Ethics

Ethics Study Guide

Chapter 11: Professional and Business Issues

Objectives After reading this chapter, you should be able to: 1. Discuss arguments for and against affirmative action. 2. Understand how justice and social utility relate to affirmative action. 3. Provide examples of ethical situations that arise within business. 4. Describe the role of a human resources department. 5. Discuss how whistleblowing is an ethical dilemma.

11.1 Business Ethics Business ethics are a prominent field of study. Businesses must figure out how to act ethically towards clients, suppliers, distributors, competing businesses, and employees. In the same fashion, it is important for employees to act ethically towards the company, customer, and community in which they work. The reputation of a business can have a significant impact on its success, and often times what begins as an ethical case, will later become policy or law. Most companies have a code of ethics . This code outlines the moral ambitions of the company, and is what drives the culture and climate of the business. Large corporations often have a code of ethics for the company, in addition to a code of ethics for individual departments. Most business also hold regular trainings regarding workplace ethics. This covers new updates to policies, laws, or new issues that have developed. A lot of corporations have shareholders and investors who trust their money to be spent to build the business. A fiduciary is someone who has been entrusted with the responsibility of taking care of the money or assets of another. Businesses have to consider their shareholders and investors when making decisions and cannot pursue personal interests and gains over their fiduciary duties. Companies are also expected to act with social responsibility. This means acting as a responsible part of the community in which it operates. Social responsibility can include donations to local charities, volunteering in the community, socially responsible business practices, advocacy campaigns, and community outreach. With the business field there are many ethical dilemmas that arise. Corporations must decide how to act ethically in several situations include customer safety, employee safety, political contributions, hostile take-overs, industrial espionage, executive pay, tax avoidance, bribery, and corruption.

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