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ABSTRACT This paper examines the growing emphasis that colleges and business firms are placing on business ethics, as well as how business ethics inform the lives of those in business. Current views and legislation have only enhanced the significance of ethics codes, making them a crucial part of the corporate landscape. The increasing relevance of the costs of disregarding ethics in business is noted. Emphasis is placed on the importance of stressing business ethics in society, and on effective methods of teaching the concepts to students so that they will carry a strong ethical sense into the business world. INTRODUCTION Incorporating values and ethics into business decisions have become increasingly important to business people, universities, government, and the public in general. The costs of unethical behavior in business are high and rising, possibly due to new government regulation. Because of the scandalous last decade, the federal government is listening to the public outrage and taking a stronger stance on unethical business practices. Because of recent laws, it is vital for businesses to focus on securing and monitoring sound ethical policies. In addition, pressure is being placed on business schools to ensure that students graduate with a knowledge of ethical principles and the critical thinking skills necessary to analyze and make sound ethical decisions. This paper will examine the role American universities have taken regarding teaching ethics to business students and the implications this holds for students and society at large. A brief discussion of different views regarding business ethics will be presented including the stakeholder theory, stockholder theory, instrumentalism, and the "invisible handshake." This study will focus on some possible reasons why students lack an understanding of business ethics and on how business schools can meet the challenge of educating students on the importance of business ethics. WHAT IS BUSINESS ETHICS? Business ethics can be thought of in many different lights, and part of the reason that business ethics has become such a contemporary issue is because it cannot be defined precisely. Although most people have different standards of what is morally justifiable, society generally feels that there are certain values that should be set as the minimum ethical behavior. Most people believe that in order to meet the minimum ethical standards, a business must be honest, obey the law, and not directly infringe on the rights that our society holds as inalienable human rights. This, however, does not exhaust the definition of business ethics that many believe in. Some other ethical issues involve compensation of employees, job security for employees, hiring practices, waste management issues, pollution, and conflicts of interest. Sometimes companies face situations where ethical choices are in opposition to their interests. An example of this could be a logging company doing business in forests around the world. One ethical consideration must be protecting the rain forest from destruction. Environmentalists may

propose that the company stop logging completely; however, this may bring up another ethical issue such as the preservation of jobs for loggers. Except where otherwise stated, this paper is primarily concerned with ethical issues that fit in the first category of minimum ethical standards including honesty, compliance to the law, and fairness. This is not to undermine the importance of evaluating the ethical implications of every decision, but it is intended to simplify. ARE BUSINESS ETHICS IMPORTANT? There is empirical evidence that illustrates that of the 500 largest corporations in the U.S., twothirds of them have committed some form of illegal behavior (Gellerman, 1986). This fact, combined with the many publicized accounts of illegal business operations including fraud, insider trading, and unfair hiring practices, has caused government, colleges, and businesses to increasingly focus on the role of ethics in business. The following illustrates some of the steps that these institutions have taken to ensure greater ethical considerations in the future. In response to the increasing litigation concerning corporations accused of unethical behavior, the federal government passed the Sentencing Guidelines for Organizations in 1991 (56 Federal Register 22762, November). The objective of the guidelines is to encourage ethical corporate behavior by forcing all organizations to create ethics standards, convey these standards to employees, monitor employees, and deal with employees who have violated their corporate ethics standards. In order to help accomplish this goal, the government has allocated funds for three large studies on the effectiveness of corporate compliance programs. These studies should help businesses in researching and developing their individual ethics training and compliance programs. In addition, the Federal Sentencing Guidelines encourage businesses to provide strong and effective ethical policies by taking those policies into account when prosecuting a violation. The message from the federal government under these guidelines is clear: If your company is found to have violated a federal law (regarding the environment, workplace safety, or discrimination), the U.S. Attorney General may decide not to prosecute if you had policies and procedures in place to prevent the violation that occurred. Additionally, if you are prosecuted, you will suffer a smaller fine (Bordwin, 1998). Ethics are important to firms for a variety of reasons, including the legal responsibilities of the executives, costs of violations, and reputation. Executives and managers are often held liable for violations that occurred below them even if they did not know about or condone the situation. This is a major incentive for directors and top management to see that their organization keeps ethical considerations in perspective while making decisions. In fact, a company with an organized and efficient ethics management program will be treated more leniently by prosecutors in the event of a violation. If the company had strong prevention policies and procedures in place, its consequences will not be as harsh (Bordwin, 1998). This essentially rewards directors and top management who are committed to creating an ethical atmosphere, in the event that an unforeseen unethical situation arises. Companies must commit themselves to a high standard of ethics because litigation is very costly to an organization. Consider some recent examples. In July of 1999, there was a judgment against GM of $4.9 billion due to its failure to recall some cars when GM knew the gas tanks were potentially dangerous (Patricia Anderson et al. v. General Motors Corp., Civ. No. B135147; Cal. Ct. App., 2nd Dist., August, 2001). One tank exploded on impact, causing serious burns to the customer's face and body. GM had documents

