Business Ethics: A Code of Conduct

1. Business Ethics:A Code of Conduct Josh Combs Morgan Ewing

2. Honesty Fairness Objectivity Responsibility

3. Definition: • “The applied ethics discipline that addresses the moral features of commercial activity.” -Stanford Encyclopedia of Philosophy • When asked to created a CLEAR and INFALLIABLE Definition, • John Ruggiecame up with the following fundamental factor : • “Corporations have a responsibility to respect human rights in their operations whether or not compelled to do so by law.”

4. Relevancy In Business: • Companies are now expected to define clear, bold guidelines for employees to be aware of their ETHICALand MORAL obligationsto the company and themselves. • The Primary Core Values of businesses are evolving: • SOLEY PROFITS CREATING VALUE FOR CUSTOMERS, • EMPLOYEES, AND SHAREHOLDERS. • (Freeman)

5. Morgan’s example

6. Josh’s Example

7. Issues with Ethics Today: • Glass Ceiling, Discrimination, SOCIAL AND ENVIRONMENT OBLIGATIONS • GFI Bankers, a Mortgage Company of NY, NJ, CT, PA, and FL is paying a 3.5 MILLION dollar settlement against allegations of discrimination. • Charging much higher interest rate on loans to non-white Americans, with similar financial backgrounds. • Included a fine of 55,00, the maximum under the federal Fair Housing Act. • GFI was not the first to encounter this problem, Wells Fargo just settled a $175 million agreement, as well as other large lenders. • (BUTNER)

8. What is being Done to Embrace Business Ethics? • Embracing business ethics in the form of three basic principles which keep work “consistent with moral goodness:”   • The Dignity Principle, which holds that work should not diminish the dignity of the individual engaged in work or those affected by it • The Service Principle, which recognizes that work should be done in service to the greater good • The Accountability Principle, which states that business needs to be conducted in a way that respects both the autonomy and rights of the individual and the authority and values of the institution, and in so doing, preserve the integrity of both. Corporate Capitalism = Strong Faith in Business Ethics

9. Embracing business ethics…. • Although these three principles are not legally binding, many companies put them to use daily. • Ethisphere Institute’s 2012 list of World’s Most Ethical Companies • Some of which include: • - Ford Motor Company (USA) • - eBay Inc. (USA) • - L’OREAL (FRANCE) • -Accenture (IRELAND)

10. Works Cited • Marcoux, Alexei, "Business Ethics", The Stanford Encyclopedia of Philosophy (Fall 2008 Edition), Edward N. Zalta (ed.), URL = <http://plato.stanford.edu/archives/fall2008/entries/ethics-business/>. • Garrison, Ray; Noreen, Eric; Brewer, Peter; “The Importance of Ethics In Business” , Managerial Accounting (12th Edition, 2008), http://highered.mcgraw-hill.com/sites/0073526703/student_view0/ebook/chapter1/chbody1/the_importance_of_ethics_in_business.html • Cragg, Wesley, (2012) Ethics, Enlightened Self-Interest, and the Corporate Responsibility to Respect Human Rights: A Critical Look at the Justificatory Foundations of the UN Framework. Business Ethics Quarterly, 22:1. Retrieved from: http://secure.pdcnet.org/8525737F005803FF/file/0BE957928BA331468525795000481390/$FILE/beq_2012_0022_0001_0015_0042.pdf • Buttner, Russ. "$3.5 Million Settlement in Mortgage Bias Case." New York Times. N.p., 08 Aug 2012. Web. 25 Sep 2012. <http://www.nytimes.com/2012/08/29/nyregion/gfi-to-pay-3-5-million-to-settle-mortgage-bias-case.html>. • Freeman, Edward. "Environment, Ethics and Business." Bridgepaper. Business Roundtable Institute for corporate Ethics, 2008. Web. 25 Sep 2012. <http://www.corporate-ethics.org/pdf/environment_ethics.pdf>. • Faith and Corporate Capitalism." Bentley Ideas Impact for Business and Beyond. Bently University , n.d. Web. 2 Oct 2012.