Chapter 2 INTERNALIZING ETHICS IN THE CONDUCT OF BUSINESS

INTERNALIZING ETHICS

IN THE CONDUCT OF

BUSINESS

2

BUSINESS ETHICS (SECOND EDITION)

At the end of this chapter, you should be able to:

❑Recognize the theoretical models of Kohlberg and Trevino

underpinning moral development and ethical reasoning

❑Identify and discuss the common ethical challenges faced by

business people

❑Identify and explain the three levels of decision-making

❑Differentiate between ethical management and management of

ethics

❑Discuss the importance of integrating economic, legal and moral

dimensions in making effective, fair business decisions

❑Identify and explain the three check questions that one has to ask

and self-assess when faced with an ethical challenge

❑Discuss the role of religion in resolving ethical issues in business

Learning Outcomes

BUSINESS ETHICS (SECOND EDITION)

❑There are two theoretical models, Kohlberg’s Model of

Cognitive Moral Development and Trevino’s Person-Situation

Interactionist Model of ethical reasoning.

❑The ethical challenges commonly faced by business people

(balancing the economic character of organizations with

justice and fairness, conflict of interest, personality traits,

responsibility to stakeholders, level of openness) in a

corporate environment will be discussed.

❑There are three levels of decision-making (the individual,

organizational and business systems).

Introduction

❑Kohlberg’s Model of Cognitive Moral Development

Theoretical Models on Moral

Reasoning and Decision-making