that stated that its cost analysis showed that dealing with the lawsuits would be cheaper than recalling all of the cars that were dangerous. The jury ruled that GM had acted with extreme carelessness by sacrificing the health of its customers to save money. This bad ethical decision cost GM two-thirds more than its total profit for 1998 (White, 1999). In addition to the cost of the judgment, there was the large expense of hiring legal counsel, the loss of reputation, and the cost of hiring public relations representatives to limit the damage. Several other large corporations have had similar dilemmas that cost millions or billions of dollars because of ethical shortcomings. A lawsuit alleging that Texaco practiced racial bias cost the company $176 million to settle (Bari-Ellen Robert et al. v. Texaco, Inc., 979 F. Supp. 185; 94 Civ. 2015 [CLB] S. Dist. N.Y., September, 1997). Home Depot spent $87.5 million as a result of penalties for not promoting more women (Vicki Butler v. Home Depot, Inc., No. C-94-4335 S1; C-95-2182 S1; N. Dist. Cal., August, 1997). This negative press also causes immeasurable damage to the company's reputation (Bordwin, 1998). The publicity may create ill will from the public and cause a business to lose customers, revenues, and profits. Also, a company seen as unethical may have problems recruiting good employees.

The role of ethics

This paper does not pretend to provide definitions for complex terms such as morality and ethics. The following is presented merely as a means to orient the reader and faciliate understanding of the remainder of the paper. Morality and ethics Morality refers to the social norms and values that guide both individuals and their interaction with their fellow human beings and communities, and with their environment. In all of these types of interaction there are important values at stake; rules and norms that are to protect these values; duties implied in social roles and positions that can foster these values and further these rules; and human virtues or capabilities that enable us to act accordingly. These moral factors are usually interwoven with religious practices and social power structures. Ethics is a systematic and critical analysis of morality, of the moral factors that guide human conduct in a particular society or practice. As fisheries represent an interaction between humans and the aquatic ecosystem, fisheries ethics deals with the values, rules, duties and virtues of relevance to both human and ecosystem well-being, providing a critical normative analysis of the moral issues at stake in that sector of human activities. When actual moral values, rules and duties are subjected to ethical analysis, their relation to basic human interests shared by people, regardless of their cultural setting, is particularly important. Moral values may change, and moral reasoning asks whether the practices that are traditionally and factually legitimated by religion, law or politics are indeed worthy of recognition. Indeed, the development of ethics in the past century has been characterized by a tendency to revalue and overthrow the moral conventions that have guided the interaction between the sexes, between human beings and animals and between human beings and their environment. A more recent task of ethics is to resist those tendencies of globalization, marketization and technologization that erode both biodiversity and valuable aspects of cultural identity - and may even have effects that threaten human rights. Although these tendencies are often presented as value-neutral, they carry with them hidden assumptions that are potential sources of inequity and abuse. Basic human interests Welfare implies material well-being, as well as the conservation of a productive ecosystem, and relates to fisheries as a provision of food and livelihood. Freedom, or human self-determination, relates to access to fishing resources, fishers' selfcontrol and other life options related to fisheries. Justice relates to the distribution of the benefits of fishing and to the ownership of scarce resources.

