Billing Issues

Chapter 7

Business Ethics Fundamentals

LEARNING OUTCOMES

After studying this chapter, you should be able to:

1. Describe how the public regards business ethics.

2. Define business ethics and appreciate the complexities of making ethical judgments.

3. Explain the conventional approach to business ethics.

4. Analyze economic, legal, and ethical aspects by using a Venn model.

5. Enumerate and discuss the four important ethics questions.

6. Identify and explain three models of management ethics.

7. Describe Kohlberg’s three levels of developing moral judgment.

8. Identify and discuss the elements of moral judgment.

TEACHING SUGGESTIONS

INTRODUCTION – Chapter 7 introduces concepts and background that are essential to understanding business ethics. The authors explore a wide range of topics that combine to form a network within which business decisions are made, how they are made, and how managers develop their abilities to make them.

KEY TALKING POINTS – Unless students previously have taken a course in moral philosophy, most will have given little thought to the whole issue of ethical decision-making. Although they certainly will have opinions regarding what constitutes moral behavior (often very strong opinions), the majority will have little insight into how they make those decisions. One effective way to introduce this element of moral decision-making is to show a video clip or read a short passage that presents a clear moral dilemma (e.g., Case 10, Phantom Expenses) and then ask the students how they would make a decision about that scenario—without allowing them to say what their decisions are. Many will get frustrated with this exercise but will soon recognize the point being made—that they go through a process to get to their decisions, but rarely do they pay any attention to that process. Note that when students describe how they would make their decision, some will describe the use of an ethical principle (i.e., the principles...