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Business Ethics by Mind Map: Business Ethics
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Business Ethics

FINANCE

Debt Management

Falsifying financial reports, hiding funds

Paying out management

BIG BONUSES

COMPENSATION

Buisness Scandals

ENRON

STOCK MARKET

HUMAN RESOURCE MANAGEMENT

Unions: create unsustainable conditions for employers create sustainable conditions for employees the longer you work the more rights you have?

Longer you work the more money you get for same job as co worker?

SALES AND MARKETING

food/products, saying something is good for you when it isn't.

Transparency

Fairness in pricing and distribution

Advertising truth-fullness

marketing dangerous products/services

PRODUCTION

producing a product that is harmful to consumers:

TOBACCO

NUCLEAR ENERGY

environmental impacts

habitat destruction

pollution, air, noise, water

urban sprawl

Energy Consumption

Carbon Emission

Depletion of the Ozone Layer

Outsourcing

company using suppliers that are unethical, child labour

Dont Ask Dont Tell

PROPERTY AND INTELLECTUAL PROPERTY

Patent, Copyright, Trademark infringements. Misuse

native land

patent monopolies

patent protection

drug companies re coup losses for a time because they are the sole maker of a drug. What if it was a high demand drug that could save lives?

Gene patents

Monopolizing talent

INTERNATIONAL

dumping / selling products at a lower price, lower then value. Used as a competitive threat.

Different codes/Standards

multinational corporations using standards biased on the nation they are in

Globalization

Cultural Imperialism

Outsourcing to cheaper labour / sweatshops

Child labour

POLICIES

many businesses have created internal policies pertaining to ethical conduct of employees:

Ethic Statements and Code

A competitive business environment may call for unethical behaviour .

Lying has become expected in some fields such as trading., An example of this are the issues surrounding the unethical actions of the Saloman Brothers.

MANAGING ETHICS

Compliance

Basically compliance with the law

standard of minimum behaviour

write standards stating explicit rules

establish penalties

Most common ethical standard in the US

RISKS, may give the impression that you only need minimum behaviour, can imply low level employees are target, gives no guidance on ethic issues that arise

Relying on employee values

The employee makes the ethical decisions

Assumes everyone is ethical / honorable

Expects ethical behavior

RISKS, Not everyone is ethical, Not everyone shares same ethical values, Possibility of ethical issues not being resolved

Ethics exhortation

exhorting people to act ethically

train employees

RISKS, no help identifying correct ethical standards, no guidance, may imply employees are to pay short-term cost of acting ethically, tough sales goals, force employee to use unethical ways to make sales, then if caught blames employee

Managing Values

defining a set of values and then managing them

defining aspirations and minimum values

educate model, reward values and standards

ADVANTAGES, gives guidance/ description for all types of choices, makes managing values integral part of the company

RISKS, takes more management effort

Business is a game played by individuals, as with all games the object is to win.

What is Business Ethics?

business ethics is the study of standards of business behavior which promote human welfare and the good.

can extend to animal welfare, environment welfare

HOW INDIVIDUALS ACT IN BUSINESS

STRUCTURING BUSINESSES AND THE WAY WORK

how we structure our business society, our laws affecting business , our systems

Corporate Social Responsibility

Ethical Dilemmas

Shareholder Wealth

stock appreciation, earnings per share

Profit Maximization

decrease quality of product

lower wages

outsourcing

minimizing taxes, not contributing to counties that allow their business

greed

Return on Investment

easy to put cost on services but hard to quantify benefits of those said services

Externalities

financial liabilities that do not appear on the balance sheet/income statement/cash reports, waste generated as part of the production process?, Environmental Damage as result of rapid industrialization

Fiduciary Responsiblity

acting in the best interest of of the corporation, short term financial goals having a long term impact on society / environment