ethical stances
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C H A P T E R
5
Business Ethics and the
Legal Environment of Business
Learning Objectives
After studying this chapter you should be able to:
1. Understand the relationship between ethics and the law and appreciate why it is important to behave ethically.
2. Differentiate between the claims of the different stakeholder groups affected by a company’s actions.
3. Identify the four main sources of business ethics, and describe four rules that can be used to help companies and their employees behave ethically.
4. Describe some methods companies can use to strengthen their ethical rules and positions. 5. Appreciate the important ways in which a nation’s business laws and regulations affect business commerce, occupations, and organizations.
WHY IS THIS IMPORTANT ?
A friend who is an A-student has offered to write your paper, which is worth 25% of your grade, for
$50. You need the course to graduate because you only have a low C average. You hate writing, do it very poorly, and know others have had good results submitting this student’s papers as their own. Will you pay the money and submit the paper or submit your own paper and pray for a good result?
This chapter will help you learn how to act ethically when facing dilemmas in your business and personal life. This is important because the decisions you make will affect your own future and those of stakeholders of the organizations that employ you.
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Page 139
A Question of Business
How Different Ethical Stances Can Help or Harm a Company
How can companies ensure their managers and employees follow their ethical codes of conduct?
In 1982, managers at Johnson & Johnson
problems. Nevertheless, a few months later,
(J&J), the well-known medical products com-
DC’s chairman, Keith McKennon, announced
pany experienced a crisis. Seven people in the
that the company
11/2/05
1:22 PM
Page 138
C H A P T E R
5
Business Ethics and the
Legal Environment of Business
Learning Objectives
After studying this chapter you should be able to:
1. Understand the relationship between ethics and the law and appreciate why it is important to behave ethically.
2. Differentiate between the claims of the different stakeholder groups affected by a company’s actions.
3. Identify the four main sources of business ethics, and describe four rules that can be used to help companies and their employees behave ethically.
4. Describe some methods companies can use to strengthen their ethical rules and positions. 5. Appreciate the important ways in which a nation’s business laws and regulations affect business commerce, occupations, and organizations.
WHY IS THIS IMPORTANT ?
A friend who is an A-student has offered to write your paper, which is worth 25% of your grade, for
$50. You need the course to graduate because you only have a low C average. You hate writing, do it very poorly, and know others have had good results submitting this student’s papers as their own. Will you pay the money and submit the paper or submit your own paper and pray for a good result?
This chapter will help you learn how to act ethically when facing dilemmas in your business and personal life. This is important because the decisions you make will affect your own future and those of stakeholders of the organizations that employ you.
jon24565_ch05.qxd
11/2/05
1:22 PM
Page 139
A Question of Business
How Different Ethical Stances Can Help or Harm a Company
How can companies ensure their managers and employees follow their ethical codes of conduct?
In 1982, managers at Johnson & Johnson
problems. Nevertheless, a few months later,
(J&J), the well-known medical products com-
DC’s chairman, Keith McKennon, announced
pany experienced a crisis. Seven people in the
that the company