Chapter

Models of Ethical Behavior in Business Signs of Unethical Business Behavior

List of Ethical Issues in Business

Models of Ethical Behavior in Business

Leadership Company Culture

Ethics Pledge

Leadership
Leadership is the primary way companies foster proper ethical behavior. Leaders and executive managers have a responsibility to set the tone for ethical behavior by conducting business in an ethical and moral manner. If a leader fails to display a proper ethical behavior, workers may be unwilling to accept the company's ethical guidelines

Company Culture
Leaders use the company's culture to pass on the mission, goals and objectives and how employees should approach jobs when helping the company reach its goals. Important elements of a strong company culture include integrity, trust, leadership, professional behavior and flexibility.

Ethics Pledge
Companies may use a pledge to: ensure employees act ethically when dealing with different business situations reinforce the importance of business ethics and why employees must sign the pledge and follow these principles. Ethics pledges also grant employees the freedom to report unethical business practices by managers or other employees

Ethical Business Practices

Investors: Ensuring safety of their money and timely payment of

interest. Employees: Provision of fair opportunities in promotions and training, good working conditions, and timely payment of salaries. Customer: Complete information of the service and product should be made available. Personal information of the customers should not be used for personal gain. Competition: Unscrupulous tactics and methods should be avoided while handling competitors. Government: Rules and regulations regarding taxes, duties, restrictive and monopolistic trade practices, and unlawful activities like corruption and bribing should be adhered to. Environment: Polluting industries should ensure compliance with the government norms regarding air, water and noise pollution.

Unethical Business Practices

Resorting to dishonesty, trickery or deception. Distortion of facts to mislead or confuse. Manipulating people emotionally by exploiting their

vulnerabilities. Greed to amass excessive profit. Creation of false documents to show increased profits. Avoiding penalty or compensation for unlawful act. Lack of transparency and resistance to investigation. Harming the environment by exceeding the government prescribed norms for pollution. Invasion of privacy used as leverage, for obtaining personal or professional gains. Sexual discrimination

List of Ethical Issues in Business

Trust-willingness of one

person or group to have faith or confidence in the goodwill of another person.

Nepotism involves the hiring and rewarding of employees based solely on their being related to or in some way knowing their bosses. Nepotism lowers the morale in a company and it weakens the incentives employees have to work hard.

Effects of Ethical/Unethical Behavior

Thank you for your attention!