I.

Unit Title
Unit 1 – Ethics and Business

II. Title of the Lesson:

Lesson 1. The Nature of Business, the Importance of Ethics in Business, the

Businessman’s Myths about Business Ethics, the Relationship between Ethics and
Business, and Business Ethics defined

III. Duration: 3 hours, Week 1

IV. Introduction

Ethics is moral principles that govern a person's behavior or the conducting of an

activity. It is also known as moral philosophy that involves systematizing, defending,
and recommending concepts of right and wrong behavior. What qualifies
as business ethics in history has changed over time and the different areas of ethics
are important to every business. Business ethics reaches far beyond employee
loyalty and morale or the strength of a management team bond. As with all business
initiatives, the ethical operation of a company is directly related to profitability in both
the short and long term.

In this lesson we will learn that, ethics seeks to resolve questions of human
morality by defining concepts such as good and evil, right and wrong, virtue and vice,
justice and crime. As a field of intellectual inquiry, moral philosophy also is related to
the fields of moral psychology, descriptive ethics, and value theory.

We will also learn that the system of moral and ethical beliefs that guides the
values, behaviors, and decisions of a business organization and the individuals
within that organization is known as business ethics. It is moral ideas that guide the
way a business acts. It is the application of ethical reasoning to certain business
situations and activities, so that any moral issue emerging in business can be
resolved or clarified. Some ethical requirements for businesses are codified into law;
environmental regulations, the minimum wage, and restrictions against insider
trading and collusion are all examples of the government setting forth minimum
standards for business ethics.

V. Objectives/Competencies

At the end of this lesson, you will be able to:

1. Know the nature of business and business environment.
2. Identify the importance of ethics in business.
3. Learn the types of myths in business ethics.
4. Provide good relationship between business and ethics.
 5. Enumerate the reasons why ethics are important.

VI. Pre-test
Read the situation and answer the question below.
Tony, a data analyst for a major casino, is working after normal business hours to
finish an important project. He realizes that he is missing data that had been sent to
his co-worker Robert. Tony had inadvertently observed Robert typing his password
several days ago and decides to log into Robert's computer and resend the data to
himself. Upon doing so, Tony sees an open email regarding gambling bets Robert
placed over the last several days with a local sports book. All employees of the
casino are forbidden to engage in gambling activities to avoid any hint of conflict of
interest.
Question: What does Tony do in this situation?
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VII. Lesson Proper/Course Methodology

ACTIVITY
Read the quotation and answer the question:

“A business that makes nothing but money is a poor kind of business”

-Henry Ford
1. What do you this quote tells you?
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ANALYSIS

The Nature of Business

A business is an organization that strives for a profit by providing goods and

services desired by its customers. Businesses meet the needs of consumers by
providing medical care, autos, and countless other goods and services. Goods are
tangible items manufactured by businesses, such as laptops. Services are intangible
offerings of businesses that can’t be held, touched, or stored. Physicians, lawyers,
hairstylists, car washes, and airlines all provide services. Businesses also serve
other organizations, such as hospitals, retailers, and governments, by providing
machinery, goods for resale, computers, and thousands of other items.
The Importance of Ethics in Business

1. Ethics lays the strategic Leaders and workers of a business

decision-making characterized by ethical behavior make
decisions that are socially acceptable.

2. Business increases employee Employees always want to stay longer in a

retention business where the employers value their
rights and opinions. 

3. An ethical business attracts A business that promotes ethics in its

investors management and operations create an
investment-friendly environment.

4. Ethics minimizes costs Fewer funds are spent in employee

 recruitment since most employees are retained
in the business.

5. Ethical practices help in A large part of ensuring business success is

building and maintaining down to maintaining a good reputation among
reputation your customers. 

6. An ethically oriented company They comply with the law, file their tax returns
is bound to avoid fines in time, ensure quality of products and
services, etc.

7. Ethics in a business attracts When your company is reputable, more people

more employees will be interested to work for you.

8. Good Business ethics is the People will work harder at their jobs if they
key to enhancing productivity  believe that what they are doing is ethical. 

9. Ethics creates customer A reputation build on good ethics helps create

loyalty  a positive image in the marketplace. 

10. Ethics encourages teamwork Employers and employees who trust one
another work together harmoniously and
effectively.

11. A business that values ethics A business without suppliers is as good as a

attracts more suppliers failed enterprise.

12. Ethics in enhances Partnerships in the business world are very

partnerships crucial. 

13. Ethics reduces business risks As trust and loyalty are built on ethics, chances
of losing potential customers, suppliers,
employees and even the company itself are
minimal.

14. Ethics increases business The decrease in risks and costs mean that the
profits.  output is likely to be higher than the input
hence the company makes a profit.

