Check your progress:

1. Define business ethics. Who determines whether a business activity is

ethical? Is unethical conduct always illegal?

Business ethics is the principles and standards that determine acceptable

conduct in business. The acceptability of behavior in business is determined
by not only the organization but also the stakeholders such as customers,
competitors, government regulators, interest groups, and the public. Not all
unethical conduct is illegal, the illegal conduct ranges from stealing a credit
card number and fraud to false advertising.

2. Distinguish between ethics and social responsibility.

Ethics and social responsibility are two different things. Ethics is what guides
you to knowing what is acceptable conduct in business while social
responsibility is the businesss obligation to maximize its positive impact.
3. Why has ethics become so important in business?

Ethics is very important because it builds trust and confidence. When there is
trust and confidence then it is easier to get more profit because you will have
a good reputation.

4. What is an ethical issue? What are some of the ethical issues named in your
text? Why are they ethical issues?

An ethical issue is an identifiable problem, situation, or opportunity that

requires a person to choose from among several actions that may be
evaluated as right or wrong, ethical or unethical. It can be hard to identify an
ethical issue. Some examples from the text are should an engineer agree to
divulge her former employers trade secrets to ensure that she gets a better
job with a competitor? should a salesperson omit facts about a products
poor safety record in his presentation to a customer? These are ethical
issues because you are put in a hard decision when you have to choose to do
what is right and what is best for your company.

5. What is a code of ethics? How can one reduce unethical behavior in business?

Code of ethics are formalized rules and standards that describe what a
company expects of its employees. There are three key factors in influencing
ethical behavior; individual moral standards, the influence of managers and
co-workers, and the opportunity to engage in misconduct.

6. List and discuss the arguments for and against social responsibility by
business. Can you think of any additional arguments?
For- As members of society, businesses should do their fair share to help
others.
 Against- Some people question whether business has the expertise needed to
access and make decisions about social problems.
7. What responsibilities does a business have towards its employees?
It is the responsibility of the managers to create a work environment that
helps the organization achieve its objectives and fulfill its responsibilities.
Without employees a business cannot carry out its goals.
8. What responsibilities does business have with regard to the environment?
What steps have been taken by some responsible businesses to minimize the
negative impact of their activities on the environment?

Businesses have to make sure that they are protecting the environment, in
the 20th Century pollution, uncontrolled use of natural resources, and
population growth were increasing. Many businesses are trying to get rid of
wasteful practices, the emission of pollutants, and the use of harmful
products. Some businesses are trying to use all green energy so that there
are no chemicals harming the environment.

9. What are a businesss responsibility towards the community in which it

operates?
The responsibility of businesses is to create a better working and living
standards. Another way that they can help is by making donations and
staying involved in the community.