Ethics

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Ethics Defined

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BUSINESS ETHICS

Dr. Truong Thi Nam Thang CFVG/Faculty of Business Management-NEU

“The study of the general nature of morals and of specific moral choices; moral philosophy; and the rules or standards governing the conduct of the members of a profession” (The American Heritage Dictionary)

Ordinary versus Ethical Decisions

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Business Ethics Defined

Comprises principles and standards that guide behavior in the world of business Right or wrong, acceptable or unacceptable g g, p p behavior within the organization Determined by you and key stakeholders

The point where the accepted rules no longer serve, and the decision maker is faced with the responsibility for weighing values and reaching judgment in situation which is not quite the same as any or she has faced before

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The Development of Business Ethics

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The Development of Business Ethics

The 1960s: The Rise of Social Issues in Business

Consumer’s Bill of Rights Ralph Nader Wholesome M t 1967 Wh l Meat Radiation Control 1968 Clean Water 1972 Toxic Substances 1976

Before 1960: Ethics in Business U.S. politics:

A living wage The New Deal The Fair Deal

Philosophy’s domain

The Development of Business Ethics

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The Development of Business Ethics

The 1980s: Consolidation

Organized field of study Business ethics centers Business ethics courses Defense industry initiative Multinationals Self-regulation (Reagan/Bush)

The 1970s: Business Ethics as an Emerging Field

Bribery Deceptive advertising Price ll i P i collusion Product safety The environment

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The Development of Business Ethics

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Federal Sentencing Guidelines for Organizations

Standards and procedures (code of ethics) High level oversight Care in delegation of authority Effective communication ( Eff (training) ) Systems to monitor, audit, and report Consistent enforcement Continuous improvement

The 1990s: Institutionalization of Business Ethics...