Ethical and Moral Issues in Business

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Ethical and Moral Issues in Business MGT/216 December 6, 2010 Ethical and Moral Issues in Business Many times businesses are faced with the dilemma of making difficult decisions. These decisions are based on profits, accountability, and public perception. Often times a business will base its’ decision on the principles and values of the organization. These principles and values are the foundation to what is known as business ethics. Ethics is defined as the “principles, norms, and standards of conduct governing an individual or group” (Trevino & Nelson, 2007). In business, ethics are considered to be the standards and principles that an organization operates. These standards are apply to all employees of a company and are outlined in a code of conduct agreement. These agreements clarify behavior that is acceptable and unacceptable based on the ethics of the company. Although morals and ethics are many times used interchangeably, there are distinct differences. The ethics of a company are set by the owners, stockholders, employees, and anyone else who is responsible. Morals consists of rules of human behavior and determines certain actions to be moral or immoral(DeGeorge, 2010). Morals are therefore set by society as essentially being right or wrong for humanity. An ethical business issue is different from a moral issue. For instance, an energy company may be seeking a contract to provide research and development with with the government. An ethical issue may arise if the government official who awards the contract is in the same fraternity as the CEO of the enrgy company. Although no impropriety may take place, it would be unethical for the CEO to negotiate the contract with his fellow fraternity member. One of the two officials may need to withdraw from the negotiations to ensure that the integrity of the negotiations are not compromised. Moral issues
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