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24 Cards in this Set
- Front
- Back
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Barclay bank scandal
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* In 2012, Barclay was charged with fraudulent reporting * Fined $450 million * Barclay manipulates LIBOR since 2005 * Many banks misreported rates to strength public perception |
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LIBOR
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Rate that major London banks report that they can borrow |
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Who was harmed by the collapse of Enron?
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* Stockholders * Employees * Consumers in California * Suppliers * Enron's Accounting firm * Houston, TX community |
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Reasons for Ethics
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* Sarbanes-Oxley Act Law * Financial Risks * Reputation and competitive advantage * Consumer boycotts * Efficiency and effectiveness * Employee trust, loyalty, commitment, and initiative |
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More Reasons for Ethics
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* If business managers see the need for ethics, so should business students * Preparation for career * Consumers are affected by decisions |
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Values
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Those beliefs or standards that incline us to act, or to choose in one way rather than another |
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Core Values
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Beliefs and principle that provide the ultimate guide in the company's decision making |
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Corporate Culture
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Another way of say a corporation has a set of identifiable values |
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Elements of Ethical Values
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* Serves the end of human well-being * Does not promote personal and selfish well-being * No one person's worth is more valuable than another * Promote well-being in an impartial way |
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Disagreements about Ethics
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* What ends are served by ethical values * Ethical values can conflict * Deciding if a company is ethical |
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Malden Mills
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* In 1995, Malden Mills was destroyed by a fire * Rebuilt, Reopened, Employees came back * Filed Bankruptcy a year later |
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Business Ethics
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Standards and Principles that operate within business |
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Goals of Business Ethics
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* To treat students as active learners * To engage students in an active process of thinking and questioning * To allow students to think for themselves To deal with the mess of relativistic conclusions |
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Reasoning and Business Ethics
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* Process of ethical reasoning must be emphasized * Clear reasoning and answer * Accurate and fair account of all sides * Be objective and open-minded * Analyze issue fully and rigorously |
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Business Ethics and Law
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* Just following the law is ethically insufficient * Much ambiguity in the law, many acts are not illegal until the courts say so. * Court case show that the law does not determine right and wrong |
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Ethics
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* Derived from Greek word ethos, meaning "customary" or "conventional" * A set of principles of right and wrong behavior guiding |
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Ethos
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To do what is typically done, obey rules of society and religion |
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Philosophical Ethics
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* Denies simple conformity * Rejects authority as the source of ethics * Uses reason as the foundation of ethics * Seeks reason of custom and how we ought to live * Distinguishes what people do value vs. should value * What is valued vs. what should be valued |
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Business Ethics
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* Branch of Philosophical Ethics * Looks at ways business promotes and undermines human well-being |
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Morality
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How should I live my life? |
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Virtues
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Character traits that construct a life worth living |
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Social Ethics
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How ought society be structured?
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Business Institutions are Human Creations
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* Humans can not avoid responsibility for something they have created * Business institutions influence quality of human life |
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Managerial ethics
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What should a business manager do in various situations? |
