Chapter 3 Summary

  1. 3-1 Describe ethics and the systems of ethical conduct, and illustrate how someone can create a personal code of ethics.

  • Ethics are the moral choices people make.

  • Ethical systems include the following:

    • Moral relativism, a perspective that holds that there is no universal moral truth but instead only individuals’ beliefs, perspectives, and values

    • Situational ethics, which encourages people to make ethical decisions based on the circumstances of a particular situation, not on fixed laws

    • Systems defined by religious traditions, such as Judeo-Christian ethics, which refers to the common set of basic values shared across both Jewish and Christian religious traditions

  1. 3-2 Explain how personal ethics might play a role in the workplace and what resources one may use to evaluate a company’s ethical code.

  • Determine your base character.

  • List all the beliefs that influence your decision making.

  • Think about how your behavior reflects these beliefs.

  • Now think about where your beliefs and view of your character come from. Why do you hold these beliefs?

  • Having a strong ethical foundation can help you achieve success in business and greater happiness in life.

  • In the modern workplace, there is less distinction made between how you conduct yourself inside and outside the office. Telecommuting is one instance when a person’s employer may influence how an employee behaves at home. Conduct on social media sites can also influence a person’s workplace, even though it happens outside of work.

  • Conflicts can emerge when your personal ethics are different from those of your company.

  1. 3-3 Analyze the ways in which a company’s policies and decisions affect its achievement of corporate social responsibility, and discuss the challenges it may face in balancing the demands of social responsibility with successful business practices.

  • Some companies may have a written code of ethics, or a statement of their commitment to certain ethical practices.

  • Many companies have a public mission statement that defines the core purpose of the organization and often describes its values, goals, and aspirations.

  • Corporate social responsibility (CSR) consists of five major areas: employment standards, ethical sourcing, marketing issues, environmental concerns, and community policies.

  • A strong CSR plan allows a company to serve its local and global communities well. It also benefits a corporation in direct and indirect ways.

  • Companies must balance their moral and ethical obligations to consumers with their need to respond to investors and produce a profit.

  • It’s also important for companies to show a strong commitment to their employees (by ensuring workplace safety), the local community (by responding to community needs), and all the countries in which they operate (by upholding human rights policies). At times, it can be difficult to balance these commitments with the need to ensure that the business remains financially successful.

  1. 3-4 Summarize how legal compliance affects ethical conduct, and describe some strategies a company can use to recover from ethical lapses.

  • Legal compliance refers to conducting a business within the boundaries of all the legal regulations of that industry.

  • Companies that establish and adhere to high ethical standards are more likely to maintain legal compliance.

  • A company can work to find a leader who will set an example of the new ethical image of the company.

  • A company can restructure its internal operations to empower all employees to consider the ethical implications of decisions and feel free to speak up when they have concerns.

  • A company can redesign its internal rewards.

  1. 3-5 Identify ways in which companies can apply ethical standards to create new business opportunities.

  • While some businesses are tackling ethical issues and offering consumers more ethical choices through their businesses, others are attempting to reduce the impact they have on the environment.

  1. 3-6 List some approaches that a company can use to develop and maintain an ethical environment.

  • Managers can make sure a mission statement is in place and set clear examples for the standards of behavior expected at all levels of the organization.

  • Companies can offer orientation programs to new employees to inform them of the ethical standards in place.

  • Ethics training programs can boost the awareness of employees about ethics issues.

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