Ethics

Business Ethics

Shera Ioane

MGT/219

May 24, 2010

Kane Martin

Business Ethics

What is business ethics? Business ethics can be defined as written and unwritten codes of principles and values that govern decisions and actions within a company (White, 2006). In the business world, the organization’s culture sets standards for determining the difference between good and bad decision-making and behavior. In basic terms business ethics is to know the difference between right and wrong and choosing what is right. The phrase 'business ethics' can be used to describe the actions of individuals within an organization, as well as the organization as a whole (White, 2006).

In the business world we are often times presented with ethical dilemma’s and it is important to consider the outcome of our decision making. One way of dealing with ethical dilemmas is by using the four way test to evaluate decisions. This test involves asking four questions:

1. Is my decision a truthful one?

2. Is my decision fair to everyone affected?

3. Will it build goodwill for the organization?

4. Is the decision beneficial to all parties who have a vested interest in the outcome?

When these four questions can truthfully be answered with a “yes,” it is likely that the decision is an ethical one (White, 2006).

In today’s business society there are often times that situations will arise concerning ethics and it can be damaging to our organizations as well as our communities. A personal experience regarding ethics happened to my husband and I when we were looking to purchase some land to build our home on. Our real estate agent took us out looking and we had finally found the perfect lot for our home. We made an offer that matched the asking price from the seller. When our agent took the offer to the seller he became excited to know that we had offered what he was asking and that we had cash, therefore he would not have to wait for financing. He then looked at our last...