How to behave toward oneself and toward other individuals is a matter of making

choices: whether to be friendly or unfriendly; whether to tell the truth or lie; whether
to be generous or greedy; whether to study in order to pass an exam or to spend
valuable study time watching television and cheat to pass it. These, and all other
questions about how people act toward themselves and one another are dealt with in a
field of study called ethics. nother name for ethics is morality. !ecause both words
suggest customary ways of behavior, they are somewhat misleading. "t had to do with
what should or should not be done. #ivide practical wisdom into two parts: moral
philosophy and political philosophy. They$re defined together as a %true reasoned state
of capacity to act with regard to the things that are good or bad for man& '#rucker,
())*+. ,ne statement of the problem is business organi-ations, as well as members of
society in general, are plagued by the fact that there are liars, cheats, and thieves
among us. .iars, cheats, and thieves are not new nor are they likely to disappear.
/eople will do anything and go to whatever extent to get what they want. This is why
there$s a lack of ethics. #efinition of terms: The word ethics is derived from the 0reek
ethos, meaning %character,& the pattern of behavior or personality found in an
individual or group; moral constitution, moral strength, self discipline and fortitude
'1ompton$s "nteractive 2ncyclopedia+. The other is from the .atin mores, meaning
%custom& '1ompton$s "nteractive 2ncyclopedia+. !usiness 2thics refers to what is
right or wrong, or good or bad, human behavior. The concept of business ethics is
%being able to look at your face in the mirror&'#rucker, ())*+. 2thics is a code of
conduct and values that is accepted by society as being right and proper. 1ode of
ethics is simply a compilation of the rules that are meant to govern the conduct of
members of a particular organi-ation or profession. 3oral philosophy and political
philosophy is true and reasoned state of capacity to act with regard to the things that
are good or bad for man. "n the daily scramble to get ahead, earn a profit, and outwit
competitors, some people don$t play by the rules. 4ometimes the culprits are
respected and ordinarily well5behaved persons even though they are accused of a
crime or offense. 6nfair and unscrupulous actions hinder the development of
harmonious relationships between workers and co5workers, and between workers and
supervisors. person who cannot be trusted to do the right thing, fails to win the
respect of others. "t should be recogni-ed, however, that ethical dilemmas are faced by
people at all levels within an organi-ation. 7arious firms have experienced breaches
of ethics. The respected business firms suffer damage to their reputation when
questions concerning ethical behavior arise. This is one of the reason formal codes of
ethics, developed by many business organi-ations, and trade associations are popular
today. 1ode of ethics is simply a compilation of the rules that are meant to govern the
conduct of members of a particular organi-ation or profession. recent survey found
that )89 of the fortune :;; service and industrial companies have a written code of
ethics 'merican 3arketing ssociation+. 1ompanies and trade associations expect
their members to abide by such rules as a condition of their engaging in the
profession. There are at least two noteworthy limitations to codes of ethics. <irst, the
written rules are sometimes so vague and general they prove to be of little value.
4econd, codes of ethics are neither a complete nor a completely reliable guide to one$s
moral obligations. "t is impossible for the drafters of such codes to anticipate all the
moral dilemmas which may be encountered and impossible for them to draft rules to
govern all behavior. =othing wins support from external groups as much as adherence
to strong codes of ethics. /eople in businesses and businesses are expected to conduct
their activities in an ethical manner. 2thics is a code of conduct and values that is
accepted by society as being right and proper. 2mployers and employees practice
honesty, fairness, and adherence to the law. However, there is always the possibility of
divergence from what is considered to be ethical and what is actually practiced. =o
one commands more respect and admiration than the worker who adheres to ethical
principles and exhibits professional behavior. 4pecialists in the field of Human
>esource #evelopment suggested that human relation is doing to others what they
would have you do to them. "n either case, rather it$s good or bad you or they should
expect nothing less than coworkers or supervisors to behave in an ethical, professional
manner. The public image of business has been slipping since the ()*;?s. ccording to
a poll conducted in ()**, ::9 of the merican people had a %great deal of
confidence& in merican business executives '3atthews, @ashington 4tate
6niversity, ()):+. "n recent years, that percentage has dropped to about A;9. 4urveys
indicate that confidence in business leaders is low, especially with regard to honesty
and ethical standards. 1onfidence in political leaders and institutions is even lower.
