Transcript ES-2.08_2.12_Ethical_Behavior

B. OVERVIEW OF SMALL
BUSINESS
2.00 Explain the basic concepts leading to
success in small business entrepreneurship.
2.03 Discuss the importance of
ethical behavior in business.
Created by: D. Burns, J. Bailey, J. Loudell, J. Winfree
Ethics
Guidelines for
human behavior;
the study of moral
choices and values;
choosing between
right and wrong.
Ethical behavior
Knowing the
difference between
right and wrong and
consciously choosing to
do right.
Code of ethics
A systematic set of
rules and
procedures used to
guide the behavior
of an individual, a
business, or a
culture.
Business ethics
Applying principles of right
and wrong to situations in
the workplace.
The Risk of Business as Usual
• Companies are put at risk when leaders fail to
see that ethical leadership is vital for effective &
responsible management
• Poorly managed corporate risk/ethical decisions
have irrevocable human & financial
consequences
– Deaths & accidents from the unintended acceleration in
Toyota vehicles
– Deaths of oil platform workers in the BP explosion &
subsequent environmental catastrophe in the Gulf of Mexico
Factors impacting risk
assessments
• Perception – How you see things
– Is cheating ethical or unethical?
• If you consider it ethical in some situations – why?
• Emotions –
– If your family has no food – do you steal food from
the grocery store?
• Known vs. Unknown information
– Using a photo without knowing if it is copyrighted
or not
Factors To Consider when Assessing
Risks
• Time – “Time is Money”
– Coming in to work 5 minutes late or leaving early
• Probability – The chance that the outcome will be
negative
– If I speed, what are the chances I’ll get caught
• Magnitude – The number of people affected
– Oil spill in the Gulf of Mexico
• Cost vs. benefit – human & financial
• Physical & Personal distance – How might this
decision affect you personally
Ethical responsibility towards
customers
•Treat all customers with respect.
•Be honest.
•Do not exaggerate the merits of your
products/services.
•Inform customers of possible dangers of
your products/services.
•Handle all disputes fairly.
Ethical responsibility towards employees
•Establish an ethical workplace.
•Hold yourself to high ethical standards
•Serve as a role model to others
•Always treat employees fairly & honestly
•Employees tend to copy the behavior of the
business owner
•Ethical behavior gains the trust & respect of
customers
Ethical responsibility towards employees
•Create a written code of ethics to set
guidelines to help the business owner and
employees make ethical decisions.
•Establish company policies and procedures
to let business owners and employees know
how to act in certain situations. Have
employees attend an orientation meeting on
this information
Ethical responsibility towards the
community
•Contribute money to charities,
cultural institutions, and other
reputable causes.
•Get involved.
•Donate products and services.