Ethical Business

August 7 2022 KELOMPOK STUDENT
University of airlangga 6 Barra, Andrian,

Vivian, Kevin
ETHICAL
BUSINESS
Table of
Contents I Business Ethics Defined
II Ethical Issues
III Factors Affecting Ethical Behavior
IV Encouraging Ethical Behavior
V Evolution of Business Social Responsibility
VI Environmental Concerns
I Business Ethics Defined
Business ethics are actions taken in
business activities that do not violate
the rules of the organization and
society. In business ethics, every
activity must be in a reasonable
condition and in accordance with
applicable norms and ethics.
11
II Ethical Issues
Ethical issues often arise out of a business’s

relationship with investors, customers,
employees, creditors, suppliers, or
competitors.
Fairness and Honesty

Organizational Relationships
Conflict of Interest
Communications
8
Fairness and Honesty
Fairness and honesty in business are two important
ethical concerns. Besides obeying

all laws and regulations
Organizational Relationships
place personal welfare above the welfare of others

so, When misconduct occurs in business, investors
also suffer.
9
Conflict of Interest
Conflict of interest results when a businessperson takes advantage
Examples of situations involving conflicts of interest: such as a
manager who is dating a

subordinate
Communications
Business communications, especially advertising,
can present ethical questions.

example: False and misleading advertising
9
III Factors Affecting Ethical Behavior
Individual Factors Affecting Ethics

individual factors that influence the level of ethical
behavior in an organization, including personal
knowledge, values, and goals
Social Factors Affecting Ethics
factors can affect ethical behavior :cultural norms,
actions and decisions of co-workers, values and
attitudes of “significant others,” and the use of the
Internet
Opportunity as a Factor Affecting Ethic
4
IV Encouraging Ethical Behavior
The government can encourage ethical behavior

by imposing stricter regulations
government's role in encouraging ethics

Trade assosiaciton's role in encouraging ethics
Individual companies's role in encouraging ethics
Social Responsibility
5
Government’s Role in Encouraging Ethics
The government can encourage ethical behavior
in business by enacting more stringent
regulations.
Trade assosiaciton's role in
encouraging ethics
in Encouraging EthicsTrade associations can and
often do provide ethical guidelines for their
members.
8
Individual companies's role in encouraging ethics
A code of ethics is a written guide to acceptable
and ethical behavior as defined by an
organization; it outlines uniform policies, standards,
and punishments for violations.
8
Examples code of ethics:
Social responsibility is the recognition that business
activities have an impact on society and the
consideration of that impact in business decision
making.
For example, at General Electric:

“being a good corporate citizen is more than a
program or a set of good intentions. It’s a full-time
commitment to finding sustainable solutions to
benefit the planet, its people and the economy. It is
embedded in our culture and our business strategy.
It’s working to solve some of the world’s biggest
8
challenges. It inspires our thinking and drives actions.”
V Evolution of Business Social Responsibility
1. Historical Evolution of
Business Social
Responsibility
2. Two Views of Social
Responsibility
3. The Pros and Cons of
9
VI Environmental Concerns
Pollution
Effects of Environmental
Legislation
Business response to
environmental concerns
9
POLLUTION
Oil spills can have long-lasting effects

on our wildlife and other natural resources.
As our population and businesses expand, the
need to reduce pollution at its source becomes
more important.
3
EFFECTS OF
ENVIRONMENTAL
LEGISLATION
As in other areas of concern

to our society, legislation
and regulations play a
crucial role in pollution
control, The laws outlined in
Table 2-5 reflect the scope
of current environmental
legislation
12
BUSINESS RESPONSE TO
ENVIRONMENTAL CONCERNS
One of
the most effective ways that companies can
reduce their impact on the environment is to
reduce waste from operations and other
activities
11
August 7 2022 KELOMPOK STUDENT
Airlangga University 6 Barra, Andrian,

Vivian, Kevin
Thank you
for listening!

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August 7 2022 KELOMPOK STUDENT

University of airlangga 6 Barra, Andrian,

III Factors Affecting Ethical Behavior

IV Encouraging Ethical Behavior

V Evolution of Business Social Responsibility

Business ethics are actions taken in

business activities that do not violate

the rules of the organization and

society. In business ethics, every

activity must be in a reasonable

condition and in accordance with

applicable norms and ethics.

Ethical issues often arise out of a business’s

Fairness and Honesty

ethical concerns. Besides obeying

place personal welfare above the welfare of others

manager who is dating a

can present ethical questions.

Individual Factors Affecting Ethics

The government can encourage ethical behavior

government's role in encouraging ethics

in business by enacting more stringent

Trade assosiaciton's role in

in Encouraging EthicsTrade associations can and

often do provide ethical guidelines for their

activities have an impact on society and the

consideration of that impact in business decision

For example, at General Electric:

program or a set of good intentions. It’s a full-time

commitment to finding sustainable solutions to

benefit the planet, its people and the economy. It is

embedded in our culture and our business strategy.

It’s working to solve some of the world’s biggest

Oil spills can have long-lasting effects

As in other areas of concern

Airlangga University 6 Barra, Andrian,

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