,ne explanation is that personal and corporate ethical standards have fallen. 1ases of
insider trading, product content deceptions, bribery, pollution, and other business
misconduct were seen as confirmation of the public perception. #ue to increased
concern about ethical issues by the public, it is more likely that some decline in an
image is due to increased concern about ethical issues by the public. The public
expects more from businesses now than they did in the past. 2thical problems are
inevitable at all levels of a business and this means that it?s simply good sense for
companies to take seriously the task of institutionali-ing ethics in their organi-ations.
ccordingly, an important segment of corporate merica has begun relying on such
tools as: statements of corporate values, codes of conduct, ethics workshops, hotlines,
even corporate ethics offices and board level ethics committees. "n short, they are
setting up corporate ethics programs. <ormal ethics programs are relatively new to the
world of merican business. lthough a handful of companies have had them for
twenty to thirty years, the maBority of ethics programs are no more than a few years
old and some have been around for only a few months. =onetheless, their number is
growing as their usefulness becomes evident. @hy 2thicsC The view from the top.
@hen one looks at corporations with a strong commitment to ethics, the first thing
one notices is that the leaders of these organi-ations are the strongest advocates of
corporate integrity. 12,s and 1hairmen of such companies are clear and vocal,
forcefully charging everyone in the company to look at not only how profitable their
actions is, but how ethical. To the skeptics who think that ethics and business go
together as well as oil and water, their message is a little short of heresy. Det another
issue cited is the effect of unethical conduct by the corporation on its employees. "f
the company is unethical, that company is going to be cheated by its own employees.
Taking something as seemingly harmless as lying to help the company. %@hat you
may perceive as a simple lie or a simple misstatement that doesn?t hurt anybody and
protects the company, sooner or later will come back to bite you. "t?ll bite you with
people in your organi-ation who know it?s a lie. "f you can?t be open and honest at all
times, you?re sending a signal to the organi-ation that you will let them get away with
lying occasionally. nd that includes lying to you '@alter Elein+. 3ore than anything
else, however, the view from the top is that ethics is critically important for the health
of the organi-ation. 12,?s of ethically committed corporations believe that %no matter
how large the financial gain may be from doing something unethical, there?s a cost
somewhere else in the business& 'Ferry Funkins+. "f employees are directed to do
something unethical for the company or even if they simply witness dishonesty by
their superiors, this inevitably leads to a rotting of the organi-ation. nd there?s no
way that you?re going to be able to rebuild credibility with those people when you?re
trying to energi-e an organi-ation to go do something else. Dou?ve created a
permanent problem in terms of how people view you as an individual and how they
view the management of the organi-ation. 2thics is primarily concerned with
attempting to define what is good for the individual and for society. "t also tries to
establish the nature of obligations, or duties, that people owe themselves and each
other. " feel that people do not willingly do what is bad for themselves, but may do
what is bad for others if it appears that good for themselves will result. "$ve found that
it$s difficult to define what is good and how one should act to achieve it. "ndividuals
and whole societies have performed outrageous criminal acts on people. fter
research, "$ve found that business ethics now compared to A; years ago has increased,
and lack of business ethics will probably not decrease. "n addition, every one of us
must comply with business ethics of all applicable laws and regulations, and with
other company policies and instructions. ,ur conduct is our responsibility. =one of us
should ever commit dishonest, destructive, or illegal acts even if directed to do so by a
supervisor or coworker, nor should we direct others to act improperly. "n addition
don$t deviate from !usiness 2thics, policies and instructions even if doing so appears
to be to the company$s advantage. @ork 1ited (. merican 3arketing ssociation A.
1ompton$s "nteractive 2ncyclopedia, ())85())G H. #rucker, /eter, <lorida 4tate
6niversity, ())* 8. @. 3ichael Hoffman and 2dward 4. /etry, Fr. %/hi Eappa /hi
Fournal.& @inter ())A, (;5(( :. Ferry Funkins, <lorida 4tate 6niversity, ())* *. Elein,
@alter, @ashington 4tate 6niversity, ()): G. 3arilyn 1ash 3athews, @ashington
4tate 6niversity, ()): I. >oger 2. 3einers, l H. >inleb, and <rances .. 2dwards.
