CLO Business Studies: Ethics

Ethics

The study of right and wrong and of the morality of the choices individuals make. An ethical decision or action is one that is "right" according to some standard of behaviour.

Business Ethics

Is the application of moral standards to business situations.

Ethical Issues

Fairness and Honesty
Organizational Relationships
Conflict of Interest
Communication

Fairness and Honesty

Business people are expected to refrain from knowingly deceiving, misrepresenting, or intimidating others. The consequences of failing to do so can be expensive.

Organizational Relationship

A businessperson may be tempted to place his or her personal welfare above the welfare of others or the welfare of the organization. Relationships with customers and co-workers often create ethical problems.

Conflict of Interest

Conflict of interest results when a businessperson takes advantage of a situation for his or her own personal interest rather than for the employer's interest.

Communication

False and misleading advertising is illegal and unethical, and it can infuriate customers.

Individual Factors Affecting Ethics

Individual knowledge of an issue. A decision maker with a greater amount of knowledge regarding a situation may take steps to avoid ethical problems.

Social Factors Affecting Ethics

Cultural norms
Co-workers
Significant others

Factors Affecting Ethical Behavior

Individual Factors
Social Factors
Opportunity as a Factor

Pressure Group

A group of people who put pressure on a business by making the public aware through advertising. Such as Green Peace

Stakeholders

People who have an interest in the business.