15. Ethics lead to sustainable An increase in customers leads to an increase

growth in sales.  in demand.
The Businessman’s Myths about Business Ethics

The Relationship between Ethics and Business

1. Businesses that exhibit and promote strong corporate codes of ethics are more
prosperous in the long run.
2. The highly competitive environment in today's global economy puts pressures
on company leaders to remain profitable and to show a good return to
stakeholders. 
3. It's easy to blame "the system", yet many fail to realise "the system" is
comprised of decision making individuals.
4. When companies make unethical decisions, it can result in defective or rushed
products, unsubstantiated firing of employees, and false presentations of
products to consumers.
5. The establishment of higher levels of ethical behaviour within a business
benefits the company in many ways.
6. Economic rules dictate that the larger a network, the more value is added to that
network.
7. Ultimately implementing a strong ethical policy is a win-win situation for all.
Business Ethics defined

Business ethics carries significant influence in the corporate world. Not only

does it change how businesses operate on a day-to-day- basis, but it also influences
legislation around corporate regulation. Business ethics is the study of how a
business should act in the face of ethical dilemmas and controversial situations. This
can include a number of different situations, including how a business is governed,
how stocks are traded, a business' role in social issues, and more. Many businesses
leverage business ethics not only to remain clean from a legal perspective, but also
to boost their public image. It ensures trust between consumers and the businesses
that serve them (Ciulla, 2020).

Business ethics are important for a variety of reasons:

1. It keeps the business working within the boundaries of the law, ensuring that
they aren't committing crimes against their employees, customers, consumers
at large, or other parties.

2. Businesses can also build trust between the business and consumers. 

3. Being an ethical business is also highly appealing to investors and

shareholders.

4. Following business ethics can also be beneficial for the business' employees
and operations. 
 GUIDELINES EVERY BUSINESS SHOULD STRIVE IN THE PURSUIT OF
SUCCESS
Trustworthines
s Consumers appreciate openness, as it provides them with
insight into how a business operates and conceptualizes the
work that they do. Employees also appreciate this quality in a
business that they work for.
Respect
Showing respect for employees and customers involves
following through on all promises -- and providing sincere
apologies and appropriate compensation if anything falls
through. 
Fairness
Treating customers and employees with a sense of fairness
and justice is a key type of ethics.
Caring
Being open to their struggles and coming to the table with
solutions will show empathy -- a valuable tool for any
business to utilize.

VIII. Reflection/Learning Insights

Write an essay in not more than 100 words about the importance of ethics in
business (10 points)

I. Title of the Lesson

Lesson 2 – Moral reasoning in business and the morality of profit motive

II. Duration: 3 hours, Week 2

 III. Introduction

Moral reasoning refers to the reasoning process by which human behaviors,
institutions, or policies are judged to be in accordance with or in violation in moral
standards. Moral reasoning always involves two essential components:
(a) an understanding of what reasonable moral standards require, prohibit, value,
or condemn; and (b) evidence or information that shows a particular person,
policy, institution, or behaviour has the kinds of features that these moral
standards require, prohibit, value, or condemn.

In this lesson, we will learn that morality is a set of rules that shapes our
behavior in various social situations. It is more sensitive doing the good instead of
the bad, and therefore, it establishes a level of standard for virtuous conduct.

IV. Objectives/Competencies

1. To discuss the criteria in evaluating the adequacy of moral reasoning.

2. To identify the elements of business ethics.
3. To learn the good and bad sides of profit motive.

V. Lesson Proper/ Course Methodology

Moral Reasoning in Business

While moral reasoning can be undertaken on another’s behalf, it is

paradigmatically an agent’s first-personal (individual or collective) practical reasoning
about what, morally, they ought to do. Philosophical examination of moral reasoning
faces both distinctive puzzles – about how we recognize moral considerations and
cope with conflicts among them and about how they move us to act – and distinctive
opportunities for gleaning insight about what we ought to do from how we reason
about what we ought to do.
To evaluate the adequacy of moral reasoning, ethicists employ three main criteria:

1. Moral reasoning must be logical.
2. Factual evidence must be accurate, relevant, and complete.
3. Moral standards must be consistent.

The principles of moral ethics can be injected into any business. Ethical
businesses recognize the power of conducting businesses in socially responsible
ways and they realize that doing so leads to increase in profits, customer satisfaction
and decrease in employee turnover. Business ethics is concerned with applying a
moral framework to the way organizations do business. From dealing with human
resources issues to sales and marketing policies, ethical viewpoints can shape and
change the way businesses operate.

Business ethics has both normative and descriptive elements −

● The normative part of business ethics has to do with understanding, how
the behavior you and your employees exhibit in relation to cultural issues or
social upbringing. The key to normative ethics for business owners is to
 understand how personal beliefs affect the choices made as a business
owner.
● The descriptive part of business ethics, on the other hand, is related to how
you incorporate "best practices" into your organization's policies and
procedures.

