Ethical Considerations

Ethics, Business Ethics and Ethical Dilemmas

What Is Ethics?

Ethics is the science of morals in human conduct — determining what is the right or wrong course of action.

• Ethics = the analysis of right and wrong, and associated responsibility
• Business ethics = the application of ethical values to business behaviour

Ethical Dilemmas

An ethical dilemma involves a situation where a decision-maker has to decide what is the 'right' or 'wrong' thing to do. Ethical dilemmas arise throughout all aspects of business operations.

Examples

Why Business Ethics Is Important

For the organisation:

• Good ethics should be seen as a driver of profitability, not a burden
• An ethical framework is part of good corporate governance and signals a well-run business
• Investors are reassured about the company's approach to risk management
• Employees are motivated by operating in an environment of good ethical behaviour

For the individual:

• Consumer and employee expectations have evolved — consumers actively choose ethical products (e.g. Fairtrade)
• Employees will not blindly accept orders to act in a manner they personally consider unethical