Chapter 3: Emerging Business Ethics IssuesStakeholder concerns determine in large part whether specific business actions or decisions areperceived as right or wrong, which drives what the organization defines as ethical or unethicalIn the case of the government, community, and society, what was merely an ethical issue can become alegal debate and eventually lawEthical conflicts in which damages occur can turn into litigationPeople make ethical decisions only after they recognize a particular issue or situation has an ethicalcomponent; therefore, a first step toward understanding business ethics is to develop ethical issueawarenessEthical issues typically arise because of conflicts among individuals’ morals and the core values andculture of the organizations where they workRecognizing an ethical issue (ethical awareness)Failure to acknowledge or be aware of ethical issues is a great danger in any organizationSome issues are difficult to recognize because they are gray areas that are hard to navigateBusiness decisions may involve a dilemmaIn a dilemma all of the alternatives have negative consequences, so the less harmful choice is madeAn ethical issue is simply a situation involving a group, a problem or even an opportunity that requiresthought, discussion, or investigation before a decision can be madeAny type of manipulation or deceit—or even just the absence of transparency in decision making—cancreate harm to othersFoundational values for identifying ethical issuesIntegrity, honesty, and fairness are widely used values for evaluating activities that could becomeethical issuesIntegrityoIntegrity is one of the most important and oft-cited elements of virtue, and refers to beingwhole, sound, and in an unimpaired conditionoIt is a foundational value for managers to build an ethical internal organizational cultureoAn organization’s integrity usually rests on its enduring values and unwillingness to deviatefrom standards of behavior as defined by the firm and industryoAt minimum, businesses are expected to follow laws and regulationsoIn addition, organizations shouldn’t knowingly harm customers, clients, employees, or evenother competitors through deception, misrepresentation, or coercionoAlthough they often act in their own economic self-interest, business relations should begrounded in integrityoFailure to live up to this expectation or abide by laws and standards destroys trust and makes itdifficult, if not impossible, to continue business exchangesoIntegrity compliments honesty, which becomes the glue that holds business relationshipstogether to make everything else more effective and efficientHonestyoHonesty refers to truthfulness or trustworthinessoIssues related to honesty also arise because business is sometimes regarded as a game governedby its own rules rather than those of society as a wholeoSuggests honesty is a problem because people often reason along these lines:17. The first step toward understanding business ethics istoa. know your company's ethicalpolicies.b. know your own morals andphilosophies.c. know society's ethicalpolicies.d. develop ethical-issueawareness.e. develop a set of decision-makingrules.ANSWER:d