Stop and Recognize the ethical decision and avoid making a rash decision.
think
E.g. Should I download music illegally?

Clarify goals Understanding our goals, both long-term and short-term, can
help us determine our desired of expected outcome.

E.g. My goal is to have a wide variety of music on my iPod.

Determine When determining facts, we need to consider our source of

facts information.

E,g. Facts might include that it is illegal to download music and I

could get caught.

Develop Look at possible options by brainstorming a list of options.

options
E.g. Option one: download music; option two: don’t download but
purchase the song instead.

Who and what will be affected by my choice? What good and

what harm could my choice bring?
Consider
consequence E.g. The harm might include the following: downloading for free
s means that the artist is not being paid for it, the artist may stop
producing music. The good might include the fact I would have
this song on my playlist.

Choose, Make your ethical choice and after the choice is made, consider
monitor, if it was the right one, how you felt about it, and what you might
modify do different next time.

E.g. I choose not to download. After making that choice, I

consider if that was the right choice.

The Morality of Profit Motive

 A profit motive is, quite simply, the goal of most businesses, to make a
profit or have more money coming into the business than is spent by the business.
In capitalism, it is generally considered to be the main reason most businesses exist
and is closely tied to the concept of “self-interest.” It has also developed a fairly poor
reputation and is considered by many to be one of the primary reasons that
businesses or corporations are not trusted or require regulation. A profit motive,
ultimately, should be devoid of morality, and the choices made by others in pursuit of
higher profits should typically be considered rather than the desire for profit itself.
Most economists and financial experts consider profit motive to be the primary
reason a business exists in a capitalist society. While this may seem somewhat
simplified, all aspects of a business can typically be connected to how the business
makes a profit and how those profits are used to continue growing the business. The
relentless pursuit of financial gain, the profit motive in other words, may also be seen
as a wholly selfish endeavor, but proponents of capitalism and self-interest in
business would argue otherwise.

For example, it may seem inherently selfish for a company to exist purely to
make money and that all decisions within the company are made to further this
pursuit. The profit motive can serve the customers and employees of a business
however, since the company should consider how money comes into it. In a retail
business, for example, unhappy customers are unlikely to give the business money
and unhappy employees are unlikely to make sales or otherwise bring money into
the company.
 Businessmen deal with suppliers, customers, workers, employees, and even
competitors.

Business Ethics are the principles and standards that define acceptable conduct in
business.

ABSTRACTION

Through illustration, compare the condition of business 10 years ago and today (20
points)

APPLICATION

Show how Business Ethics will be applied in this example: (10 points)

A company manufactures electronic components for computer servers. These

components must ship on time, or the manufacturer of the parts risks losing
a lucrative contract. The quality-control department discovers a possible defect, and
every component in one shipment faces checks. Unfortunately, the checks may take
too long, and the window for on-time shipping could pass, which could delay the
customer's product release. 

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VI. Reflection/Learning Insights

Make a short essay for this topic:

Why is Moral Reasoning Important in Business?

VII. Post-Test

On the first line, identify what behaviour is shown in the situation, and write if it is
“Ethical” or “Unethical” on the second line. Choose your answer below (for first line).

Putting Customer Needs First Being Transparent

Misusing Company Time Lying
Prioritizing Workplace Diversity Respecting Customer Information
Taking Sides in an Employee Argument Cultivating a Hostile Diversity
Ignoring Conflicts of Interest
Providing Resources for Reporting Unethical Behavior

1. If a customer comes into a store looking for a product that meets very specific
needs, it's important to provide them the best product for the situation
described instead of upselling them or encouraging them to buy a product that
won't meet their needs.
_____________________________________ __________________

2. If a company has a high-performing employee who is asking for a promotion,

they may say that there is no room in the budget for a promotion this year. 
_____________________________________ __________________
3. Many employees misuse company time in a variety of ways, whether it's
surfing the internet during business hours, taking extended breaks, altering
time sheets, or similar.
_____________________________________ __________________
4. A hospital may create and enforce aggressive policies around staff sharing
patient information on social media.
_____________________________________ __________________
 5. When faced with a public relations crisis, companies should call a meeting
and address the problem directly with their employees.
_____________________________________ __________________
6. If a manager has a relative as their direct report, that manager may treat that
employee differently than their other reports.
____________________________________ __________________
7. If someone notices that management tends to hire the same type of person,
they may suggest getting employees more involved in the hiring process. 
_____________________________________ __________________
8. Employers may encourage an unhealthily competitive environment among
employees to drive productivity and innovation.
_____________________________________ __________________
9. When a manager gives preference to a favorite or senior employee or
provides a solution that only works in favor of one party.
_____________________________________ __________________
10. A research university should have a neutral office of compliance that is
organizationally detached from the research arm of the institution. 
_____________________________________ ___________________

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