Management Chapter 5 Homework Page Ethics And Ethical Reasoning Introduction People Who Work Business Frequently

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CHAPTER 5

ETHICS AND ETHICAL REASONING

INTRODUCTION

People who work in business frequently encounter and must deal with on-the-job ethical

issues. Being ethical is important to the individual, the organization and the global

marketplace in today’s business climate. Managers and employees alike must learn how

PREVIEW CASES

Qualcomm Penalized by South Korea

Stewart Parnell and the Peanut Corporation of America

The chapter opens with two examples of a company and a business executive acting in an

unethical manner. Qualcomm’s unfair business practice was investigated by the South

Korean government and given the largest antitrust penalty for any company operating in

CHAPTER OUTLINE

I. THE MEANING OF ETHICS

A. What Is Business Ethics?

Teaching Tip: Defining Ethics

Establishing a clear definition of ethics is a critical task in

understanding this and the following chapter. Ethics is not identical to

law nor is it simply personal or cultural values. Defining ethics should

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B. Why Should Business Be Ethical?

 Enhance business performance

 Comply with legal requirements

 Prevent or minimize harm

 Meet Demands of Business Stakeholders

 Promote personal morality

II. WHY ETHICAL PROBLEMS OCCUR IN BUSINESS

A. Personal Gain and Selfish Interest

Teaching Tip: World’s Most Ethical Companies

Students might be interested in exploring in greater detail firms who

Teaching Tip:

World’s Corporate Sentencing Guidelines

and the Sarbanes-Oxley Act

The U.S. Corporate Sentencing Guidelines and the Sarbanes-Oxley Act

appeared on the U.S. ethics scene years ago. There are numerous

Teaching Tip: World’s Meet Demands of Business Stakeholders

Students may be challenged by the question: How important is it to you

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B. Competitive Pressures on Profits

C. Conflicts of Interest

D. Cross-Cultural Contradictions

III. THE CORE ELEMENTS OF ETHICAL CHARACTER

A. Managers’ Values

B. Spirituality in the Workplace

C. Managers’ Moral Development

IV. ANALYZING ETHICAL PROBLEMS IN BUSINESS

A. Virtue Ethics: Pursuing a “Good” Life

Teaching Tip: Ethical Egoism

There are plenty examples of ethical egoism in the media, including the

example given in the chapter: Alphons Iacobelli. What led this

Teaching Tip: Conflicts of Interest

Conflicts of interests are reportedly one of the most common forms of

ethical dilemmas in the workplace. Perhaps students can identify and

describe their own conflicts of interest – how they spend their time,

with whom they spend their time, do they attend class or a job

interview scheduled at the same time, how they make decisions to

resolve their conflicts of interest?

Teaching Tip: Stages of Moral Development

Popular television shows or movies can be used to illustrate the stages

of moral development. Some scholars have researched and published

papers describing a moral reasoning analysis of M*A*S*H characters

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B. Utility: Comparing Benefits and Costs

C. Rights: Determining and Protecting Entitlements

D. Justice: Is It Fair?

E. Applying Ethical Reasoning to Business Activities

V. THE MORAL INTENSITY OF AN ETHICAL ISSUE

GETTING STARTED

KEY LEARNING OBJECTIVES

LO 5-1: Defining ethics and business ethics.

LO 5-2: Evaluating why businesses should be ethical.

Teaching Tip: What Is a Virtuous Person?

Student may be assigned to create their own list of virtues or good

values to see how their ideas compare to those lists presented in the

business managers or employees.

Teaching Tip: Do Patients Have the Right to Try?

After reading Exhibit 5.A, should patients be given the right to try

therapy or experimental drugs that are still in the testing phase in the

hope of stopping the spread of their disease or possibly saving their

Teaching Tip: Applying Moral Intensity

The concept of moral intensity can be found in many common ethical

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prior written consent of McGraw-Hill Education.

Ethical business behavior enhances business performance, complies with legal

requirements, prevents or minimizes harm, is demanded by business stakeholders,

and promotes personal morality.

LO 5-3: Knowing why ethical problems occur in business.

LO 5-4: Identifying managerial values and people’s spirituality as influences on

ethical decision-making.

LO 5-5: Understanding stages of moral reasoning.

LO 5-6: Analyzing ethical problems using generally accepted ethics theories.

LO 5-7: Understanding how moral intensity affects ethical decision-making.

The perceived moral intensity of an issue, as determined by the issue’s

characteristics, affects how individuals make ethical decisions.

KEY TERMS

business ethics

prior written consent of McGraw-Hill Education.

Sarbanes-Oxley Act

spirituality

stages of moral development

U.S. Corporate Sentencing Guidelines

utilitarian reasoning

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DISCUSSION CASE

LAFARGEHOLCIM AND ISIS IN SYRIA

Discussion Questions

1. Do you agree with the French government’s charges against Lafarge and its managers?

Why or why not?

2. What arguments did Lafarge managers make to justify their decision to pay terrorist

groups in Syria? Do you believe that these were their real reasons?

3. Do you believe that Lafarge’s actions in Syria were ethical or unethical? Use the four

prior written consent of McGraw-Hill Education.

4. Evaluate the moral intensity of the decision Lafarge managers made, based on the

dimensions of moral intensity.

Each of the moral intensity characteristics could be applied. Magnitude of consequences –

5. Is there anything Lafarge could have done to protect its employees adequately without

paying terrorists?