Jack Marks - The Business Ethics Handbook: The Complete Knowledge Guide You Need to Understand, Implement and Manage Business Ethics - With Best Practices Example Agreement Templates - Second Edition

BUSINESS ETHICS

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1. BASICS 7
2. FUNDAMENTALS 15
3. CONCEPTS 24
4. UNDERSTANDING BUSINESS ETHICS 29
5. MANAGING BUSINESS ETHICS 36
6. PERFORMANCE, PRINCIPLES & PEOPLE 42
7. DECISION MAKING 46
8. SOCIAL RESPONSIBILITY 55
9. ETHICS AND SOCIAL RESPONSIBILITY 62
10. METHODOLOGIES FOR ADDRESSING ETHICAL PROBLEMS 69
11. SUPPORTING DOCUMENTS 79 a. GUIDELINES TO BUSINESS ETHICS 81 b. BUSINESS ETHICS, CONDUCT, AND LEGAL COMPLIANCE 97 c. ACME COMPANY, INC. BUSINESS ETHICS POLICY AND PROCEDURES 107 d. CODE OF BUSINESS ETHICS FOR DIRECTORS 131 e. INSTITUTE FOR BUSINESS AND PROFESSIONAL ETHICS 135
12. GLOSSARY 181
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1. BASICS

This secOon looks at some of the basics of business ethics and discusses answers to the following quesOons.

?? Government?
?? Society?
?? Business?

There is no exact scienOfic or mathemaOc answer to this quesOon.
A textbook definiOon describes business ethics as a concern with good and bad (or right and wrong) behavior and pracOces that take place within a business context.
The term 'ethics' shares a similar definiOon but requires the addiOonal aspect of moral obligaOon and duty.
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THREE MAJOR APPROACHES TO THINKING ABOUT BUSINESS ETHICS

Businesses use the following three major approaches when thinking about business ethics.

This approach involves a comparison between a decision or pracOce and the prevailing norms of acceptability. These norms arise from a variety of sources, including personal (family and friends), organizaOonal (employer and profession), social (society at
large), and internaOonal (regions of country). The following diagram shows how the convenOonalist approach works.

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The convenOonalist approach views the law as the minimum requirement and sees ethics as a standard that should exceed this minimum.
Ethical relaOvism is a pinall of this approach; good, bad, right and wrong are relaOve to the normal behavior and beliefs of society.

This approach involves applying a concept, guideline, or rule to an ethical dilemma. The aim of these principles is to assist in making ethical decisions.
Various principles exist today, including:

This approach uses six elements to assist in making an ethical decision.

None of these tests are fool proof; however, they can help lead to beSHer ethical decision-making.

INFLUENCIAL FACTORS

A variety of factors can influence how individuals and businesses approach ethics. The following tables demonstrate the different influenOal factors within these two areas.

MAINTAINING AN ETHICAL STANDARD

Maintaining a code of ethics is important because it:
?? protects the firm;
?? increases firm loyalty and trust;
?? increases consumer good will;
?? improves performance;
?? reduces bribery and kickbacks*;
?? reduces conflicts of interest; and
?? reduces discriminaOon.

*Foreign Corrupt PracOces Act of 1977

Berkshire Hathaway's code of ethics provides a useful example:
?? Warren Buffet hSHp://www.precisionsteel.com/about/conduct.asp

The following methods can assist companies in maintaining an ethical standard:
?? Ensuring wriSHen codes exist of all policies and guidelines