Ethics dilemma= The quandary people find themselves in when they have to decide if
they should
act in a way that might help another person or group even though doing so might go
against their
own self-interest.
-when moral scruples come into play-> hesitate/debate/ refelect on right course of
action
1- ethical dilemma
Ethics= The inner guiding moral principles, values, and beliefs that people use to
analyze or
interpret a situation and then decide what is the right or appropriate way to behave.
- whats inappropriate behaviour
1- "~Laws against fraud and deception"
types of laws governing bus
the nature of ethics 2- "Laws governing how companies can
treat their employees and customers."
2- ethics + the law
- Law also specify that punishment will follow it those laws are broken.
- Neither laws nor ethics are fixed principles: ethical belief change over time, laws
change to refelct these beliefs
-There are many types of behavior (murder, theft, slavery, rape, driving while
intoxicated) that
3- changes in ethics over time most people believe are unacceptable and unethical and should be illegal.
- ethics on other behaviour debatable
Stakeholder= Supply a company with its productive resources; as a result, they
have a claim on and
a stake in the company.
1) stakeholders=
- have claim on company beacause when they buy shares they become its owner
- shares issues when founder of company decides to publicly incorporate the bus to
raise capital
- they interested in how comapny operates -> max return on investment thus whatches
management behaviour to ensure management is working well to incre companies
profits + want to ensure managers behave ethically, not risking investors capital by
engaging in actions that could hurt companies reputation
2) managers =
- vital stakeholder grp
- resp for using companys financial, capital + human res to incre its perf + stock price
- have a claim on organ because they bring their skills, expertise +xp
- have resp to decide goals of an organ to benefit stakeholders + how to efficiently use
res to achieve the goals
- in diff descions, must uphold ethical values
3) customer=
- most crtical stakeholder grp because if a company cant get them to buy its products,
it cants stay in bus
- managers+ employees must work to incre efficiency + effectiveness in order to create
loyal customers+ create new ones
- they sell quality products at a fair price
4) community, society, nation=
- community provides company with psc + social infrasctructure that allows it to
operate
- bus ethics are imp because the failure of a company can have catastrophic effects on
a community, a gen decline in bus acty effects whole nation
5) suppliers + distributors =
- every company is in a network of relations with other companies that suppky is with
the input (raw materials, components, contract labour + clients) that it needs to
operate
- it also depends on intermediaries such as wholesalers + retailers to distribute its
products to final customer
6) employees= organ-> create occupational structure thats fair + equitable rewards for
contributions: a way to act ethically towards employees + meet their expectations
1)moral rights rule-> an ethical decision
that maintains+ protects the fundamental
rights of pple affected by it
-" do unto others as u would them do unto
stakeholder and ethics
u", eg:Ethical decisions protect people’s
rights to freedom, life and safety, property,
privacy, free speech and freedom of
conscience
2) justice rule-> an ethical decision that
distributes benefits and harm among pple,
grps in a fair, equitable and impartial way
For example- Employees who are similar in
their level of skill, performance or
responsibility should receive similar pay;
rules for ethical decision making allocation of outcomes should not be
based on differences such as gender, race
and religion
A business decision is probably acceptable
on ethical ground if a manager can answer
yes to each of these questions:
1. Does my decision fall within the
accepted values or standards that typically
3) practical rule= an ethical decision that a apply in business activity today?
manager has o reluctance abt
.
communicating to pple outside the 2. Am I willing to see the decision
company because the typical person in a communicated to all people and groups
society would is acceptable affected by it—for example, by having it
ethics + social reported on TV or via social media?
responsibility 3. Would the people with whom I have a
significant personal relationship, such as
family members, friends, or even managers
in other organizations, approve of the
decision?
✓ Trust- The willingness of one person or
group to have faith or confidence in the
goodwill of another person, even though
this puts them at risk.
why is it imp managers behave ethically
✓ Reputation- The esteem or high repute
that individuals or organizations gain
when they behave ethically.
❖ Standards that govern how members of
a society should deal with one another in
matters involving issues such as fairness,
justice, poverty, and the rights of the
individual.
1. Societal Ethics:
❖ Societal ethics emanate from a societies
law’s, customs and practices and from the
unwritten values and norms of how people
interact with each other.
➢ Standards that govern how members of
a profession, trade, or craft should conduct
themselves when performing work-related
activities.
➢ For example, medical ethics govern how
2. Occupational Ethics: doctors and nurses should treat their
patients.
➢ Doctors are expected to perform only
ethics and social resp
necessary medical procedures and to act
in the patient’s interest, not in their own
self-interest.
o Personal standards and values that
determine how people view their
responsibilities to others and how they
should act in situations when their own
self-interests are at stake.
3. Individual Ethics:
o Sources of individual ethics include the
influence of one’s family, peers and
upbringing in general.
▪ The guiding practices and beliefs through
which a particular company and its
4. Organizational Ethics:
managers view their responsibility toward
their stakeholders.
The way a company’s managers and employees view their duty or obligation to make
What is the social responsibility of an organization? decisions that protect, enhance, and promote the welfare and well-being of
stakeholders and society as a whole.
approaches to social
~Companies and their managers choose not to behave in a socially responsible way
responsibility 1. Obstructionist approach:
and instead behave unethically and illegally.
»Companies and their managers behave ethically to the degree that they stay within
2. Defensive approach:
the law and strictly abide by legal requirements.
➢ Companies and their managers behave legally and ethically and try to balance the
3. Accommodative approach:
interests of different stakeholders as the need arises.
• Companies and their managers actively embrace socially responsible behavior, going
4. Proactive approach: out of their way to learn about the needs of different stakeholder groups and using
organizational resources to promote the interests of all stakeholders.
they should
act in a way that might help another person or group even though doing so might go
against their
own self-interest.