In attempting to identify which traditional and innovative practices are worthy of recognition, a moral argument asks whether - and how - actual moral factors further the well-being of human and non-human creatures. Moral reasoning always relates to the basic interests of humans and other sentient beings and to the value of the environment that sustains both human and nonhuman life. An ethical analysis can play an important part in identifying human and nonhuman interests and the value of the ecosystem as a whole. It also asks how these values and interests may be threatened or undermined and how they may be furthered or protected. Ecosystem well-being is of crucial importance both in itself and for basic human interests and long-term social benefits. In this document, the main focus is on the way in which fishing policies and practices affect the living conditions, interests and well-being of fishers and fishing communities, as well as the well-being of the ecosystem. This is in keeping with sustainable development, the dominant concept of environmental ethics, enshrined in the FAO concept of responsible fisheries. Basic human interests A major aspect of an ethical analysis of fisheries must be to clarify the human interests and social benefits that can be considered necessary conditions for leading a decent human life. Basic human interests are related to the main tasks that humans need to undertake in life in order to satisfy their needs and lead their lives in coexistence with others. In line with classical ethical thought, these interests can be divided into three main categories: (i) Welfare: People need basic goods to survive and care for their offspring; (ii) Freedom: People seek to regulate their own affairs and realize their life plans in accordance with their own or culturally defined values; (iii) Justice: People need to find ways to share social benefits and burdens and facilitate peaceful coexistence. In this context, moral analysis aims to show, for example, how the human interests in welfare, freedom and justice are relevant and how they relate to social benefits in the management of fisheries. These basic interests are intricately connected to the capabilities necessary for leading a decent human life and, thus, to the vulnerabilities against which people must be protected. They constitute the moral values that moral reasoning aims to defend, e.g. by framing fundamental principles that serve to guide our moral interaction and to protect basic moral interests. At the most general level, the related vulnerabilities against which people must be protected are: poverty, domination and injustice. Fundamental principles of bioethics Although different ethical theories may have different priority principles and reasoning behind them, a consensus has been forming about the main principles of bioethics:[1]

Human dignity, human rights and justice, which refers to the duty to promote universal respect for the human person. In the context of fisheries, this principle relates, for

example, to fishers' self-determination, access to fishing resources and the right to food. It is best represented by a rights-based approach in ethics that emphasizes the protection of the personal domain of each individual. It may require, however, the establishment of individual or community rights, the exact nature of which will depend on local conditions. Beneficence, which concerns human welfare, reducing the harms and optimizing the benefits of social practices. In the context of fisheries, this principle needs to be observed when the effects of policies and practices upon the livelihoods of fishing communities are evaluated. The principle relates to working conditions (safety on board), as well as food quality and safety. The issue of genetically modified organisms should also be addressed in this context (FAO, 2001b). This principle invites an ethical approach to fisheries that puts consequences to general welfare in focus. Cultural diversity, pluralism and tolerance, which relates to the need to take different value systems into account within the limits of other moral principles. The pressing moral issues in fisheries take different shapes across different cultures, and it is an important moral demand that people themselves define how their interests are best served in a particular cultural setting. This principle squares well with dialogical ethics, which stresses the actual participation of those concerned. Solidarity, equity and cooperation, which refers to the importance of collaborative action, sharing scientific and other forms of knowledge, and nondiscrimination. In the context of fisheries, this principle underpins the moral imperative to eradicate poverty in developing countries and ensure equity within fisheries and between sectors. It also requires transparent policies and stresses the need to reduce the gap between producers and consumers. This principle is relevant at the level of policy as well as at the individual level of virtues and professional duties to further trust and tolerance among stakeholders. Responsibility for the biosphere, which concerns the interconnections of all life forms and the protection of biodiversity. This principle stresses that ecosystem well-being is a sine qua non condition of sustainable fisheries providing for the needs of future generations, as well as for the lives of those who currently rely on the natural environment and are responsible for its use. This principle combines ethical reasoning based on rights and on consequences for human welfare, as well as on individual virtues and duties to respect the environment.