%.egal 2nvironment of !usiness,& 1hap.(, p.()5A( ). >alph #. @ray, >oger .. .uft,
and /atrick F. Highland. %Human >elations,& 1hap. (G, p. 8IG58)( 2thical and
unethical behavior that occurs in organi-ations frequently.J !elow are a few that
occur with customers daily 2xample (: consumer chooses to purchase a used car
and the car odometer shows it only has 8;,;;; miles, although the seller knows that
the car should have I;,;;; miles. @hat has occurred to the consumer is
misrepresentation, as well as deception by failure to disclose the actual reading. The
consumer probably would not have purchased the vehicle had they knew the actual
mileage. "t is the sellerKs duty to inform the buyer of any defects that might affect the
customerKs decision. 2xample A: /rice5fixing53anagers of firms manufacturing paper
bags used for packaging foods, coffee, and other goods were fined for getting together
and conspiring to fix the prices of those paper bags. @hen firms are operating in an
oligopoly market, it is easy enough for managers to meet secretly and agree to set
their prices at artificially high levels. 2xample H: 3anipulation of 4upply5@hen
hardwood manufacturers met periodically in trade associations, they would often
agree on output policies that would secure high profits. <irms in an oligopoly industry
might agree to limit their production so that prices rise to levels higher that those that
would result from free competition. 2xample 8: /rice #iscrimination56sed by one
organi-ation in an attempt to undersell another organi-ation, which may have taken
away all of their business. "n ()*;, 1ontinental /ie 1ompany attempted to undersell
6tah /ie 1ompany, which had managed to take away much of its business. The
4upreme 1ourt found such pricing practices predatory.J /rices should be based on
true differences in the cost of manufacturing, packaging, marketing, transporting, and
service goods. These things often occur because most industrial markets are
dominated by what is known as an oligopoly 'control of a commodity or service given
market by a small number of companies or suppliers+. 3ost of the markets are shared
by a large number of firms that can have some influence on prices. ,rgani-ational
!usiness 2thic wareness 4urveyJ 4ome of the principles you will find in
companies with well defined !usiness 2thics are listed below. re you aware of the
following principles in your current organi-ationC nswer the following question by
circling the appropriate choice. (K =ot ware AK 4omewhat ware HK ware 8K 7ery
ware (. @e earn customersK business and build relationships with them by
representing our products and services honestly. ( A H 8 A. @e select suppliers based
on the merit and value of their products and services. ( A H 8 H. @e donKt accept gifts,
entertainment, or favors that could cloud our business Budgement. ( A H 8 8. @e
compete vigorously, rely on the merits of our products, services, and people. ( A H 8 :.
@e support involvement in the communities where we live and work. ( A H 8 *. @e
protect the environment in many locations where we conduct business. ( A H 8 G. @e
notify 1orporate 4ecurity whenever we suspect, observe, or learn of unethical
business conduct or the commission of any dishonest or illegal act. ( A H 8 I. @e
comply with applicable laws that govern the companyKs operation. ( A H 8 ,pen
communication and sharing of ideas ( A H 8 >espect for individuals and freedom from
unlawful discrimination ( A H 8 4afe and healthy working conditions ( A H 8 >espect
for employee privacy. ( A H 8 (;. @e never let our business dealings on behalf of the
company information be influenced by personal or family interest. ( A H 8 ((. @e
donKt take advantage of non5company information to which we have access. ( A H 8
(A. @e ensure that proprietary information is never improperly revealed. ( A H 8 (H.
@e safeguard and make proper and efficient use of company funds and property. ( A H
8 (8. @e follow proper record keeping and financial reporting procedures. ( A H 8
1alculate you companyKs total score by adding the numbers circled for each
statement. 2thical 4cenarios These are different types of ethical scenarios you could
be challenged within your companies. "f you were challenged with any of these type
scenarios do you think you would have handled them the same wayC nswer all
questions as ethically as you know how, by circling the appropriate choice. (K 2thical
AK .ess 2thical HK 6nethical (. sales representative for a line of womenKs
sportswear offers a (;95to5(:9 discounts to a few favored buyers; other buyers are
not informed of any discounts. (K 2thical AK .ess 2thical HK 6nethical A. "nvited to
come to =ew Dork for an interview with all expenses paid, a recent graduate with
heavy student loans decides to stay with a cousin in the area and report that he stayed
in a L(;;5a5night hotel; he is not asked to provide receipts. (K 2thical AK .ess 2thical
HK 6nethical H. battery manufacturer, concerned about the effect of lead on the
fetuses of pregnant women, adopts a policy barring women of childbearing age from
Bobs in areas where lead is present. (K 2thical AK .ess 2thical HK 6nethical 8. fter
learning that a chemical it manufactures can cause cancer, the company institutes new
safety procedures and monitors workers for the onset of the disease, but it does not
notify workers of the cancer5causing potential of the chemical. (K 2thical AK .ess
2thical HK 6nethical :. bank loan officer routinely passes the names of people
applying for home improvement loans to her brother5in5law in the home improvement
business for contacting as prospects. (K 2thical AK .ess 2thical HK 6nethical *. 6pon
washing a new dress according to the manufacturers directions a woman found that
the garment faded and the colors streaked. The retailer refused to return the customers
