Business ethics

Definition Business ethics is the behavior that a business

adheres to in its daily dealings with the world. The ethics of a particular business can be diverse. They apply not only to how the business interacts with the world at large, but also to their one-on-one dealings with a single customer.

WiseGeek (2000-2003)

Code of ethics inside organizational culture A code of ethics is a collection of principles and

practices that a business believes in and aims to live by.

It usually doesn't stand alone, it works in conjunction with a company's mission statement of what the company stands for and how it's members should conduct themselves.

1. Decide what values are important to it and what lines it won't cross.

• Does the corporate strategy optimize the “common good” or benefits of all constituencies?

Uthilitarian ethics (Bentham, smith)

• Does the corporate strategy respect the rights of the individuals involved?

Right of the parties (Kant, Locke)

• Does the corporate strategy respect the canons of justice of fairness to all parties?

Justice or fairness

(Aristotle, Rawls)

Utilitarianism Utilitarianism is an ethical framework that

focuses on the outcomes or results of actions. In fact, its name comes from the Greek word telos, which means “end.” The two most influential developers of the utilitarian viewpoint were Englishmen Jeremy Bentham (1748–1832) and John Stuart Mill (1806–1873). Under this framework, acting ethically means making decisions and taking actions that benefit people by maximizing “good” and minimizing “bad.” Outcomes, results, or goals are the focus—not the action taken to achieve them. Utilitarians facing an ethical dilemma ask, “What is my goal? What outcome should I aim for?”

Right of the parties Locke believed that individuals in a state

of nature would be bound morally, by The Law of Nature, not to harm each other in their lives or possession, but without government to defend them against those seeking to injure or enslave them, people would have no security in their rights and would live in fear.

Kant held that every rational being had both a innate right to freedom and a duty to enter into a civil condition governed by a social contract in order to realize and preserve that freedom.

Justice or fairness Aristotle more than two thousand

years ago—"Individuals should be treated the same, unless they differ in ways that are relevant to the situation in which they are involved.“

Rawls said that every individual has an equal right to basic liberties, Rawls claiming "that certain rights and freedoms are more important or "basic" than other

2. Look for the criteria and regulations for enterprises with your similar goals (Commerce chambers, associations, related organizations)

Examples of Business code of ethics

AMF Business code of ethics

ITESM Code of ethics

FEMSA Code of Ethics

4. Write down specific statements that could

lead you and your employees to come up with ethical decisions.

a. Benefits toward nature toward society toward yourselves

b. Not to harm and feel free c. Equal rights and

equal treatments

5. For each one of these variables, make a

list of 5 characteristics . Each characteristic should be change into a principle of action or a norm

Every customer has the right to be treated with the same levels of quality no matter their beliefs, race or preferences.

We commit to treat each customer with the same levels of quality.

Video

Decision tree for incorporating ethical and social responsibility issues into business decisions

Does the decision efficiently optimize the common good or benefits of:

Society

The individual

Business firm

The economy

Does the decision respect the rights of individuals involved

Are there critical factors that justify suboptimizing these goals and

satisfactions

YES NO

Reject decision

Are there critical factors that justify the abrogation of a right

Reject decision

NO

NO

Are there critical factors that justify the violation of a canon of justice

Reject decision

NO

Does the decision respect the canons of

justice or fairness to all parties involved

Accept decision

YES YES

YES

YES