MGT306.

90 Small Business Management Unit 8 Assignment

Page 743 1, 4, & 6 1. What is ethics? Discuss the three levels of ethical standards.

Business ethics involves the moral values and behavioral standards that businesspeople draw on as they make decisions and solve problems. It originates in a commitment to do what is right. There are three levels of ethical standards which include: the law, organizational policies and procedures, and the moral stance. ~ The law, which defines for society as a whole those actions that are permissible and those that are not. The law merely establishes the minimum standard of behavior. ~ Organizational policies and procedures, which serve as specific guidelines for people as they make daily decisions. Many colleges and universities have created honor codes, and companies rely on policies covering everything from sexual harassment and gift giving to hiring and whistle-blowing. ~ The moral stance that employees take when they encounter a situation that is not governed by levels one and two. The values people learn early in life at home, in the church or synagogue, in school, and at work are key ingredients at this level. Another determinant of ethical behavior is training.

4. Describe the various methods for establishing ethical standards. Which is most meaningful to you? Explain. ~ The utilitarian principle. Choose the option that offers the greatest good for the greatest number of people. ~ Kants categorical imperative. Act in such a way that the action taken under the circumstances could be a universal law or rule of behavior. ~ The professional ethic. Take only those actions that a disinterested panel of professional colleagues would view as proper. ~ The Golden Rule. Treat other people the way you would like them to treat you. ~ The television test. Would you and your colleagues feel comfortable explaining your actions to a national television audience? ~ The family test. Would you be comfortable explaining to your children, your spouse, and your parents why you took this action?

The most meaningful to me would be The Golden Rule. This is something I have always lived by. Its so simple to do and yet so powerful all at the same time. By treating others the way you wish to be treated makes for better working relationships, better family relationships, and even potential to have relationships with perfect strangers.

6.

What is social responsibility?

The concept of social responsibility has evolved from that of a nebulous do-gooder to one of social steward, with the expectation that businesses will produce benefits not only for themselves but also for society as a whole. Society is constantly redefining its expectations of business and now holds companies of all sizes to high standards or ethics and social responsibility. Companies must go beyond doing well simply earning a profit to doing good living up to their social responsibility. They also must recognize the interdependence of business and society. Each influences the other, and both must remain healthy to sustain each other over time.