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Business Ethics

.. r=s decision. Example 2: Price-fixing-Managers 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. When 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. Example 3: Manipulation of Supply-When hardwood manufacturers met periodically in trade associations, they would often agree on output policies that would secure high profits. Firms 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.

Example 4: Price Discrimination-Used by one organization in an attempt to undersell another organization, which may have taken away all of their business. In 1960, Continental Pie Company attempted to undersell Utah Pie Company, which had managed to take away much of its business. The Supreme Court found such pricing practices [email protected] Prices 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). Most of the markets are shared by a large number of firms that can have some influence on prices.

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AOrganizational Business Ethic Awareness [email protected] Some of the principles you will find in companies with well defined Business Ethics are listed below. Are you aware of the following principles in your current organization? Answer the following question by circling the appropriate choice. 1= Not Aware 2= Somewhat Aware 3= Aware 4= Very Aware 1. We earn customers= business and build relationships with them by representing our products and services honestly. 1 2 3 4 2.

We select suppliers based on the merit and value of their products and services. 1 2 3 4 3. We don=t accept gifts, entertainment, or favors that could cloud our business judgement. 1 2 3 4 4. We compete vigorously, rely on the merits of our products, services, and people.

1 2 3 4 5. We support involvement in the communities where we live and work. 1 2 3 4 6. We protect the environment in many locations where we conduct business. 1 2 3 4 7.

We notify Corporate Security whenever we suspect, observe, or learn of unethical business conduct or the commission of any dishonest or illegal act. 1 2 3 4 8. We comply with applicable laws that govern the company=s operation. 1 2 3 4 Open communication and sharing of ideas 1 2 3 4 Respect for individuals and freedom from unlawful discrimination 1 2 3 4 Safe and healthy working conditions 1 2 3 4 Respect for employee privacy. 1 2 3 4 10.

We never let our business dealings on behalf of the company information be influenced by personal or family interest. 1 2 3 4 11. We don=t take advantage of non-company information to which we have access. 1 2 3 4 12. We ensure that proprietary information is never improperly revealed.

1 2 3 4 13. We safeguard and make proper and efficient use of company funds and property. 1 2 3 4 14. We follow proper record keeping and financial reporting procedures. 1 2 3 4 Calculate you company=s total score by adding the numbers circled for each statement.

Ethical Scenarios These are different types of ethical scenarios you could be challenged within your companies. If you were challenged with any of these type scenarios do you think you would have handled them the same way? Answer all questions as ethically as you know how, by circling the appropriate choice. 1= Ethical 2= Less Ethical 3= Unethical 1. A sales representative for a line of women=s sportswear offers a 10%-to-15% discounts to a few favored buyers; other buyers are not informed of any discounts. 1= Ethical 2= Less Ethical 3= Unethical 2.

Invited to come to New York 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 $100-a-night hotel; he is not asked to provide receipts. 1= Ethical 2= Less Ethical 3= Unethical 3. A battery manufacturer, concerned about the effect of lead on the fetuses of pregnant women, adopts a policy barring women of childbearing age from jobs in areas where lead is present. 1= Ethical 2= Less Ethical 3= Unethical 4. After 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 cancer-causing potential of the chemical.

1= Ethical 2= Less Ethical 3= Unethical 5. A bank loan officer routinely passes the names of people applying for home improvement loans to her brother-in-law in the home improvement business for contacting as prospects. 1= Ethical 2= Less Ethical 3= Unethical 6. Upon 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.

1= Ethical 2= Less Ethical 3= Unethical 7. A customer returned a car to a dealer several times during the 1-year warranty period to correct transmission problems. In the 13th month the dealer overhauled the transmission and charged the customer the full price. 1= Ethical 2= Less Ethical 3= Unethical 8. An 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. 1= Ethical 2= Less Ethical 3= Unethical 9. An employee uses company services for personal use. 1= Ethical 2= Less Ethical 3= Unethical 10. A manager authorizes a subordinate to violate company rules.

1= Ethical 2= Less Ethical 3= Unethical Answers 1. Unethical 2. Unethical 3. Ethical 4. Unethical 5. Unethical (it would be Less Ethical if they were not approved by her bank, but it would still not be ethical).

6. Unethical 7. Less Ethical 8. Unethical 9. Less Ethical 10. Unethical Speech Business Ethics Introduction 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. Another name for ethics is morality. Because both words suggest customary ways of behavior, they are somewhat misleading. It had to do with what should or should not be done. Divide practical wisdom into two parts: moral philosophy and political philosophy.

Theyre defined together as a true reasoned state of capacity to act with regard to the things that are good or bad for man. Definition of terms The word ethics is derived from the Greek 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 Latin mores, meaning custom. Business Ethics 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. Ethics is a code of conduct and values that is accepted by society as being right and proper.

Code of ethics is simply a compilation of the rules that are meant to govern the conduct of members of a particular organization or profession. Moral 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. WHY ETHICS? THE VIEW FROM THE TOP When one looks at corporations with a strong commitment to ethics, the first thing one notices is that the leaders of these organizations are the strongest advocates of corporate integrity. CEOs and Chairmen 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.

Yet another issue cited is the effect of unethical conduct by the corporation on its employees. If 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. What 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. It’ll bite you with people in your organization who know it’s a lie.

If you can’t be open and honest at all times, you’re sending a signal to the organization that you will let them get away with lying occasionally. And that includes lying to you. More than anything else, however, the view from the top is that ethics is critically important for the health of the organization. CEO’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. If 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 organization.

And there’s no way that you’re going to be able to rebuild credibility with those people when you’re trying to energize an organization to go do something else. You’ve created a permanent problem in terms of how people view you as an individual and how they view the management of the organization. Conclusion Ethics is primarily concerned with attempting to define what is good for the individual and for society. It also tries to establish the nature of obligations, or duties, that people owe themselves and each other. I 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. Ive found that its difficult to define what is good and how one should act to achieve it.

Individuals and whole societies have performed outrageous criminal acts on people. After research, Ive found that business ethics now compared to 20 years ago has increased, and lack of business ethics will probably not decrease. In addition, every one of us must comply with business ethics of all applicable laws and regulations, and with other company policies and instructions. Our conduct is our responsibility. None 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. In addition dont deviate from Business Ethics, policies and instructions even if doing so appears to be to the companys advantage.



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