http://www.importanceofphilosophy.com/Ethics_Main.html Ethics What is Ethics? Ethics is the branch of study dealing with what is the proper course of action for man. It answers the question, "What do I do?" It is the study of right and wrong in human endeavors. At a more fundamental level, it is the method by which we categorize our values and pursue them. Do we pursue our own happiness, or do we sacrifice ourselves to a greater cause? Is that foundation of ethics based on the Bible, or on the very nature of man himself, or neither? Why is Ethics important? Ethics is a requirement for human life. It is our means of deciding a course of action. Without it, our actions would be random and aimless. There would be no way to work towards a goal because there would be no way to pick between a limitless number of goals. Even with an ethical standard, we may be unable to pursue our goals with the possibility of success. To the degree which a rational ethical standard is taken, we are able to correctly organize our goals and actions to accomplish our most important values. Any flaw in our ethics will reduce our ability to be successful in our endeavors. What are the key elements of a proper Ethics? A proper foundation of ethics requires a standard of value to which all goals and actions can be compared to. This standard is our own lives, and the happiness which makes them livable. This is our ultimate standard of value, the goal in which an ethical man must always aim. It is arrived at by an examination of man's nature, and recognizing his peculiar needs. A system of ethics must further consist of not only emergency situations, but the day to day choices we make constantly. It must include our relations to others, and recognize their importance not only to our physical survival, but to our well-being and happiness. It must recognize that our lives are an end in themselves, and that sacrifice is not only not necessary, but destructive. Basics

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Business ethics is an interesting branch of business theory, primarily because of the fact that they are inherently interesting in a market economy. People tend to be extremely distrustful of corporations in market economies and the bigger they are, the worse that problem of trust usually gets. Business ethics therefore are politically charged in many different circumstances and that in turn serves to make them interesting. Aside from this academic interest however, business ethics are also important for a company and its success. Here are some ways in which this is true. Public Image

It is impossible to discuss business ethics as a branch of academia without taking a look at the relationship between business ethics and public image. Each corporation has a particular public image, which represents the way in which the public views the corporation. Wal-Mart, for example, has a terrible public image. Toyota, on the other hand, has a very positive one. These public images are the result of a number of different things, but they are primarily the result of the way in which a corporation acts with respect to the different things around it. A corporation's environmental policy, the way they treat their employees and the way they treat the communities they exist in are all part of their overall behavior and this in turn is the principle factor in determining their public image. As proof of this, you will notice that even though WalMart makes products that have a decent quality and an extremely low price, they still have a negative public image. Since public image is largely a result of company behavior, business ethics play a large role in determining public image since they determine behavior. And public image is important to success in most cases, which is one of the reasons as to why business ethics are important to a company's overall success. Investment Another reason that business ethics are important is the relationship they have to investment. When a person or an entity is considering investment in a particular stock, there are a number of

things they take into account. Aside from the quantitative factors surrounding a company's profit margin a future prospects, consideration is also given to a particular company from the point of view of the qualitative aspects such as their public image and the products that they happen to sell. All of these things are taken into account before the final investment is made. Therefore, a company that would like to encourage extra business investment is a company that has a strong sense of business ethics. Part of business ethics is responsibility to the investor and for that reason companies with strong reputations in the field of ethical business behavior are also companies that tend to attract more investment from people that are new into the market. Investment is most definitely important to success. Partnerships In the business world, joint ventures happen all the time. They happen all the time because they are ultimately of great importance to the bottom lines of businesses. A business can be made or broken on just one joint venture and part of the reason that joint ventures are successful is that they combine the forces of two extremely powerful companies on occasion. If you want your company to do well in joint ventures, then you need to have good partners. The only way to get good partners is to have a good reputation both in terms of a track record and in terms of your business overall. And of course, the best way to get a good reputation is to ensure that your company has a strong tradition of ethical business behavior.

