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CHAPTER 1:

BUSINESS, ETHICS, AND


BUSINESS ETHICS
MALANG, ANGELI PAULA | GABUYA, PATRICK
ACTIVITY:
What objects
can you see?
DEFINITION OF TERMS

 Business – can be defined as ‘line of work’ in the retail business,


commercial organization such as company or commercial activities
a company performs.
 Business Ethics – refers to the examination of issues on business,
whether they are right or wrong, good or evil. Business ethics is an
applied ethics.
 Ethics – moral principles that govern a person’s behavior or the
conducting of an activity. Other term for ethics is morality.
Humans Acts and Business

Acts of Man Human Acts


 Refers to the acts we naturally  Are attributable to the human being
perform with the use of our senses because such acts are deliberately
and bodily tendencies. performed and with self
 These are acts we perform without determination, the consequences
can be beneficial or harmful.
the exercise of free choice
 Knowing, free and voluntary act.
 Business activities
Ethics and Business Education

 Moral principles – standard of conduct that we construct for


ourselves as individuals or the body or system of obligations
and duties that society requires us as members.
 Code of conduct – refers to a ‘way of behaving’, or set of rules
according to which people are supposed to behave.
 Based on moral principles that are universally held.
Ethics and Business Education

 The inclusion of course on ethics is important because


this is the avenue where business students are made
aware of the ethical issues arising from business
decisions.
 Business students are trained to make decisions
because they are prepared for real business world
where they have to make decisions all the time
Moral Standards in Business Ethics

 Moral – relating principles of right and wrong


 Standard – model or rule to be followed
 Moral Standard – the principles of right and wrong that should be
followed:
1. They deal with matters that can seriously injure or benefit human beings
2. They cannot be changed by the decisions of any authorative body
3. They should be preferred over other values including self-interest
4. They are based on objective and impartial considerations
5. They are associated with special emotions such us guilt, remorse and
shame
The Place of Ethics in a Business
Organization
ASSESSMENT
Instructions: Use the three-step checklist to
determine whether or not the following
situations demonstrate ethical behavior.
Situation 1: Eva Torres is a receptionist for Media Technologies.
After the company installed voice mail, Eva’s workload became
lighter, so her supervisor assigned additional responsibilities,
including some accounting tasks. Even with these assignments,
Eva is not always busy. To fill the time, she plays computer games.

1. Is the action legal? Explain


2. Does the action violate company or professional standards? Explain.
3. Who is affected, and how, by the action?
Instructions: Use the three-step checklist to
determine whether or not the following
situations demonstrate ethical behavior.
Situation 2: At Cook’s Corner, a kitchen equipment store, most
employees work less than 40 hours per week. However, only
employees who work a minimum of 40 hours per week are eligible
for health insurance.

1. Is the action legal? Explain


2. Does the action violate company or professional standards? Explain.
3. Who is affected, and how, by the action?