Business Ethics

Ethics. What are they? How do they relate to Business? I have been thinking a lot about these questions due to the fact that it is "Business Ethics" week at my school, San Francisco State University.

After reviewing several sites, I discovered that there are different definitions of ethics. There is "ethics" and then there is "business ethics". “Ethics can be defined as the critical, structured examination of how we should behave- in particular, how we should constrain the pursuit of self-interest when our actions affect others" (Business Ethics Blog). “Business Ethics can be defined as the critical, structured examination of how people & institutions should behave in the world of commerce. In particular, it involves examining appropriate constraints on the pursuit of self-interest, or (for firms) profits, when the actions of individuals or firms affects others" (Business Ethics Blog). However, both definitions agree that ethical choices are well thought out choices made after considering how they will effect others.

In the world of Business it would appear that ethics can sometimes be difficult to judge. What is ethical in one country may not be ethical in another. Different cultures place different importance on certain aspects of business. For example, in the US, it is unethical to work children under a certain age; however, in certain Asian cultures this type of practice would not be considered unethical due to cultural beliefs, practices, and laws. Neither culture is wrong. Every country has its own way of conducting business. As a result, when dealing with different countries and cultures it is important to know what is considered right and wrong so that you do not offend anyone and therefore make appropriate ethical choices.

In business, there are a number of ethical topics that are constantly under scrutiny. EthicsWeb, is an ethics website that lists many different topics concerning ethics. Here readers can choose from a number of ethical topics that they are curious about. While reviewing "Complete Guide to Ethics Management: An Ethics Toolkit for Managers" on EthicsWeb, I discovered a list of Business Ethics Myths that I found to be very interesting. The 10 most common myths that helped me to better my understand about business ethics, is listed here on Management Help:
      
                     1) Business ethics is more a matter of religion than management.
                     2) Our employees are ethical so we don't need attention to business ethics.
                     3) Business ethics is a discipline best led by philosophers, academics and 
                         theologians.
                     4) Business ethics is superfluous -- it only asserts the obvious: "do good!"
                     5) Business ethics is a matter of the good guys preaching to the bad guys.
                     6) Business ethics in the new policeperson on the block.
                     7) Ethics can't be managed.
                     8) Business ethics and social responsibility are the same thing.
                     9) Our organization is not in trouble with the law, so we're ethical.
                   10) Managing ethics in the workplace has little practical relevance.

What really stood out about these common myths is that I previously believed that many of them were true. For example, myth #9 states that "One can often be unethical, yet operate within the limits of the law" (Management Help). If I had not discovered that this was untrue, I would never have known that an organization could be unethical without breaking the law. However, what really made me see that this myth was in fact a myth, was when the author stated that "breaking the law often starts with unethical behavior that has gone unnoticed" (Management Help). This makes sense, in my opinion. There are many instances within business organizations when the company is unaware that they are being unethical in certain situations or ignore unethical behavior until it is too late.

So how can this ethical dilemma be corrected? Management Help, has a list of 8 guidelines to follow that can help businesses to manage ethics within their companies. The full list can be seen on the site above, under the heading "8 Guidelines for Managing Ethics in the Workplace". One topic however, that I feel is worth mentioning, is to handle ethical dilemmas to avoid them. If unethical problems can be dealt with either before they occur or before they become a huge problem for an organization then this is the best solution to strive for. If a person is unsure whether something is unethical, the best way to make that determination is to trust your body. This may sound ridiculous, but if a person is feeling stressed about something; guilty, uncomfortable with a decision, embarrassed, or fearful of being caught- then chances are something unethical is occurring. Remember, an ethical decision should be one that makes a person feel that they have truly done the right thing. Santa Clara University has a great site that lists many different ways to make ethical decisions. If you are unsure of a decision- whether in business or life, checking out this site may be a great resource in decision- making.