-when moral scruples come into play-> hesitate/debate/ refelect on right course of
action
1- ethical dilemma
Ethics= The inner guiding moral principles, values, and beliefs that people use to
analyze or
interpret a situation and then decide what is the right or appropriate way to behave.
- whats inappropriate behaviour
1- "~Laws against fraud and deception"
types of laws governing bus
the nature of ethics 2- "Laws governing how companies can
treat their employees and customers."
2- ethics + the law
- Law also specify that punishment will follow it those laws are broken.
- Neither laws nor ethics are fixed principles: ethical belief change over time, laws
change to refelct these beliefs
-There are many types of behavior (murder, theft, slavery, rape, driving while
intoxicated) that
3- changes in ethics over time most people believe are unacceptable and unethical and should be illegal.
- ethics on other behaviour debatable
Stakeholder= Supply a company with its productive resources; as a result, they
have a claim on and
a stake in the company.
1) stakeholders=
- have claim on company beacause when they buy shares they become its owner
- shares issues when founder of company decides to publicly incorporate the bus to
raise capital
- they interested in how comapny operates -> max return on investment thus whatches
management behaviour to ensure management is working well to incre companies
profits + want to ensure managers behave ethically, not risking investors capital by
engaging in actions that could hurt companies reputation
2) managers =
- vital stakeholder grp
- resp for using companys financial, capital + human res to incre its perf + stock price
- have a claim on organ because they bring their skills, expertise +xp
- have resp to decide goals of an organ to benefit stakeholders + how to efficiently use
res to achieve the goals
- in diff descions, must uphold ethical values
3) customer=
- most crtical stakeholder grp because if a company cant get them to buy its products,
it cants stay in bus
- managers+ employees must work to incre efficiency + effectiveness in order to create
loyal customers+ create new ones
- they sell quality products at a fair price
4) community, society, nation=
- community provides company with psc + social infrasctructure that allows it to
operate
- bus ethics are imp because the failure of a company can have catastrophic effects on
a community, a gen decline in bus acty effects whole nation
5) suppliers + distributors =
- every company is in a network of relations with other companies that suppky is with
the input (raw materials, components, contract labour + clients) that it needs to
operate
- it also depends on intermediaries such as wholesalers + retailers to distribute its
products to final customer
6) employees= organ-> create occupational structure thats fair + equitable rewards for
contributions: a way to act ethically towards employees + meet their expectations
1)moral rights rule-> an ethical decision
that maintains+ protects the fundamental
rights of pple affected by it
-" do unto others as u would them do unto
stakeholder and ethics
u", eg:Ethical decisions protect people’s
rights to freedom, life and safety, property,
privacy, free speech and freedom of
conscience
2) justice rule-> an ethical decision that
distributes benefits and harm among pple,
grps in a fair, equitable and impartial way
For example- Employees who are similar in
their level of skill, performance or
responsibility should receive similar pay;
rules for ethical decision making allocation of outcomes should not be
based on differences such as gender, race
and religion
A business decision is probably acceptable
on ethical ground if a manager can answer
yes to each of these questions:
1. Does my decision fall within the
accepted values or standards that typically
3) practical rule= an ethical decision that a apply in business activity today?
manager has o reluctance abt
.
communicating to pple outside the 2. Am I willing to see the decision
company because the typical person in a communicated to all people and groups
society would is acceptable affected by it—for example, by having it
ethics + social reported on TV or via social media?
responsibility 3. Would the people with whom I have a
significant personal relationship, such as
family members, friends, or even managers
in other organizations, approve of the
decision?
✓ Trust- The willingness of one person or
group to have faith or confidence in the
goodwill of another person, even though
this puts them at risk.
why is it imp managers behave ethically
✓ Reputation- The esteem or high repute
that individuals or organizations gain
when they behave ethically.
❖ Standards that govern how members of
a society should deal with one another in
matters involving issues such as fairness,
justice, poverty, and the rights of the
individual.
1. Societal Ethics:
❖ Societal ethics emanate from a societies
law’s, customs and practices and from the
unwritten values and norms of how people
interact with each other.
➢ Standards that govern how members of
a profession, trade, or craft should conduct
themselves when performing work-related
activities.
➢ For example, medical ethics govern how
2. Occupational Ethics: doctors and nurses should treat their
patients.
➢ Doctors are expected to perform only
ethics and social resp
necessary medical procedures and to act
in the patient’s interest, not in their own
self-interest.
o Personal standards and values that
determine how people view their
responsibilities to others and how they
should act in situations when their own
self-interests are at stake.
3. Individual Ethics:
o Sources of individual ethics include the
influence of one’s family, peers and
upbringing in general.
▪ The guiding practices and beliefs through
which a particular company and its
4. Organizational Ethics:
managers view their responsibility toward
their stakeholders.
The way a company’s managers and employees view their duty or obligation to make
What is the social responsibility of an organization? decisions that protect, enhance, and promote the welfare and well-being of
stakeholders and society as a whole.
approaches to social
~Companies and their managers choose not to behave in a socially responsible way
responsibility 1. Obstructionist approach:
and instead behave unethically and illegally.
»Companies and their managers behave ethically to the degree that they stay within
2. Defensive approach:
the law and strictly abide by legal requirements.
➢ Companies and their managers behave legally and ethically and try to balance the
3. Accommodative approach:
interests of different stakeholders as the need arises.
• Companies and their managers actively embrace socially responsible behavior, going
4. Proactive approach: out of their way to learn about the needs of different stakeholder groups and using
organizational resources to promote the interests of all stakeholders.