money. (K 2thical AK .ess 2thical HK 6nethical G. customer returned a car to a
dealer several times during the (5year warranty period to correct transmission
problems. "n the (Hth month the dealer overhauled the transmission and charged the
customer the full price. (K 2thical AK .ess 2thical HK 6nethical I. n auditor
discovers an illegal loan made by a savings and loan association. The auditor
destroyed working papers involving the loan when instructed to do so by the
supervisor. (K 2thical AK .ess 2thical HK 6nethical ). n employee uses company
services for personal use. (K 2thical AK .ess 2thical HK 6nethical (;. manager
authori-es a subordinate to violate company rules. (K 2thical AK .ess 2thical HK
6nethical nswers (. 6nethical A. 6nethical H. 2thical 8. 6nethical :. 6nethical 'it
would be .ess 2thical if they were not approved by her bank, but it would still not be
ethical+. *. 6nethical G. .ess 2thical I. 6nethical ). .ess 2thical (;. 6nethical 4peech
!usiness 2thics "ntroduction How to behave toward oneself and toward other
individuals is a matter of making choices: whether to be friendly or unfriendly;
whether to tell the truth or lie; whether to be generous or greedy; whether to study in
order to pass an exam or to spend valuable study time watching television and cheat to
pass it. These, and all other questions about how people act toward themselves and
one another are dealt with in a field of study called ethics. nother name for ethics is
morality. !ecause both words suggest customary ways of behavior, they are somewhat
misleading. "t had to do with what should or should not be done. #ivide practical
wisdom into two parts: moral philosophy and political philosophy. They$re defined
together as a %true reasoned state of capacity to act with regard to the things that are
good or bad for man&. #efinition of terms The word ethics is derived from the 0reek
ethos, meaning %character,& the pattern of behavior or personality found in an
individual or group; moral constitution, moral strength, self discipline and fortitude.
The other is from the .atin mores, meaning %custom&. !usiness 2thics refers to what
is right or wrong, or good or bad, human behavior. The concept of business ethics is
%being able to look at your face in the mirror&. 2thics is a code of conduct and values
that is accepted by society as being right and proper. 1ode of ethics is simply a
compilation of the rules that are meant to govern the conduct of members of a
particular organi-ation or profession. 3oral philosophy and political philosophy is
true and reasoned state of capacity to act with regard to the things that are good or bad
for man. @HD 2TH"14C TH2 7"2@ <>,3 TH2 T,/ @hen one looks at
corporations with a strong commitment to ethics, the first thing one notices is that the
leaders of these organi-ations are the strongest advocates of corporate integrity. 12,s
and 1hairmen of such companies are clear and vocal, forcefully charging everyone in
the company to look at not only how profitable their actions is, but how ethical. To the
skeptics who think that ethics and business go together as well as oil and water, their
message is a little short of heresy. Det another issue cited is the effect of unethical
conduct by the corporation on its employees. "f the company is unethical, that
company is going to be cheated by its own employees. Taking something as
seemingly harmless as lying to help the company. %@hat you may perceive as a
simple lie or a simple misstatement that doesn?t hurt anybody and protects the
company, sooner or later will come back to bite you. "t?ll bite you with people in your
organi-ation who know it?s a lie. "f you can?t be open and honest at all times, you?re
sending a signal to the organi-ation that you will let them get away with lying
occasionally. nd that includes lying to you.& 3ore than anything else, however, the
view from the top is that ethics is critically important for the health of the
organi-ation. 12,?s of ethically committed corporations believe that %no matter how
large the financial gain may be from doing something unethical, there?s a cost
somewhere else in the business.& "f employees are directed to do something unethical
for the company or even if they simply witness dishonesty by their superiors, this
inevitably leads to a rotting of the organi-ation. nd there?s no way that you?re going
to be able to rebuild credibility with those people when you?re trying to energi-e an
organi-ation to go do something else. Dou?ve created a permanent problem in terms of
how people view you as an individual and how they view the management of the
organi-ation. 1onclusion 2thics is primarily concerned with attempting to define what
is good for the individual and for society. "t also tries to establish the nature of
obligations, or duties, that people owe themselves and each other. " feel that people do
not willingly do what is bad for themselves, but may do what is bad for others if it
appears that good for themselves will result. "$ve found that it$s difficult to define
what is good and how one should act to achieve it. "ndividuals and whole societies
have performed outrageous criminal acts on people. fter research, "$ve found that
business ethics now compared to A; years ago has increased, and lack of business
ethics will probably not decrease. "n addition, every one of us must comply with
business ethics of all applicable laws and regulations, and with other company
policies and instructions. ,ur conduct is our responsibility. =one of us should ever
commit dishonest, destructive, or illegal acts even if directed to do so by a supervisor
or coworker, nor should we direct others to act improperly. "n addition don$t deviate
from !usiness 2thics, policies and instructions even if doing so appears to be to the
company$s advantage. sploo5nuchy