http://www.philodialogue.com/12.html The Cultural Dimension of Business Ethics 1.2 Management & ethics Doing business globally opens the arena for conflicts in norms. Many multinational companies have codes of ethics, mission statements, integrity policies guiding their practices. However, when operating outside of their boundaries they confront different sets of norms which sometimes conflict with their home based ones. In this conflict of norms, occasionally the ethical issue is not seen to be the same by the parties concerned. Child labour is prohibited in the U.S. not only by law but also, by the policy of American firms. However, in Pakistan, there is no legislation against child labour. In fact, child labour in Pakistan, is considered positive as it improves the family's income and keeps children off the streets and away from worst danger.12 In this particular case, child labour is viewed as an ethical issue from the American perspective whereas, children left to the streets is considered the ethical issue from the Pakistani point of

view. The American manager confronting the Pakistani manager, both are looking at the same situation but responding oppositely to it. They are behaving in response to their respective cultural norms. To further complicate this situation, the ethical theories used to aid in moral reasoning give rise to different results in response to the same conflict of interests. The teleological method of utilitarianism seeking to maximize happiness, would be used to weigh and measure options in moral choice. The deontological method, on the other hand, would seek the moral rules in question and then choose the most important rule ('prima facie') in determining the moral decision to be taken. Let's take a concrete example of an ethical dilemma to illustrate these ethical theories. If we take the same ethical dilemma of child labour, the utilitarian method of reasoning could actually be in favour of it. Viewed from the different stakeholders involved, the extra income gained from the child would maximize happiness for the most. The family benefits, the child is safer with his/her mother at work than in the streets and the company gains in lower costs. In contrast, the deontological method would look for the moral rules/norms being violated. Child labour, if considered the most important rule, (though one could see the question of survival arising for the child's family as well); would take action against this practice and perhaps put a stop to it or find an alternative solution. If the family's survival were more important, than a solution addressing that issue would be found as well as one for discontinuing child labour. Some companies came up with a program to educate children while paying the families for future work the children would provide from the age of fourteen, as this is the minimum age set by the U.N. charter covering child labour. How can managers deal with these different ethical evaluations of the same issue ? How can they know what would be the right response ? How can they grapple with the different cultural interpretations of the same situation ? Cultural relativism hinders efforts for ethical universalism. If no child labour were considered as a universal moral principle, then in this case the national culture would have to abide by this principle and/or prescribe that moral rule. How can we apply universal rules as Kant suggested with his notion of the 'categorical imperative' in a world wrought with cultural relativism ? If values and norms differ in importance from culture to culture, how can we establish universal norms to guide our moral choices ? The 'human rights' charter is an attempt to universalise some basic moral principles, but here again what do we mean by 'human rights' ? Is it just an occidental invention or do these principles apply to everyone regardless of their cultural bias ? Is it understood in the same way for all to really be 'universal'? When certain cultures emphasize individual rights and freedom and others stress the role of the individual vis vis the social group (collectivism) perhaps these 'human rights' spring from different cultural assumptions than others. Ethics in management can change and develop as human progress continues. In the case of new industries, such as internet, the rules are being made as we go along. Based on the common practices and experiences of those using this mode of communication, norms are being formulated.

When peoples customs start changing, here too, we observe modifications in ethical positions. For example, euthanasia has become normalized, formalized and legalized in the Netherlands. Here the medical profession based on its hippocratic oath to conserve and preserve life is put into question now asking it to administer death under certain conditions (as the 'quality' of life is defined). The role of ethics in management is also dependent on the level of responsibility the company is willing to take. The pro-active mode would characterize a company that believes strongly in its mission as moral (or at least for the benefit of society). It would respond as a trend setter to some of the ethical dilemmas. The re-active mode, would be the companies though aware of social responsibility, respond to immediate situations rather than anticipating them. The passive mode leads the company to deviant behaviour by refusing responsibility. There are two main extremes found in the corporate world : profit on one side and human safety , which constitute an ethical spectrum.