Business Ethics Notes
Employment Sectors
Business, Government, and Non-Profits
Government
It authoritatively makes decisions for the country
Able to affect businesses with regulations and taxes
Non-Profit
Provides service in which there is demand that businesses and governments get involved in
If profit is made, services can be expanded, reward employees with higher salaries, and hire more people
Recent ethical breaches in Society
Ethic Resources Center Data
1. Observed misconduct higher in larger organizations
2. Difference in observed misconduct across sectors (29% non-profit, 31% business, 38% government
Countrywide Ethical Breach
No Income In Anything- Ninja Loans
Bloggo-Governor of Illinois
Pay in play scheme
Required employees to take ethics training in the state of Illinois
Violated public trust
Bernandine Healy (Red Cross)
Donations to Red Cross was used for other resources instead of going to the intended victims people were donating to
Breach in Community Trust
The Decision Making Triangle
At the Top is Stakeholder
How is this decision going to affect different entities?
Next is Financial
Cannot be the only reason that the decision is made
Next is Legal
Can not lead people to say that if it isn’t illegal then its ok to do
Next is Ethical
To what is right and what is morally correct
Before 1960
Agonizing phases of questions of the morality of capitalism
Passage of the 1934 Securities Exchange Act
Role of Religious Leaders
Raised issues about fair wages
Questioned whether capitalism was morally correct
Progressive Movement
Attempt to establish a livable wage for workers
Before 1960’s scandal
United Fruit scandal
Corporate attack on President of Guatemala by convincing neighboring countries that the land was the companies and not the peasants
The 1960’s (Rise of Social Issues)
Anti-Business Climate
1. Military Industrial Complex
2. Inner Decay of Cities
3. Environmental Degradation
The 1962 Consumer’s Bill of Rights
The right to
Business, Government, and Non-Profits
Government
It authoritatively makes decisions for the country
Able to affect businesses with regulations and taxes
Non-Profit
Provides service in which there is demand that businesses and governments get involved in
If profit is made, services can be expanded, reward employees with higher salaries, and hire more people
Recent ethical breaches in Society
Ethic Resources Center Data
1. Observed misconduct higher in larger organizations
2. Difference in observed misconduct across sectors (29% non-profit, 31% business, 38% government
Countrywide Ethical Breach
No Income In Anything- Ninja Loans
Bloggo-Governor of Illinois
Pay in play scheme
Required employees to take ethics training in the state of Illinois
Violated public trust
Bernandine Healy (Red Cross)
Donations to Red Cross was used for other resources instead of going to the intended victims people were donating to
Breach in Community Trust
The Decision Making Triangle
At the Top is Stakeholder
How is this decision going to affect different entities?
Next is Financial
Cannot be the only reason that the decision is made
Next is Legal
Can not lead people to say that if it isn’t illegal then its ok to do
Next is Ethical
To what is right and what is morally correct
Before 1960
Agonizing phases of questions of the morality of capitalism
Passage of the 1934 Securities Exchange Act
Role of Religious Leaders
Raised issues about fair wages
Questioned whether capitalism was morally correct
Progressive Movement
Attempt to establish a livable wage for workers
Before 1960’s scandal
United Fruit scandal
Corporate attack on President of Guatemala by convincing neighboring countries that the land was the companies and not the peasants
The 1960’s (Rise of Social Issues)
Anti-Business Climate
1. Military Industrial Complex
2. Inner Decay of Cities
3. Environmental Degradation
The 1962 Consumer’s Bill of Rights
The right to