Ethics
Section 1
What is ethics?
 Maybe this guy knows?
 Fancy Definition
 Written and unwritten codes of principles and values that govern
decisions and actions within a company.
 In the business world, the organization's culture sets standards for
determining the difference between good and bad decision making and
behavior.
 Simple Definition
 Knowing between what is right and wrong
 This may differ between individuals
Ethical Dilemmas
“Situations in which individuals are required to define
right and wrong conduct”
 Who thinks this is easy?
 For some it is and others it isn’t
Case Study
 Sticky Fingers
What are the relevant facts?
1.
A watch has been stolen
2.
Todd, a jewelry salesman, was the only person observed handling the
watch
3.
Todd has failed a lie-detector test
4.
Susan notes that Todd’s application and sworn bonding form are not
consistent
5.
Susan would not have noticed the irregularities on Todd's application has it
not been for Mike’s suggestion
What are the ethical issues?
1.
What are typical grounds for terminating an employee who is suspected of
theft?
2.
Is it ethical to terminate employee on circumstantial evidence?
3.
Is it ethical to terminate employee on the basis of factors that were not
actual the reason for termination?
4.
What are the moral rights of employees suspected of theft?
What are the alternatives?
1.
Fire Todd
2.
Do nothing
3.
Anything else?
Conclusion
It’s up to you!
Section 2
Business Ethics
Three Ethical Decision Criteria
1. Utilitarianism

Decisions are made to provide the greatest good for the greatest
number

Decisions are made solely on the basis of their outcomes or
consequences

Tends to dominate business decision making

Why?

Consistent with goals like efficiency, productivity, and high profits
Three Ethical Decision Criteria
2. Rights
 Calls of individuals to make decisions consistent with
fundamental liberties and privileges as set forth in
documents like the Bill of Rights.
 An emphasis on rights in decision making means respecting
and protecting the basic rights of individuals, such as the
right to privacy, to free speech, and to due process.
 Use of this criterion would protect whistle-blowers
(individuals who report unethical or illegal practices by their
employer to outsiders
Three Ethical Decision Criteria
3. Justice
 Requires individuals to impose and enforce rules fairly and
impartially so that there is an equitable distribution of
benefits and costs
 Union members tend to typically favor this view
 It can justify paying people the same wage for a given job,
regardless of performance differences, and using seniority
as the primary determination in making layoff decisions.
Advantages and Liabilities
 Focus on utilitarianism promotes efficiency and productivity, but it can
result in ignoring the rights of some individuals.
 The use of rights as a criterion protects individuals from injury and is
consistent with freedom and privacy, but it can create overly legalistic work
environment that hinders productivity and efficiency.
 A focus on justice protects the interests of the underrepresented and less
powerful, but it can encourage a sense of entitlement that reduces risk
taking, innovation, and productivity.
Ethics and National Culture
 What is seen as an ethical decision in China may not be seen as such in
United States.
 There are no global ethical standards.
 Because bribery is commonplace in countries such as China, an American
would face an ethical decision working in China…
 “Should I pay a bribe to secure business if it is an accepted part of the country’s culture?”
Group Case Study Questions
As a group discuss and write down:
1. The facts of the case (At lest 4-6 facts)
2. The ethical issues present (At least 1-3 issues)
3. The possible alternatives (1-4 alternatives)
The Pizza Puzzle
What are the relevant facts?
1.
The Inn is losing room service business to independent pizza delivery firms.
2.
Consumers perceive hotel-prepared pizza to be of lower quality than that
prepared by pizza places.
3.
The Inn’s pizza is judged to be equal in quality with those of competitors in
blind taste tests.
4.
Sharon’s proposed marketing approach does not make the claim that
“Napoli Pizza” is an independent pizza place.
5.
No effort is made to inform the Inn’s guests that “Napoli Pizza” is a portion
of the Inn’s operations.
What are the Ethical Issues?
1.
Is the proposed marketing program for “Napoli Pizza” deceptive?
2.
Does the proposed marketing program respect guests’ right of free
consent?
What are some alternatives?
1.
Accept Susan's proposal.
2.
Add an unobtrusive sentence to the bottom of the promotional brochure
indicating that “Napoli Pizza” is a registered trademark of Hospitality
Enterprises.
3.
Include the Inn’s name in the brochure, i.e., “Marigold Inn's Napoli Pizza.”
4.
Establish a “Napoli Pizza” as a separate, visible part of restaurant
operations, offering pizza delivery to guest rooms, meeting rooms and the
pool as well as seating facilities
Ethics of Alternatives
1.
Which possible alternative would provide the greatest benefit to the
greatest number? (Utilitarian)
2. What would be the “rights” consideration?
 Right of customers to know relationship of Hotel to pizza place
3.
Is there a “justice” consideration?