETHICS? 
 
Ethical standards are not the standards of the law, they are held higher. 
 
Ethical standards: generally accepted rules of conduct that govern society.
 
Ethical rules: both standards and expectations for behavior, and they have been 
developed for all aspects of life.
 
Ethics consists of those unwritten rules we have developed for our interactions with 
each other.
 
These rules govern us when we share resources or honor contracts
 
WHAT IS BUSINESS ETHICS?
 
Business ethics consists of many layers of meaning.
 
The first layer consists of basic values such as honesty, keeping promises, and not 
taking things that aren't yours
 
The second layer consists of notions of fairness, how we treat others both 
customers and employees.
 
The third layer consists of issues related to how a business interacts with the 
community, environment, and its neighbors
 
Business ethics involve the study of fairness and ethical standards along he 
pressure of earning a profit. 
 
ETHICAL STANDARDS: POSITIVE LAW AND ETHICS
 
A theory that ethical standards are the same as positive law and that positive law 
sets the standard for ethical behavior.
 
ETHICAL STANDARDS: NATURAL LAW AND ETHICS
 
People  believe that ethical standards derived from a higher source and that they 
are universal. 
 
Natural law, this though supports that some standards do not exist because of the 
law. 
 
ETHICAL STANDARDS: MORAL RELATIVISM AND ETHICS
 
background image Moral relativism (situational ethics): establishes ethical standards according to 
the situation in which the dilemma is faced. 
 
ETHICAL STANDARDS: RELIGION AND ETHICS
 
The source of standards can be the Bible, the Koran, or any inspired book or writing 
that is the cornerstone of a religion or faith and believed to have resulted from 
divine revelation.
 
 
CATEGORIES OF ETHICAL DILEMMAS
Taking things that do not belong to you Saying things you know are not true Giving or allowing false impressions Buying influence or engaging in conflict of interest Hiding or divulging information Taking unfair advantage Committing acts of personal decadence Perpetrating interpersonal abuse Permitting organizational abuse Violating rules Condoning unethical actions Balancing ethical dilemmas  
RESOLUTION OF BUSINESS ETHICAL DILEMMAS
 
Blanchard and Peale o Is it legal?  o Is it balanced?  o How does it make me feel?  The Front-Page-Of-The-Newspaper Test o A decision maker envision how a reporter would describe a decision on  the front page of a local or national news paper. Laura Nash and Perspective o How would I view the issue if I stood on the other side of the fence?  o Am I able to discuss my decision with my family, friends, and those  closest to me? o What am I trying to accomplish with my decision? o Will I feel as comfortable about my decision over time as I do today?  The Wall Street Journal Model o Compliance o Contribution o Consequences   
 
WHY WE FAIL TO REACH GOOD DECISIONS IN ETHICAL DILEMMAS Everybody else does it If we don’t do it, someone else will That’s the way it has always been done Well wait until the lawyers tell us its wrong
background image It doesn’t really hurt anyone The system is unfair I was just following orders You think this bad, you should have seen It’s a gray area  
SOCIAL RESPONSIBILITY: ANOTHER LAYER OF BUSINESS ETHICS
 
Ethical Postures for Social Responsibility
Positive Law Inherence  o Managers answer only to shareholders and act only with shareholder  interests in mind o Managers will only speak on social and political issues if it affected the  shareholder and doesn't offend anybody else Enlightened Self-Interest  o Manager is responsible to the shareholders but serves them best by  being responsive to the larger society o Managers are free to speak out on societal issues  The Invisible Hand o Business ought to serve the larger society and it does this best when it  serves the shareholders only o Allows government to set the standards and boundaries for appropriate behavior and adhere to these for maximizing benefits to their 
shareholders
Social Responsibility  o The role of business is to serve the larger society by responding to  society's needs as first priority o Advocate full disclosure of product information in its advertising and  encourages political activism   
WHY BUSINESS ETHICS?
Personal accountability and comfort Profit Leadership  Reputation Strategy  
IMPORTANCE OF ETHICS IN BUSINESS SUCCESS AND THE COSTS OF 
UNETHICAL CONDUCT
Firms that adhere to ethical standards perform better financially over the long run.   
ETHICS AS A STRATEGY
Enables businesses to anticipate and plan for social needs and cultural  changes that require the firm or its product to evolve  
THE VALUE OF A GOOD REPUTATION
Once a company makes poor ethical choices, t carries the baggage of those  choices despite successful and sincere efforts to reform.

This is the end of the preview. Please to view the rest of the content
Join more than 18,000+ college students at Texas Woman's University who use StudySoup to get ahead
9 Pages 39 Views 31 Unlocks
  • Better Grades Guarantee
  • 24/7 Homework help
  • Notes, Study Guides, Flashcards + More!
Join more than 18,000+ college students at Texas Woman's University who use StudySoup to get ahead
School: Texas Woman's University
Department: OTHER
Course: Business Law & Ethics
Term: Spring 2018
Tags: business, Law, and Law and ethics
Name: Chapter 2 and 3 Notes
Description: Very detailed notes form Chapters 2 and 3. Contains information about the Judicial System and Ethics of Law.
Uploaded: 02/03/2018
9 Pages 39 Views 31 Unlocks
  • Better Grades Guarantee
  • 24/7 Homework help
  • Notes, Study Guides, Flashcards + More!
Join StudySoup for FREE
Get Full Access to TWU - BUS 3013 - Class Notes - Week 2
Join with Email
Already have an account? Login here
×
Log in to StudySoup
Get Full Access to TWU - BUS 3013 - Class Notes - Week 2

Forgot password? Reset password here

Reset your password

I don't want to reset my password

Need help? Contact support

Need an Account? Is not associated with an account
Sign up
We're here to help

Having trouble accessing your account? Let us help you, contact support at +1(510) 944-1054 or support@studysoup.com

Got it, thanks!
Password Reset Request Sent An email has been sent to the email address associated to your account. Follow the link in the email to reset your password. If you're having trouble finding our email please check your spam folder
Got it, thanks!
Already have an Account? Is already in use
Log in
Incorrect Password The password used to log in with this account is incorrect
Try Again

Forgot password? Reset it here